Binary Options Strategy: How To Diversify Your Portfolio
Are you familiar with Binary Options? If you’re an affiliate marketer looking to expand and diversify your portfolio, you should be. Binary option trading is one of the fastest growing affiliate programs around and it doesn’t look to slow down any time soon.
Despite its growing popularity, binary option trading is still something of a mystery to most people, even if they’re familiar with other types of financial instruments like Forex trading. As we’ll see, binary option trading is relatively simple for traders, and a very good fit for web masters who are looking to branch out from casino affiliate marketing.
Binary Options Basics
Before getting too deep into the affiliate end of the binary options game, it’s worth taking a moment to find exactly what this financial instrument is all about.
At its most basic level, binary options trading involves taking a position on how much you think a certain asset will be worth at a certain time of day. Trader have two options, will the asset trade above a certain price, or below that price? There are only two choices and that’s why it’s called binary options.
Assets traded on binary options market can be anything from the price of an ounce of gold to the price of oil. Traders use basic research and options trading software like Binary Options Pro Signals to determine which assets they’ll be trading and at what price.
Unlike other investments, binary options tend to be an all or nothing proposition. If the asset is selling at the target price, the trader collects. If the asset is trading below the target price, the trader loses his or her investment. Traders can set their options to expire in almost any length of time from a couple hours to couple of minutes.
Different from FOREX
Webmasters who haven’t worked much with financial vehicles may be wondering how binary option trading is different from FOREX trading? On a high level, the two systems are somewhat similar, but when you drill down, they’re very different.
For starters, FOREX trading always involves currency, no exceptions. Binary options trading, on the other hand, can involve any asset including, but no limited to, currency. It can be a particular stock price, oil prices, whatever. But like FOREX, binary options are traded 24 hours a day.
That said, many experienced FOREX traders have found that the research skills they’ve developed are a major asset when determining which vehicles to select for binary option trading. But even long time FOREX hands still rely on products like Binary Options Blueprint to help them get a better overall understanding of the market. This product walks traders through the basic steps they’ll need to get started trading immediately.
Because binary options trading and FOREX trading are so complimentary, FOREX traders make up a huge potential market for binary options affiliates. And because binary option trading is so much simpler than currency trading, getting traders to give it a try is not as tough as getting started in FOREX.
Binary Options vs Gambling
One of the most common questions asked about binary options trading is whether or not it’s actually gambling? Like all investment vehicles, option trading involves a certain amount of risk. When a trader places a contract based on the price of oil, he or she has no way of knowing if a major pipeline spill will happen that afternoon or not.
Many binary options traders use intuitive trading consoles like 24option to reduce their risks, but no system offers a 100 percent guarantee. That’s just the nature of investing.
Because some options contracts are cover very short periods of time, some critics have compared it to day trading. Binary option trading is very similar to gambling in that traders should not be trading with money they can’t afford to lose. Period.
That said, many gamblers are drawn to binary options trading because it does have so many similarities to traditional gambling without the social stigma. They also like that the same risk analysis skills that make a good poker player also make for a good options trader.
Hedging Your Bets
Speaking of risk, experienced affiliate marketers know that even their best affiliate partners can disappear in a heartbeat. And if you think that’s an exaggeration, you must not remember Black Friday very well. That’s why gambling affiliates should at least take a look at diversifying their affiliate portfolios with other market sectors like binary options trading.
The more markets you’re covering, the better you’ll be able to withstand storms like a radically new interpretation of whether or not Internet gambling is legal. A diverse affiliate portfolio can give you a real edge against market fluctuations.
Do you think that binary options are a good fit for casino affiliate site managers? Let us know in our Binary Options discussion thread.