Online binary options brokers, also known as binary options trading platforms or binary options trading internet sites are relatively new arrivals to the world of investments. These services are just right for individuals who may not have large sums of money to invest. One of their main selling points is you don’t have to wait years to get a return on your investment. Since no previous trading experience is needed, trading binary options is open to amateur investors. You would therefore be well-advised to get the low-down on the theory and practice of binary options trading before starting.
So it’s just as well that a good many trading internet sites have very thorough explanations detailing the inner workings of binary options trading. Binary options, also called digital options, effectively consist in attempting to guess the behaviour of an asset, e.g whether it will rise or fall in value over a set period of time. Whether investors add to their investment or take a hit is determined by how correct their forecasts were.
Whatever happens, though, this potential profit or loss will have been set at a fixed amount beforehand.
‘Assets’ can range from oil and other commodities, foreign currencies and stocks. Demo accounts are a great way of trying your hand at trading without risking real cash.