The Binary Options Illusion
Binary Options are like regular options in that they allow you to make a bet as to the future price of a stock. However, binary options are different in that if the “strike price” is met by the expiration date, the binary option has a fixed payoff of $100 per contract. It doesn’t matter if the stock price is a penny over the “strike price” or if it is $100 over the strike price, they payoff from the binary option is the same–$100.
They are called binary options for this very reason. Binary means “2” and they have only 2 possible payoffs–all or nothing ($100 or $0).
Unlike traditional calls and puts, binary options do not have set prices. The binary options trader decides the amount of money he wants to bet and invests that amount when he buys the binary option. If the price is $0.25 then he stands to make $0.75 if the underlying moves as much as the investor hopes. The time of expiration for binary options is set at different time intervals throughout the day, such as expirations of 1 hour, 1 day, 1 month, etc. The short duration of these contracts makes them more attractive to speculators and risk takers.
Binary Options Secrets
Trading websites – financial brokers – offer a variety of extras and conveniences for their trading audience. This is a good policy to attract more and more customers and on the other side, it is a superb way to stimulated traders to trade more and more often. One of these extras is the bonus and it can be also met as a promotion or special offer. All of these terms refer to a bonus system of any binary option trading brokerage. To get this bonus they have a 30x trade requirement on it. So if you deposit $1000 into your trading account and accept a 20% bonus ($200), you will not be able to withdraw from your account until you have traded $6,000 in volume. Before you can claim your money back.
Create better odds
With Binary Options a trade has only 50% chance to profit. Most of the time the trade goes first against expectations. The trader does not like to loose on the position much, so they might close the position before it sees that it turns in the right direction. For this reason most traders of binary options only looses money and quit. To make money with Binary Options is an Illusion.
We like to trade regular options. With regular options you can sell options and receive credit. And you can choose options which has high probabilities of profit. You may setup trades with probabilities of 68% or more.