What is Binary Options Trading?

Ever thought of investing in stocks or Forex, but not sure where to begin?  Overwhelmed by the high entry barriers or the complexity of placing a trade?  Ever wish that investing was as simple as picking “Up” or “Down”?

Well, you’re in luck.  Now you can, with binary options.

Binary options have exploded in popularity over the past few years.  There are a lot of different ways I could attempt to explain to you what binary options are, but the easiest way to do it is by giving you a simple example.

With binary options trading, you can choose to trade hundreds of different assets:

• stocks
• indices
• currencies (forex)
• commodities

Let’s say that you have been focusing on the foreign exchange market, and you feel pretty confident that the price of GBP (£) / JPY (¥) is going to rise over the next couple hours.

Here’s what you do:

1. Open your binary options platform.
2. Select GBP/JPY as your asset and choose a “High/Low” trade.  Sometimes they are also called “Call/Put” or “Up/Down” trades.
3. Click on the direction you expect price to go: “High.”
4. Wait for the trade to expire. 
5. If GBP/JPY is trading above the entry price when the trade expires, you win the payout!  If not, you lose. 

Seriously, it does not get plainer or simpler than that.

High/Low trades are the simplest type of binary options trade available.  There are also other types of trades that are common, including One Touch, No Touch, Range, Pairs, Ladder, Long Term, and 60 Second trades. 

“But I am on a website for sports betting.  What do I care about trading stocks or currencies?”

Good point. 

But as you have probably learned since becoming a sports punter, there are a lot of skills that you use betting that are also useful for other related activities, like gambling at online casinos.  The fun value is also similar between betting on sports and playing poker or baccarat.  Both are activities where you are risking a loss, but if you win, you could potentially win big.  There is that thrill and the element of excitement and danger.  But for the serious gambler, there is also the chance at a lifelong reliable income stream. 

As it turns out, the same goes for investing in stocks, Forex, CFDs, and, yes, binary options!  Binary options trading is an activity of risk which can be a fun hobby or a serious profession, depending on what you are willing to put into it.  Its advantages over other types of trading are simplicity and low entry barriers.  And you are already off to a great start, because the skills you have learned in analysis and prediction as a sports bettor will come right into play as a binary options trader, as will your bankroll management abilities.  And as with sports betting, you can do it right from the comfort of your living room sitting in front of your computer in your pyjamas.  It doesn’t get any easier than that!