Thursday 16 October 2014

Binary Options - The Next Big Payday?

Firstly, what are Binary Options?Finance is a field of derivatives. Options are simply a contract between two parties, where one will offer or sell and the other agrees to buy an asset that can be shares, currencies, bonds or commodities within a time frame. The buying party has the right to exercise his option at any time before expiration but is not obligated to.

However the buyer will pay a fee for the options, which will be a proportion of the assets possible future value.So effectively, you are placing a bet on whether a certain asset will be worth more or less by a certain date. If it is then you will gain, if not you will lose your initial bet. To traders this is an attractive prospect, because risk is calculated, you know how much you are set to lose should you get it wrong. Likewise you know how much you will gain. Also binary options are not affected by small fluctuations in the market.So with this in mind it is quite popular with traders with Forex experience, or even people new to trading in general and wish to get a foot in the door that doesn't require months or research to understand.

Here are some of the common terms used in Binary Option investingStrike Price - this is the price the underlying asset is at when the option is agreed.Call Option - if this option expires above the strike price of the asset then it will be "in the money". If it expires below the strike price then the investment is "out of the money".Put Option - if this option expires above the strike price of the asset then it will be "out of the money". If it expires below the strike price then it will deem the investment "in the money".Underlying Asset - This is the share, commodity, currency pair or index on which the option is agreed.Expiration - this is the date and time at which the option expires and can no longer be exercised by the buyer.

So as an affiliate, why would Binary Options be something you would market?As mentioned above the risk is limited from the start. So new traders will find this as a good way to get into the market and learn how things work before moving into Forex where gains are larger, but so are the risks.To successfully market Binary Options, emphasis has to be put on the simplicity of the process. There are two ways prices can go, you bet on which way. The amount you are set to lose is known beforehand.As with Forex affiliates the potential is huge for well-run campaigns, particularly if you already have access to traders.So get out there and start earning!
To get more information click here shop binary Options or you can also click here trade binary Options

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