Binary Options Trading

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Binary Options Trading

Binary options trading is an intellectual way of earning. The binary options allow making a profit from the stock, indices, commodities like oil and gas, and currencies. Though it may seem that this field is just for rich investors, anybody can earn trading binary options.

What is a Binary Option?

The system and essence of the binary options is arranged in such a way that even a kid can understand them.

A binary option is a deal in which you figure out a future direction of the price during the period set.

For instance, you think that Mercedes stock is to rise today because a new model goes on sale.  You invest in a binary option on Mercedes stock for a day buying a CALL option (CALL – UP). If the price of Mercedes stock is higher for even 0.001 after the option expiries, you get a 70% profit of the amount you invested.

You can invest in binary options for a period of a minute up to a year; however, the most common profitable term is from 15 minutes to an hour.

This means that buying an option for half an hour at $100, you make $70 in just 30 minutes!

 

Anybody would like the idea of making a profit from the top companies stock, indices, or commodities. Despite the interest in binary options trading, if you are a novice, you can have questions like:

  • How to trade binary options?
  • What to start with?
  • What step to make at first?
  • How not to make mistakes if I do not have experience?

 

One more important issue preventing you from binary options trading is a fear that you will lose your money.  However, having a neat plan and clear answers to the questions like above would definitely dispel your fear. 

Binary options trading

The first what you need to know is that even experienced investors can make unprofitable trades. It’s impossible to always invest profitably but what you can do is to minimize the number of losing trades.

Any kind of trading requires money which means you need a start-up capital.

Brokers usually have the minimum requirement to deposit of $200 to $250.

To start successfully, I would advise that you choose a good broker. Don’t save on this.

The minimum investment in binary options is $25. I would recommend that you have a starting capital of about $500 and invest maximum 5% of it. This ensures that you have enough resources and gives a feeling of confidence. With this amount, you will have a chance for success. Besides, binary options trading should be psychologically comfortable.

How to trade binary options?

Binary options trading is carried out via a broker. Therefore, the first thing you need to do is to sign on the broker’s website and top on your account in any convenient way (bank card transfers, e-payments etc.)  Choose a well-known time-proved broker.  Undoubtedly, the brokerage company which was the first to start the business is the time-proved leader.  It’s always better to deal with the top companies.

After signing on and topping on your account, stay on the broker’s website for at least five minutes. Read what you see there to get used to the website’s design that is usually simple and intuitive. Click different underlying assets, binary options terms on the price chart page. You get the hang of it quickly.

How to start buying binary options?

Before buying a binary option, you need to choose an underlying security. This can be Google stock, Gazprom stock, oil, Dow Jones index…

For instance, you choose Apple stock. Review the latest news about the company, announcements of new releases. You may find important information which can impact the stock price.

The only thing you need to do is to figure out whether the price goes up or down. How much it rises or drops doesn’t matter.

E.g. You get to know from the news that tomorrow Microsoft releases on sale a new long-awaited product. The profit expected is a billion. Naturally the price of the stock goes up. This means that tomorrow you can invest in a binary option on Microsoft stock buying a CALL option.

A GUIDE TO BINARY OPTIONS TRADING

To start trading binary options, you need to search broker’s websites. Trust only officially certified companies having a good reputation. These companies are not numerous, and they keep the lead in binary options trading.

The latest poll shows that the most popular broker in the world is AnyOption. This is the first binary option broker in the world and the top company in its industry. This broker offers the best investment terms. Moreover, this is the only broker that reimburses a part of your investment in case you have a losing trade.

To begin with, you need to browse the broker’s website and choose an underlying asset. For instance, I select APPLE stock:

apple
 

Then I to select the time of the binary option expiration:

how to trade binary options
 

Then I have to select the amount of investment, the profit and price fluctuation that I expect.  The chart shows that it’s 8:29 p.m., and the time of the binary option expiration is 9:00 p.m., which means that I invest for a period of 31 minutes. Now I have to make a selection whether the price will go up or down during these 31 minutes.

I select the amount of $170 and click CALL (UP) which means that I expect the price to up.

Binary Options Trading
 

I get 80% profit in just half an hour!

Binary Options
 

HOW TO TRADE BINARY OPTIONS OR HOW NOT TO MAKE A MISTAKE BECAUSE OF LACK OF EXPERIENCE?

Don’t chase money; chase the right choice based on many facts.

In this case money will take care of itself. The common mistake that many investors make is careless investment. Do not invest relying on luck or following intuition. Don’t follow emotions and don’t buy if you are excited. Before you invest, make sure your signals are correct, and compare them with the trend on the price chart. Binary options trading is like gold work.  Observe the safety precautions, control your emotions and think out the decisions you make, and success will definitely attend you.

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