To the average person binary option trading may sound a bit complicated, but in actuality, It is one of the simplest and most profitable stock related avenues you can take when making a financial investment. It requires no special knowledge, so almost anyone can profit greatly from Binary option trading. All you have to do is pick a stock, and predict whether you think it will go up or down in the specified amount of time. If you are correct in your prediction, you receive your payout. If you are incorrect however, you will not receive anything. This is why binary option trading is often referred to as “all or nothing” trading.
There are two basic types of payouts for binary option traders; Cash or Assets. The value of the payout is predetermined at the beginning of your contract, based on you binary option broker’s rates, and the amount of your investment. For example, let’s say you have a strong feeling that a certain stock is getting ready to rise. You buy a call option for two hundred dollars. Some brokers allow for a profit of up to four hundred and fifty percent. In this case, if you are right, your two hundred dollars has just turned into nine hundred! It also works vice versa. If you feel a stock is getting ready to plummet, you would then purchase a put option instead, and as with the call option, a correct put option results in payout.
To get started, you will need to choose a binary option trade broker to go through. There are literally hundreds choose from, and they all vary greatly from one another. One thing to consider is how much of a minimum deposit is needed. Some brokers will let you get involved for as little as one dollar, while others may require upwards of $1,000. The payout rates can also be significantly lower on some websites than others. Typically, rates are between 85% and 450%. In most cases, a payout will become available when your stock reaches the expiry date set at the beginning of the contract. At this point, the stock can be evaluated to determine if your prediction is correct.
So, if you are interested in earning money as a binary option trader all you need is a computer, a little investing money, and a sense of what type of stocks are in demand. Just sign up with a 24option broker, and you’ll be trading in no time! Check 24option Review at Binaryoptionsthatsuck.com , #1 Binary option broker.