Binary Options Review
In this competitive business world, there's a wide variety of methods to invest one's hard earned money and enable it to work for you. There are stocks, bonds, IRAs, CD's and annuities, among many others. Over the past ten years there has been an investment option that has been gaining in popularity: binary options.
A binary options review would be remiss without mentioning that there's both a great degree of volatility and risk, as with any investment. However, with binary options, it’s an all-or-nothing approach. There are only two outcomes when investing in binary options:
Binary options can be purchased in virtually any commodity, stock shares, Forex, or indices for either the cash or the asset amount. The potential return on investment (ROI) is known when purchasing. The commodities all mature, just like annuities or IRAs. A theoretical example goes like this: A purchase is made on a cash-or-nothing binary option on ABC Company stock for an amount of $200 with a binary payoff of $2,000. Then at the maturity date, if the stock is trading at or above $200, $2,000 is made on the initial $200 investment. If the stock is trading below $200, nothing is received. That's where the risk comes into play.
The volatility is regarding the fluctuation of monetary amount a stock will be trading for at any given period of time. No one can predict with certainty how a particular stock is going to perform. That's why it is important to study how commodities will perform and trade so an accurate analysis can be created and a strategy executed. Happy trading!
A binary options review would be remiss without mentioning that there's both a great degree of volatility and risk, as with any investment. However, with binary options, it’s an all-or-nothing approach. There are only two outcomes when investing in binary options:
- Either a fixed cash or asset amount
- Nothing at all
Binary options can be purchased in virtually any commodity, stock shares, Forex, or indices for either the cash or the asset amount. The potential return on investment (ROI) is known when purchasing. The commodities all mature, just like annuities or IRAs. A theoretical example goes like this: A purchase is made on a cash-or-nothing binary option on ABC Company stock for an amount of $200 with a binary payoff of $2,000. Then at the maturity date, if the stock is trading at or above $200, $2,000 is made on the initial $200 investment. If the stock is trading below $200, nothing is received. That's where the risk comes into play.
The volatility is regarding the fluctuation of monetary amount a stock will be trading for at any given period of time. No one can predict with certainty how a particular stock is going to perform. That's why it is important to study how commodities will perform and trade so an accurate analysis can be created and a strategy executed. Happy trading!