How to Generate High Returns With Binary Trading Options

Binary trading options are considered among the most recent investment options. This trading option has grown since it was introduced in 2008. As a result, more people are engaging in it. This investment is recommended because it is a short-term opportunity that generates high returns. You have the opportunity of trading from the safe confines of your home or the office. Furthermore, you can engage in it any time of the day or night.

The possible outcomes

To be successful with this trading option, you need to have thorough knowledge of the prevailing market trends if you want to generate high returns on your investment. Furthermore, this market is considered highly dynamic. Therefore, it is important to keep a close eye on the most recent news and global market happenings. As a result, it is important to consider hiring the services of a broker – they play an important role in making easy and reliable decisions.

Binary options mean there are 2 possible outcomes, either a win or a lose. Unlike the traditional investment options, you stand to earn and lose depending on the price movement of the underlying asset or stock. Traders opt for a “call” when the market seems to be moving to the higher side. This means the price of the instrument will need to be more when compared to the strike price to earn profits. On the other hand, the trader opts for the “put” as long as the prices of the stock are falling. Therefore, the price of the asset should be lower compared to the strike price.

To generate high returns

With this type of contract, you stand to benefit from fixed payouts of about 70 percent as long as the underlying prices of the asset or stock are retained by the time it expires. Time of expiry can be within an hour’s time, week or month from the time you enter the trade. Therefore, you stand to receive 70 percent of your investment in a matter of one hour, provided the price of the asset are above the assets price from the time the investor entered the trade (a call option) or when the price of the asset is below the asset price (a put option).

If you consider buying a leading stock for $130 when the stock is valued as $126, you may need to pay $90 for one contract. For the contract to be 70 percent more in one hour, the price of the asset would have to rise to about $3 within one hour. This is highly possible. However, even if the outcome does happen, it is difficult to predict the movement of the price within a short time.

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