The fundamentals of trading binary options
Are you interested in binary options trading? Learning the basics is the first thing that you should do before you dive in as it can help you in knowing how to trade binary options successfully and eventually make money. Here are some of them:
1. This financial market lets you become more flexible as an investor in buying options. As these have no fixed price, you will be the one to decide how much you want to commit when acquiring options.
2. Before you purchase options, you are permitted to set how much you want to earn and how much you want to lose. The payout, comprises a fraction of the investment you used to buy the options, is also predetermined. There’s also this protection rate of about 15%. Thus, when you perform binaryoptionstrading and it expires, you can have 15% of your money back to your account.
3. Unlike conventional options, trading for binary options involved a shorter expiry time. It then allows you to purchase an option ending in as quickly as 5 minutes. Expiration time also occur at intervals throughout the day. This makes it appealing to people who want short-term trading because they want to earn at a faster phase.
4. Binaryoptionstrading lets you invest in a wider range of assets (depending on the trading platform you chose),but make no mistake because there is no actual acquisition of the assets involved as contracts have set expiry time and date. You will determine whether the asset’s value falls below or above the strike price when the time expires. If you assume that the strike price will fall during this period, buy Put or Low option. If your assumption is otherwise, purchase Call or High option. When your prediction is correct, you win.
To illustrate, you log into your account. Your prediction is that the price of gold will drop to an estimate of 1588. You execute a Put Option of $200 at 9:00. Your expiry time is set at 14:00. The strike price at present is 1590 and the payout level is $120%. When the option ends with the gold priced at 1589, you won $240.
Binary options trading may seem this easy, but because of its quick nature, it becomes exciting. However, you should only trade on the markets that you are familiar with to maximize profitability. If you want to ensure success in this field, advance your studies.