Binary options
trading.
Before starting to trade, let's clarify what binary options are. A binary option is a bet for the movement of the price for a certain asset based on the suggestion of whether the price for a certain asset will fall or rise for trading a specified amount with the expiration of this bet. The answer in this situation has only two variants: yes or no. The main goal of the trader is to make an accurate forecast for this movement. Then, there can be two variants for the development of events: the loss of money (if the forecast turned out to be incorrect) or payment (if the forecast was successful). That’s why these options are called binary.
Types of binary options.
With the development of binary options, new trading formats or variations of existing ones appear. Here are the main types of binary options. You can find them on most trading platforms.
Cash-or-nothing . The trader makes a bet on a decrease or increase in the price for a certain asset. The sum of the price and its change doesn’t matter. Investor needs to make an assumption whether the price will be above or below a certain level. If the trader guesses right, he wins from 70% to 90%. If he fails, he loses everything.
Assets-or-nothing . Unlike the previous case, the payout for the winning is defined by the price of the asset.
One-touch . The option expires when the asset’s amount reaches a certain value.
No touch . This is the opposite situation. The main goal of traders is to avoid the price touching a certain level.
60 Seconds . This quick transaction allows the trader to make money in a short timespans before the trend reversal.
Types of assets.
Forex . Forex is the abbreviation of the foreign exchange. Currencies are traded in pairs, their relationship to each other is taken into account. The currency pair looks like two abbreviations. Trading in currency pairs occurs through the interaction of the international Forex market and binary options.
Index . An index is a trading indicator that consists of a set of specific stocks. The price of the index is defined by the average value of all stocks of the companies included in the index. Indices are very convenient, as they are constantly and extensively described in financial news.
Stocks . Stock trading means that you buy an electronic contract for the shares of a certain company, and, moreover, the purchase will be less expensive than the purchase of the share itself. Trading stocks through binary options suits those speculators who don’t want to invest their money in securities for the sake of 5-20% per year. In addition, if the value of shares falls on the market, then their holders will begin to suffer losses. If you use binary options on stocks, then you can make money on the fall of the market rate.
CFD . CFD (Contract for Difference) is a contract concluded for the difference between the prices of the equity at the time of the opening and closure of the agreement. Upon completion of the contract, one party undertakes to transfer the difference between the prices to the other party.
Commodities . The commodity is the natural resource that is supplied and available for trading. The most popular commodities are precious metals.
Futures . Futures is a contract for a future transaction at the price fixed today. The advantage of futures is great sensitivity. The starting capital for this asset doesn’t require too many funds compared with stocks.
Cryptocurrency . Crypto trading is the new direction of online trade. In recent years, due to the popularity of cryptocurrencies, traders paid attention to digital money and started to trade it as the standard currency. The rate of cryptocurrency is related exclusively to demand and is not influenced by large economic players.
Is it possible to make money on binary options?
Yes, you can earn on binary options if you have enough knowledge and practice. Trading is competence and like every competence, it requires training and thought-out actions. Firstly it is better to open a demo account and practice without financial risks. Also, on the demo account trader can understand the principles of work and develop the trading strategy.
Then, the trader builds the trading strategy through trial and error, and through constant education. And Auto Trading only when the trader has enough experience, he may open a professional account. Start with small sums and improve your technique constantly.
What is binary trading?
Binary trading is the act of selling and buying the options for different equities.
For example, the trader guesses that the prices for the American Dollar will be above $10 per share at 20:00 on a certain day or the price for Bitcoin will fall below $38817 at 12:30 on Thursday. He indicates the certain sum of money that he would like to acquire in case of the right guess, for example, $6. Then, the trader waits as the option expires and watches whether it happens at the indicated time. If the forecast was correct the trader receives $6 as an option premium. If he made a mistake, he loses this sum.
Sometimes traders use the trading robots that sell and buy assets. This type of work is called auto-trading, the process where the machine trades on the market based on the calculated algorithm. In the past, many traders used trading robots but currently, there are few. The drawback of auto-trading is the predetermination of the actions. In contrast, the trader can think outside the box and make quick and non-typical decisions.
When to trade?
The time of trading depends on the asset. The trade begins as the stocks open, that’s why the trader should start when a certain session begins. For example, if he trades the GBP or EUR, binary option he should start trading when the European trading session opens. The trading with forex is available only on business days.
If you want to trade 24/7, pay attention to the cryptocurrency. Crypto trading is available on weekends and holidays.
How to trade forex with binary options?
If you want to trade forex but don’t have enough funds to enter the market, you can use the forex assets for binary options trading. Forex assets include numerous currency pairs. Select stable assets such as the American Dollar. Use the economic calendar and In case you loved this short article and you would love to receive more information regarding
auto trading please visit the web site. pay attention to the financial news. Also, follow the economic situation in the country whose currency you trade.
Platforms for binary options trading.
The platform for trading is the software provided by brokers that gives the opportunity to trade the different assets and to manage the trading account. Every platform is provided by a broker. A broker is an intermediary between buyers and sellers. The broker takes a small part of the client's turnover as a commission.
A trustworthy platform provides the customers with good service, numerous assets to trade, and different ways to withdraw the earnings. Often, the brokers give you the opportunity to test yourself on the demo account to build the strategy.
How to choose a trading platform?
The quality of the broker platform is the essential factor for profitable trading. Sometimes brokers use fraud schemes.
They suddenly block the profitable accounts in order not to pay out profits. To avoid fraud the trader should attentively check the broker’s platform before he starts to work.
Pay attention to the reviews from other traders. You may check it on the special trading forums and on the social media of the trading community.
Ensure that you understand why the broker’s platform works.