Binary options, also known as digital options, are potentially very profitable investment, although it must be admitted that the lack of attention by the trader or the use of a poor strategy can lead to results not really exciting.
However, traders who are able to invest wisely and cunning, can take advantage of the high interest and profits that binary options are able to offer.
The profit, depending on the type of binary option and the broker, varies between 70% and 400-600%.
In general, operations that produce returns between 70% and 95% require the same commitment and have the same level of difficulty, but when you invest in transactions with potential return of 300-600%, the broker puts conditions much more difficult, and reach the target is not simple.
But don’t underestimate the partial reimbursement of losses by some brokers. To make less sad the possible loss of investment, many brokers recognizes the partial refund of the capital invested in the event of loss, the percentage varies between 10% and 15%.
This means that if the broker A corresponds to 85% on a certain investment, while the broker B recognizes only 70%, but refund 15% in case of loss, the two investments turn out to have an average return almost identical.
Differences Between Options
Options Up / Down or High / Low also called Call / Put are those with the highest probability of success, because the only thing to do is to predict if the underlying title at expiry will take a lower or higher price of the current one.
As a consequence of simplicity, also the profits of binary options High / Low are lower compared to other types of binary options, these are usually of 70-95%. However, this is already an excellent return, for example, a € 100 investment on a binary option with a performance of 95% returns a profit of € 195.
The options more profitable are one touch options, commonly called touch / non-touch, and boundary options. In this case, the gain varies depending on the type of option, the broker and the difficulty of the target that must reach, it oscillates between 70% and 400%.
An option that closes with a positive return of 400% obviously recognizes a high profit. For example, an investment of € 100 is transformed into a revenue of € 500. It goes without saying that is not easy to achieve the goals set by the broker, especially when an option pays high returns, but on the other hand it isn’t a game of cards with friends. In their simplicity binary options are still investment.
We must closely observe the market trends and prices and be able to analyze and interpret the signals that come from various sources. Only in this way the transaction will close in profit. Remember that you can make good money without necessarily close all positions in profit, the important thing is to maintain an ROI (return on investment) positive.
Here’s an example:
March 10 exchange rate EUR / USD is 1.3122 – its trend is upwards and we have seen a binary option that pays 150% if at the end of 16 March EUR / USD will increase to 1.341
Predict correctly the trend means earn 150% on your investment, that is, with an investment of € 100 a return of € 250.
This means that if at least half the time the investment is successfully complete , the investor will collect € 250 with a net gain of € 50. To stay in balance is sufficient to close in two positive investment of 5.