To begin with, what is the binary options in its essence? Despite the fact that there are a number of differences between trade and trade options, for example, in the Forex market, the ultimate binary options – this is the same exchange trading. That is, resale of currencies, shares or commodities.
And if we talk about the trader’s activity, that is, the person who is engaged in such activity, the profits he receives, is characterized by the following features.
There is no minimum or maximum amount of profit. On the one hand, this is bad, because there is no guarantee that you earn anything. On the other hand, it is extremely good, as you have the opportunity to earn almost any amount. Therefore, dealing in options can indeed be a good solution to stop experiencing financial dependence, if you know how to do it properly.
Earnings depend on how correct your prediction on the movement of the price of a particular underlying asset turned out to be. Therefore, the ability to make correct predictions is essential for the trader. Naturally, this must be learned. If we talk about the difference from the usual trading options trading on the stock exchange, in the first case, you do not need to calculate how far the price will move in one direction or another. It’s enough to predict the direction you predicted correctly. For this reason, options trading is often more profitable and definitely easier than regular trade on the currency or the stock market.
To begin to make a profit, you need to buy an option or a few options. Since in this case the option is a product, it will need to be purchased using money. So we can not say that this kind of trade does not require investment. In addition, the more expensive options you buy, the higher your profit will be. Because it is calculated, as a rule, it is a percentage of the value of the option that you purchase. And if you do buy an average of $ 10, this is one level of profit, and if $ 100 – something completely different. This allows the trader to adjust the profit that he gets.
