What is a Binary Option? Should I Invest in Them?

I got started with investing around 4 years ago and I must be honest, I didn’t really know very much about it when I started. The first year turned into a real learning curve for me as I learned about different markets and different trading options. I have had both failures and successes along the way, overall I’m in profit which is the main thing.

My recent foray in investment has been with binary options, an investment opportunity presented to me by my expert broker Jean-Yves Sireau. I had no idea what this trading method was all about but after some research and some advice, I realized just how easy it was. If you are looking for new ways to invest, take a look at these binary options.

What Are Binary Options

In its most basic terms, a binary option is what you will buy when you believe the price of a particular global market or index, will rise above a certain price, by a certain time. The most common of the binary options is high-low which is where you will invest your money on the fluctuation of the value of a market. You can make this prediction within a time frame of anywhere between 30 minutes and months in advance, depending on your analysis.

In order rot make money from this investment, you need to be right in your prediction and the amount of money which you will gain depends on the probability of your prediction. Let’s say for example that you invest $100 that the FTSE500 will go above 1100 within the next four hours, assuming it is at 1050 now, you may get a 70% payout offer. When the four hours are up, if the price is below what you predicted, you will lose your money, if the price is above what you predicted, you will get your money back, plus the 70% payout fee giving you $170.

Should You Invest?

Binary options aren’t for everyone and they can actually become quite addictive as you are essentially gambling on something which is relatively unknown. If you are a safe investor who likes long term investments, this is not the place for you. If however you prefer to try and get in and out quickly, making money along the way, binary options does present you with the perfect opportunity for you to do just that.

The absolute key to binary options, and more so than with other stock investments, is that you must have a full and comprehensive understanding of the market, how it moves, what can impact it and when it is unstable. The actual trading of binary options is very simple indeed, it is essentially just a yes or no answer, but to have the confidence in making this decision, you must have great faith in the analysis that you have done beforehand.