123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Stock-Market-Future-Market-Commodity-Market >> View Article

Understanding Binary Options

Profile Picture
By Author: Red Alvarez
Total Articles: 1
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

What are binary options?
Binary options, as the name indicates, has two potential results:
1. The price of the underlying asset closes either above or below the defined price at the fixed time. It can be described as one of the simplest financial assets.
2. Based on a “yes” or “no” scheme, it enables a person to trade, although the risk and the potential income, are capped.

Advantages to binary options trading
• The risk and reward can be recognized in advance, or when a deal is closed.
• Binary options terminate quickly and can make huge profits with a less fast, successful trades. The expiry time could extend from 15 minutes up to a week or two.
• Investments could start at $10.
• Binary options grant the possibility to trade with an extensive range of assets available worldwide.

Disadvantages of binary options trading
• Some binary options broker may not be well-regulated, and you might encounter the risk of losing money if your broker decides to deceive you.
• Since binary options trading is more of a risky venture, despite the study ...
... and analysis going into it, the result of the investment is not always guaranteed.
• Potential profits are limited related to the movement in the underlying asset. Whether an underlying instrument moves $1 or $100 in the direction you predicted, your income is restricted to the value of the binary option.

Brokers that allow binary options
You’ll discover that a lot of brokers support binary options trading. Though, some of them aren’t reliable or fall far below the qualifications for suitable brokerages. You can read more about this in Expert Option Review 2020.

Final thoughts
Since binary options trading comes with its set of pros and cons, you’ll have to decide if it’s the right investment for you. After all, poor regulations and profit potential can give it an unattractive option. But, there’s no doubting the fact that binary options are an outstanding practice ground for a new trader who wants to take the leap.

Total Views: 81Word Count: 314See All articles From Author

Add Comment

Stock Market/Future Market/Commodity Market Articles

1. Cryptocurrency Investing: It’s Not As Risky As You Think
Author: Miraclechaser

2. Is Day Trading Profitable? The Difficulties Of Earning Profits With Day Trading
Author: madhav joshi

3. Why People Prefer The Best Online Trading Platform?
Author: tradingpathsala

4. What Is Auction Market Theory?
Author: vtrender

5. How To Start Forex Trading With Forex Broker
Author: jessica smith

6. What Does A $2 Billion Unicorn Do?
Author: FinReads

7. How To Recover Money Lost In Stock Market
Author: David Smith

8. Why Indian Business People Are Interested In Stock Trading?
Author: tradingpathsala

9. How To Trade Cryptocurrency Effectively
Author: Jessica

10. 3 Awesome Things You Can Learn From Share Trading
Author: Anamika Patel

11. Top Reasons Why Companies Decide To Go Public
Author: Rashmi Dey

12. Fractional Shares: What Are They And How Do They Work?
Author: Rashmi Dey

13. Details About Auction Market Theory
Author: vtrender

14. What Is The Best Online Stock Trading Site For A Beginner
Author: Rashmi Dey

15. Tips For Buying Usdt For First Timers
Author: Coin Tiger

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: