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What are binary options?

What are binary options?

Binary option – is a financial instrument with a certain fixed value and known-in-advance amount of profit. Present days BO trading is actively promoted in the Internet. Two immediate questions come to mind: how to earn money with binary options and how to use various strategies? Services market in the sphere of binary options is growing very fast. Of course, it entails the increased competition and different brokers try to attract customers with tempting advertising campaigns and offerings. For example, in Verum Option reviews users note that this binary broker' weekly Money Marathon with real money prizes is very popular and attracts more traders' attention to the company.

What are binary options?

Option is a financial asset trading with which a trader gets profits only in case he/she makes a correct forecast of the asset price movement — in that event a trader recovers his/her bid + 50-90% of the net profit. If the forecast is faulty – a trader loses only the amount of his/her bid. Thanks to the fact that a trader knows the majority of factors that may have an impact on prices, it shouldn’t be difficult for him/her to forecast the price behavior.

So basically, a trader purchases a contract from a broker and if the forecast for its price behavior is correct he/she will receive some additional profit above its value. Binary options are simple and pretty transparent way to get extra earnings. One of the key advantages of BO trading is the fact that a trader knows about all risks in advance and the option will be automatically closed upon its expiry. Expiration – is a date of the transaction closing or expiration date of the option.

BO trading has much in common with Forex trading. This is also true for the used strategies and trading instruments. If any trader already has some trading experience on Forex, it will be much easier for him/her to come to grips with the rules and principles of work on the binary options market. Nearly all Forex strategies and trading indicators can be used in the course of the binary trading.

Earning money with binary options

Any trading process carried out on the financial markets requires certain skills and knowledge. Beginning traders usually don’t have enough discipline, and that is the main reason for losses on the financial markets. That is why it is very important in trading to be goal-oriented, ready to learn hard and admit your errors – follow this recommendation and profits won’t be long in coming.

Binary options reviews in the Internet indicate that it is quite real to get stable incomes. Thus, InstaForex brokerage company, according to traders' comments on our website, offers futures options trading to make a profit in the period up to 4 weeks, depending on the forecasts and expectations of the trader. Either way, BO trading is definitely not something simple and it will require some effort. Let us not forget that any trading activity poses a certain risk. That’s why there is no point to trade with the borrowed funds or takes out loans under pledge of your property.

If you want to earn money with binary options instead of losing your savings, you have to learn how to make the precise forecasts of the market and closely predict if the price of a chosen asset is going up or down. Another important thing is to avoid jumping on the bait of various attracting offerings made by numerous brokers-scammers – there is no chance to get any profit, but there is a significant risk to part away from your money in no time. It is first of all not worth to choose unknown companies for BO trading, but it is better to check out reviews about brokers and only then – pass the registration.

Reliable brokers usually put up newcomers and investors to principles of trading strategies and examples of certain trading techniques and offer them to get familiar with various educational materials, including video analysts and experienced players of the market.

Binary options are simple and transparent method to earn money minimizing all possible risks.

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