Are you looking to multiply your extra savings without putting in much effort? Do you wish trading was as easy as a simple yes or no? Is there a way to earn passive income while sipping tea on your couch? Well, then, you should invest in binary options trading.
In the past few years, binary trading has become a popular way of earning easy and quick money. It has gained fame among investors who aim to multiply their incomes. It is considered an all-or-nothing type of investment, meaning that there is a high risk of losing money, but if you’re well acquainted with the know-how of stock trading, it should be a breeze.
In this article, we will discuss whether binary options are a good way of making money and how much money you can make through it.
Making Money With Binary Options Trading
The word “binary” means consisting of two parts or components. In the same way, this type of trading or a binary contract is a binary option that offers you two choices, yes or no. The trader will either get paid a fixed or predetermined amount or will get nothing.
The way binary options work is that the trader will have to predict the price of an underlying asset. They will have to guess whether the asset’s price will be above or below a certain amount at a certain time.
The amount you will receive, if you correctly determine the price of the asset, is usually disclosed to you before initiating a trade. If you make the right call, then you will get your investment back plus a bonus amount.
For example, you are a trader, and there is also a broker. An asset is being sold at $200. The broker offers a deal of 75% return. In binary options, a broker always has to offer some percentage return. You believe that this asset’s price will go up, so you decide to place a transaction of $100. Let’s say you made the right choice, and the asset increased in price. Now you will get your $200 investment back. In addition, you will get a bonus of $75.
So, you invested $100, and now you have $175. Note that trades like these don’t need a lot of time to process; you can multiply your income in hours and even days. If you predict wrong and the price of the asset decreases, then you’ll lose your investment. You won’t get the bonus too.
Is Trading Binary Options to Make Money a Good Idea?
Many people think it’s a scam because earning money simply by predicting the value of an asset can’t be true. But binary options trading is considered a legit way of making quick money.
1. High Investment Returns
Yes, the risk associated with binary options is high, but it also gives you a higher investment return. Most brokers usually set a return percentage of 60-75%.
2. Fixed Risk
You already know how much money you’ll be investing. This means that you can invest according to your budget, and the risk won’t be devastating or unpredictable. You’ll get your investment back plus a bonus reward if you get the trend of the market right.
3. Cashback Even If You Lose
Everyone is well aware that binary options are high-risk trading. That’s why some brokers offer a small percentage of return even when you lose your bidding.
4. Quick Payouts
The binary option is most appealing to investors because it has a quick payout. You can multiply your income in a short amount of time. Binary options usually expire in an hour or two hours. Some options offer 10-15 minute expiry times, and there are few that end in under a minute.
So, to answer the question, “how much money can you make trading binary options?” is that you can actually earn a lot in a brief period. The money that can be made depends, ultimately, on you. You need to be well aware of market trends and have ample knowledge about trading. Like everything, heading into the unknown won’t get you anywhere.