How Much Money Can You Make by Trading Binary Options? There are various articles on the internet on trading forex, investment advisory services, stock trading and so and so forth, and even more articles on psychology of traders, and money minting stock tips & ideas and what not. Now, there is the new kid on the block named “Binary Options” and it is making quite a buzz, and you will find tons of articles on how people have made money with, tips and strategies how to trade with and which of the you should rely on. But all these comes down to the some very basic question one should be asking: can I make living out of it?

• Binary Options Strategy

Binary Options Strategy

Can I be a binary trader and don’t have to go for the 9-to-5 job and can I retire early? Though none of the questions is easy to answer as every individual has different situations and thinking, I have made an attempt to explain the ifs and buts of “Binary Options” through this article. To start with, the answer to the question to make a living is “a big YES”, yes it is possible to make a living trading binary options and if you trade through a legal broker like and employ effective strategies to trade. So what are those effective strategies and how to select broker? Let’s understand. What Are Binary Options? The simplest answer is “it is a trading of options with only two outcomes (binary)”.

To elaborate further, it encapsulates the prediction of directional movement of an asset like precious metals, currency etc. As you know, that in a stock trading you take a view of specific stock/index and invest into it, and then hold the security for certain amount of time which may be either minute, hours, days, weeks, months or years. If your view is correct you gain, otherwise, you make losses. It is impossible to predict in advance the amount of gain or losses you can make in the stock market.

Back to what is binary options... A binary option is a wager that a specific asset will behave in a specific manner at a specific time. When you buy a binary option, you are wagering that the value of an asset, perhaps a stock, will increase or fall when expected.

Trading signals for free online forex trading course beginners. But in the case of binary options, though it is similar to trading in forex or stock trading, you actually know the amount of loss you may have or the amount of profit you can make. Normally, in a binary option, you can either buy a call option (your view is that the asset price will rise from the current price in a specific duration) or buy a put option (your view is that the asset price will fall from the current price in a specific duration).

If you are view turns out to be right, you get a proportionate payout on your amount of investment. Let’s say if you have invested $100 on USD/GBP currency pair with 80 percent payout, taking a view that it will rise from the current price point in 2 hours and it turns out to be correct, then you receive a percentage payout plus your invested amount that is $180 (your invested amount $100 plus payout $80 (80% of your invested amount of $100). If the outcome turns out to be opposite of your view and the USD/GBP currency pair fall from your price you lose your invested amount, in this case, $100. I recommend that serious traders, open a number of different accounts with the different Binary Option Robots, listed. The reason for this is simple: anyone with knowledge of the market understands that you must spread your risk over as wider area as possible, no matter how good the system, if you put all your eggs in one basket, you run the risk of losing everything. Thus, as with everything else, you should spread your risk over a number of Binary Option Robots, to maximise potential profit and prevent loss.

We work hard to offer you valuable information about all of the brokers that we review. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. Sigma 20121 binary options reviews. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews.