What are Binary Options?
Binary options are the type of options where the trader determines the direction the price of the asset to move (currency pair, tradable commodity or company stock).
A binary option is a transaction which merely predicts the price movement for a certain market asset at a given period. For example, predict increase or decrease of US dollar value to Euro for a specific period. The options are called “binary” as the trader has only two alternatives: expect the price to rise or fall. It’s as simple as that.
Primary Options Features
Result Control: purchasing an option the trader knows exactly option profitability percentage and the resulting profit.
Exact Time Frames: the option is purchased for a specific period called the expiration period after which it’s no longer traded.
Risk Management: options are purchased for a fixed amount that the profit is calculated for otherwise the amount is lost entirety.
Accessibility: binary options can be traded all year round, including weekends and holidays, with no restrictions on time of the day.
Unlike trading on Forex market detailed analysis is not needed to reflect developing trend growth. The main idea is to know the asset price direction: up or down. A correct prediction, even for a single point, already guarantees the pre-set profit.
Due to the above, binary options are considered a new way to make money attracting traders from all over the world. Such options increase potential to secure contracts and select criteria for purchasing specific assets.
However, a few questions arise:
- what are the reasons for exchange rates fluctuations and prices changes for assets/stocks, what should be considered when making transactions?
- what are the risks for trade beginners?
- how to develop your own profit strategy?
Looking through the articles you get a comprehensive overview of this market trading: base and quoted currencies, calculation of transaction trading volumes in lots, advisor help and much more.
The course consists of seven chapters and covers a wide range of topics from currency price influences to graphic tools understanding and applying credit leverage correctly.
Our app has a built-in trading simulator to practice your skills and dive into online trading world with no risk of losing real money. Thus, beginners can get a taste of how the market works while experienced investors can try out various strategies and compare their efficiency.
So, what do you need to start making money?
Complete training to understand core principles of binary options and master trading terminal functions and market analysis techniques.
Register on broker website and get demo account to practise your skills and test trading strategies.
Every experienced trader had to start somewhere. Our lessons will help you succeed and avoid hidden agendas. Complete the training to use efficiently the trading platforms and apply fundamental and graphical analysis.
All your questions are covered by our app.