Binary Options Hero Guide
Investing in stocks and shares is an expensive and risky business; the cost and potential losses are enough to keep many traders away from the market. Thankfully, binary options are a much more accessible and enjoyable way to access the investment markets. The majority of assets which can be bought and sold on the stock exchange can also be trading through a binary broker. The main difference is that the binary market looks to establish an option can be purchases; effectively a trade. This trade can be completed with very little funds; most binary brokers ask for a $250 minimum deposit; trades can be entered for as little as $1; depending upon your broker.
As well as requiring very little start-up capital, one of the best things about binary trading is that you can only be right or wrong. Either the asset price will move as you have specified; or it will not. The result is a successful trade or an unsuccessful one. On top of this you will always know how much you are prepared to invest in a trade; this is the amount you will lose if the trade does not go as expected. You cannot lose more, or mess, than your trade amount. You will also be aware of the amount you can expect to receive if your trade is successful. This is fixed before you commit to your contract and cannot be changed once the trade has started.
There is no guarantee that your trade will be the right one, it is possible to identify all the signals and the asset can still be unpredictable. However, the risks associated with this type of trading are no different to the risk associated with any type of investment. You can deal with very time specific information and yet, not need to find an exact price for your trade. Provided the asset touches a specific price or simply moves in the right direction you can claim a successful trade and receive the rate of return previously agreed with your broker.
There are several key steps which should be followed to ensure you can make money trading with binary options:
Placing a trade is straightforward when dealing with a binary option. Although there are several different options regarding possible trades, once you have decided your trade there are always just two choices to make. You can opt to simply suggest whether the price will go up or down within a set period. As long as it has moved I the right direction at the time your trade expires you will have successfully completed the trade.
An alternative is to decide on a price that the asset will either reach or not reach during a set period. This strategy is generally called a touch option; or a no touch. Providing the asset price touches the specified price at some point during the time the trade is active then you will receive the agreed rate of return. Equally, if you have opted that it will not touch a specific price the price of the asset must not do so. If it does you will lose your investment.
Binary options offer something that no other type of trading can compete with. From the moment you agree to a trade you will know how much you may lose and how much profit you could make. You will also know exactly how long your trade will last and when you will find out the result. This can be a much better way of trading that purchasing currencies or shares and attempting to decide when the right time is to sell them.
In a break with most activities, it is not the quality which counts, but the quantity. To successfully complete a high or low type trade you will simply need the asset price to move in the direction you have specified. It does not have to move far in this direction, any movement is enough for you to win the trade. It is, therefore, important to consider the quantity of the trade as opposed to the quality. Any price movement is enough to win or lose the trade.
There are several strategies which can be implemented to protect your trades. For example, trading upwards in price can be safeguarded by placing a trade which goes downwards. One of the trades can be completed successfully, providing the profit from either trade covers the cost of both. This example of hedging shows how it is possible to safeguard your funds and make a good rate of return.
There are a variety of benefits associated with this type of trading; these include a high rate of return. Average broker rates of return can be as high as ninety percent. Alongside this it is possible to place a trade with a very low payment; dramatically reducing the risk. You can also choose to deal with extremely short term trades; such as one minute expiry times or even thirty seconds. You can make profit almost instantly. There are a good range of assets to trade; although not as many as the main financial markets.
There is also a range of additional tactics and strategies which can be used to improve your success rate.