Every trade has a striking price where you rely on an asset to go either up or down. At the time of expiration, depending on which way you predicted the market to go, will determine whether you win or lose. You will always know what your return is, if you win the trade and what is lost, if you lose. Making money with binary options is possible but you have to do some research and find legitimate brokers. Learning the fundamentals of this industry takes practice and discipline.

Various forms of options are indices, Forex, commodities and stocks. So when trading, look for trades that have a high percentage of return on your money. Typically, brokers will have a 70%-90% return on trades. This new era of trading allows the trader to know exactly what his return will be on his investment at the start of the trade and will always know what he has lost at the end of the trade. Take trading seriously, and don’t place random trades that will cause you to lose money.

Trading binary is not as complicated as you think. You don’t have to be a licensed trader or have a degree in economics. Make sure you treat this as a business and not a hobby. Because of the high returns on quick trades that you can do, this industry has gained popularity around the world. These brokers have demo accounts for you to practice trading for a reason. Remember, trading has been going on for quite some time now. Don’t think you can waltz into this world, place some trades and start making money. It doesn’t work that way. Learning how to trade is no different from learning anything else. The more you practice and develop your strategy, you will get better at trading.

In conclusion to what is binary options and how to make money, make sure you never trade with more than 5% of your initial startup. So for example, if you start out with a $1000 in your trading account, make sure your trades are no more than $50. Remember to look for brokers that are regulated and allow the country you live in, to trade on their platform. Most importantly, make sure you do your research on brokers you want to sign up with before you decide to put money up and start trading. The last thing you would hate to lose is money you think is coming to you, after you have taken time to learn how to trade.

Source by Joe O Orosco