How to trade binary options

how to trade binary options

Trading academy is an important section for every trading beginner. Here our best experts provide beginners and advanced traders with useful lessons as for how to act on the investment arena.

What are binary options?

They are both a tool and a special type of trading on options with two possible outcomes: profit or loss. Because of its duality they call it “digital” or “binary”. As trading derivatives they can be used on all types of markets that makes financial trading simpler and available for everyone. Digital options are provided by brokers, thus, to perform a trade a person need to have an account at the broker’s site. To get a profit a trader should only forecast the direction of price movement. Digital options require lesser investments and can generate very high profits within a short period of time.

Main binary options types

  • Classical option is also known as “digital option”. A successful forecast of this type of option can provide a trader with stable and preset payouts up to 83 %. If a forecast is not correct the trader can get up to 10% from the sum of trading operation.

  • Options builder is a handy and flexible tool that enables the traders to regulate the parameters of a deal by themselves. These parameters include time limits and relationship between the risk and profitability of the deal.

  • One Touch options provide you with an opportunity to earn up to 600% from one option. Here traders have a predetermined price rate of asset and expiry time. This type of option can be successful in case when a price of the underlying asset achieves or exceed the target price even once during the trading days from Monday to Friday.

  • 60 Seconds is a unique tool for speed deals. This trading method is simple enough to enable traders to open and close deals after 60 Second expiry periods. This type of options is ideal for those who like a dynamic trade.

  • Black Dragon is a trading tool which opens to traders new opportunities of money and risk management. Traders also can sell or close their position before the expiry time. Thus, this function enables to limit or reduce the losses and get a profit before the the option ends.

  • Roll-over and Double up are additional tools which provide traders with ability to maximize their profits. Roll-over tool enables traders to prolong the expiry time, while Double up option enables them to re-establish the chosen deal at the currently set price in one click.

  • The principles of binary options trading

    The conditions of trading are very simple. Using the correct trading strategy the traders can get a good profit even not understanding how the global economy works. However, the traders have to know how the chosen strategy works. The essence of binary options trading is that the traders buy the options for a particular period of time making a deal whether the price rate of the economical asset will drop or growth. If the trader’s forecast is right they get on average 70% of the option price, if not – they have 15% from their investment. The traders who continually study the market analysis have better chances to make a correct forecast. But good intuition is as handy in this type of trading as market analysis.