Binary options trading is a new way to trade on the stock market online. Imagine you were a trader. Is the value of gold going to increase in the next hour? If so, open a trade! If your prediction is right, you get yourprofit. That’s it!
Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often-misunderstood instruments.
A binary option asks a simple yes/no question: Will this market be above this price at this time? You buy the option if you think yes and sell if you think the answer is no.
1.Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you.
2.Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Forex or Indices. The price of oil, or the Apple stock price, for example.
3.Select the expiry time – Options can expire anywhere between 30 seconds up to a year.
4.Set the size of the trade – Remember 100% of the investment is at risk
5.Click Call / Put or Buy / Sell – Will the asset value rise or fall? Some broker label buttons differently.
6.Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade.
No trader will be successful if his or her broker is not honest. Trading in binary options is still not regulated well enough to be considered an established investment alternative, and so there are plenty of dishonest operators trying to take advantage of naive traders.
There are a few recognized broker regulators responsible for governing brokers in different countries. For example, CySEC governs brokers in the European Union while NADEX acts as a regulator for brokers that are operating out of the North America. The regulator will perform inspection on the brokers from time to time to make sure that they adhere to the rules.
With a licensed broker, your money will be safe as it will be deposited in a bank with good standing. Besides, they will also offer insurance coverage for up to a certain percentage on the money in your trading account. You can get a peace of mind because the site of a reputable broker is secure and protected with a powerful encryption system.
With binary options, you can trade all of the major currency pairs, stocks, indices, and commodities. The exciting thing is that you are not limited to any one place. Whether you want to trade gold futures, Apple’s stock, or the Japanese yen, you can do it all from the same platform. You can also trade on an international scale without having to change brokers. Many of the top brokers include numerous stocks and indices from Europe and Asia, allowing international traders to use their platforms without problem.The good news for you is that brokers act as a one stop shopping place for all of your trading needs. You can trade pretty much everything with the same web site without having to keep switching screens.
With Binary options you have more control over your wins and losses compared to other forms of trading, because you are trading on a fixed amount of investment.The trading system is as easy as making a yes or no prediction and this is the reason why many new traders are attracted to it. Binary options trading seems easier to traders because it is carried out on an online trading platform.
We recommend trading with a trusted broker that has a good reputation. This way your money is safe and you won’t be scammed.
Binary options trading may not be suitable for everyone, and it is possible to lose all of your invested capital. You should never invest money that you cannot afford to lose. Before trading in the complex financial products please ensure to understand the risks involved.