The Binary Secret. Helmut Strauss
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II. The big revolution
A. Binary options
Binary options (also ‚Digital options‘) are over-the-counter (OTC) products. That means that, as Contracts-for-difference (CFD‘s), they are being traded outside the stock exchange. On the international trading floor they are relatively new. Since 2008, trading in binary options is officially sanctioned in the United States of America by the Security and Exchange commission (SEC). Since 2013, trading is also allowed in the European market.
Other than with CFD‘s, with binary options there is no additional payment liability and therefore no risk of total loss of your assets. Your respective investment is the biggest possible risk you are taking. Nothing more. This is what makes binary options so interesting.
A binary option is a financial derivative derived from options. It belongs to the exotic options, since the payout structure is a little more comprehensive than with standard options.
Because of their structure and easy accessibility, binary options currently experience a veritable surge on the internet and are rapidly gaining worldwide popularity. And for a good reason: They offer a relaxed opportunity for everybody to make legal profits with comparatively small investments and small risk. At the same time, to date they are not very well known in Germany. That is why I reveal the secret and show, what binary options are and how they are being traded.
1. The secret
Binary options are probably the options in the market that are easiest to handle. With the help of an online platform that specializes in binary options, you achieve the maximum return. There are several things to consider, when choosing a trading platform. To make it easier for you, I have gone through the effort to examine some leading platforms more closely. In Chapter IV Overview of online brokers, you‘ll find a summary of my research with contact information for the in my opinion best brokerage houses on the German-language market.
Generally, binary options have a contract period of a maximum of 30 days. However, you can trade with a contract period starting at 60 seconds with investments starting at 5 Euro. The advantage of binary options is that the return is clearly regulated beforehand. You‘ll always receive the same fixed percentage ROI (return on investment) on your investment.
At the same time the common spread1 for such investments is waived. This is why put-2 and call-options3 are offered at the same price.
Legend:
Spread1: The difference between two comparable quantities of the same unit. Price-related spreads, interest-related spreads and spreads related to futures markets are known, as well as absolute and homogenized spreads.
Call-Option2: Purchase option. Buyer has the right, but is not obliged, to purchase a previously fixed amount of something for a previously fixed price at a previously fixed point in time from a contract partner.
Put-Option3: Selling option. Seller has the right, but is not obliged, to sell a previously fixed amount of something at a previously fixed point in time for a previously fixed price to a contract partner.
The Binary Secret
The big revolution
The wonderful thing about online trading in digital options is that you can access your personal trading account from anywhere at any time. All you need is a terminal (smart phone, tablet or PC) and an internet connection. The brokerage house software is online and operational 24 hours a day.
Since you can access several different participating international markets through your trading account, you can trade practically anytime of day or night. Because of the global time zones, there is always at least one market open for business while the others are closed.
The very best of the binary secret is that you can make a profit even if the market is in a downturn.
The key facts of the digital secret:
• Short contract periods available (from 60 seconds)
• Relatively small initial investment (usually from US$ 200)
• No unforeseeable risk; since the risk is fixed from the start
• Possibility to achieve above-average ROI
• Profit from the volatility1 of the market
• 24/7 real-time access to your trading account and the ability of executing trades
• No spreads
Legend:
1Volatility: Fluctuation of the parameters of the financial market, like prices or interest rates.
The Binary Secret
The big revolution
2. Trading digital options
Other terms for binary options
- Digital options
- Money-or-nothing options
Binary options are no modern-age invention. More than one hundred years ago, binary options appeared on the floors of the option trading houses. For more than a century already, banks and investment companies have been trading in binary options. Famous advocates of binary options include the Rothschild family.
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