What is the FAQ and why we need it?
On this page you can find answers to all frequently asked questions regarding binary options. A specially composed FAQ will help beginners to understand the terms and understand how binary options work much faster than reading a large number of separate articles. Based on our experience, we published here the answers to the most popular questions. In the nearest future the section will be updated with your questions bit by bit. We hope that the information collected will be useful for you and will save your time. If you do not find the answer to your question, feel free to ask our experts.
All of the most popular questions and answers are posted on this page. The answers are given in simple language without any excessive terminology.
Subtypes of Binary Options
There are the following subtypes of binary options:
а) classic – a subtype of binary options by which a trader makes a prediction on the movement of currency prices (higher or lower), at which the expiration time is of five minutes and higher;
b) one touch – a subtype of binary options by which a trader determines whether the asset price reaches a certain price. In the case of reaching a certain price a trader takes profit;
c) borders – a subtype of binary options by which a trader determines if the price exceeds a specific price limits;
d) turbooptions – a subtype of binary options by which a trader makes a prediction on the movement of currency prices (higher or lower), at which the expiration time is from 30 seconds to 4 minutes.
What assets are available for trading binary options?
A trader by his choice defines an asset to trade. It can be currency, stocks, stock indices, metals and raw materials.
What is the “strike” price?
The strike price is the price at the time of the purchase of an option.
How to buy binary options?
In contrast to the classic exchange trading, binary options trading is done through a web browser with flash support. You register on the site of the broker you liked and get to the workplace. Usually you have a schedule of the asset price in front of you, a menu with a choice of an asset, a menu with a choice of expiration time, a graph in which you set the price of the option, buttons “higher” or “lower”. Thus, to purchase the option, you should choose an asset, expiration time, the price of the option and click on the “higher” or “lower”. Wherein the installation of additional software is not required.
How to predict the movement of prices?
In order to earn on the binary options full time, it is necessary to do an analysis of assets and their prices. For a correct forecast use technical analysis and fundamental analysis. You can also use special strategies to monitor the signals to rise or fall of prices, which are described in detail on this website.
For how long can a trader buy a binary option?
You can predict the rise or fall in price at a certain date. Binary options can be bought for a minute, 10 minutes, 15 minutes, hour, day, week and month. When buying a binary option you can see how much time is left before expiration.
What is the expiration?
Expiration level is the end of period of the binary option. Expiration level shows the calculated price of the asset at the time of completion of the contract.
How much can you earn on binary options?
This question cannot be answered definitely, because everything depends on the trader and his initial capital (deposit). The global market for binary options is huge and the income can be very high. On the forums, you can see the screenshots of traders with a yield of tens of thousands dollars.
That’s all for now. Got any questions? Just ask the expert!