Basic information about binary options
Often people come to the question of this nature: I am fired from my job / retired / sitting in the decree at home and I want to begin trading Binary Options, whether to start or not? My answer is definitely YES, if:
– You are willing to invest your time and energy in trading, choose an appropriate strategy and to “work” it.
– The deposit that you are going to make a broker is not the last of your money.
Why Binary Options?
Features That Made Binary Options Popular
Binary Options have a number of differences from the traditional (or, as they are called, “vanilla”) options. As this financial product had formed over the years of various practices in the financial markets, its features became its benefits at the same time, being based on an old product and adding modern features that meet the requirements of the modern consumer largely.
The main qualities which attract novice traders and increasingly satisfy the experienced ones are:
Online availability – Binary Options are usually traded on an online platform, so there is no need to download any software to your computer. Besides, Binary Options can be traded at any time and place upon condition there is a personal computer and Internet access. Some of the platforms even developed an application for smartphones that allows investors to have a constant access to the platform, to invest and to monitor developments in financial markets at any convenient time.
Simplicity – Binary Options is a rather simple but effective financial tool. The only thing required for profit is the correct prediction of the increase or fall in the asset price. Binary Options do not require much trading experience – it is only necessary to understand the financial market, its trends and the ability to predict the movement of asset prices.
Profitability – Profitable Binary Options range varies 65 to 85% and depends on the investor’s prediction of the asset prices movement direction. Thus, for example, if the investor has predicted the growth of Lukoil shares and they have grown at least on one point, he is guaranteed to make a profit of 65-75% depending on the platform. At the same time Binary Options permit a profit even from falling asset prices, if the investor predicts the fall correctly. In the case of any correct financial forecast both for the price drop or increase, a Binary Option trader gets a payment of the option in the amount of 65-85% of the investment.
Earning potential and risks are previously known – buying an option investor himself decides how much money he wants to invest in the purchase of a call option. In this case, even before the deal he can see clearly his earning potential and possible risks, depending on the chosen amount invested. This is the biggest difference between Binary Options and any other financial products which makes Binary Options one of the most transparent and clear financial instruments on the market today.
The possibility of short-term trading – Binary Options give traders the opportunity to make a profit for a minimum period of time (sometimes it can be a matter of minutes) with strictly limited risk.
Four Steps That Will Make Your Trade Begin
To start trading you must perform the following four steps:
Step 1: choose the exchange of an asset (index, currency pair, stock or commodity)
Step 2: select the term of the option (the end of the hour, day, week, month)
Step 3: select the call or put option (decrease or increase of the stock asset price)
Step 4: select the sum you want to invest in the purchase of the option
Performing these four easy steps, you only have to follow the movement of the trade market and if at the time of exercise your financial forecast is correct – make a profit.
The more detailed your understanding of the characteristics of each component and of the trading market as a whole is, the greater your chances of getting a profit.
That’s all for now. Got any questions? Just ask the expert!