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Binary Options, What Are They?
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Binary options are a new trading choice. Called "binary" as there are only two possible outcomes.

Outcome 1: The pay off is either a fixed amount or percentage - up to 70% if the option is "in the money" when you sell it.

Or outcome 2: You get nothing if it's "out of the money" when you sell.

That is why they're also called "all-or-nothing" options.

The best thing about binary options is they're generally a short term trade. Usually no more than an hour. Which is good for those who have time constraints and don't want to have to keep checking their holdings several times a day.

Gives you more time to do other things.

Consider though that the best thing about binary options can also however be one of their weak points as well. With short term trading you are more susceptible to volatility and price fluctuations than with traditional mutual funds or exchange traded funds you hold in your retirement account.

But there is the benefit that you will never lose anything more than what you originally invested. There are no margin calls with this form of trading. Which means you won't be forced to put more money in.

The advantage to that is pretty obvious then. But remember even though trading in binary options is relatively safe compared to short selling and other forms of trading, they are still a speculative investment and you should never invest with money you can't afford to lose. There is no totally safe trading system ever invented.

At maximum no more than ten percent of the money you currently have when you combine the total of all your accounts - retirement, checking, savings and any other accounts. And if you're just starting you should shoot for five percent until you get more experience and are confident you can get winners regularly.

Note that I didn't include credit card accounts or lines of credit. Don't borrow money to engage in speculative investing because there's still the potential the trade can fail..

Trading in binary options can be a fun and potentially lucrative way to invest. After all is there anything better than a return on investment of potential 70%? If you know of one let us all know. With the interest rates in the gutter I won't hold my breath in hearing form you.

Those are some of the great things about this form of trading. Have fun and make it great day I hope your trades go great..


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