What are Binary Options?
Binary Options are the simplest way to trade the market. They have been available since 2008, and have become regulated in Europe by the CySEC
in May, 2012.
Even though online binary options trading has only been around for some years, it has become an online sensation due to its simplicity. What makes binary options so simple to trade is that you only need to predict if the price of an asset for example gold will go up or down from its current price after a set period of time.
In other words if the current price of gold is $1,250, you simply predict if the price will be higher or lower after the predetermined period of time such as 60 seconds or 5 minutes or 1 week etc.
In binary options you do not need to predict what the final price or by how much the price will change at the expiry time. So in the example about if you predicted the price will go up and made a “CALL” trade, if the price at expiry is $1,280,001 you will win the position, which is known as being “in-the”money”. If your prediction is incorrect it is termed, “out-of-the-money”.
Another key attraction of binary options trading is that you never own the underlying asset which means you don’t need to physically attain the asset and with as little as $5 you can make trades.
As binary options have grown tremendously within the recent years, we at VXmarkets offer several different products and versions of the traditional binary options, such as One Touch, 60 Seconds, Pairs and more. Each product has a clear set of instructions, regarding “How to Trade”.
Once you start trading you will see how simple and profitable binary options are. Don’t hesitate – Start trading now!
Benefits of Binary Options:
- Controlled Risk – Binary Options are actually have the lowest risk involved, because you know exactly how much you stand to lose, and how much you can profit. Your loss can never exceed your
initial deposit, and with VXmarkets, you will always get back at least 10% of your original investment amount
- Simplicity – What is easier than up or down? You don’t need any previous experience to successfully trade – just a general sense of market movement.
- Profitability – Standard binary options give you around 74% return on your investment. However, with products such as One Touch, you can even earn 550%.
- Availability – Binary Options are issued around-the-clock, even on weekends, holidays, or other occasions that markets are closed.
- Hedging opportunities – You can hedge other positions that you have in currencies or stocks, to eliminate further loss.