What Is Binary Options Trading

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Binary Options Trading has been around for a number of years, even if the term itself doesn’t sound very familiar. However, it really became popular once the global credit crisis hit most western countries back in 2008. The term “binary” replaced the term “digital” in order to provide a simpler explanation of what this type of trading entails. Binary options are trades within assets and derivatives such as commodities, the forex market, etc.

Binary options trading does have a negative reputation somewhat. There have been products relating to this form of trading that has attracted affiliates, some of which use questionable marketing tactics, that has lead to some “dodgy binary option products” hitting the market. Having said that, binary options trading is considered to be the poor man’s type of trading because investment amounts can be as low as only $100.

Essentially, binary options trading involves the investor predicting the up or down movement of an asset. You are not betting on the value amount of an asset, simply whether it will go up or down in value is basically how this type of trading works.

If you want to be successful trading binary options you really want to comprehend the value of the asset you’d like to trade against. You’d do yourself a favor by becoming familiar with all the financial markets where the assets you’re interested in betting on are traded.

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