Many people are looking for a simple investment. The ability to make money quickly by investing in the stock, commodities, or forex markets is always something that has appeared to many. The difficult part is finding the time, and money to actually make that happen. If you want to do it yourself (and who does not?) It really can be a daunting task. Now, many people are turning to binary options to make investments. They appeal to many as a simpler way to invest. They are unique, but are they right for you? Lets look at the good, and the bad.
First we'll look at some reasons why you might want to use binary options to invest money.
This is the main reason why people gravitate to binary options. They are much simpler than most investments. Basically it is as simple as choosing if a stock, commodity, or currency is going to go up, or down.
When you make an investment with this type of option, you stand to gain between 65 and 81% profit. That is more than most investments can offer.
I do not know of any investment that has the potential to return 65-81% on investment in as little as an hour, but that is very possible with binary options.
If you have been avoiding buying stocks because of the total unknown, you might like binary options. The great thing is that you know exactly what you stand to gain, or lose before you put any money at risk. Combine that with the short term, and you take a lot of unknowns out of the equation.
Now we'll look at some things that might deter you from investing with binary options.
Having to predict the very short term trend of a stock, or other asset is not easy. Especially when you consider the overall volatility of the markets. Predicting what direction a stock is headed in within an hour is very risky.
-Large Potential Losses
Just like the potential gains, the potential losses are also large. Combine the potential losses with the overall riskiness and you have to be in the right position to make an investment like this.
When dealing with online binary options brokers, you have much fewer options in terms of assets to choose from. Just a small percentage of what is readily available on the NYSE.
When dealing with hard earned money, it is important to invest it in a way that works for you. Binary options are a great way to do that if you are not put off by the riskiness, and lack of assets. The great thing is that you can start small, and learn as you go. You do not need to put huge amounts of money at risk. The most important thing to remember is to do your research. That is what will give you a chance to tip the odds in your favor.