Binary Option has gained significance among traders over past few years. Some of the experienced and skilled traders prefer this for gaining dividends over small investments for very short duration. In this case, minimum of 30seconds can get you gains up to 95%.
Yes! That simply means if you invest $10 for a shortest duration of 30 seconds, you can get 95% profit (19.5 % in this case).
But is it always this easy?
Here are few points about Binary Option that any investor must know:
What is Binary Option?
In simple words, Binary option is a derivative financial product with fixed payout percentage if the Option expires in the money and the investor loses the money if the Option expires out of money.
We will understand the same with and example:
In this screenshot, I take a call and invest $10 predicting the graph line to be further rising from the point of investing when it crosses the red expiration line.
Profit : 92%
Investment : $10
When the graph expires on crossing the red line, the graph is expected to be above the investment point for profit.
The graph on expiation was higher than the point of investment, thus giving a profit of 92% within 30-45 seconds.
Profit: $9.23 on investment of $10
The same way for the ‘PUT’ option. So, If you predict the graph falling, choose PUT.
But, you must always remember the fact that if the graph falls when you choose ‘CALL’, you will lose money.
The graph can be read by various indicators and some of the best traders use them to study the Option.
One must be aware of the fact that there are number of companies and brands and you cant trust everyone because there has been some fraudulent cases.
Comment your queries and suggestions.
NOTE : The data and screenshots are author’s personal account.
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK