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Binary Options trading offers a simplified version of trading ideal for novice traders as well as giving experienced traders the tools to effectively capitalize on their expertise. Binary means one or the other, and it is this simplicity that has made binary options so popular with new traders.

Whatever your background, whether you are an experienced trader or you have absolutely no trading experience whatsoever, the very simple nature of this way of trading means that it does not matter. Binary option levels the playing field for all traders – that’s the attraction. We’re sure you’ll agree!

As a binary options trader, you are simply attempting to successfully forecast the future direction of everyday stocks, commodities and currencies. As the name suggests, binary options have only two possible outcomes: whether the price of an asset will rise or fall over a certain period of time.

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Trading binary options really couldn’t be easier or more profitable. You simply choose an asset (like gold, the NASDAQ, the EUR/USD currency pair or Apple stock), decide whether its price will rise above or fall below your entry price over a given amount of time and you’re on your way! Depending on the outcome, you will either win or lose – you either receive a return on your original investment or you lose most or all of your original investment. It’s clear cut.

One of the biggest advantages of binary options and what has made it so popular is that you know exactly how much you stand to win or lose before you place a trade. With no spreads, commissions or complicated risk-management strategies (risk-management is built into every binary options investment) and instant, predetermined returns of between 60% and 500% on successful trades, binary options are without a doubt, the simplest way to make money on the financial markets.

So, there you have the basics. We’re confident you’ll find that in next to no time at all, you’ll be well on your way towards becoming an expert trader.

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Anyone Can Make Money with Binary Options

What is Binary Option?

A binary option is an option that pays either a fixed amount or nothing, depending on whether a certain condition is fulfilled when the option expires.

Binary options are also referred to as all-or-nothing options, since it is a type of option where the payoff is all or nothing. The return is therefore fixed and it comes as no surprise that such options are also known as: FRO’s-Fixed Return Options. Digital options is also another commonly used term. More simply a trader just needs to make a decision about the direction of a rate change: Whether the underlying asset’s price is going up or going down without taking other factors into consideration. Binaries are considered to be one of the simplest trading products out there, where the trader knows their exact exposure and potential gains at the time of placing a trade. Binary Options trading is considered as one of the fastest growing simplified trading products. Binaries are considered as a mass market financial instrument as it empowers traders with a very flexible trading approach without the complexities involved in trading traditional vanilla options. Whether you are looking for a short term speculation or hedging your portfolio, binaries can help you get a high payout within short trading periods and as such are gaining global popularity among traders.

Binary contracts are available on a variety of underlying assets: Stocks, Commodities, Currencies and Indices.If a trader has made a call or put and at contract expiration has been successful with regards to the anticipated direction of the underlying asset price, the contract will expire ‘in the money’. On the other hand, if the trader has been unsuccessful in anticipating the direction of the asset, the contract will expire ‘out of the money’.

When the expiry level is equal to the strike price the contract will expire ‘at the money’. Normally, there will be a fixed cash settlement to be returned which is often the initial investment, however this depends on what was predetermined and agreed in the contract.A Binary Option reflects specific speculation in financial markets that may happen during a specific time period.

For example:   Google price is now $801.25 and you want to speculate on the price movement of the share within a time frame of 1 hour.If you think that Google will rise above this price level, than you should buy a binary call option – if the Google price closes above the current price level during expiry than the option will expire ‘in the money’, paying you the fixed odds return promised during the trade. If not, the option will expire ‘out of the money’.If you think that Google will fall below this price level, than you should buy a binary put option – if Google’s price closes below the current price level during expiry than the option will expire ‘in the money’, paying you the fixed odds return promised during the trade. If not, the option will expire ‘out of the money’.

Advantages of Binary Options

Simplicity – Will the asset close above or below? 
Binary options are simple to understand and straightforward to trade as the trader only needs to consider the direction of the asset price.

Limited risk and predetermined payout.
The payoff of a binary option contract is fixed and pre-determined so, therefore, the potential risk and reward is known from the outset. With traditional options, there are no outlined parameters so the possible loss or gain is not known.
The binary option will settle the contract irrespective of how much the asset price is ‘in the money’ at expiration. Therefore even if the contract is only successful by one tick the contract still pays out at the fixed level.

Simplified hedging of your portfolio.
Binary options are often used as an effective tool to hedge existing positions. As a product binary options are compatible to most commonly used trading methods and strategies. Also with binary options it is possible to offer a a greater selection of short-term contracts across all markets, which enables the intra-day trader to trade more frequently.As opposed to vanilla options, while trading binary options the options can close ‘in the money’ collecting the full payoff even with a minimal price change of a single pip.Binary options are issued 24/7, allowing traders to trade on multiple time frames. As binaries are offerred on a variety of global underlying assets from different exchanges, traders are now able to trade binary options 24/7 from the same binary options platform.

Binary Option Trading Strategies
A very common strategy is to make a put or call option once there has been a big move in the market, especially if it is an unexpected move.Often binary option traders will open positions related to events that historically have a big influence on market prices. For example, quarterly profit or loss announcements from firms are eagerly watched by potential traders, since positive or negative results often reflect the movement of the share prices. As well as formal preplanned announcements, traders will always be watching the news, as many different events can influence the markets i.e. Natural disasters to political changes. Eventually the best strategies come with experience and knowing what to watch.

Binary Options in Global Financial Markets
Binary options falls under the umbrella of exotic options but within financial markets they are often referred to as digital options. Whilst digital options are very simple to understand and easily traded, the calculation behind the pricing is sophisticated. It is for this reason digital options are known as exotic options.

Digital options are usually traded OTC (over the counter) across all assets in financial markets but are more commonly used within the Forex and Interest markets. More recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO’s (fixed return options). Today, the CBOE offers fixed return options on S&P500 and VIX. Additionally, 20 stocks were listed on AMEX in 2008.

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The Fastest & Easiest Way to Make Money Online

What is Binary Option?

A Binary Option, also known as "Fixed Return Option" (FRO) is a revolutionary trading option that have been available since 2008 and are simple for any trader (Newbie or an Expert) to understand. In essence when trading binary options a trader will only have to decide about the direction of the underlying asset whether it's going to be above or below the current asset value in a fixed amount of time (60 seconds, 15 Minutes, 1 Hour, etc).

If you (the trader) predict correctly then you can earn nearly double your investment or more on some options (between 90% to 620% maximum profit ratio), and if you are wrong, you will still receive a portion from your investment back to minimize loss (between 0% and 50% losing ratios, case by case scenario).

The Binary Option, like its name "binary" that is based on a numeral system with only 2 digits (0 & 1) this is an option between only 2 ways: "CALL" or "PUT" (UP/DOWN) on the way which the price of a specific Stock, Commodity, Index or Foreign Currency will move towards in a predetermined expiration time.

Thanks to Binary Options there are only two possible outcomes and the asset price doesn't matter, so the trader never have to purchase the asset like in Forex and stocks, but only to predict in which direction the asset will go. All that matters is if your prediction was correct or incorrect, it's a simple and hassle-free process that will only take a few seconds to initialize, yet it's the most rewarding way to trade online. With no spreads nor margins, your winning chances are higher and this combined with our payout ratios and ease of use are the reasons why "Binary Options" trading is becoming so popular, and considered as one of the fastest growing simplified trading products. Whether you are looking for hedging short term or long term, we can defiantly help you get that goal and achieve success much more efficiently.

What Are the Advantages of Binary Options?

Simplicity

You only need to predict in which direction the asset will expire, for instance: Will "Google" stock price expire higher or lower from its current value in preset time?

Higher Profits

In no other areas of regulated investments a trader will have the opportunity to gain as much, binary options offers amazing returns of up to 620% for a single trade.

Controlled Risk

The percentage of return is known in advance, without any further fees or spread margins. Binaries are often called (FROs) a fixed rate options.

Trade 24 / 7

Binary options contracts are traded around the clock and from anywhere, allowing to trade on multiple time frames. There is always an expiry time arriving, which constantly yields new opportunities for binary options traders.

Asset Selection

Binary options offer a greater selection of short-term contracts across all markets, which enables the intra-day trader to trade (in over 100 assets) more frequently.

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