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A very popular form of investment these days is investing with Binary options. A lot of investors are unaware of this form of investment. The major difference between investment with Binary options and other popular form of investments like stock, bonds and mutual funds is that these traditional form of investments the period of investment is really long where-as Binary options offer short term investments. So what exactly are Binary options? It is exactly based on predictions. These are simple predictions on how some one’s asset will perform on one particular day or during a specific small expiry time. The time period may be a day or a month or an hour or may be just five minutes. It predicts whether the value of the asset will rise or fall within that specific time period. Apart from short time binary options also offer very high return on investments typically in the range of 70% to 85%. Moreover the returns are fixed much before the actual options are purchased. There are various Binary options strategies which are as follows:- • Bungee Options strategy: - This binary option strategy offer quick returns based on fixed term and fixed payout. The time is really short like five minutes or fifteen minutes or maximum an hour. This is a very high return binary option trading and sometimes is really difficult to calculate the value of return. • The 60 seconds strategy: - This binary option strategy involves trending of events and economic real time news, trend markets and stock new releases. Traders have to be quick, trading as quickly as 60 seconds and click on the trend and not on the trend adjacent to it. • The Hedging Strategy: -It is basically taking back the initial investment while still keep part of the asset to earn more returns. This binary option strategy is actually locking in of profits by investors. Investors wait for mere minutes from the expiry time of the investment and sells part of the investment in anticipation that the profit could just be a loss. However a part of the asset still remains invested to make even more money. • The reversal strategy: - This binary option strategy depends on how an asset is performing. If the asset is performing great and reaches a very high value, the trader buys a call. On the other hand if the value falls abruptly, the investor puts the option. This is a very popular strategy and depends on the direction towards which the value of the asset heads.
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