Expert advice for making money and diversifying your portfolio!
Binary options have been around for quite some time. But their burgeoning popularity is a relatively new phenomenon. Traders wishing to make money on the global markets without having an in-depth knowledge of the Dow Jones industrial index, the NASDAQ, the Johannesburg Stock Exchange or the London Stock Exchange will do well to consider binary options trading as a viable investment alternative.
At their heart, binary options are bets on the future price direction movements of assets, indices, stocks or commodities. One of the most popular binary options is that of Forex binary options. These contain currency pairs such as the euro, US Dollar, Japanese Yen, Swiss Franc, South African rand and the Canadian dollar. The currency pairs are always quoted as one currency relative to another. With respect to binary options trading in Forex, traders predict the upward or downward movement of specific currency pairs by placing options.
These options can be a call option or a put option. A call option expects a positive price movement and some predetermined point in the future while a put option expects a downward adjustment in the price at a predetermined point in the future. Traders are turning to binary options to make money as a supplement to their traditional financial portfolios. With the markets showing bullish sentiment of late, traders have excess funds available and binary options provide returns in the region of 85% when trades finish in the money.
Unlike stocks and Forex investments, traders are not required to determine the actual movements in the price of an asset – only the direction of movement is important.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.