What is Binary Options Trading?

I ran into this new phenomena on the web earlier this week, called "Binary Options Trading"  -  And its a new way of either loosing your money fast, or making money quickly - it all depends on how disciplined your are and how well you are able to leave your emotions out of the equations.

Trading options on a binary basis is basically where you take you gut instinct and ability to extrapolate from graphs and use that to place positions on the market that will either cost you the full amount wagered, or will result in a profit margin of about 85%

You are basically placing bets on 50/50 risks and getting a 40/60 profit return, which is how these investments houses make money. So they basically make more money from you when you win than when you loose.

There are several basic methods that are considered common binary options

high/low - with this form of trading option, you basically are placing an order that the stock will either go up, or will go down, from its current position.
in/out or range - For various ranges within the graph of a stock or in-dices, you can basically make money by correctly predicting if the stock will remain close to its current value or if it will move away from its current value, no matter if that means going up in value or down in value
range
touch -  This one is a bit harder to explain, but you are basically investing on the premise of prediction that a stock will be touching a specific high or low point on a graph at the end of the time allotment that the option allows.



Overall options trading is an interesting way to make a few extra bucks if you have the resources available to you. I would recommend that anyone that ventures in to binary options trading take it slow and thoroughly read graphs and charts before making even a small bet.

I would advise strongly against risking your money if you are feeling at all emotional about the previous trade. Specifically, if you lost money on your last trade, DO NOT double down on your next trade in an effort to balance out the previous lost. This is an amateur mistake and don't allow yourself to do it.

If you want to check out some more sites, I would recommend optionsclick.com as a good place to learn more.

If you are looking to invest large amounts of money or need to invest for the long term, consult a financial planner on the matter.