Binary Options Trading
Binary Options are the new and simple financial trading product, which is not yet introduced in India by any Indian regulated brokers. The curious Indian traders can have a first hand experience on Binary Options Trading by opening a DEMO ACCOUNT with a Broker of global repute. Binary Options trading is an option trading that provides a fixed time for expiry with a fixed payout. Binary Options trading has only two outcomes for traders to predict and place the trade. It offer traders a quick and easy way to make money from correct predictions (CALL or PUT). The prediction is done on the value of a financial asset (EURUSD, GBPUSD, GOLD, OIL, SILVER etc.) over a defined period of time. Depending on whether the trader’s prediction is correct or not,the profit or loss of the trade is decided.
Binary Options trades have limited risk. This means traders know how much they are risking in a trade in advance. Fixed returns based on a percentage of the initial investment are also known in advance for a profitable and successful trade.
This makes understanding and trading Binary Options very simple!
For example, if you predict the value of Gold or Silver will increase today, and you are proven correct, you win a fixed payout. If the value of Gold or Silver drops, you lose the entire amount of the investment. It does not matter if Gold exceeds the original price (called the strike price), by $0.05,$1 or $50, the payout is the same.
It really is that simple and you can invest as low as just $1 per trade! Minimum trade amount varies from broker to broker.
A more detailed example for you, if you predict the value of USD/JPY will increase over the next 1 hour. USD/JPY is currently trading at 120.485 and you invest $100 on the trade. Since you predict USD/JPY will increase you select the CALL button. If after 1 hour USD/JPY is trading above 120.485 as you correctly predicted your trade will be automatically closed by your Binary Options broker for a profit, in this example the return is 85% so your profit on a $100 investment is $85 ($100 x 85% = $85). You have received an 85% return just for predicting that the value of USD/JPY will be higher in 1 hour.
You can trade Binary Options over hundreds of financial assets from around the world. Its not just gold or EUR/USD. These assets include currencies (Forex), indices, commodities, stocks.