To view what can happen if you want to get into binary options trading I will outline several demos below.
But the first thing to do is open an account with a binary options broker. Then you fund your account with cash. Your broker will let you know how to do that.
So a binary options demo will look something like this:
Lets say your a new trader. So you invest a small amount of money in a trade, about $100. You’ve gone through all your practice paper trading so you know how to spot an entry signal. You pick what you want to invest in, lets say you want to invest in gold.
You anticipate that gold is going to go up in value which with the economy today is likely to be a safe bet. So you choose a call option. You choose your time frame – this can be an hour, day, week or month.
You put your $100 dollars that you’re going to use in that investment. At the end of the time your investment is in the money and therefore you win the trade. Your profit up to 71% or your $100 investment is now $171.
If the trade ended up being out of the money you lose the investment unless you chose a broker that gives a 15% refund, your original investment is now $15.
Another binary options demo could be this scenario. Let’s say last year when the Deepwater Horizon oil well blew in the Gulf of Mexico last year you would probably be smart to guess that British Petroleum’s stock would likely tank.
For this scenario lets pretend you are an experienced investor and you already have a substantial amount of money in your binary options trading account.
So to anticipate that British Petroleum is going to tank you put ten thousand dollars into a put. Again choosing the time frame that you want to invest for.
Your instincts are proven to be correct and you again profit by 71%. Or you get $7100. A nice chunk of change especially if you chose an hour for the expiry. While there are few if any jobs that pay $71 an hour had you invested $100, there are no jobs that pay $7100 an hour.
However if your instincts were wrong and the stock went up your ten thousand dollar investment would now be fifteen hundred.
This information should show how potentially lucrative binary options investing can be. With some practice you should hopefully have a long and profitable trading career.