Have you heard a series of super cars which are gold plated including Bentley, Rolls-Royce, Lamborghini worth millions of pounds, recently spotted in the city of London. The initial speculation was the owner could be a Saudi Prince, an Oil tycoon; but the speculation ended when it was found that the owner was a person called Adam Khan. He is a Binary Options Trader, and he is a Malaysian where he works at home in Binary Options Trading.
So, what is this Binary Options ?
Think of it like this, you bet on the flip of a coin, it can only either be heads or tails. So, if you guessed heads and it turned out to be heads, you win; else you loose. That is really simple, isn't it! My findings reveals that Binary Options is really exactly like the gambling of the flip of a coin. It is either Yes or No. It is so simple, that unlike share market trading, where some people go to school to learn the technical charts and analytical methods of how to be the winner in trading shares; Binary Options however, does not really need of such skills.
In Binary Options, you can bet on anything. Example, now is 9am and you open a bet that at precisely 3pm that it will rain or no rain ? The Banker or 庄家 decides that all bets will close at 12am noon. If someone guesses yes, and it really did rain at 3pm then that person wins else he/she looses the bet. So, how does it work ? To place a bet, one must pay $46 to the 庄家 (The Banker), the payout is always $100. So, if it rained, the person who placed the bet wins and gets $100 and there he gained $100-$46 = $54 from his/her bet. If the person who bets felt that it really may not rain at all before 12am noon, he can then sell his bet at $42 and so he only looses $46-$42=$4. But if he sticks to the bet and it did not rain at 3pm, then he/she looses all of his $46 of bet.
If you think about it, it is really so simple and anyone can understand it and can play the game. Thus, it can become very popular for gamblers alike. An the 庄家 (The Banker) can open the bet on "Anything", like "will the manager arrive on time today at 9am", if the you bet yes and the manager did arrive on time, you win, else you loose; that is really so simple, isn't it.
But, I guess Binary Options Trading in the Financial Markets is the same. For example, the 庄家 (The Banker) can start a bet with for example "current gold price is $100USD/miligram, by 4pm when the market closes, it will be higher or lower?". So, the bet is just Yes or No just like the examples I presented earlier. If you bet yes, and the price of gold is above $100USD/miligram at 4pm, you win and you get paid $100 and you would have gained $100-$46= $54. If you stick to the bet, but the price of gold was below that of $100 at 4pm, you will lose your bet of $46. However, if you pulled out at 12am noon, you get back $42 and you only loose $46-$42= $4.
Binary options in mandarin is called 二元期权. In fact it is also called "All-or-Nothing" options, or Digital options. I do think that Binary options is not an investment, it is like just gambling, and they could be many binary option scams out there while others maybe legit.