Joe Sheli explain what a Binary option is
- By Joe Sheli|05 Oct 2019
If you heard about Binary Options before and you didn't understand, check this out
Binary options are a financial product that gives to the trader an opportunity to make profits, in a short period of time, if the trader will be able to predict if an asset will go up or down in price. Binary options trader doesn’t care if the price will go up in 1% or in 100%, all he’ll need is a change, to his direction.
For example: If I bought a option that apple’s stock (AAPL) will go up, and it went down in 1 cent, at the time my option expire, I will lose all of my investment, because i predicted that the price will go up. But if the price will be higher than my buying price when the option will expire, I will make big amount of profits, regardless the movement’s size.
With Binary options (B.O), the trader will either win a big amount( 70-80% usually) from the investment, or will lose everything. Binary Options providers will usually give you few options to pick the time frame you want your option to expire, the shortest is usually a minute, and the longest I’ve seen is a week.
Trading in B.O is a very high risk, and keep in mind that the odds are always against you as a trader, if you will win you will always make less than what you could lose. B.O is a casino in the financial market’s disguise, and most of the financial regulators around the world see it as gambling product and not as a financial investment. In few countries around the world, the Binary Options is even illegal.
Before you pick your Binary Option Provider and make a deposit, check out our 5 tips before choosing the right broker.