What Is Binary Options Trading All About?

Binary options trading has always been popular, however, this investment fad globally exploded around 2008 or ironically when global economies began to fall. Originally known as digital options, binary or the name "two values" was added to give a simpler explanation for trading options. Binary is defined as two values or up and down movements. Binaries rely on underlying assets or derivatives. You can trade in commodities, the forex (foreign exchange market), commodities as well as stock indices.

The popularity of internet binary platforms has literally blemished this trading industry. Internet marketers have flooded the net with deceptive information and products and there are hundreds of fly-by-night brokers who lure investors in with promises of high yields and low output. With this said, trading in binaries can be called the "poor man's" trading opportunities. The payoff is all or nothing and the amount invested can be as low as $100.

Binary Options versus Traditional Options

Working binaries requires that you, the investor, predict the price movement of an underlying asset. This is different from traditional options where you do not need to know the direction of the price movement. Learn how the movement is determined by studying the history of an asset. For example, if the current value of an asset is $100 and the last trade was at $95, know that 95% of the market predicts that an economic event with this asset will happen. Predict the price falling from the $100 mark and you are in the money. You only need a sense of price movement of underlying assets. You don't need to now the magnitude of the movements or the exact price; only that it will move up or down.

Binaries have controlled rise to reward ratios. The risks and rewards are predetermined at the time of the contract. If you are trading in traditional options you have no boundaries of risk and reward. This makes the gains or losses almost limitless. You can make more money with traditional options, but there is high risk.

Some years ago, people were thinking, gold as just a means of showing their wealth. Also, even though, some of them thought it as an investment, they were hesitant because of the fact that they will have to preserve the physical item in their home and will have to protect it against robbery and theft. When, allocated gold storage was begun by banks, some of them showed their interest towards procuring this metal just with the hope that they can store it in bank thereby securing it from robbers. But, nowadays, offshore gold storage facilities are offered and also it is not essential that the physical metal should be procured and stored as people can show their investment in the form of bonds and certificates as well.

Some companies are providing offshore gold storage facilities, apart from selling it in the form of bullion, coins and bars. Like people making their purchases in an online store, they can procure gold and silver in the form of coins and bars and can also get allocated gold storage facility for safely storing the metal in a secured environment. Here, people purchasing it from the service providers can either sell them back after storing for some days when the value increases or they can also get the purchased items delivered to their doorsteps.

Some people make use of this facility just for trading. This means that they purchase the metal one day and resell the same to the seller, when the value increases. This is done as a business by them. Nowadays, people are looking for additional ways to earn income and if they have some money to invest, they can very well opt for this profitable business. This is because of the fact that the value of this metal is ever increasing and it can turn out to be a great investment to them.