Binary Options are an easy method for trading price fluctuations in several international markets, however, traders must be aware of the risks and benefits of instruments that are often misunderstood. Binary options are completely different from traditional options. If traded, one can see that this option has completely different payments, costs, and risks, not to mention completely different liquidity structures and investment methods.
What does Binary option mean?
First, you should know that binary options are also referred to as digital options, fixed return options, betting options, all or no choices and one touch options.
Binary options are fast and simple financial products available for investors to bet on whether the price of the underlying asset will rise or fall in the near future. Binary in the dictionary means indicating where the moment includes two or consists of two, binary options can be declared as yes / no or true / false. there are two results. In the same way in binary options, a trader must bet on one of the two ‘buy or sell’ options which are two clear results if the price of the underlying asset will fall or rise in the future, where a trader will get a fixed amount if betting works well in support. for example the Facebook stock price, the exchange rate of USD / EUR, or the price of gold and silver.
How to trade step by step?
1) choose a broker
Try to find the best binary trading site for you, no trade will be more successful than his honest broker. binary options trading continues to be unregulated tolerable to think about various established investments, so there are many dishonest operators trying to ask for profits from naive traders. IQ Option is the best Binary option broker. I recommend looking at this IQ Review option.
2) select an asset or market to start trading
Large list of assets, and commodity, stock, Forex or index canopies. oil prices, or Apple stock prices, for example. The amount and variety of assets you will be able to trade varies from broker to broker. Most brokers offer options in style assets such as major FX pairs and also EUR / USD, USD / JPY and GBP / USD, then as major stock indices such as FTSE, S&P 500 or Dow Jones Industrial. Commodities as well as gold, silver, oil are also usually offered.
Individual stocks and equity can also be traded through several binary brokers. Not every stock is offered though, but usually you will be able to choose between about 25 to 100 popular shares, such as Google and Apple. This list is growing all the time as demand dictates.
The asset list is always clearly listed on every trading platform, and most brokers make a complete list of assets offered on their website. Complete asset list data is also offered among our reviews.
3) expiry time
Options can expire anywhere and at any time between 30 seconds to one year. The expiry time is that the destination in the trade is closed and settled. the only exception is wherever the ‘touch’ option has reached a predetermined level before the end. The expiration of certain trades will vary from thirty seconds, to one year. Whereas binaries in the beginning started with a very short shroud, demand has ensured that there is currently a wide variety of expiry times offered. Some brokers even provide flexibleness traders to set their own specific expiry times.
4) adjust trade size
I need you to remember that 100% of investments are at very risk.
5) click the Call / put option or the Buy / Sell option
Call and place only the terms given for buying or selling options. If a trader considers the underlying value can go up in price, they will open a call. But wherever they expect the value to go down, they will place the Put trade.
Different trading platforms label their mercantilism completely different buttons, some even switch between Buy / Sell and Call / Put. Others dropped the phrase put and called altogether. almost every trading platform can make it fully clear that the direction of the trader opens the entry option
Are binary options a scam? As a financial investment tool they are in themselves not a scam, however, there are brokers, trading robots and supplier signals that are not reliable and dishonest. The point is not to write a Binary Option concept, most are only based on a handful of dishonest brokers. Pictures of financial instruments that have meSuffered as a result of this operator, however, the regulator slowly began to prosecute and fine the perpetrators and also the business was cleaning up.