While the market has seen an impressive performance over the past several years, times are changing. The bottom line is that for the past few months, we’ve seen more declines than gains which is really starting to become concerning to investors. As a financial professional, my friends tend to ask me questions  with regard to their investment choices. Lately, one of the most common of these questions is “How do I make money through investing while stocks are declining?” While there are a few investment vehicles that can make this possible, my general answer is by trading binary options. Today, we’ll talk about what binary options are, how trading stocks with binary options can be profitable in down markets, and key terms to keep in mind when you get started

What Are Binary Options

Binary options are a very unique investment vehicle. That’s because when you make the decision to invest in binary options, you’re not actually purchasing any financial assets. Instead, binary options are based on up or down predictions. Essentially, it’s the goal of the binary options trader to correctly predict whether the value of a financial asset is going to rise or fall over a predetermined period of time. If the predictions are correct, traders have the ability to earn 80% or more on their trades. However, if the predictions are incorrect, traders will lose the amount invested in the particular asset.

Why Binary Options Are Great For Down Markets

When markets are declining, the last thing you want to do is invest in stocks. The reality is that while it is possible to short stocks, the possibility of earning a decent profit trading stocks in a down market is slim to none. However, as mentioned above, when trading binary options, traders are simply making a prediction with regard to whether the value of a stock is likely to rise or fall. Regardless of the direction the stock moves, up or down, if these predictions are correct, the trader can earn incredible gains. Therefore, regardless of whether the market is climbing or spiraling down, binary options traders have the ability to come out ahead.

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