24Option Review

With the growing number of restrictions being placed on buying, selling and in particular of shorting stock, indexes and commodities, individuals and businesses have been searching for alternative methods to trade idle funds for the short to medium term. In bear markets, when there are few choices of upward trending stocks this desire for others ways to profit has lead to an explosive growth in alternative investment vehicles.

In the case of stocks, CFDs, or ‘Contracts for Difference’ were the first to appear in the early 1990′s although they didn’t become available to independent traders until the late 1990′s. Further, for a number of reasons CFDs proved to be not so popular with traders so a further refinement of the concept was introduced in the form of binary options.

Binary options offered the benefit of a better risk/reward ratios without the need to place relatively high cost trades, and so services such as 24Options were born.

What Are Binary Options?

Binary Options trading as offered by 24Options are forecasts by traders as to whether prices will rise or fall over a specified amount of time. With CFDs you bet on the difference in prices, with binary options you just bet on the simple movement. As you don’t actually purchase the stock, index or commodity itself, you simply try to predict whether the price will rise or fall, therefore the risk is less and the reward can be greater.

They are ‘binary’ options because the result can end in only two ways. The price will either rise or it will fall. As a trader you can back it either way and you profit if you get it right, or you lose it if you get it wrong. Simple enough. Judgment day is the options expiry date at which time your trade is called. With binary options, unlike other options the options expiry date can be anything from an hour or so to a few days in the future, and you are paid your dividends immediately.

24Option offer a platform for traders to trade binary options and it has proven to be extremely popular since its inception in 2008. 24Option offer three types of option vehicles namely ‘In The Money’, ‘Out Of The Money’ and ‘At The Money’ and each of these provide three instruments namely ‘High/Low’, ‘One Touch’ and ‘Boundary’. How they work is this:

24Option In the Money Expiry

This is a term meaning the option is currently profitable. Options that expire “in the money” are those that expire yielding a profit for the client. Trading at www.24option.com will yield expiration “in the money” under the following conditions:

24Option In the Money Expiry – High/Low Instrument

A High option where the expiry level is above the target price.
A Low option where the expiry level is below the target price.

24Option In the Money Expiry – One Touch Instrument

A Touch option where the market price reaches the target price before the expiry time. In such an event the option automatically and immediately expires “in the money”.
A No-Touch option in the event that the market price does NOT reach the target price before the expiry time.

24Option In the Money Expiry – Boundary Instrument

An Inbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price).
An Outbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).

24option

24Option Out of the Money Expiry

This is a term meaning the option is currently not profitable. Options that expire “out of the money” are those that expire yielding a loss for the client. Trading at 24Option will yield expiration “out the money” under the following conditions:

24Option Out of the Money Expiry – High/Low Instrument

A High option where the expiry level is below the target price.
A Low option where the expiry level is above the target price.

24Option Out of the Money Expiry – One Touch Instrument

A Touch option in the event that the market price does NOT reach the target price before the expiry time.
A No-touch option where the market price reaches the target price before the expiry time.

24Option Out of the Money Expiry – Boundary Instrument

An inbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).
An outbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price)

24Option At the Money Expiry

This is a term meaning the option is currently trading at the same price as the target price. Options that expire “at the money” are those that expire at the target price. In the event of expiry at the money, 24option will return the invested amount to the client. Trading at 24Option will yield expiration “at the money” under the following conditions:

24Option At the Money Expiry – High/Low Instrument

A high option where the expiry level is at the target price.
A low option where the expiry level is at the target price.

24Option At the Money Expiry – Boundary Instrument

An inbound option where the expiry level is at one of the boundaries (either the lower or upper target price).
An outbound option where the expiry level is at one of the boundaries (either the lower or upper target price).

Click here to open your free 24Option account and receive your joining bonuses

24Option Returns on Investment

Returns are fixed and work as a percentage of the dollar amount invested. If you are ‘In The Money’ these are usually between 70% and 85% of the amount traded. Even if you are ‘Out of the Money’ you will still get back anywhere between 0% and 15% of the amount invested, and if you are ‘At The Money’ you will get back 100% of your money back.

If you find this explanation still overcomplicated you can learn more about how it works at the 24Option website.

24Option provide an ‘Education Centre’ in which you can find all the tools you need to learn how binary option trading works, and how to use their platform and interface, which incidentally I find very cool looking (that’s a technical term by the way) and pleasing to the eye.

The Education Centre at 24Option includes manuals, videos, and an expiration calculator in addition to other useful resources and tools. Furthermore they provide a glossary of terms (so you are never left in the dark wondering what some of the more technical industry related terms and abbreviations mean, plus a ‘frequently asked questions’ (FAQ) area where you can find answers to the most common problems without having to wait for customer support to get back to you.

Not that that seems to be a problem as their 24 hour customer support area is well manned and extremely helpful. Needless to say they are very understanding when it comes to seemingly obvious questions from novices and ‘newbies’.

As with all the better online trading platforms these days, 24Option provide access from multiple mobile devices as well as your home desktop computer. Apps are made available for the iPhone and Android operating systems so you can comfortably trade away from anywhere in the world with an internet connection. I spent a wonderful afternoon trading recently from my sun bed on a beach in Phuket. Sounds like a dream come true doesn’t it? So can it for you.

24Option Review Conclusion

24Option provide a stable reliable platform for you to trade your binary options. The support is second to none and once you get a feel for what you are doing you can do extremely well. Binary options are very simple trading instruments which don’t leave you guessing what you did wrong, or indeed what you did right. You get credited with your profits instantly after the expiry date, so there’s no need to wait weeks (or sometimes months) like you do with other trading types.

Getting your profits transferred to your back account is easy, although I admit the security measures they have in place do take a little getting used to. However, just like the security measures at the airport on my way home from Phuket, they are there to protect you so I’m happy to put up with a little inconvenience when it comes to my safety and the safety of my money.

We hope our 24Option review has given you enough information about the product for you to make an informed decision.

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