It is possible to earn million dollars using binary options?
Binary options traders and those who are yet to perform their first trade are motivated primarily by one thing: making money. Most expert traders have one goal in mind: Build a fortune by continuously earning profits trading in different trading platforms. But the question is, is it really feasible to make millions in this enterprise?
This is the topic of discussion in online forums. However, instead of giving you an answer, it is better to know first what is binary options trading and how it actually works so you can gauge if making millions is realistic.
Binary options gained popularity around the world because these are financial products that are simple to understand and to execute. Aside from the high payouts (70 and 90 percent on average),traders earn profits without having to wait for a long period of time. Truth is that most investors opt for shorter end time for the positions they open thus they profit in only a few minutes. If their assumption is accurate, they receive a particular percentage of the amount they traded.
Understanding Mathematical Compounding
When trading binary options, you have to study mathematical compounding. Don’t get easily intimidated with this term as this only means increasing returns progressively while trading. Let’s take for instance you have $3,000 in your account. You trade 5% or $150 to open a position with a payout of 80 percent. If your prediction is right, you get $270 (including your initial stake of $150). Applying mathematical compounding, bet this full amount for your next trade. If you are accurate again with your prediction, your money grows to $486. This illustrates how you can magnify your returns (provided that you are consistent in your correct predictions).
Learning Random Movement of Asset Prices
You may already know how to increase your returns, but what are your chances of winning in this trade? You have to study movement prices in the financial market as it happens at random to make accurate assumptions to gain profit for each trade. You have to hit a succession of wins to be able to reach a million dollars. However, the chance of winning is 50:50. So you still have to learn more about what is binary options trading and others. Take the advice of the professional traders in the binary options trading industry. Know some strategies on managing your money then apply it.