Digital Options Demystified

Binary option trading is a type of trading that is called all-or-nothing in which you either win or lose. It is different from all other conventional trading technique because the investor knows before trading, the amount of profit to be made or the amount of loss to be incurred. Here, you can not lose more than you invested and return on investment is usually high. This has made binary options trading very attractive to new traders who want a huge return on investment and it is also very easy to learn and trade.

It’s not difficult to get signed up to start investing in how to make money on binary options. All you have to do is find an online broker that provides a binary option trade.

Talk to the broker, have chat and have all your doubts cleared before you make your mind to become their client. Test their support, reliability and knowledge before making your decision.

There is a new, and exciting way to invest called binary options. They are what I would call a simple investment. They are not like vanilla options. With a binary option, you are essentially placing a “bet” on whether a stock, currency pair, commodity, or entire index will rise or fall. When you invest in a binary option, you chose either a “call”, or a “put”, just like vanilla options. The difference is that binary options expire in as little as one hour. You know the possible results before you even make the investment. You will either receive a 65-81% ROI, or you will receive nothing in most cases. The point is that in this simple investment, you already know what you stand to gain, or lose before you make the investment.

Getting good results in this sort of investment venture is not hard. You simply need to get the advice of an expert options broker. This is someone who has a college degree or a good background in finance. Always go with someone who isn’t just knowledgeable with terms but also with the nuances of this investment.

A $200, 75% payout 12:00pm expiration binary call option on Google with strike price $307.50/share will pay $350.00 if Google goes up as of 12:00pm, $30.00 if Google goes down. It does not matter if the underlying share price goes up 10 cents or 10 dollars, the payout is the same. Likewise if share price falls one dollar or one cent, the payout will be $30.00.

Each of these brokers are different and have varieties in above factors but each of them is reliable and safe to trade and I recommend all of them. One need to study each of them and opt two of them according to own convenience.