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Last Updated: October 14, 2021

What you need to know about Binary Options

Binary Options

It is no secret that financial traders are amongst the highest earning workers in modern society. But what do these professional actually do? And what makes a financial trader successful?

The answer is simple: they are in tune with the global economy. They understand what makes Google stock rise and fall, and what makes the price of Gold rise and fall. In short, they spend all day predicting the market’s next move, and if you learn how the economic machine works, you too can join this elite group of high earners.

Binary options trading is amongst the simplest ways to trade online. It is a direction-based form of trading, whereby traders can profit by predicting the future direction of a given asset.

Since it started in 2008, binary trading has continued to gain a following over the years and presents a lot of opportunities for traders. Binary Options are a way that anyone can profit from the movement in value of a large and dynamic range of commodities, assets, stocks and shares or even Forex. The reason why these types of financial trades have become so hugely popular is that traders have to make just one of two possible decisions when placing them, that being yes or no decision that in Binary Options trading are known as Put or Call trades.

Binary options are regulated as a financial product in two European Union (EU) jurisdictions, namely Cyprus and Malta. The Cyprus Securities and Exchange Commission (CySEC) became the first regulatory body to announce regulation of online binary options platforms operating in Cyprus, and Startup 365 was one of the first brokers to acquire this licensing. Malta Financial Services Authority (MFSA) also followed suit by regulating binary options as a financial instrument. Binary options are, however, still regulated in other EU member states, such as the UK, Germany and Italy, under their respective gambling regulations.

This wave of regulation and classification of binary options as financial instruments has given the industry mass credibility. In turn, the industry has experienced substantial growth in recent years and currently boasts 2.5 million active traders worldwide. British binary options market alone traded volumes of 120.30 million GBP in October 2015; 10.5 percent higher than September’s trading volume (Finance Magnates). This is an impressive figure due to the fact that leverage is not given when trading binary options, which means that 120.30 million GBP is the actual figure traded and not inflated due to virtual monetary leverage as applied in forex (foreign exchange markets).

In the traditional form of investments, the investor essentially purchases the underlying asset that they have an interest in. If the investor sells at a time when the asset has increased in value, they have made a profit, adversely, if they sell when the asset has decreased in value, they have clearly lost money.

This type of investment compels the investor to constantly worry about when to sell. Binary Options trading is much simpler. There is no requirement to actually purchase for example gold bullion if you wish to place a Binary Options trade on the value of gold, you simply need to decide whether the value of gold will rise in value or fall in value over any given period. One major advantage of placing Binary Options trades is that you will find a range of different expiry times are available which can be as short as just 60 seconds or as long as one month.

Do you think the price of Gold will reach $1080/ounce in the next hour? By investing in your forecast, you can make 63% of your investment in under an hour.

Trade example
Here’s an example:
1. Invest £500 in one of binary options assets, example: Gold.
2. Decide if Gold’s price will go up or down.
3. Click ‘Buy’. If you’re right, you’ve just made £315.

Does it cost a lot of money to get started?

Not at all. Funding a brokerage account usually starts at a minimum of £250. The minimum amount per trade is £10. It is the minimum investment amount that allows you to open a transaction in the markets.

Is there a big risk in trading binary options?

Yes and no. Trading any financial market involves a high level of risk and may not be suitable for everyone. All investments involve risk, and you need to make yourself aware of those risks. Unlike forex and other trading alternatives, the risk in binary options is known. You can see the amount you will profit and lose on each trade made.

How to get started?

1. Open an account on binary options platform: just fill out the short form here.
2. Make first deposit (no broker fees, no hidden commission fees).
3. Start Trading.




This article is sponsored by and writers are being compensated by Startup 365. This material may not be published, broadcast, rewritten, or redistrubted. All rights reserved.
GENERAL RISK WARNING: TRADING IN BINARY OPTIONS CARRIES A HIGH LEVEL OF RISK AND CAN RESULT IN THE LOSS OF ALL OF YOUR INVESTMENT. AS SUCH, BINARY OPTIONS MAY NOT BE APPROPRIATE FOR ALL INVESTORS. YOU SHOULD NOT INVEST MONEY THAT YOU CANNOT AFFORD TO LOSE. BEFORE DECIDING TO TRADE, YOU SHOULD BECOME AWARE OF ALL THE RISKS ASSOCIATED WITH BINARY OPTIONS TRADING, AND SEEK ADVICE FROM AN INDEPENDENT AND SUITABLY LICENSED FINANCIAL ADVISOR.

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