People who invest time money and effort in assets market plays one of the biggest gambles ever. Their lives don’t get comprehensive due to playing with dicey price scenarios of assets in different times. Thus Binary Options, a facile tool to comprehend people while trading their assets, which includes stocks, commodities, currencies. It is even applicable for predicting economic events such as a high unemployment rate of a certain percentage after five years.
Like Binary, which in literal means 0 and 1, you will always one out of the two options, either everything or nothing. However you can decide what amount of profit you want to take or a maximum amount of loss you can incur by predicting. It makes your prognosis that much comprehensive as you will know your gains and losses prior to playing it.
Like every exchange process, this also involves two transactions, buyers and sellers. Through Binary Options, traders have the luxury to fix the duration for the trade. If a trader believes that the price of Coca Cola shares will be $1000 per share on 10 am on the following day, the trader can set the time up to 10am. There will be one consequence, either you buy the option if the prediction gets true or sell it if the opposite happens. It’s mandatory take note that while you are trading the shares, you do not possess it.
And the fluctuations are ranged from $0-$100. If you believe there is a 30% chance for the stocks of Coke to reach $1000, buy a Binary Option of $30. If your prognosis turns to be true your maximum profit will be $70, as you will be receiving from the seller, otherwise you will incur a maximum loss of $30.
Since the trade price is below $50 the seller has a better number game over the buyer, this also requires him to put up more assets on collateral than the seller, and vice versa. The magnitude of risks and rewards is based on the level of amount that has been initiated with.
The bottom line is Binary Option is a breath of fresh air for all the traders around as this gives the exhilaration of trading fast with faster and better rewards. With just three simple steps: Choosing assets, direction (‘Call’ for rising and ‘Pull’ for falling), and duration, your prediction towards the price of assets or for any economic events starts. If it turns true you win what you are expected to, or else you’ll lose. Seeing this feature you will feel like singing to Jockey innerwear’s theme song “All or Nothing”. So leave the intimidation regarding trading as this helps you to at least what to expect.