Understand binary options before you promote

[johnbenjamin]

Considering the number of threads that keep popping up now and then, here is a resource to understanding what binary options are. As with any niche in affiliate marketing, unless the affiliate has a good understanding of the product, it would be a futile attempt.

Binary options affiliate marketing for beginners is an Interview with Jason Forman, Chief Trader at Tradesmarter.com.

The purpose of the interview is to help shed light on binary options trading from a financial analyst's perspective. Hope this is of help for those considering to promote binary options.

[Ryanloop]

Binary Options are straightforward, limited risk derivatives. Based on a simple yes/no proposition, they offer an intuitive way to trade the financial markets with relatively low collateral.

A Binary Option asks a simple yes/no question.

Will the price of gold be above $1625 at 1:30pm?

If you think yes, you buy the Binary Option. If you think no, you sell.
The price at which you buy/sell is not the actual price of gold, but rather a value between zero and 100.

For example, Gold > 1625 (1:30PM) may be priced at 42.50/48.50. The first figure is the bid price (sell), the second is the offer price (buy).
The bid/offer price fluctuates throughout the day, but always settles at either 100 (if the answer is yes) or zero (if the answer is no). Your profit/loss is calculated using the difference between the settlement price (zero or 100) and your opening price (the price you bought or sold at).

Regards