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Trading Stocks with Binary Options

Trading Apple Stock Can Be Very Lucrative

Here is a look at an Apple Stock Binary Option.

With binary options, trading stocks is quite easy. For short term trades, you only need to find a stock that has some verified momentum going for it and hope that the trend it is in will continue. Even if the price of the stock only changes in your favor by a single penny, the trade will reward you—usually with about 70 percent of your invested amount. Of course, this is a very simplified explanation of how binary options work, but the concept is quite easy to grasp.

Trading stocks with binary options is not quite as easy in comparison to some of the other underlying assets you can trade, especially when you consider currencies. For one, if you plan on trading U.S. stocks, you will be limited in the fact that the stock market is only open at certain times. Likewise, with most brokers, the first opportunity that you have to execute a trade usually expires half an hour after the market opens. This is a difficult thing for traders because stocks generally have a higher volume and have more movement during the most during the first and last half hours of the trading day. By not letting traders end a trade until a lot of this overnight momentum is gone, the brokers make it just a little bit harder to make money in this respect.

This doesn’t mean that corporate stock binary options are not a worthwhile trade. If you are looking at trading stocks, there are a lot of advantages that you can give yourself—oftentimes other binary options traders will ignore some of these things. Fundamental analysis is perhaps the most overlooked aspect of binary options stock trading. With stocks, prices oscillate as with any other asset you can imagine, but prices are much more driven by long term traders in this marketplace than other assets, like currencies, are. So if you can find a stock that has strong fundamentals, there is a good likelihood that its price will go up as more long term investors flock to the asset.

This is especially true for the longer term options. If you can find a day long binary option with a stock that has extremely positive fundamentals, you can make the same amount of return as you would with a short term trade. Of course, a day long trade ties up your money for a longer amount of time than a fifteen minute trade would, but if you are supplementing your trading with different degrees of risk, this can be a solid strategy for turning a more reliable profit. A 70 percent return on the day is still better than the vast majority of traditional stock traders could even dream about. A Binary Option Demo Account could help you find these trades a lot easier.
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