Binary option was approved by ANEX and CBOE as an official financial product in May and July 2008 respectively. With binary option, we can choose to invest in shares, indices, foreign exchanges, futures etc. For a binary option investment, there are only 2 choices—up or down—to determine profits or losses. Earnings normally fall between 60% and 80%.
Binary option is the same as share, foreign exchange and futures trading in that the investor has to predict future price trends by analysing past and present ones. However, in binary option, we only need to opt for ‘up’ or ‘down’. Initial dealings with binary option might give a false impression of gambling, but there is a major difference. Gambling depends solely on luck, while to excel in binary option, we have to make judgments based on complete analysis of price trends, international finance information etc.
All investments are risky, so we must exercise caution. This quotation applies to all types of investment. As a financial trading product, binary option does exhibit risks. In binary option, we can pre-set the amount of losses so that we know very well how much we will lose if we make a wrong judgment. You have the right to exit early so as to get back part of the investment capital in the event that you have made a wrong judgment. Compared to foreign exchange and futures trading, which are leveraged financial products, amount of losses are relatively smaller in times of volatile market movements.
There are different types of price trend analysis such as tables and charts, market data, simple analysis of fundamentals etc. Despite all apparent changes, they remain essentially the same. All we need to do is to find the pattern of change and predict future price trends, a process shared by all financial derivatives. All you need to do is to learn up about investment, find a suitable means of analysis and stick to it. In order to enhance the investors’ ability to interpret tables and charts, TDOptions will provide sound educational videos to facilitate learning.
In binary option transactions, there is an expiration time (for example, an hour as described above). If you buy a call (up) option and the price goes up (expiration price) at the expiration time as compared to the buy-in price, you make a profit. If you buy a put (down) option and the expiration price goes down, you will also make a profit. In a nutshell, if the option you buy goes up or down as you have predicted, irrespective of the magnitude of change, you win a profit! If you have made a wrong judgment, you can always choose to ‘opt out’ to cut your losses and get back a part of your investment capital.
TDOptions lets investors concentrate fully on their investments and financial endeavors. To this end, we present a highly transparent and simple operating platform and, at the same time, provide investors with abundant visual aids such as tables and charts.
Log on to www.TDOptions.com and register. You may use your credit card, prepaid card, e-commerce or tokens to trade. TDOptions has liberalized all its investment projects for investors to trade freely, so that they can enjoy greater flexibility in their fund management processes.