What are binary options and how to earn cash with them?

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Understand prices at stock market!

Most of us heard already about forex and stocks. Stocks are the same like parts of a company. If you own 51 % of the stocks of a company, you have 51 % votes at a general meeting of the company. The stock’s price is based on the value of that company. On a stock market you buy stocks mostly direct from a company. If less stocks are available for buying then the price increment. If the company makes money and raise its value you can sell the stocks more expensive then you bought them. Currency pairs are similar. A typical currency pair is “EUR/USD” (Euro vs. US dollars). An example price is 1.13307. Google show you fast refreshing the price of a currency pair.

Binary option price base at stock price

Google shows you fast asset prices.

The price says “If you trade 1 Euro for US dollars, how many will you get?” In this example you would get a dollar, a dime and three penny. Most currencies and stocks are stable. The opposite is called volatile. Stable means that the price change only a little bit over a longer time. To make lots of profits you need lots of money to “buy” much money in another currency.

The preamble of currency pairs, resources (mostly oil, gold and silver) and stocks is asset.

Make money with binary options

Trading classic binary options is much simpler than directly buy and sell assets. Instead of you have only to say whether the price is higher or lower than current at a specific (the experience or closing) time. The option to a higher price is called a CALL option and often showed green. An option to a lower price is called a PUT option and often showed red or brown. Its makes no matter how the price moved, only where the price was at the time the option was bought and where it is on the close time.

If you were right, you get a payback up to 180 % of your investment. This is called In the money (ITM). If the price closed at the exact same price than it opened you will get your investment back. Most of beginners start with an Investment of 10 – 25 USD per option. A classic start depot is 100 – 250 USD. That’s why you can make fast real profit using binary options with a small investment sum.

Please don’t forget that you should train before you invest real money. The platform of SpotOption is a good starting point for learn trading binary options for free. Read this to learn how to join them, it takes less than 1 Minute and you don’t need any money.

Read more:
The 10 most important Beginner Tips for new Binary Option Traders

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