Obviously, the last coming after the euphoria on the Forex and pure hard in recent years, especially the pre-crisis, when currency fluctuations were not as intense, and the world was standing on a solid dualism euro-dollar, no that central banks around the world would start to play downward to favor exports or to stimulate domestic economies with money issues.

by Allan Ajifo

The Binary Options allow you to invest on Forex, ie the change of currency pairs , as well as on stocks, indices and commodities , but in a way totally different from what the market would allow in the past, in fact facilitating the access of millions of people around the world to financial transactions. The unique features of binary options are two: the first is that only exist on the internet, that you can not go to the bank or bag and ask for a binary option, the second is that losses and gains are predetermined.

For those who are completely fasting finance and stock market investments, you must first specify the extent to which this is a great innovation. You have to know that when operating in these areas, usually you have to connect the investment to an account or a fund through a broker , which can be an individual consultant, a company or an online platform that allows us to access markets at any instead we find ourselves.

This account, which can be a bank account or an account on a website, has an amount of money from which we draw to invest: in a normal transaction in the stock market, Forex or commodities, either directly or in CFD (operating on fractions of total capital), an account of 20,000 Euros, if you invest only 1,000 €, the scenarios are highly variable. If I bought 20 shares at 50 euro each for a new society, based on the company’s performance I realize the gains or losses, which may be the same, twice, three times, four times the investment.

There are companies that entered the stock market with a price of $ 20 per share and now they are worth 800, anyone who bought one share has gained 40 times selling it. If on the contrary, the value of the stock had dropped to a dollar, they would have lost 20 times. In this way, think about the effects that this can have on the account you have, you can raise by selling your shares at a price 40 times higher, or simply you can lose all the money you have in the account, not only those spent in the investment of one thousand euro . In all this you would have to understand many concepts that require pages and pages to understand for example how to calculate the gain or loss that is what ” difference between the market value and strike price “.

With binary options instead everything is easier : how much you lose and how much you earn is already known from the beginning. A binary option is in fact a price, a deadline and a “prize”. The award is determined on a percentage normally given by the broker with which you work: you can buy a $ 100 option, with a 300% premium, or decide to invest downward, that is, betting on the same devaluation (commonly called short ), and have the same result. You can win 300% of the money invested, or simply nothing, losing the initial investment. This situation is impossible with any other financial instrument, knowing in advance losses and gains.

It must be said that binary options are not particularly loved by finance experts. Fond to a complex world of constant information, studies, mathematical formulas but also luck and euphoria, they can not find the same thrill knowing in advance a profit margin considered for their low, even with the advantage of a limited loss. Many of them define bets for ordinary people who want to play should not be confused with real investments.

This is partly true but also makes the fortune of the people who approach the world of binary options . In fact, if by other investment instruments must be constantly updated on what happens in the world, in markets and sectors in which we invest, giving the continuous trading platform looks to observe the evolution and take profits before things get worse or mutate stopping dangerous leaks by closing open positions, with binary options you just wait for the deadline. It can not happen nothing more than winning or losing a figure that already know.

This of course should not lead to excess: without a basic knowledge of the financial world and the assets on which we invest, we should not even operate with binary options: if we buy an option on the euro-dollar exchange rate or the shares of Facebook, we must always know what we do and why we believe those actions or that type of change will increase in value, and you should always go with caution.

Also because it is true that I can buy an option with less than 100 € and lose only the amount, but if I lose 10 times 100 Euros, I’ve already lost a thousand euro. And a good option went fine I never pay off all 10 went wrong.