Binary options are a form of instrument where traders predict the price of an asset at a certain time. Binary options have recently become a topic of discussion because they are considered to be able to generate large profits in a short time.
Instead of being called an investment, binary options are more appropriately called gambling. Potential investors are warned to be careful in assessing digital advertisements that contain the advantages of this binary options system.
It should be noted that this binary option does not have a legal umbrella. Thus, binary options applications and pages are counted as illegal sites.
Potential investors should be more careful when they come across this offer. Never ever try or be prepared with all the risks.
Searching through a number of online sites shows how to play binary options is actually quite easy and simple. Users only need to register by paying an average deposit of ten dollars for one game.
Then the user will choose an asset index consisting of currencies, stocks, and commodities. These assets will determine the amount of capital that must be issued.
The binary options application will calculate the potential profit obtained from the transaction. The range is quite diverse, ranging from 60% - 90%. Users can also choose the duration of the transaction, starting from a few seconds, minutes, hours, or days.
Finally, the user is required to guess within the selected duration, whether at the end of the duration, the index price will be above or below the price when starting the transaction. If the guess is correct, the user will make a profit. But if it is wrong, then the capital used will be forfeited and the user will lose.
In binary options transactions, there are several terms that are different from those in forex, including Call or High (if the price is expected to rise) and Put or Low (if the price is expected to fall).
In addition, there is also the term in-the-money if the profit or out-of-money transaction is miscalculated. The amount of profit also depends on the number paid by the broker to the trader.