Is Binary Options Trading Profitable
Is Binary Options Trading Profitable?
Much has been written about trading in binary options and whether it is profitable or not. This is an ongoing discussion so before we get into these details, it is important to point out from the outset that any form of trading on the global financial markets is a high risk venture, whether it be Forex trading, CFDs, or simply buying and selling shares, you could stand to lose more than your deposit if you do not know what you are doing. Once you have absorbed this, you can ask the million dollar question: Is Binary Options Profitable?
Now that we have the official warnings behind us, my personal view is that it is possible to make a profit trading in binary options. In fact, I am excited about the opportunity to utilize the binary options trading instrument as a vehicle increase my investment portfolio, make a profit and earn an independent living.
What is binary options trading?
Before we continue let’s take a moment to understand what binary options trading is. Properly speaking, “A binary option is type of option in which the payoff is structured to be either a fixed amount of profit if the option expires in the money, or nothing at all if the option expires out of the money.” As the name suggests, binary options are concerned with two choices. Asset prices can go either ‘up’ or ‘down’. When placing trades you are choosing between these options also known as ‘call’ and ‘put’. Your trading success is dependent on whether you make a correct choice or not about the eventual direction of price movement within the limit of a given time span.
In a nutshell, if you choose to trade in binary options you have to decide whether the price of an underlying asset will move up or down within a specified timeframe. The best way to conceive a belief about which asset to choose correctly is to research the trends, both past and present, of the stated asset. A quality broker such as Stern Options provides sophisticated data and trend analysis tools as part of their online trading platform; thereby, adding value to your research process.
Once you have finished your research and studied all the data available to you, you will arrive at the position of being able to make a realistically informed decision on whether the price of the underlying asset will rise or fall within a specified timeframe. If you believe that the price of the underlying asset will rise within a specified time frame, then you place a “call”, and conversely, if you believe that the price of the asset will fall within the specified timeframe, then you place a “put”. If your prediction is correct, you are “in the money”. Or, if your prediction is incorrect, then you are “out of the money”.
Binary options trading also limits the amount of money you lose when your prediction is incorrect. The beauty of trading in binary options is that there is a fixed risk and a fixed reward. This principle is very different to buying and selling shares where you can lose a lot of money if the share price drops substantially below what you originally paid for them. In that case, you either need to sell at a loss or wait for the price to start climbing again.
Trading with a world-class online trading platform
It almost goes without saying that, in order to turn a profit it is vital that you partner with a broker who offers a world-class online trading platform. It is no secret that Stern Options offers their traders such a platform. They also offer unparalleled customer support who are available 24 hours of the day, 7 days a week, in order to answer any questions relating to binary options trading on their platform.
Stern maintains a state of the art security system on their online trading platform. Thereby ensuring that every trade you make is safe and secure. They also guarantee maximum uptime, thus allowing you to trade any time of the day or night.
Added to their customer support and state of the art trading platform, Stern also offers their traders access to their education centre, consisting of didactic demonstration and instructional videos and a virtual library of comprehensive literature on the theory and practice of binary options trading.
There are many different platforms one can trade binary options on and you can read more about the opportunities for this in our article about binary options platforms.
Is Binary Options Trading Profitable? Our Final Thoughts
Stern Options’ mission is to provide a world-class trading experience for all their traders. They work hard at ensuring that you are able to trade successfully, thus increasing your investment profile and growing your wealth. At the heart of Stern’s operation is the desire that traders who partner with them are able to trade safely as well as profitably.