Today trade on the Internet gains increasing turn. Besides usual goods, anyone can start trading in shares, currencies, precious metals, and even wheat. Also there is a large number of platforms on where there are such online-auction as exchanges. For certain everyone heard about the best-known exchange of the world which has address in Wall Street and work more than 200 years.
But with advent of the Internet, exchanges increased their amount. With growth of their quantity the number of tools for trade, such as futures, swaps, options, etc. began to increase too.
In this article we will speak about a new trend of last years - binary options. They are called binary because there are only two options of closing of transaction while at usual stock exchange a whole set of options. The main counter of binary options that trade in them is rigidly limited in time which is chosen by the trader. As a rule, brokers offer such types of options: minute, two-minute, five-minute, ten-minute, and so on till two hours. As you can see, it is quite short-term transactions, and risks here are higher, than at usual stock exchange.
Let's figer out what binary option mean. Wikipedia gives to this concept good interpretation: "is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset) or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff)". Thus, if in stock market a trader can leave the transaction and lose a certain percent from purchase of shares, in market of binary options you lose 100% of the sum or win as much.
But, as a rule, brokers establish a margin on prizes (after all it is the main income of brokers), which fluctuates from 10% to 30%. Thus, from a rate in 100 dollars the trader will get from 70 to 90 dollars of net profit. It is negative moment, but at competent trade it is leveled.
There are 2 the most reliable brokers: 24options and Optionfair, but each of them has disadvantages, for example, too high minimum purchase price of an option (20-25 dollars), or complexity of replenishment and withdrawal of funds. Also there is a large number of brokers swindlers who at big prizes may not pay. It is necessary to understand that at trade in binary options you conclude bargains not with other people but directly with a broker, and the broker can simply not want to pay you. By the same principle bookmaker offices work - almost weekly there are news about nonpayments of big prizes.
People who are engaged in information search about earnings on binary options, will surely come across signallers - traders who give out signals of binary options movement , up or down. 90% from them, unfortunately, either swindlers, or second-hand dealers, or people who are not understanding binary options. Swindlers simply can take your money, but second-hand dealers quite possibly can have really good signals. A problem only that during delivery of a signal by the trader, it needs to be put down very quickly, in only a few seconds, and second-hand dealers simply will not manage to give out you a signal in time. About people who simply don't understand business, we won't speak, probably. They will take your money and will regularly give signals. But whether you earn on them, it is a big question (most likely will lose). Therefore it is best to learn this case, thanks to Internet, it is full of both paid and free information on this question.
We wish you success in trade!