High Rate Investments | Get the Most Return in the Least Time
It's Time to Think about Shorter Horizons
A Lesson to Be Learned
If I’ve learned anything from this most recent fleecing is that the duration investments are held must be dramatically shortened if we are to truly hold on to gains accumulated in the market. This has to be true not only of retail trading and option accounts, but also of mutual funds and other types of investments. It’s OK to re-balance the portfolio after a fund has gone on a run, or even take some funds off the table entirely. The other thing people like us can do with money off the table is to find other ways of putting it to use on a very short term basis. One such way is the binary option.
A Short Term Place for Cash, but Not Like Your Parent’s Savings Account!
One of the less known high rate investments is the binary options trade. With a typical payout in the sixty to seventy five percent (60-75%) range and a holding period in many cases of less than an hour it is among the highest yielding investments ever created. I can’t even begin to try to compute what the compounding rate of return on a binary option would be.
When Thinking of High Rate Investments, Do You Think of…
When people typically think of high rate investments they think of perhaps day trading forex on margin, or buying stock options, or perhaps buying penny stocks but in truth none of these investments can be traded with the consistency and yield of a binary option trade. The key to understanding what makes a binary option different is that all of the elements of the contract are fixed at purchase. The strike price equals the spot price at purchase. The expiration is at the top of the hour or the end of the day. The payout is a fixed percentage depending on the amount invested and whether the trade is a in the money or out of the money result. Nothing is left to chance except the binary nature of the result – in the money or out of the money.
What Other Types of Fixed Return Investments Have Similar Structure?
The only similar investment that comes to mind in terms of its rigid structure is a bank CD, which has a fixed payout based on amount invested and a percentage yield set at initial purchase. Having said that, I don’t think anyone will ever confuse a CD with high rate investments.
Check out some examples of how binary options act as high rate investments, and compare them to other similar but unpredictable and highly leveraged high rate of return investments.
