Binary options are currently very popular, and thousands of investors decide to go for them, but what exactly are they?
Its popularity has been due to the high profitability it offers (80% or 90%) in short periods of time.
There are many differences in perspectives regarding binary options; many love them, while others hate them.
Maybe his name is a bit confusing, but the truth is that it’s easy to understand, and in this article, you can quickly understand.
Binary options: what are they?
Binary options are a type of investment in which you speculate if an asset will rise or fall in price over a period of time.
The assets you can speculate on are currencies, cryptocurrencies, commodities, stocks.
The period is usually very short, usually between 1 minute and 24 hours.
They acquire the name of binaries because there can only be two results, or win or lose everything (0,1).
Let’s look at an example:
The Ethereum cryptocurrency is trading at $ 143.19. I speculate that from here to 1 hour, this crypto will quote more than $ 143.19. If the currency trades more than this value, I recover my investment and earn 90%. If the currency quotes less, I lose only my investment.
This is how binary options work. I took 90% in this example, but usually, online trading platforms distribute between 80% and 95%.
Are binary options risky?
One of the questions that most people usually ask about this type of investment is whether it is risky. And the answer is yes, it is very risky.
Because while you can earn much money, you can also lose a lot of money.
That is why many people criticize these types of options, as it can be a bit unpredictable. But the truth is that profitability is always accompanied by risk. And few are the businesses in which you can earn 90% profitability in 30 minutes.
So if you are not an investor who takes many risks, you should not go for this type of investment.
The platforms on which you can trade with binary options are several. Here we will show you the best ones in which you can register to operate with this type of investment.
Olymp Trade is one of the safest platforms to trade with binary options. This company distributes up to 85% profitability.
This platform offers a demo account with $ 10,000, so you can invest virtual money and test how the system works. It is an excellent function for new traders who want to enter into this type of investment.
IQ Option is another excellent platform to trade these types of options. This company offers up to 95% profit. It has many assets to invest.
This company also offers a demo account.