The Concept of Binary Options Trading »

The Concept of Binary Options Trading

The Concept of Binary Options Trading

Binary options trading has been around since about 2008 and shows no sign of slowing down. The question you might have at this point will probably pertain to the nature of binary options trading and why it is so popular.

For someone who is not familiar with the forex or Foreign Exchange (Foreign Currency), it is probably not apparent that the forex is extremely complicated. The binary options market has used the “Forex Experience” as a spring board to launch it’s own new, unique twist on trading.

Originally the market was only available to bankers and other individuals in the financial industry. It may have been possible for other individuals to become involved, but as we have said before the market is extremely complex and in order to comprehend it properly one has to undergo a series of courses and ultimately gain a complex understanding of the concept. In the past this was only available to certain individuals and perhaps a few prodigies who managed to catch on.

With the advent of the internet things became a bit different. The exclusive nature of the foreign exchange suddenly dissolved and more people were able to get in on it. The internet educated people, showed them the right path, and eventually the very act of trading became available over the internet

One of the original online trading companies was Ameritrade and it is still in use today. Despite the ease of option trading in the modern day there are still ways that it can become simpler. One of the simplest forms of option trading is binary options trading. These are simple because they can only have two outcomes and you only stand to lose what you put into it.

The way it works is actually pretty simple. What you would do is pick an option and make a wager on how it is going to turn out, or in other words what price the market will actually close at. Once you determine this you will buy the option or place your wager and if the market closes at the price you predicted then you will make a profit. If the option does not close at the price you predicted then you will not make a profit, though some of your money will ultimately be refunded.

Today there are plenty of websites dedicated to binary options trading. If you do a simple internet search you will undoubtedly find that there are several websites that allow you to make an account and do your basic binary  options trading. One thing to note about this type of option is that you will need to have funds in your account immediately in order to buy your options. Other than that it is precisely like other types of option trading except for the simplistic nature. If you are just starting out in the world of forex and other types of trading, binary options trading may very well be a better choice.

The Concept of Binary Options Trading

Print Friendly, PDF & Email

Share this article


  • Frank Lobach

    I am a little confused because on the one hand I keep hearing that all Binary trading requires ,is a simple choice between up an down? 50/50 chance on winning or losing?
    Now the way I see it ,is with the indicators I already know how to use ,and am familiar with on my MT4 platforms,why can’t I enhance that chance quite a bit by using these to evaluate the volumes,momentum and trends going over whatever time frames I want to trade with?
    With some very good indicators ,all showing a big push in the one direction over several closely related time frames,surely that would be a very good chance to get the 50/50 choice pretty close to right on my side, a good percentage of the time?
    Yet I also see all these offers of extensive courses to learn how to trade Binaries? Why would this require extensive courses to learn to trade?
    Is there something hidden , some trap,about Binary trading no one is talking about perhaps?

    • admin

      Hi Frank

      50/50 chance of winning or losing? It seems like that but it’s not. If you trade by emotions you have a 99.8% chance of losing. That’s why we make binary options systems. We need rules to go AGAINST our humanity. The markets use our humanity to “CON” us and “take our money”. We use systems to take the market’s money.

Don`t copy text!