Online investing in stocks and binary options

Trading with shares is becoming more and more popular. Because the customer can collect dividends and at the same time speculate on price gains on the stock market. This is how you can earn a lot of money. Of course, this is also always associated with a certain risk of loss. However, the more experience you gain, the more confident you become with buying and selling shares.

The share trading

Most investors buy shares in order to become shareholders of a company and participate in its success in the form of dividends. This is also the real goal of shares. Companies issue their shares, then you can buy these shares online. If the shares are already listed on a stock exchange, the purchase of shares must be done through an online bank or broker.

Buying shares through an online bank can be done practically at the touch of a button from your desk at home. The online bank takes care of all the necessary steps for the purchase of shares, in addition, banks also offer consulting services to their customers. This form of stock trading is very safe, as online banks are subject to trading supervision. But for this the bank collects fees, which eat up a certain part of the price gains.

If you want to buy shares, you can also turn to an online broker. Stock trading through an online broker works practically the same way as through an online bank, except that online brokers, also called brokers, do not offer any advisory services at all. In return, the fees are lower compared to online banks.
And there is another advantage. Online brokers offer their customers the opportunity to make whopping profits without actually having to buy shares. It involves speculating on the development of the price of a particular stock using instruments such as CFDs or binary options.

Binary options

Binary options are powerful trading instruments. The most important advantage lies in their maximally simplified mode of operation. This allows even investors who do not have extensive knowledge in trading to speculate. Binary options are very transparent, you already know in advance how high a possible profit but also how high the loss can be. This makes the risk clear for everyone to assess, unlike many other investment opportunities.

Those who trade binary options actually only have to decide in which direction the price of an asset will move. If the share price will go up or down after the option is subscribed until it matures, you don’t need to know much more than that.

With binary options high profits are possible, and these can be earned within a short time. They are very popular in the financial industry and are used for speculation purposes. Thereby the binary options strategy is very simple. Only two scenarios can occur. Either the option contract on a defined event can occur and the buyer receives the defined amount. Or this result does not occur, but then the option is worthless.

Binary options are based on underlying assets, such as indices, shares or currency pairs. But commodities can also be traded. The buyer speculates with the falling or rising courses. Trading binary options is so popular because it is relatively simple. Transparency is also very much appreciated in the market. You just have to decide on the rate and a maturity date. Then the buyer must only observe whether the price develops positively or negatively. If one decides for a rising course, then one speaks of a call option. If the rates will fall, then it is a put option. If one meets the estimate for it, then the net yield can lie with 70 to 90 per cent.