Are Binary Options Investments?
If asked to think about investing, people in general today are more likely to think of things like savings accounts; pension funds; stocks and shares; real-estate and gold, and binary options are probably unknown to them. We are living in turbulent political and socio-economic times and the winds of uncertainty are buffeting the stability and reliability that people have long associated with those traditional forms of investment. Binary options are a real choice for investors.
Let’s begin answering this question by thinking about what an investment is actually! A financial investment is an asset to which you attach some of your capital, based on the belief that the value of that capital will grow. For instance, a fixed rate Bond or a share of a company’s Stock. An investment strategy is your plan of action which guides your investment decisions towards your individual goals. Your investment strategy will typically be concerned with risk management, asset allocation, and buy and sell guidelines.
Most people around the world today haven’t even heard of binary options. Binary options were officially classified as a legitimate investment instrument in the year 2008 by the US Securities & Exchange Commission. Although relatively new, the binary options trading instrument is one of the most technologically advanced financial products to appear on the financial markets.
What are Binary Options?
A binary options trader does not buy or sell anything. He or she speculates on the movement of the price of a specific asset (i.e., stocks; commodities, currencies) within a specified time-frame. As the name says, there are two sides to binary options. One is the CALL OPTION, and the other is the PUT OPTION. Based on information relating to an asset’s price performance, the investor makes the decision. For example, if I believe the price of gold will rise by the end of the month, I make a decision to invest some of my capital on that eventuality and I place a call or ‘Up’ contract for that time period. Conversely, if I believe the price will go ‘Down’, I invest in a put option. If my prediction was correct, at the expiry of the contract I will be ‘in-the-money’. This is binary options jargon for ‘’I receive the profit’’. On the other hand, if my prediction was wrong and the other outcome transpires, I would be ‘out-of-the-money’ and I would receive no profit.
Where can I make money from Binary Options?
I recommend Stern Options for many reasons. First of all, their trading platform is second to none. Stern’s platform provides all the data and other information I need to make my investment. Secondly, they provide fully comprehensive free-to-use online training. Thirdly, Stern’s team of financial analysts have a combined experience of over two hundred years in this industry.
All together, these things add up to great partnering experience and have made an immense difference to my investment strategy.
How much profit can be made from Binary Options?
Totally unlike all other kinds of legal investment, with binary options you know exactly how much profit you will receive at the moment you invest.
Contract timeframes vary from fractions of a minute to months. Which timeframe you actually choose is determined by your intuition about the direction of the price movement. You choose your binary option contract timeframe based on all the information you have about the asset you are focusing on. Before I make my prediction, I can find everything I need to know about the trend on the Stern Options trading platform. If I have questions that I want to ask about the trend in an asset’s price, I can contact Stern’s client support team or consult my personal Stern Options account manager.
I prefer Stern Options trading platform because binary option profits are never less than 70% and often up to 85%. In the example above which is taken from Stern’s trading platform, my $25 investment on the gold price will payout $45 or 80% profit if my prediction is correct. Obviously, knowing how much I can make from the outset is a great boost to my investment strategy.
We are living in a world of low interest rates, meaning that a savings account is not the surest kind of investment anymore. Pension funds are in chaos since the 2007 global financial crisis. More and more people are investing in binary options as a realistic and legitimate answer.