Using Binary Options To Make Quick Money
Binary Options are better known as FROs or Fixed Return Options. These offer quick returns for those wanting to work from home instead of at a nine-to-five job with a boss breathing fire down their necks. For those who prefer making their own work timings and giving all family obligations preference over a fixed time job, binary options are a great way to go. Under this option, a fixed return is given to the trader. It does require some amount of investment but this is nominal. Plus these are so difficult to get wrong that you seldom end up losing any money. The trader just has to study the trend of the option he wants to invest in and has to predict whether the price will be going up or falling. This is a relatively new entrant into the financial market and has already become popular because of its simplicity and quick returns.
These are easy to work with and can be very profitable once a trader gets the hang of it. All you need is an internet connection and access to a Personal Computer or a Laptop and you are good to go. No more bosses to answer to. No more missing important events of your family because you were not given a leave. The best part is even if you do go for a holiday with your family, you do not stop earning. Put in a couple of hours at night or early in the morning and earn while sitting on a comfortable couch in a hotel room or while watching the sunset at a beach.
To start investing in Binary Options all you need to do is find a broker, decide upon the asset that you want to trade in and then research a little into the asset’s history. Once you follow these steps, you are good to go. When dealing with bigger amounts, it is also advisable to consult an expert or go through a few blogs and informative sites about binary options to avoid making mistakes.
There are many types of binary options available for those who want to trade in them. Some of these are listed below along with a short description about how they work.
- The High/Low type: The high or low binary option is the most popular one and the easiest to understand. In this, the trader studies the option and predicts whether the price of the asset will go higher or lower over a certain span of time. This is also known as the Call or Put option. If the trader thinks that the asset price will be higher than the current price, he or she would purchase a “Call” option. On the other hand if they think the price will be lower than the current, then they would take a “Put” option. The time span varies for various brokers. Most offer an hourly or end of the day bases timing. However, with increased investments, it is not possible to invest on call or put options for a shorter time too. The returns offered on these can be as high as 70-90%.
- The Touch Contract Options is becoming increasingly popular. In this type, you have to select whether or not you believe that the price of the asset you are investing in will reach a certain level during the contract period. The pay out in this type of option is made depending upon whether the asset’s price does reach the price you selected and also the period of the contract. The returns offered on these can be as high as 700%.
- The Boundary Contract Option is one in which the investor selects a range of the price for the option. The criteria is that neither the high nor the lower points of the range can be touched during the contract period. The price of the option has to remain within the range selected.
- The Sixty Second Options are used mainly for fast pay outs. They are essentially like the high or low options but with a shorter time frame. In a very strong binary options market, this type of option can be used to book repeatable profits following a trend.