Okay so you have a very basic understanding of what these Binary Options you've been hearing about are. Now on to who can trade Binary Options. Well put simply, anyone over 18 years of age can trade Binary Options. This is where the beauty of Binary Options comes in. You don't need a lot of money in order to trade Binary Options. You don't need a great deal of start-up capital. You can trade using extremely small amounts, depending on the company you choose to trade with this can be as little as $1. You don't need any kind of fancy computer trading system, and you most certainly don't need a degree in finance or economics. Absolutely anybody can trade Binary Options. That's right people, your very own grandmother can indeed be taught to suck Binary eggs. However, even though you don't need any fancy gadgetry you will need some time to trade, because you'll have to devote a certain regular part of your day to it. You'll also need some spare cash, obviously, because you can't trade without any money. You won't need a hell of a lot, just an amount that you do not mind risking on the markets. You need a basic computer, nothing fancy, no multiple monitors or anything like that. Lastly you need the determination to learn and the will to succeed. In short it's easy to profit, you know how much you're risking from the get-go, you know what the payouts are, and depending on the company you choose to trade with you can open an account with as little as $200.
This kind of simplicity and ease of entry was pretty-much unheard of before Binary Options were brought to the market. If you look at trading traditional stocks we're talking upwards of $1000, and if you're looking at doing so with a big broker then you need not apply if you don't have $20,000 - $100,000. With Binary Options you're looking at a minimum between $200-$500. Some brokers accept initial deposits of even less than this, but we personally wouldn't advise going with some of these. More on this subject later when we look at our Recommended Brokers. The minimum trade in Binary Options ranges from between $1 - $25, and the payouts range from 60 – 90% if you win. If you lose then some brokers will give you a rebate of up to 15% of your stake back.
Here's an example of how these percentages work in a real life binary trade: Let's say we placed a $100 trade on Apple stock going up, and we know from beforehand that if we win we will get 60 – 95% of your money back. So you get your $100 back and between $60 - $90 profit on top of this. If you lose then you loose the whole $100 and if the company offers a rebate of 15% then you'll get $15 of you $100 back.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.