A lot of people are asking, What are stocks binary options? Stocks binary options are the newest method of trading stocks through a relatively innovative manner. This term was derived from the idea that investing in this business platform will bring the trader into either of the two probable outcomes which are losing or profiting; thus, the term binary.
The main concept is to make an intelligent prediction as to which path that asset will follow right after a predetermined time period. For instance, you can say that USD/EUR is to increase to 1.45 in 24 hours. When your prediction is correct, you’re possible return is 85%. When the prediction you have made did not come close to the results, you will lose the investment. However, several brokers will render you a tiny percentage which can be as high as 15%.
Stocks binary options trades are based on established knowledge and research regarding traded assets. While there is no need for you to master the ins and outs of the concept, the knowledge as to how this works will help you lessen the degree of possible risks. There are online commercial platforms nowadays which could make the trading process easy for you wherever you are in the world for as long as you have a reliable Internet connection. Also, all of the needed research and information are available online.
Furthermore, binary options can be traded on commodities or Forex pairings, indices of the stock market, and stocks itself. Trading in binary options can be straightforward as well as lucrative with its fast returns. However, in the world of binary options and stock trading, nothing is really certain.
Making investments in stocks means that the traders have a share in a particular company’s ownership. Therefore, they have a strong hold to the company’s profits and assets. However, bear in mind that in stocks binary options, traders possess the freedom of investing stocks owned by their company of choice without being assured of exclusive ownership rights.