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Binary options are investments based on if the current price of an asset will rise of fall by a specific expiration time. Some novice investors shy away from options because they feel they are too complicated, but this is not so. Binary options are a great way to mitigate risk, and have a potential for amazing payouts.
Click “CALL” if you anticipate the market moving HIGHER by the expiration date, or click “PUT” if you anticipate the market moving LOWER by the expiration date.
Most brokerage accounts will allow for the trading of options. Simply select that investment type in your account, and enter the terms of the trade based on the amount of capital you wish to invest. You can execute a trade prior to expiration, or allow the option to expire. Once your “PUT” or your “CALL” expires, you are either “in the money” meaning that you made a profit, or “out of the money” meaning that you took a loss. Once the trade is executed, or the contract expires, the funds from the transaction are deposited into your account.
The simple answer is yes. Before even executing your trade, you will define exactly how much capital you are risking. The capital at stake is the maximum amount that you could lose, but the upside is really unlimited. Options trading can be highly volatile, but in the investing...
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