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Learning About Binary Options Trading

Written by Robert

Not even the Best forex broker will claim that he is good at predicting the rise and fall of the market in a certain time frame, he can reap really good profits from the binary market. The risk is very low in binary options because the trader knows beforehand how much he is going to earn or how much he is going to lose. This makes the trading decisions less ambiguous and you can choose binary options that suit your needs and manage the risk accordingly.

It is best to first follow some financial journals that will help you choose the best brokers. Best broker means the one who suits your investment needs properly and gives the highest payouts. For example, there could be one brokerage house that offers an 81% payout with a minimum $100 deposit while some other brokerage house may be giving the same payout at a $200 minimum deposit. So the financial journal can help you choose the most profitable option.

It is common among beginners to choose the basic ‘binary’ or ‘vanilla’ option to start with. When they sign up for their account the broker provides them with an online trading platform. The trading platform will display the current prices of different assets and you would need to predict whether their value will rise or fall within the specific time frame. ‘Call’ and ‘put’, are the two buttons on the platform which help you to make your prediction final. 

‘Call’ is used when the trader feels that the value of the asset will rise and ‘put’ is used when the value of the asset is predicted to fall. The trader has to keep a tap of the time limits of the trades. After the trade’s time limit completes, the result will be known whether the trader has earned money or lost. Once you pick a ‘call’ or ‘put’ then you cannot leave the trade-in between until the time expires. It can often be an anxious situation if the trader has invested more money than what he can afford to lose.

Touch binaries are those which payout when they touch a specific level before the trade time expires. In these binaries, there is only one price or level and you can choose between ‘touch’ or ‘no touch’ depending on whether you think the asset price will reach that level or not. You will win only when the trade reaches the specified level, otherwise, you will lose the bet.

Different brokers offer different trading assets. Currency, commodities, or stocks, anything could be traded as binary options. There is a list of more than 50 popular and registered stocks from which you have to choose your binary options. For example, Apple and Microsoft stocks can be chosen from the list to trade as assets. The list of assets offered by your broker is available on the trading platform provided by him. There you can view and choose from the menu of assets. Good knowledge about the past performance of assets is beneficial while trading.

About the author

Robert

Robert loves the sea and dreams of getting a home with a beachfront. He used to be a Data Scientist in a multinational company but left his job to follow his passion for writing.