Constant self-development requires a lot of time and effort — but many people who work full-time jobs don’t have the spare time or money to invest in themselves. However, it is entirely possible to make substantial money while just working a couple of hours per day! You can learn all about it in The 4-Hour Workweek by Timothy Ferris. Want to make your dream life a reality? Read on, and we’ll tell you about one way to make money and reclaim your time: binary options.
Successful Binary Options for Business
First, let’s find out what a binary option is. With this kind of financial option, traders forecast whether an asset will be above a set price at a specific time. There are only two payoff options: nothing or a fixed amount (hence the name binary options).
The following assets can be used for binary options:
- Regular currency
- Stock indices
- Futures
There are several types of binary option trades, but the two most commonly used ones are:
- Cash-or-nothing. This binary option gives a predetermined sum of cash IF the underlying price is higher than the strike price on the expiration date. Otherwise, you get nothing.
- Asset-or-nothing. This binary option is nearly the same as cash-or-nothing. However, the payoff is equivalent to the underlying price rather than a predetermined amount.
The concept of day trading binary options is quite simple: a trader opens a position and then closes it during the same trading day. It`s not difficult, but several nuances will help you achieve the best result:
- Don’t rush in. If a trader buys a binary option without first analyzing the market situation, the trade becomes a risky gamble rather than an educated guess.
- Develop a money management system. Any investment method involves certain risks. It is always possible to lose your capital, so don’t overestimate your skill or knowledge.
- Learn from others. Why rebuild the wheel? Use a proven trading system and follow best practices.
- Control your emotions. According to trading psychology, greed and fear are 2 emotions that cause traders to slip up. No matter how much experience you have, remain impartial and always strive for more knowledge.
The most important rule: only constant self-development will help you run a business without significant losses.
Benefits of Binary Options
While trading binary options is not a foolproof solution, it has many advantages:
- It is ideal for starting a business with relatively small capital.
- You can get started after studying the market and learning how to select contracts.
- Potential profit is unlimited — a small investment doesn`t mean small income.
- You are in charge of scheduling your own workday.
And the primary draw to trading in primary options? When you’ve mastered it, you can get the same salary as an office job while working fewer hours. Now you have more time to devote to hobbies and self-improvement!
Where Are Binary Options Banned?
There are also pitfalls to binary options — for example, some countries have prohibited it, including:
- Czech Republic
- Slovakia
- Canada
- Belgium
- Israel
However, some countries don`t prohibit trading; instead, they have placed make certain restrictions. For example, in the United States, all such transactions must be carried out on one of the two Nadex or Cantor exchanges, and in France, binary option advertising is completely banned.
As far as the European Union is concerned, companies regulated in one country can undergo certification (within the framework of the MIFID directive) and carry out operations in all other states of the region. In Australia, they were going to introduce a complete ban on binary options, but they chose another requirement instead — the platform needs to submit an application to the regulator with data on the company`s customers and other statistics (for more details, head to the https://asic.gov.au/).
Binary Options Trading in Australia
Due to the complexity of registration for Australian binary options brokers and the legal requirements therein, it is difficult for clients to find convenient platforms. According to statistics, only Highlow is considered to be the most reliable broker. The initial investment must be at least $50; also, it is possible to get cashback. Many traders also like Finrally, PocketOption, and Nadex. However, these platforms are not regulated in Australia, which means they cannot be legally used.
But, by choosing a legal and reputable broker and taking the time to study market potential, it is entirely possible to quit your office job and make an equivalent salary from trading binary options!
