Day trading can seem like such a scary proposition for a lot of people, because it can get quite complicated. Many people may not be prepared for the relative level of financial risk either and this can get even more confusing when it comes to trading options. But that doesn’t have to be the case.
Instead, you may want to consider using a site like Global Option to “trade options your way.” Over the course of today’s review, we’ll take a look at how this site works, what you need, and whether or not you can make some serious money by trading options on over 80 assets around the world.
All About Binary Options
Instead of diversifying into all different types of financial activity, Global Option has narrowed it down to a single type of trade: binary options. That’s all they do, but they do have options with over 80 assets across a variety of different areas.
The profit on these trades is set at up to 95%, though you’ll find the payout levels to be more typically in the 70-80% range. What this means is that if you invest $100 in one option and it turns out in your favor, you will earn a $70 to $80 profit. Considering that ere are some hourly options in there, you can see how the returns can get very substantial, very quickly.
As Simple As Call or Put
You may want to have a look at the binary options tutorial and other training for more information, but it boils down to this: you choose either “call” or “put” when you want to trade one of the binary options. Choosing “call” means that you think the asset will increase in price by the time the option expires, whereas choosing “put” means that you think the asset will decrease in price by the time the option expires.
Shown above are a series of long-term binary options being offered by Global Option. They always show the current price in real time and then you can look at the payout level and the expiration time. In this example, if you think that Amazon will trade at higher than $201.37 at 4pm on March 30th, then you should put your money on “call” for that option. If you were to invest $1,000 on the “call” for this option, you would earn a profit of $750. This is true even if Amazon trades at $201.38 at the expiration time.
This is the key difference between binary options and regular options. With regular options, your return would be based on the amount of change. With a binary option, if the asset is higher at all than your established baseline, you get the full payout.
Trade Currencies, Commodities, Stocks…
While the example I used above circled around some rather prominent stocks, Global Option is also set up for several other types of binary options. You can trade currencies against one another, like EUR/USD, as well as commodities like natural gas. The key stocks with hourly options come from Europe, Asia, and the United States.
The Rules for Deposits and Withdrawals
There are some rules that you may want to keep in mind, like the minimum trade amount and the maximum investment amount. A couple of other things you’ll want to keep in mind are the terms for depositing and withdrawing funds.
In the case of the deposit, you can add money to your account via Visa, MasterCard, American Express or Moneybookers. It is your responsibility to see if your credit card will treat this deposit as a purchase or a cash advance, as it’s very easy to accrue huge interest charges with the latter. When you go through the signup process, you can take advantage of promotions to get bonus trading amounts. For instance, when I tried the signup form, it showed that a minimum deposit of $550 would provide a $250 bonus.
Global Option does not have a minimum withdraw amount, but there is a $25 fee if you want the money via wire transfer and the $10 (plus postage) fee if you want a check in the mail. There is no fee for withdrawing your money to a credit or debit card.
At the end of the day, the financial risk is completely yours. That said, Global Option really does make it easy to trade binary options, complete with tracking and some rather healthy payout levels.