Fixed Return Options
In binary options trading, fixed return options offer many investors a safer way to invest in the stock market than conventional stock investing. The benefit to the investor of making a purchase with a fixed return is the security of knowing exactly what they would earn if the option finished in-the-money.
For example, if you purchased a Call option of $100 of company ABC that offers a 70% return for in-the-money results, you would know that if you struck lucky you would definitely walk away with $170 ($70 of the 70% return plus your original $100 premium).
Many investors prefer having this foresight when investing so that they can maintain their gains and possible losses without any unforeseeable major damage.
For those of you skeptics out there who are still not sure about purchasing fixed return options, read this post on the truths and myths of this brand new investment tool…
Myth: The probability of earning from binary options trading is low.
This couldn’t be more untrue. Those who invest wisely and study the underlying assets that they purchase do earn big. The biggest advantage that binary options trading has over regular trading is that you don’t need to predict how much the market will move. It’s enough to just to recognize the fluctuation of the market and to determine whether the binary options will go up or down. It only takes a one pip movement to put your investment in-the-money and you will receive your full return.
Myth: You need to be a financial expert to succeed with binary options.
There is no need to have extensive knowledge to trade binary options successfully. All you need is the ability to predict the direction of the market. To do this, all it takes is an hour or two of reading markets and industries updates from your favorite internet news source every day (which you probably do already). Using an online binary options platform is really easy. There isn’t much to it except clicking on the “up” or “down” arrows. I don’t mean to over-simplify here but that’s really how basic it is!
In addition, to identify trends before you trade, most binary options trading platforms display the movement of each underlying asset on the market for the past hour in a linear graph form. There is usually an option to review the previous expiration rates of the underlying assets as well.
Myth: You have to sit at the computer and follow your binary options all day.
Huge myth! Transactions expire automatically so there is no need to sit in front of your computer all day. Results are available for checking at any given time. Also, many binary options providers offer a free SMS results service.
Truth: If your market prediction is wrong, you get your money back.
Yes indeed! On the good binary options sites, whenever you purchase Call or Put binary options, you are awarded the reverse option automatically without any fee that protects 15% of your investment. Simply put: you invested $10,000 and it was successful – it turned into $17,000. The opposite expiration would still leave you with a $1,500 refund.
Truth: You can receive 71% in returns with binary options.
Depending on the underlying asset, you can make between 65 – 71% and it only depends on one thing – the rate of the underlying asset at the time of expiry.
Truth: You don’t need a broker, advisor or to pay commissions to trade binary options. All you need is a binary options account and then it is just you and the market.
Truth: Binary options account members get bonuses for depositing.
Another great truth! Some binary options sites will reward traders with extra cash if they deposit a certain amount to their binary options account. Also, there are sites that have special weekend deals. Don’t be surprised if you receive a phone call or email from time to time from a customer service representative offering you a loyalty bonus.
Truth: Binary options are a thrilling and exciting investment tool.
And if you are not yet ready to invest, try out a binary options site demo. You’ll see how easy it is and be fully convinced!