If you've ever considered trading in the stock exchange or trading stock options, there is an alternative that you may possibly wish to consider. This alternative is binary option trading. The manner in which it functions is that first you choose an asset such as a stock index, and individual stock, a commodity, or a currency pair.
Next you choose a time frame which can be anything from one hour, to the end of the trading day. Then finally, you decide upon the direction that the asset will move. If you believe it will move up by the end of the time period,you will select a call option. If you think the asset will move down at the end of the time period, you end up picking a put option. After this you decide upon the amount of the bet or investment you are prepared to make, and you are done.
The good thing regarding binary trading is that you can trade with an exceptionally small amount-- as small as $30. The other nice thing is that you simply always have a fixed degree of risk. You can certainly lose the whole amount you bet on an individual trade, but no more. This really is different from some type of options and commodities trading in that you are trading on a margin and may even be be subject to a margin call in the event the investment goes against you.
The return for binary options is normally in the 70% range. So in as little as an hour you may make 70% return on your investment. Since online brokers don't charge a commission for trading binary options, it's not necessary to deduct that from your returns.
Though it seems deceptively simple to predict whether an asset is going to be higher or lower one hour from now, the reality is that it is very tough, but it can be accomplished, and with a 70% return you don't have to be right often to come out ahead.
Looking at recent trends is one way to approach the forecasting. Although trends can suddenly reverse, they can be a reliable way to predict prices for the short term. Obviously there are lots of other technical analysis techniques you can use besides trends. You will have to practice on paper before moving in and risking actual money.
Be cautious about spending thousands of dollars for some system that you can't verify the performance of, or that doesn't have a performance guarantee.
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An easy approach to trading binary options that's available without cost can be found here www.binaryoption-trading.com. You may also want to consider day trading software
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