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Binary Options – A Good Investment Idea? (1)

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Binary Option is not a ‘new’ market per se, but since the emergence of the internet as a trading venue, it has definitely been on the rise, with more and more traders engaging in binary option trades than ever before. But, is it a good idea to invest in binary options? Binary options are highly volatile, but come with potentially huge payoffs. – PowerPoint PPT presentation

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Title: Binary Options – A Good Investment Idea? (1)


1
Binary Options A Good Investment Idea? By
Profinance Blog
2
What people do with money?
  • Earn money
  • Spend as per requirement
  • Invest to grow money
  • Save For future requirement

3
Most people are always on a lookout for a new way
to invest their money and make a profit.
4
One of the more popular new ways of trading is -
5
In order to even start debating whether binary
options are a smart investment idea, we first
need to explain what they are. 
6
What is Binary Option
7
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. 
8
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.
9
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.
10
Where Binary options do involve?
11
  • Stocks
  • Currencies
  • Assets such as gold or oil, etc.

12
Why binary options are becoming more popular?
13
  • 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.

14
 What are the Risks
15
  • 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

16
The Bottom Line
17
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. 
18
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 

19
Thank You
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