Each day, thousands of people generate profits through the binary options industry. These are not necessarily individuals like you and me; I am referring to binary options professionals who figured a way to generate profits from this industry.
You have heard about binary options and have vaguely (or not at all) understood what it is? Let us introduce it to you in a few words and show you that this opportunity is particularly interesting and that every day many people benefit from it.
Trading in binary options is quite simply making a prediction on whether the price of an underlying Forex asset (financial market), share, index or commodity will increase or decrease in a period of time. Here’s what summarizes the “binary option” term. The concept of binary options is not complicated; this product has been designed so that anyone can speculate on the price variations of financial markets. The return on investment of a binary option generally ranges between 65% and 85% of the amount of money invested in a trade when the transaction turns out to be a winning one, the potential monetary gain is determined in advance (before the trader speculates). In case of loss, the trader loses his investment. Some brokers such as AnyOption offer a return on loss of up to 15% of the invested money. Binary options only have two possible outcomes, gain or loss, which is why they are called “binary”.
Unlike other ways to invest money, binary options only require $ 100 to start trading. The brokers that allow this kind of trading have revolutionized the financial investment that is no longer restricted to an elite and it does not require tens of thousands of dollars to generate substantial and quick returns.
Binary options are a profitable business for binary options brokers. In the contrary case, if the brokers would not earn money through their brokerage business via binary options, they simply would not be present and the binary options business would certainly not exist. Understanding the brokers’ interest in practicing their activity is quite simple; we just need to examine the remuneration of binary options brokers. Some brokers make a lot of money; we realize that a broker whose clients include thousands of traders internationally generates hundreds of thousands or millions of euros in profits per month. The more clients a broker has, the more likely is the broker to grow its transaction volumes and therefore its income. Thus, binary options brokers aim at attracting more people into their ranks. This usually involves marketing practices, the establishment of promotions such as the allocation of bonuses or gifts for example.
There are generally more losing binary options traders than winning traders. This is well known. Many traders fail to earn profits in binary options trading and many reasons explain the failure of these traders. Sometimes, these are traders who have no concept of money management or risk management and who take very large sizes of trades in relation to the capital that they have. Therefore, they can not overcome the loss phases and lose whatever money they have on their trading accounts. Unlike these losing traders, however, there are binary options traders who manage to generate profits from these investment products. Most winners manage to generate additional income that allows them to financially meet their monthly obligations, go on holidays or repay a loan for example, and only a few traders can be considered professional traders since they earn enough money to claim to live off trading.
The website owners who deal with binary options are also remunerated thanks to binary options and more particularly thanks to their readers. In fact, most blogs and websites whose topic deals with binary options are generally enrolled in affiliate programs in binary options. For each trading account opening followed by a deposit with a broker ‘X’, the webmaster which is called “affiliate” will receive a commission for this new client who has been redirected to the broker. We are generally speaking about fees that range between $ 100 and $ 300 depending on the broker and the commission negotiated with the affiliate manager. Binary options are not only profitable for brokers and traders, but they are a way for webmasters to increase the revenue generated by their websites.