Trading Binary Options Can Make Gains Like 300-400% Daily! Forex Trading 2. 0

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Trading Binary Options Can Make Gains Like 300-400% Daily! Trading binary options (BOs) has not yet caught on with the trading community. Many traders still don’t know much about binary options. Yet, there are traders around the world who are silently making thousands of dollars day trading binary options contracts. Infact, some of the day traders have switched over to day trading binary options totally. So, what makes BOs so powerful?

But first let’s discuss what are BOs and what makes them special? What Are Binary Options And How They Get Traded? Binary options are options contracts that are also known as digital options. These contracts let you bet on the direction of the market in the next half an hour, next hour, binary options next few hours, forex next day or the next few days. If you win the bet, you get a payoff of $100 per contract and if you lose the contract you get $0 as the payoff.

Let’s take a hypothetical example for the purpose of illustration. Suppose, the EURUSD pair is trading right now at 1.3246. You are a good technical trader. You are quite sure this rate could move more than 100 pips and binary options strategy go above 1.3356 after five days. One way is to enter into a swing trade. The other is to buy a five day binary options contract on EURUSD with expiry at 1.3356 by paying a permium of $10. If at the end of five days, the rate indeed is above 1.3356, let’s say it is 1.3357, you win $100 per contract.

Your net profit in this case would be $90 per contract. And if the rate ends up below 1.3356, let’s say it ends up at 1.3254, binary options strategy you get nothing rather lose your investment of $10. Now, suppose instead of 1 contract, you had bought 20 contracts. It would have costed you $200 and in case you had made the correct bet, you would have won $2,000 making a net profit of $1980 in five days. This would have given you a return of 900%.

But you can also trade half hourly BOs, hourly BOs and binary options daily BOs. The above example was just meant for illustrative purposes. Binary Options Vs Spot Forex. In the above simple example, you might have observed that your investment was only $10. Now, it could be more. It depends on the BO contract that you are purchasing and can be as high as $50 per contract or even more. This price depends on how much close the contract is to expiry and whether it is in the money or out of money.

Whatever, your risk while trading BOs is this investment was only $10 if you trade one contract. It is quantified from the very start. This was the total amount you could have lost if you had purchased only one contract and lost. And incase, you had purchased 20 contracts, your risk was $200.

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