As part of our ongoing series of articles and financial related guides, in this one we are going to introduce you to the Binary Options environment. Whilst the very words Binary Options may strike fear into most people, they are a relatively straight forward type of financial product that more and more people are getting involved in, amazingly due to them being a very easy to understand financial instrument.
When you strip a Binary Option back to its bare roots, it is simply a wager on which there can only ever be one of two possible outcomes.
You can place a Binary Option on practically anything including but certainly not limited to Commodities, Stock Market values, Currencies and Assets such as gold and silver.
At no point when you place a Binary Option do you have to purchase the item on which you are placing a wager on, you are simply trying to predict the way its value will rise or fall over any given time period.
How to trade binary options? Basic Binary Options Trading
Whilst there can be some very exotic and very hard to understand Binary Options available, the most basic ones are what first time and even experience traders tend to stick to placing trades on.
You will find a complete listing of all of the available Binary Options listed at any of our featured Binary Options Brokers websites, in fact you will be able to open up a demo trading account, so once you have finished reading this trading guide, if you wish to see how easy Binary Options trading really is then we actively encourage you to open a no obligation demo trading account.
The Binary Options market place with list a very wide range of trading options, let us say that you are convinced that the price of silver is going to move in one direction or another over any given time period. You then have to place either a “Call” or a “Put” Binary Options on the trading platform you are logged into.
If you think that the value of silver for example is going to increase over the specified time period then you choose the amount of cash you wish to wager on that options and place a Call Option.
If however you think that the price of silver is going to decrease in value over the specified time period then you place a Binary Option known as a Put Option on silver.
The beauty of trading Binary Options online is that you do not have to buy precious metals like actual silver bullion for example, and you are only going to lose the value of the Binary Option you placed. If your Binary option moves in the direction you predicted at the end of the time period indicated then you have placed a winning trade and will be paid out accordingly based on the amount of cash you invested and the return offered by the Broker on that Option.