At present, the stock market is still reeling from the effects of major financial changes in the world such as Brexit, among others. Because of the focus on global events with a huge reach, smaller single-stock events aren’t getting the focus they need from brokerages and advisors.
If you are wondering how to trade Microsoft stock today or in the near future, you needn’t worry about not having enough guidance. MSFT (Microsoft) is one of the biggest technology companies out there, and has seen its share of rises and sharp falls.
In the current day, the 2016 fourth quarter earnings report from MSFT showed strong earnings in most of its sectors, except for the smartphone sector because of its decision to call it quits on the Lumia series of mobile phones recently. However, experts say that stock at Microsoft is set to rise in the long term. The problem is that at present, MSFT is a company that is in transition, and the state of the company shows that in the short term, the value of shares could decline, especially with the largely negative reaction to the Windows 10 Anniversary Update in August.
How to Safely Trade MSFT Stock
If you don’t want to take the risk of buying a ton of stock in Microsoft only to find out later that you made the wrong choice, that’s okay too. Long term stock trades are scary, as they don’t yield immediate returns, and because the world is a very explosive place. Something could go wrong at any point, leading to massive losses for all investors waiting for long term returns. If you want to trade Microsoft but you don’t want to risk your capital, binary options trades might be the answer to your dilemma.
Short Term Trades with Quick Returns
Basically, binary options trades with Microsoft ask traders to invest a small amount of money from their account at a brokerage firm in accurately predicting the rise or fall of the value of the MSFT stock in a preset amount of time that ranges from 30 seconds to a month. For anyone who isn’t interested in playing the long game, and wants to see returns on their investments as soon as possible, this is perfect. Of course, the faster pace means that there is a higher risk of making a bad judgment call as well.
The good thing is that these won’t really make you lose a lot of money. If you were to make a bad call in trading actual stock, you would stand to lose no small amount of your savings. With binary options, you can only lose the amount of money you initially invested in the trade. This can be as little as $1. To add to this, a lot of the binary options brokers out there offer returns even when the trade has been lost, meaning you don’t lose everything when you lose a trade.
Basic Workings of Binary Trades
At its simplest level, binary trading works by predicting that the stock at MSFT will rise or fall to a certain level that you can set, in a set amount of time. Everything is in your control, from the invested amount to the thresholds and whether or not it will rise, all the way to the expiry time of the option. If the option reaches the threshold in the time specified, a return of up to 95% can be granted to you.
If it doesn’t, the loss isn’t going to hit you too hard. This is one of the biggest perks of binary trading, and when you factor in the fact that it is incredibly simple, you have yourself an investment opportunity that simply should not be passed up.