Getting Started with Binary Options
What are Binary Options?
Binary Options are predictions if the price of an asset (for example currency pair, stock or index) will increase or decrease over a certain period of time. Basically there are two possible outcomes: that the prediction is correct or it is not.
For example, you think that the price of Oil will increase in the next 1 hour. By trading a binary option on Oil, if your prediction is correct you can make 70-90% return on your investment. So if you’ve invested $500 you can make $350-450 profit!
Binary Options Types Explained
How-to Binary Options Guides
Binary Options Market Explained
Forex Education Articles
How to trade Binary Options?
Choose a binary options broker and open an account with it. Deposit funds into your account.
Choose an asset you wish to trade, and if you are trading a “Call/Put” Option, you only need to predict if the price of the asset will increase (click on “Call”) or decrease (click on “Put”) from its current price at the time the option expires.
Select Expiry or when you want the option to expire, for example after 1 hour.
Place your trade. If your trade is a winning trade, you can make a profit of 80%.
Why Trade Binary Options?
- Control your risk – when you are trading options, you know in advance what is your profit and risk ratio. So before making a trade you will know how much you will gain or lose. This way you can manage your risk better.
- Great payouts – with some binary options you can earn up to 81% in only a few minutes. Some brokers have high yield options, where the return is even 400%.
- Simplicity – with binary options you only need to predict in which direction the price of an asset will move, rather than the difference in the price. Therefore less knowledge is needed to trade binary options compared to trading Forex.
- Minimum initial investment – some brokers have $100 or $200 minimum deposit requirement, which means that you can begin trading with a small amount.
- Minimum trading – the trading for some options is by units and each unit can be only $20 or $50. For example if you want to trade an option for the Apple stock, you don’t have to pay the whole amount of the stock, but can do it with $20 or $100.
- Variety of assets – you can trade a variety of assets, such as: Forex (EUR/USD, USD/JPY, etc), Indices (S&P 500, FTSE 100, Nikkei 225, etc.), Stocks (Apple, Coca Cola, France Telecom, etc.), and Commodities (gold, oil, etc).