It consists of betting on a rise or fall of a certain underlying asset in a certain period. Upon expiration of the contract, the prediction may or may not have been accepted. If it is, the one that has been stipulated in these operations is based on the financial instrument in high volatility, in which its operation is known in certain fundamental keys.
To understand how it works, we must first know that it is a binary option, it is taken into account that it is a way of investing with the aim of promoting and providing the side where the price of an asset is directed in a certain period of time, as That period of time, you can get to obtain profits up to 85% but with the risk of a loss of up to 100% with the inverse way that has the profitability of much more risk.
We have to choose very well where we want to operate, it can be EUR \ USD as well as the option of expiration of the time, such as 30 minutes, and finally, decide between call or put in the case of believing that the price in 30 minutes If it rises, we will choose the call option and thinking that the price at which it is going will fall, the put option would be chosen.
If we invest 100 euros as an example, and we opt for the call option and its price rises, we will obtain a profit of 180 euros, but if we choose the put option and its price drops, the investment would be lost, if the price were to remain at The same level at which the investment began would be left with the same money 100 euros.
Various mobile applications for this type of business tend to highlight, before making the said investment we must make sure very well of the platform that we choose to operate so as not to fall into fraud or deception 24option, empire option, and top option are some of the applications that are used and that are certified for this purpose. 24option has a minimum deposit of 250 $ \ € with a maximum return of 88%, IQ option requires a minimum deposit of 10 euros with a maximum return of 85%, unlike, the Empire option establishes its minimum deposit of 100 euros with a maximum return of 85%.
There is a difference between forex and binary operations, although both are ways of investing, they do not have the same possibility of profit or the same risk of loss. In forex, the investor has a purchase contract for which he owns an asset, unlike binary options whose contract does not move the prices nor does the investor own an asset.
The other difference is that in the part of the assets, the first only operates with currencies, very different from binary operations that in addition to giving you the possibility of operating with currencies can also do so with other assets such as raw materials or shares in large companies. In binary operations the terms are much shorter, your time is limited and the capital is less or equal to start making profits.
Today there are a wide variety of financial options that allow people to have many possibilities to invest in a financial market. The most popular method in recent years is binary options due to the great variety that exist of this type, which can vary in the way in which operations are executed. We can say that binary options can be divided into two categories at a general level, which are, the options that can be exercised before and during their expiration and those that can only be exercised in their expiration period.
Binary options are characterized by their popularity, but their popularity is not because it is a good product but because they invite the idea of easy money, which is very complicated because you wear what you wear or do what you are always in continuous competition against the complicated market.
For this reason, the person who wants to make an investment in any of these options must be prepared and aware of the conditions to which they are exposed. Study and preparation is the key to success in this type of investment, you cannot make an investment of these without first having the knowledge because what may be our best experience can become our worst nightmare. We cannot determine that a binary option can be granted when used, this gives false security, the best thing to do when executing this type of operation is to specialize and thus have extensive knowledge in the area of currencies, raw materials, stocks, etc.
It is also very important to know how to choose our broker to operate because it is evident that this will directly influence the success we have, a mediocre broker will not provide us with the same results as a good one. A good broker must give us a good variety of assets to choose from and must be regulated by a financial body.
To start with these operations you must have good financial capital and know how to manage it in the best possible way, you cannot risk a high percentage of your capital in the first operations because if you enter a negative streak you will lose everything in few days, you should not risk much and if possible look for the best strategy that gives you high chances of winning. It is also necessary and no less important to know how to control your emotions because they can play against us, if our operation was negative we should not despair, and if it was the opposite, neither should we get euphoric because we obtained a positive result, a good investor keeps his feelings away.
Finally, it is recommended to have a record of our operations and make an analysis of these to know exactly what we are doing well and what we are doing wrong, and thus know which is the correct path to success. In any case, this type of investment is not 100% guaranteed, which is why it is not recommended to carry it out. It is best to focus on other types of investments that are safer and guarantee you some profit for your livelihood, or even if you decide Lean towards binary options remember that you have always to be very well informed about the possibilities and options that these operations give you.