One easy investment popular in today's trading circles is the binary option. There are a couple of things that make binaries particularly well suited for day trading activities -- namely the extremely short holding period (typically an hour), the high rate of return (typically upwards of 60%), and the ability to trade freely without commissions or pricing spreads to worry about. It really is as though someone out there designed these securities specifically for short term traders.
The way these trades are set up are an investor will go to a trading platform where these securities are being offered. Given the relatively small size of the present market only a select few options are offered - and then only on the most recognizable, most highly liquid stocks (think Google, Microsoft, VW, BMW, GE), indices (Nasdaq) and forex cross rates (GBP/USD, USD/YEN, etc). Investing in well known items like these is another factor making binary options an easy investment to understand.
Another really nice feature about working with a binary option is that investors buy them in quantities similar to the way they would buy mutual funds -- i.e. in exact dollar amounts. That makes it an easy investment to fit into a budget -- no guess work as to what the settlement amount of a trade will be. Want to invest a hundred dollars? Invest a hundred dollars. No guessing, no commission to figure, no spread. Exact dollar investing.
Lastly I mentioned investing just a hundred dollars. Investing such a small amount in other securities simply wouldn't make sense due to the commissions and spreads making such a small investment size impossible to make profitable. Not so in the case of binaries. Because there is no commission or spread, investments (like no load mutual funds) have no "transactional overhead" associated with them.
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