What is Binary Option?
Binary options is a highly profitable online trading financial investment tool, which you’re
to determine if the value of an asset (Commodities, Stocks, Indices and Currency pairs) would increase or decrease from a fixed price over a certain period of time, the payout is a fixed amount of return on investment nothing.
Binary Options for Dummies -Understanding how Call and Put options Work
For better understanding, the word ‘binary’ simply means ‘two’ and ‘options’ means ‘the act of choosing or selecting’, putting this two terms together describes binary options as the act of choosing or selecting from two things which are call (which means an asset price would go up from a position within a particular time frame) and put (which means an asset price would go down from a position within a particular time frame).
Therefore, binary options trading simply is telling if an underlying asset would go above or below a certain price within a certain period of time. So, if a trader believes the price of an asset would go up at a certain time, he buys the asset placing a ‘call option’ and if he believes otherwise, he sells the option by placing a ‘put option’.
Is Binary Option Gambling
Binary options trading is sometimes compared to betting, but that is very wrong if you’re not taking blind trades. There are ways in which binary options can be traded, differentiating it from gambling, which includes understanding chart patterns and using it to make profitable trades, knowing factors that affect price actions of an asset and taking advantage of them by creating or using a strategy to determine the price the price action of an asset and many more other methods used by not just binary options traders but also by investment banks’ employees who operates the trading desks and are killing it in the trading world.
Is Binary Options Legal
They are legal and can be traded in various countries all over the world depending on the binary options regulation body in the country.
Is Binary Options Worth It?
Yes, if you do it the right way. Anything you can do and make a substantial amount is absolutely worth it, so is the case for binary options trading.
Is Binary Options Trading Profitable?
Almost all assets types can be traded with binary options, these various assets include the forex market, indices, commodities and cryptocurrency. Did you now that over $5.3 trillion is traded daily on the forex market alone and billions of dollars are traded on indices, commodities and cryptocurrencies market also. This shows that you can be very profitable if you trade binary options the right way and get a fraction of the amount traded daily.
How To Get Started With Binary Options Trading.
Getting started is very simple and would only take a few minutes to accomplish. All you need to do to get started is;
Sign up to binary options broker
All you need to get started is a broker account, not just any broker, but a licensed and regulated one. Most professional traders make use of more than one broker in other to have which is highly recommendable for all binary options traders. Here are the best binary options brokers in the market which I personally use and recommend to anyone who is interested in binary options trading –
Select the asset to trade
All good binary options brokers out there have assets such as
- Currency pairs (EUR/USD, USD/JPY…)
- Indices (Dow Jones Industrial Average, S&P 500, CAC 40…)
- Commodities – Metal: gold, silver, copper; Energy: crude oil and natural gas; Agricultural: corn and soya beans
Start trading assets
To start trading, there are a lot attached although not quite complicated but simple procedures to follow in other to be on the right track, which includes;
- You need to fund your trading account to start trading any asset of your choice (I recommend starting with a minimum amount of $500 to $1000 for total beginners)
- You need a trading strategy/system, which is at least 65% accurate to guide you and make you profit as you trade and prevent you from taking blind trades.
- You need a trading plan which you’re to follow and that would guide you throughout your trading journey.
- Also, you need a money management plan to be on the safe side, in other not to lose money and also to make a steady profit.