Binary Options 101 – A Must Read For Anyone Considering Binary Options

Binary Options are a relatively new way of making trades. The reason I say new is because until 2008, binary options weren’t even legal in the US. Here’s my Binary Options 101 course for anyone thinking about giving them a try.

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What Are They?


Trading Binary Options is not very different than gambling. It’s different than playing the stock market because with binary options, you aren’t buying ownership of specific assets.

Instead, you predict whether a specific asset will increase or decrease in value over a certain amount of time. That’s all it is. You have 2 choices, Up or Down. 

One nice thing about them is that you can choose any amount of money you feel comfortable risking. This is nice because if you’re new, you can start by risking very small amounts and maybe increase the amounts once you feel more confident.

The amount of time is also your decision and you can choose a time frame even as short as 30 seconds.

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How It’s Done

So let’s use Gold as an example. Let’s just say that gold is trading at $1100 and you want to place a wager on it. For easy figuring let’s say you put down $100.

You now have to predict whether the price will go up or down. Let’s pretend you predicted it will go up.

Now you have to choose a timeframe. Let’s just say you chose 1 minute.

Once you’ve made your selections, you just have to click on the button that executes the trade.

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Once you’ve clicked the execute button, you just wait for one minute. After the one minute goes by, the broker you’re using will give you a signal telling you whether you predicted correctly or not.

If you did predict correctly you get your money back, plus some additional money. Usually you’ll get around 70% of your wager back but some brokers give more.

That’s a pretty easy $70 you just made. Not bad for only 1 minute. Now imagine if you predicted $1000. But let’s not forget the alternative. If you don’t guess correctly then you lose all of the money you wagered.

 

Why They’re Popular

One main reason Binary Options are so popular is because of their ease of use. Pretty much anyone can find an online broker and try their luck.

Another reason for their popularity is the quick turnaround. Being able to see results in as little as 30 seconds is a real rush for some people.

This actually makes it exactly like gambling and we all know how addictive gambling can be. So it’s really no surprise that they’re so popular.

 

Other Types Of Trades

The type of trade I explained above is deffinitely the most popular kind but there are others that differ a little bit.

The One Touch Trade is another type and it’s pretty simple as well. For this one, before you start the trade, you’ll be given a target price for the asset.

If the asset reaches or exceeds that target price at any point during the life of the trade, it will be deemed a winner.

The other type of trade you can make is called a Boundary Trade. For this one, the broker will give you a range of prices. It’s then up to you to determine whether the asset will be within the range or outside of the range.

 

What To Look Out For

As I’m sure you’ve fidgured out already, Binary options are very high risk, high reward. Sure you can make easy money with them, but you can also lose a lot of money very quickly.

Since they don’t pay out 100% of your wager for a win but they take 100% of your wager for a loss, you’d have to be winning much more than losing in order to come out on top.

For this to happen you have to actually have a strong background in the stock markets or else have a horse shoe up your @ss.

But let’s be honest, if you’re just trying to profit from this based on good luck, you’ll always lose in the long run. It is nothing but a game of chance.

Game of Chance Three Red Dice Risk and Danger

 

There are some real dangers to Binary Options that you need to watch out for. A lot of people have lost a lot of money in this industry simply because they’ve been lied to.

There are hundreds and probably even thousands of scammers out there who have set up websites and are claiming that they’ve developed a software that can acurately predict binary options.

They have fake names, fake testimonials and even fake software apps that you can download. They can be very convincing especially when they tell you that they’ll give you this software for free and that’s what most of them do.

In fact, that’s how they gain people’s trust. People assume that since they are giving the software to them for free, then they must be telling the truth because what would be in it for them otherwise?

That’s How They Get You

So once they have convinced people to download their “software”, they then tell people to go to a broker. But they are always very specific about what broker to choose.

Often they’ll tell people that their “software” only works with a certain broker, so people take their advice and sign up with the recommended broker.

All brokers will have a minimum required deposit and it’s usually $300 or more. So as soon as someone makes that deposit for $300 with the broker, the website that sent you there gets a commission.

So now the website that said they’re giving you “FREE Software” is making money from you. I’m sure most people would be totally fine with that as long as the software actually worked like they said it does.

There’s the problem. the “software” doesn’t work. It just picks trades for you at random and you have no better chance at winning than if you were to guess them yourself.

There is no software in the world that can predict trades or stocks. If there somehow was, it would be totally illegal right away. So don’t ever believe someone who tells you they have it.

I know it sounds insane that people would put so much effort in just to lie to people and get some of their money but it’s the truth. I’ve actually reviewed a lot of Binary Options Programs and almost all of them use this same or a similar lie to get people’s money.

A few examples of Binary Options scams to avoid are The Aussie Method, The Canuck Method, Zero Risk Binary App, Wealth Generator X, Spectre System and Account Doubling App. They are all scams.

 

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To conclude this Binary Options 101 course, I just want to say Beware. These can be fun for playing around with but don’t ever risk money on binary options that you can’t afford to lose.

If you want to make money online but you don’t want to take any risks then you should look elsewhere.

There are ways to make money online without any risk but they all involve hard work. Unfortunately easy money does not exist online or offline. The sooner you accept that the sooner you can start working towards making real money earned with real work.

Thanks for stopping by today and I hope you enjoyed this article. Please feel free to leave questions or comments in the box below and I’ll be sure to respond ASAP.

Cheers,

Robert

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Binary Options 101 – A Must Read For Anyone Considering Binary Options
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2 Comments

  1. Anuradha February 10, 2016 Reply
    • robert LawrenceAuthor February 21, 2016 Reply

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