Earning big profit in short period of time is very risky. For one, most people are not the aggressive types who will take chances of putting hard earned money in an investment that has high probability of loss. Second, a person who is promised secured and sky-high profit is probably in for a rough awakening from scammers.

With binary options , you are in for an “all or nothing” deal, every contract is a straight up 50/50 risk. But first let us see the underlying principle of this trading system. This is one of the high-risk investments that have been attracting most investors especially foreign exchange traders. It thrives in the smart game of speculation. The contracts purchased are only for short term and you will try to determine (as opposed to guessing) the direction of an asset within the stipulated time. As much as possible you will try to make the least number of mistakes to keep from losing 85% of your investment capital. You have the option of choosing whether to invest in 60 second binary options, hourly, daily or weekly expiration time frames and can even be bought when time validity is coming to end.

·         If the trader deems the option to go higher than the value it is until the expiration then it is called a call option. Deeming it to become lower than its value until expiration is called a put option. This is where the risk comes in, where the trader is either in or out of the money.

·         A trader must predict if a currency, stock, index, or commodity will go up or down within the given time frame to be able to choose which option he would like invest in.

·         If the prediction on that option is correct, the trader profits from the contract and gains from 50% up to 85% of his investment.

Click here to know more about it