Welcome to Binaryoptions.media, the leading portal for online traders. Whether you are an experienced trader or a complete beginner, you will find what you are looking for at this website. We offer several guides covering the basics of binary options trading as well as more advanced strategy guides on risk management, market analysis and much more. We also have a large base of broker reviews, which you can use in order to compare binary brokers to each other. In our reviews, we give each broker a score which is based on various criteria such as the trading platform itself, promotions and customer support. This makes it very easy for our visitors to find a broker that suits their personal needs – It also gives a new trader a really good overview on what’s available on the market today.
What are Binary Options?
Binary options is relatively new financial instrument which has become really popular amongst private traders in the last couple of years. Because binary options are very easy to understand, and easy to execute, it is one of the best ways for new traders to get started in the world of finance. Therefore, we would like to give you a short introduction to how this new and exciting form of trading works.
Unlike traditional financial options, which have a continuous payoff and gives the trader a chance to sell at any time, a binary option offers only one payoff and two possible outcomes. A binary option will either expire in-the-money, meaning that the trader will get his payoff, or it will expire out of the money, in which case the trader loses his investment. Binary options are bought against an expiration time which is set before the option is purchased.
To give you an example, let’s say that a trader buys an option on an asset valued at $20 with a payoff of $50. He will then have to decide whether to buy a Call/Up-option, or a Put/Down-option. The Call option will mean that in order to receive the payoff, the asset will have to trade at $20 or higher when the options expires – and then it’s the other way around for the Put-option. If the trader is right in his prediction, he will receive a payout of $50 back, along with his original investment. If the option expires on the out-of-the-money, the trader will lose his entire investment.
Although this might seem a little complicated at first, if you are completely new to trading, it really is quite simple. If it helps, think of it as betting on a game of football. Before the game starts, a broker will give the punter odds on each of the possible outcomes, which will then reflect the possible payoff the player will get back if he’s right in his prediction. If the team you betted on wins, then you will receive a payoff for that, but if your team loses, you will lose your entire bet. Binary options are pretty much the same thing, but instead of betting on the outcome of a game of football, you will bet on the future value of a particular asset.
So why should you get involved in binary options? Well, if you are new to trading, this is really the easiest way to get started. Binary options make it easy for you – it doesn’t take long to learn, and you will also quickly develop a feel for how the financial market works. Thanks to the high payouts that binary options offer, it is a very exciting form of trading as well. Traditional stock investments can be quite a long and slow process, whereas binary options offers a fast paced trading climate.