Binary Options as a Way to Invest

Published:5 August 2016 Updated:4 January 2024

Against the background of the financial crisis, the collapse of a large number of banks and the loss of a huge number of depositors’ funds, the financial market becomes the most attractive way to invest. However, for an ordinary citizen this is a rather complicated process that requires certain knowledge and intricate legal formalities. Nevertheless, private investors do not lose the desire to invest in the financial market, especially as the yield of some assets promises a large profit. We want to suggest a simple way out of this situation. A kind of alternative way of investing, where there is no need to directly buy stocks of companies or a certain volume of commodities. We are talking about binary optionsas a way of high-impact investment activity.

So first, let’s look at the advantages and disadvantages of investing directly in the stock or commodities market. First of all, in order to buy shares of corporations directly, you have to go to an investment fund or a bank – this is already a certain inconvenience. Secondly, in order to earn on the market, you must have at least several tens of thousands of dollars at your disposal. The value of company stocks or commodity market assets have a value of tens or even hundreds of dollars, which you need to pay when buying them directly. Not everyone can afford this amount of money today. Thirdly, it is necessary to go through a complex process of registration of purchase. And finally, in order to make a profit the asset in which you have invested money must increase its value, which is not always the case. In the end, if all conditions are met and the outcome is good, you can get up to 5% of income on the amount of investment during the year.

What do binary options offer us in this regard? Applying option contracts as a way of investing, you, first of all, get the easiest access to the process – binary trading, which is carried out on the broker’s online platforms, accessible from the investor’s computer. There is no need to waste time going to the broker and drawing up documents, everything is done online. Secondly, you need to have a minimum of funds to start the earning process. For example, take Binomo broker where the trading process becomes available with an investment of only 10 USD.

Thirdly, when using binary options, it does not matter how much stocks or certain assets of the commodity market are worth. Here, the basis for the calculation of profits is the value of the option, which can start as on the platform of the broker Binomo – from 1 USD. As you can see, so far binary options are winning on all positions.


How to use binary options for investing

Let’s start by explaining the concepts and working principles of a binary option. To put it simply, a binary option is a bet on a certain direction of an asset’s price movement in a set time period. The investor makes a forecast: in the next minute, hour or day the quotes of the stock market asset (shares), commodity market asset (oil) or currency value will move in the direction, sets the contract duration and upon confirmation of the forecast makes a profit, which, by the way, on binary options reaches 87% on one transaction:

How do we put this into practice? Let’s look at a simple example. Let’s take the underlying asset, Alibaba stock and system binary trading – news tradingwhich uses the regularities of the market reaction to the release of statistical data on the activities of the company. So, with the help of the Internet we find out the time of publication. On the trading terminal of the broker Binomo open the chart of the necessary asset of the stock market and prepare for profit – set the volume of investment (the cost of a binary option, for convenience we take the minimum volume – $1), set the time of the contract (expiration date) and wait for the release of statistics. We execute the contract immediately after the publication of the data, using the following simple principle – if the data is good, we set an upward forecast for the binary option, and if the data is bad, on the contrary, we use the downward option.

So let’s see how to trade Alibaba stock.

Data on the profitability of the Internet giant’s activities showed a decline in the output of statistics:

This is bad news, so, immediately after the publication of the data, we make a contract DOWN with an expiration time of 1 hour:

As you can see, the forecast on the binary option was confirmed, as a result, we get 75% of fixed profit in an hour. This approach works for all stock market assets, commodity market assets and currency markets.

Thus, in a short period of investment funds we get income, which is not available for direct investment of funds in certain assets. On this basis, binary options(Wikipedia) are becoming the easiest, most profitable and affordable way to invest in the financial market.

In conclusion, we would like to give a useful recommendation. When choosing the most attractive assets for investing with binary options, you can effectively use the analytics of the broker Binomo(view site), in particular the “Investments” section, where experts provide market forecasts for the most attractive instruments.

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