Those, who are trading in the equity market since years, would have thought of a simple way of trading every now and then. For a salaried person, trading in the stock market was a distant dream. Anyone, who wanted to trade in the financial market but would sit quietly thinking the huge amount that has to be invested for trading, can now trade in binary options. For those, who could not invest huge amounts, trading binary options are like a dream come true. For trading in the financial market three things were needed, money, time and expertise. Binary options can be traded minus these things. Even a new trader can trade these options without having much money knowing only the basics of the trade. And what more a trader can expect because binary options offer quick results.
American binary options are a new way of trading where an average person can also enjoy trading spending only few hours in the trading and making great money. Now there is no place for fear of losing hundreds of dollars and spending days and weeks to gain profit. The concept of binary options is new to US but in other parts of the world they are already popular.
How American Binary Options Work:
American binary options have become popular because they are a simple way of trading. They are short term options that give prefixed payout over a fixed period future. If traded with good strategies, binary give excellent rewards. While trading binary options, you only predict the direction of the in which the option may move. Binaries can be traded in commodities, indices, stocks, and forex.
American binary option trading is a simple investment tool because:
- You exactly know your profit or loss at the time of the contract.
- You do not buy any shares but predict its direction.
- You can start trading with a very small amount which can be as little as $100.
- Profits are prefixed regardless market’s movements.
- They offer only two possible results – ‘in the money’ or ‘out of the money’.
- Online broker do not charge any fee for the transactions.
- Binaries are considered short term options as they give very fast results. The maturity time sometimes can be less than one hour.
- Only little bit of research can bring wonderful results.
In short, this is a simple tool of trading that can bring large profits. A successful trade can give you 75% to 85% profit multiplied by your investment. but don’t forget the potential loss also because that can also be big. An incorrect decision can lead to tremendous loss as binaries do not offer anything for an unsuccessful trade.
Where to Start:
Since American binary options are now available online, many platforms have come into existence. Find out the one that can provide you the assets you want to trade with. Different platforms give different payouts. So, it becomes important to find the one that gives maximum returns and also, some platform give back 15% of the invested money back to the trader if the option fails.