This is a guest post by Ahmad Hassam
Forex Binary Options can deliver massive 1,328% gains! Forex Binary Options is a tool that 99% of the investing public hasn’t heard about yet. Forex Binary Options are a brand new currency trading tool that is cheap, easy and powerful. In simple terms, Binary Options are like a bet whether something will happen or not. It is just like a Yes or No investment.
For example, you can bet on whether EUR/USD rate will fall below 1.3570 or whether AUD/USD rate will rise above 1.0000. Now, if your bet comes out right and EUR/USD rate does fall below 1.3570 or AUD/USD does rise above 1.0000, you collect your original investment plus a profit. If not, you lose the original investment that you had made in the trade.
The maximum you can make on a binary options contract is $100. So, if you predicted the market direction correctly you make $100 per contract and if your prediction turned out to be wrong, you lose what you had invested in the binary options contract.
Let’s consider an example. Suppose, the EUR/USD rate is 1.2380. Your charting analysis makes you believe that this rate could go as high as 1.2430 in the next few days. You want to bet on the direction of the market and the best way to do that is using a forex binary options contract.
It is Monday. So, you buy a EUR/USD binary with a strike of 1.2430 and expiration on Friday at 3.00 PM. You buy this contract for a $7 premium. On Friday at 3PM, EURUSD rate is in fact 1.2435. Your account is immediately credited with $100 by the broker. How much you made in 5 days on your $7 investment? 1,328%!
Suppose, instead of just 1 contract, you had purchased 30 contracts for $210 only. How much you would have made on your $210 investment in just five days? $3,000! Isn’t it cool to make a profit of $2790 on a small investment of $210.
Now, if the rate had been 1.2415 on Friday at 3 PM, you would have lost your $210. Whatever, if you have been trading forex for a while, putting a stop loss of 20-30 pips is normal in swing trading. On a standard lot of $100K, this 20-30 pips stop loss means a risk of $200-$300. If the market turns in the wrong direction, you lose this much amount before the stop loss is triggered and you are out of the market.
So trading Forex Binary Options is a powerful new method of profiting from the volatility in the currency market that you shouldn’t miss. Once you have made your bet, you don’t need to continuously monitor the market. Either you will win or you will lose. You can open a demo account and practice how to trade binary options before you take the real plunge! Good Luck!