Why Trade Binary Options Chief Binary Options Trading

Why trade binary options?
Binary options are becoming more and more popular everyday because of their simplicity, and their ability to allow traders to earn high fixed rates of return with investments that have very short term periods.
So how does it all work?
Similar to other forms of trading, binary options offer options for assets in many of the same categories like the Dow Jones Industrial Average and other indices, currencies like the Euro Dollar, gold and other commodities, and FOREX exchange.
Quite simply, all an investor has to do is predict whether the price of an asset is going to go up or down. After doing so, he or she can then choose to buy an option according to that prediction. If he or she thinks the price of an asset is going to go up, he or she would buy a Call Option. If he or she thinks the price of an asset is going to go down, he or she would buy a Put Option. Every option has an expiry time in its contract in which a Call or Put price movement must be within. Expiry times are normally 1 day or less.
Hypothetically speaking, if you knew the price of coffee was going to go up tomorrow, you could by a Call Option for coffee with an expiry time that fits your prediction. If your prediction is correct, you would make a pretty nice size profit according to the form of compensation specific to your option. Binary options offer two forms of compensation; (1) based on a predetermined percentage, or (2) based on a fixed amount.
However, in the same way an investor can make relatively large profits for correct predictions, wrong predictions can results in little to nothing remaining for the option purchased. All details pertaining to amounts for wrong predictions are outlined in an options contract. Making correct predictions is the only way to successfully trade binary options, and can only be done through proper research and analysis of assets. Making multiple wrong predictions can be devastating and can cause large losses in capital.
Knowing every detail of trading binary options including how to properly research an asset, and how to choose a good broker specific to binary options, is the determining factor between successful binary options traders, and everyone else.