Can You Really Make Money with Binary Options?
If you’ve ever dreamed of making money as a day trader, then binary options may be a fine place to start. They’re very easy to understand, which means they’re an outstanding place for trading beginners to get started. Of course, there are plenty of veterans making a substantial amount of money on these trades as well.
They work well for traders with small accounts, too. You don’t need thousands upon thousands of dollars to get started. For example, on Binary.com you can open an account for free and get trading with just a few hundred dollars.
Is binary trading safe?
All forms of trading offer some form of risk. You can lose money if you don’t have a solid strategy.
Yet if you choose a reputable broker there’s nothing inherently unsafe about binary options. Find one that’s regulated by the country it’s based in, check out its credentials, and research the site’s reputation. Avoid sites with exaggerated claims, like saying you can make $1000 by investing just $10.
You won’t be able to find a binary options trader regulated by the Canadian government because while citizens are allowed to participate, the government prohibits traders from operating in Canada.
Once you find the right broker, deposit only as much money as you can afford to lose. Binary options will only trade on the money you put into your account. As long as you don’t spend more than you can afford to lose it’s perfectly safe. If you get good at it, you might even double or triple your money through a series of smart trades.
How do binary traders make money?
An individual trade will usually make you around $50 or $60. Here’s how it works.
You’ll decide whether a certain commodity will be above or below a certain price by a certain time. For example, you may decide to bet on whether the price of platinum will go above $941 by the end of the day, or below it. You purchase an option for $50.
If you’re right, you’ll get $100, for a total profit of $50. If you’re wrong, you’ll lose your $50.
How much money can you make from binary options?
It depends on how much you invest and how good you are at trading binary options. You’ll make money very slowly if you’re good at it but only invest $50 at a time. You’ll make it very rapidly if you’re willing to make more trades and have sufficient skills.
One way to make sure you do well is to place your trades on options you know relatively well. You can trade binary options for almost anything: the price of gold, the price of oil, the value of two currencies relative to each other, the value of the stock market or the S&P index. If you’re a precious metals enthusiast you might do very well betting on precious metals, but not so well betting on the S&P 500.
Ready to get started?
Did you know you can make practice trades? Visit Deriv.com to set up a free account today. You can get a great feel for how good you are at binary options trading, grow your skills, and set your strategy. You’ll be trading like a pro in no time!