Binary Options and the Greek Debt Crisis
For the past few months, most of the world’s attention has been focused on how the Euro will deal with the issue of Greek debt. Some investors looked to “safe” currencies like the Swiss Franc or the Japanese Yen while others rushed to the gold market before it experienced a correction. But a new breed of investors has been using another tool to earn profit during difficult times and started trading binary options.
Why The Sudden Boom In Popularity?
Over the past few years the binary options industry has rapidly expanded as technology developed and investors looked for new ways to earn money in the markets. By 2008, Options Clearing Corporation started to list these options over-the-counter to give traders more access to them. Later on, the American Stock Exchange started to do the same which makes it easier for individual traders to buy binary options online.
What Are Binary Options?
Essentially, binary options are predictions on how the market price of a certain asset (stock, index, commodity, forex pairing, etc.) will perform during a certain period of time. Investors only invest the amount that they feel comfortable investing and the reward is detailed from the outset of the option. In contrast to the traditional options, binary options have no approach of being exercised or bought before they attain their expiration date. Traders that use the binary option do probably not buy the underlying asset, but as an alternative buy an option that tells which path the underlying asset will take. The fact that traders can earn up to 89% on their investment in just minutes makes these options very attractive.
The Advantages Of Binary Options
Binary options are easy, straightforward ways that investors can invest in the market while reducing their risk and exposure. There are also other benefits for investing in these options such as the possibility to earn attractive returns. Another advantage is the freedom to invest however traders like whereas investors have to buy at the market price of an asset; binary options traders aren’t tied to the asset itself. This freedom also allows them to enter markets that perhaps they couldn’t enter before and explore the markets like never before. Since then, traders have been using this more than ever as when it comes on to the rewards that can be gained from it then one can use it to get more from the stocks. The online binary options are now making it extremely easier for traders to comfortably sit at home and trade. In fact, it is now possible to trade these options from just about anywhere along as there is Wi-Fi connection 24/7, 7 days weekly.
So, How To Survive The Greek Debt Ride With Binary Options
It looks like a roller coaster ride in Europe to find a solution on the debt crisis. Everyday some progress has being made, while the next day, that progress stopped due to some factor. What is great about this for binary options investors is the potential for profits. It would normally seem like such a volatile market is one that you should steer clear of, but when dealing in the binary option, volatile market is an opportunity to invest and make profits.
Therefore binary options are regarded as the best option for short-term investment in market volatility because it offers a higher return and minimal risk exposure.
About the Author
Delphine Fisher is the financial market writer for 24option.com. Expert in the online binary option and forex industries, Delphine is responsible for the daily preparation of the financial reports and European Market’s analysis.