Trading stocks on the markets feels a bit complicated to the average person. That’s why they decide to not invest at all, or leave the decisions up to an experienced stockbroker to make the decisions. But there is a way to trade without all the complexity. It’s known as trading binary options. The meaning of binary is 1 or 0, or in the world of stocks, yes and no. You as the trader make the binary decision of yes or no about trading a stock. It has the same mechanics as gambling, and in a sense, you are gambling your money on a decision. However, the risk is low and the rewards are high enough that it’s worth using binary options as a way to trade without putting up a lot of money.
Binary trading consists of you picking an asset such as silver and making the decision, based on your research, that it will be below a specific price point at a certain time of the day. Binary options cost anywhere between $0 and $100 and represent your decision of an asset selling above or below the price point you decide. You purchase the option for $40, leaving the remaining $60 on the table. Then you make the statement that the asset price is going to be a certain amount at the time of day you set. If you’re right, you get the $60 from the pool for a total of $100.
Read this infographic to learn more about how binary options work!