Binary Options – A Good Investment Idea?

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Binary Options A Good Investment Idea? By
Profinance Blog
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What people do with money?

• Earn money
• Spend as per requirement
• Invest to grow money
• Save For future requirement

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Most people are always on a lookout for a new way
to invest their money and make a profit.
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One of the more popular new ways of trading is -
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In order to even start debating whether binary
options are a smart investment idea, we first
need to explain what they are. 
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What is Binary Option
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A binary option is the option where the payoff
can have only two possible outcomes, called in
the money and out of money when the option
matures. 
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You are putting your money, predicting whether a
commodity will be trading above or below a
certain price at the time the binary option
expires.
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You think that a stock of a company we will
call X will be worth more than a 100 at 2 p.m.
today.
You purchase a call option on such an outcome.
You are then showed how much money you will earn
if you are right
If you are wrong and the stock goes down with its
value dropping below 100 by 2 p.m., you will
lose your money.
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Where Binary options do involve?
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• Stocks
• Currencies
• Assets such as gold or oil, etc.

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Why binary options are becoming more popular?
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• One can make quite a bit of money trading in
  binary options.
• The profits that can be made in the binary option
  market are manifold of the money you actually
  invest. In addition to this, binary options are
  traded at a rapid rate, often closing within
  hours or even minutes from purchasing an option.
• You do not need any kind of formal education to
  trade on the binary options market as you will be
  investing usually without performing different
  kinds of analysis that require theoretical
  knowledge.

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 What are the Risks
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• Like all high-yield markets, the binary option
  market also comes with a number of risks. 
• People choose not to start investing in binary
  options is that they are often traded on
  unregulated exchanges and websites where the
  traders money is not safe.
• Binary options are notoriously difficult to
  predict, especially if you are not serious about
  your trading.
• Due to the short maturity time, the moves on the
  market are quite hard to imagine

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The Bottom Line
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In short, binary options are highly volatile, but
come with potentially huge payoffs. If you find a
reputable place to trade in binary options, there
is really no reason why you shouldnt try your
hand at this kind of investment. This is
especially true since many binary option trading
platforms allow you to first try it out for free,
before you make a deposit and start investing for
real. 
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Authors Bio

• Tina Roth is a personal finance writer and
  educator. In addition to being the editor at her
  own Finance Blog, she is a contributing writer to
  many other online finance blogs. When she's not
  working on her budget spreadsheet or looking for
  topics to write about, you can find her playing
  with her kids or doing her house decoration. To
  reach her you can visit her Google Plus profile
  here https//plus.google.com/u/1/TinaRothBlogger
  /posts 

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Thank You