How binary options work – Can you make money with binary options? Video
How binary options work – Can you make money with binary options? [Video] Binary options are one of the most controversial trading instruments – for a reason: On the one hand, they are super easy to trade and therefore perfect for beginners. And they are perfect for traders with small accounts because you can open a binary options account with as little as $250. But on the other hand, there are some binary options brokers out there that are simply a scam. Most of them are overseas, and when you wire money to them, you’ll never see it again. So let’s take a closer look at Binary Options and see if they are legit and if you can really make money with binary options. In this article, you’ll learn… How binary options work Can you really make money with binary options What are the best binary options brokers that are NOT a scam? Are binary options legit? Is binary options trading safe? And what is the best strategy for binary options? How Binary Options Work. Binary options are super easy to understand. You just need to make a decision if a certain market is above or below a certain price by a certain time. Let me give you an example: Let’s say you believe that Gold will close above $1,700 by the end of the day. So you can place a Binary Options trade: The price of a binary option will be between $0 and $100. And that’s the amount that you need to put on the table to place this bet. Let’s say the price of the binary option to bet on Gold being above $1,700 by the end of the day, is $40. When placing the trade, the broker takes $40 out of your account. If by the end of the day Gold closes above $1,700, you get $100 back. So you put $40 in and you get $100, i.e. your profit is $60. If Gold closes below $1,700, then you get nothing back. And since the broker took $40 out of your account, and you get $0 back, your loss is $40. Here’s the cool thing: Binary options are available for a wide variety of underlying markets: Major indices like the Dow Jones, S&P 500, Nasdaq, … Major commodities like Crude Oil, Gold, Silver, … Major currencies like EUR/USD, USD/JPY, GBP/USD, … … AND they expire daily or even hourly! So if you don’t want to wait until the end of the day, you can trade a binary option that expires in the next hour. All you need to do is decide whether a certain market is closing above or below a certain price within the next hour! As you can see, the possibilities are (almost) endless. So the next question is… Can You Really Make Money with Binary Options? IF you trade with a reputable broker: YES. We will talk about the best binary options brokers that are NOT a scam in a few moments, but let’s talk about how to make money with Binary Options first: Here are the 3 things you need to know: Is the market more likely to go up or down?