Despite how much my inner-nerd wishes they did, Binary Options have nothing to do with Binary Code.
They are called “Binary” because there are only two outcomes at expiration. Either you win or you lose. It’s that simple.
Unlike stocks or traditional currency pairs that can be held and sold at any time, binary options have an expiration date. Traditional options also have expiration dates, and are similar in that they too can expire worthless. With both options and binary options, there is the risk of losing 100% of your investment at expiration.
Although, one advantage of binary options is that in order to make a nice percentage gain, you don’t have to be deep in the money at expiration. You don’t have to be a whole lot right, or even a little bit right. You just have to be right.
If you buy a call, and the underlying investment is just a fraction of a cent higher than your strike price, you win.
If you buy a put, and the underlying is just a fraction below the strike, you win.
And you win the maximum return too!
Binary Options are issued by most brokers with a fixed percentage, such as 60%, 70%, even 85% depending on the details of the trade.
So, you can almost double your money in a single trade and there are only two outcomes. It almost seems as though you could just flip a coin and make money. Indeed, many education videos for binary options brokers try to convince you that its just that simple to make money with binary options. But is it?
Remember, when something seems too good to be true, it usually is.
And if you are just randomly choosing binary options, I will save you some time and research. You will lose.
Why is that?
Read More to find out!