Buying and selling stocks on the stock market is a very traditional approach to financial investing ( read about put and call options ). It is something which has been undertaken for many years. However, alongside the considerable risk of investing this way you will need to have a significant amount of capital to help you get started. A viable alternative which is becoming better known is the binary options trade. The biggest advantage of this type of trading is that you can never lose more than your initial investment and you will always know what profit you can expect to make; assuming you are successful.
It is also easy to understand and get started in; although to make consistent profits you do need to have an understanding of the financial markets.
Ease of Access
Binary options trade is a viable and easy way to start your investment portfolio. All you need is to create an account and fund it. There are a variety of different funding options but the average in the industry is $250. You then choose an asset, a price direction, the amount you are willing to invest and the expiry time of the option.
Should you choose to trade with the simplest approach you will only need to pick which way the price is likely to move. As you can trade in both directions you will be able to make money even on a falling market and with only the smallest of price movements.
There are also higher risk options, one of which is proving to be very popular and can provide you with returns as high as five hundred percent! This is to specify a price that the asset will touch over a weekend; if it does then you can see an excellent increase in your capital.
The reason why this investment option is affordable is that you never need to purchase the stock; you are simply buying an option which says what the stock will do. If you are correct you will gain a profit; if not the broker will gain your funds.
To ensure you win more than you lose it is essential to use all the tools available to you. There are two main types of analysis:
- Technical; this refers to studying price charts and using historical information to estimate what will happen in the future.
- Fundamental; in contrast this technique looks at what is happening in the general economy and the financial markets. You may also look at the specific company to see if it is experiencing any big ups or downs.
It is best to use both types of analysis to ensure the best possibility of placing successful binary options trade.