What are they? They are appraisal of the assets underlying achievement during some time frame which is given. To realize how wonderful Binary Options are indeed, we will first take a look at other trading markets and how the investment work there. In the most of them, the investor is buying particular asset he invests in and the worth of the loss and profit is decisive upon the value of the asset which is changing. If he decides to sell the asset back to the market every time when the value of it goes up, that will make him some profit. And if he sells asset to the market when the value of it is falling down, the money will be lost. And, as you can assume, the investor is obliged to follow the movement of value of an asset and to worry about when to sell it and vice versa, since he do not wont to expose his account to the volality of the market. But, when it comes to Binary Options, it is much simpler.
Here the trading is going on the market and not in like in the other methods of trading. So, it results in a smaller amount of psychological stress that an investor has to express, and the only thing he needs to do is to predict the movement of the asset for some time which is always predetermined.
When it comes to the name ‘’Binary Options’’, the word binary here means that there are two parts. In general, the main job an investor needs to do is to decide/predict if he is going to call off to put. So, that are only two possibilities for investment that trader needs to choose between. One is the one when your prediction is that the price of a particular asset is going to go up, and this one is the option called’ ’call’’. The other one that may be predicted is the one when the price is going to go down and that one is called’ ’put’’.
So the first step that needs to be done is to choose the asset. For example, if your interests are within prices of gold you can choose and put your investment there, in gold. Of course, it would be nice for you to be very familiar with a particular market you have chosen, since that will increase your chances to be successful in prediction fluctuations of the prices on that market.
Assets that can be traded in BO are of different kind, if you want to become a trader you will have a great variety of binary contracts offered to you. You can do the trading with: Indices (Down Jones, Nikkei, etc.), Forex (which is a combination of all the major currencies –EUR, GBP, USD, etc.), Commodities (Oil, Corn, Gold, Silver, Coffee, etc.), Stock (there are over 50 companies that are the world’s biggest ones from all kinds of industries and you can find them in the asset list of Optec, these are companies such as Coca Cola, Google, etc.