Binary Options 101

Binary Options 101

Trading the markets has never been so simple since the introduction of binary options. It is now possible to access all of the important major markets from your the comfort of your own computer or mobile device, and participate in the potential profits that are on offer. You don't need a lot of money to trade and the easy trading on offer can see you up and running within minutes of opening an account.

Trading with binary options offers you a wide variety of different ways in which you can speculate on price outcomes on the financial market.

You can trade a variety of different assets including Stocks, Indices, Commodities and Forex pairs by making use of the contracts offered. These contracts offer a fixed and time limited payout which offer you the opportunity to make a return on your capital by making simple predictions as the future direction of price movement.

To start trading all you need is to open an account with one of the leading binary options brokers on the market. This can be completed in a matter of minutes, after which you will have access to the wide range of assets and contracts on offer. Placing these contracts is simple and can be done at the touch of a button. All you need to decide is the direction in which you think the price of the asset will move over the duration that you set on the contract. Contracts are typically set to expire on the hour. However you can set them to run for longer or shorter time duration, depending up on your analysis.

The most common contract used is known as the Call or Put contract. This lets you profit from correctly forecasting whether a price will end higher or lower than the price at which you enter the market.

Here is an easy definition of each of the two contracts -

• The Call contract is used if you think that the price will end higher. 
• The Put contract is used if you think that the price will end lower. 

All you need to do is carry out some simple analysis and you can pocket the return offered by the broker at the agreed expiry time if you can predict the direction that the price will move in. This is known as the contract ending 'in the money'.

One of the main benefits associated with this form of trading is that it allows you to make high returns over relatively short periods. For example, you can frequently earn payouts of over 75% on a single contract in less than one hour. Allowing for this compounding effect of trading this can see traders generate a high income over a very short space of time.

Of course you should not expect to win every position. However even with the odd loss, the potential for making impressively high profits is high.

Binary Options is simple to get into making it ideal for new traders who have little prior experience of trading. For this reason it is a good introduction to the world of financial trading and investment. You can trade contracts from just a few dollars with most brokers which makes this one of the most low cost introductions to the world of financial trading that you will find.

If you want a great opportunity to make money with from simple financial trading with binary options then be sure to check it out today.