Tradebinaryoptions.net is your #1 resource when it comes to binary options trading. In this section of the site, you will find useful information about binary options, including articles, broker reviews, strategies to use in the financial market, daily news and a glossary. All these will be included in our binary options guides.
What are Binary Options and how do they work?
Binary Options are very simple as they are based on a yes or no proposition also called as call or put. You simply have to predict whether the price of an asset will be below or above it’s starting price. If you think the price will be higher, then you select the CALL option, if you think the price will go lower, then you select the PUT option.
- Why Binary Options Are Better Than Forex
- Is Trading Binary Options Scam?
- How do Binary Options Work?
- How Binary Options Brokers Make Money
- How Do You Get Started In Binary Options Trading?
- Is It Possible To Make Money Through Binary Trading?
- What Is Binary Options Trading
- How to Trade Binary Options for a Living
- How to Trade Binary Options with Success
Understanding Binary Options with this Trading Example
Let me give you an example: you sign up with a broker (always use recommended brokers!), deposit some money and make your first trade. You pick an APPLE stock, because you are familiar with the company and the news. The price at this moment is $125,2 and you think that the price will rise in a few seconds.
You invest $100 click the “CALL” button and decide to try a 60 second trade. The binary options broker has a 87% payout for this trade. After 60 seconds the APPLE stock goes up to $125,4 which means that it’s more, than 60 seconds ago. The payout was 87% so you win $187 from which $87 is profit.
This is one of the easiest methods to trade online. In fact, it’s one of the least time consuming methods out there and you can start with as little as $250.
If you are interested in trading stocks in the future, it’s a good idea to test the water with binary options trading first, but make sure to follow the stepts outlined in this guide.
Learn how to Get Started with Binary Options Trading
You should head over to our homepage and check out the list with the recommended binary options brokers. Make a minimum deposit and start trading your favorite asset. There are a variety of assets to trade: stocks, currencies, commodities and indices. Usually there are a total of 120+ assets to choose from.
Binary Options Strategies for Beginners
- Demo accounts: It’s always a good idea to try a demo account first. This way to can see exactly how the online trading environment is, what features are there and exactly how it all works. Especially for beginners is it important to try the test accounts first.
- Do your research: you can’t go wrong with simply reading the news and doing some research on the assets you are trading. Is there a new iphone coming out? Is there a high chance for oil to drop in price again? These are the questions you need answers to.
For more strategies go to out binary options strategies page.
Advantages and Disadvantages of Binary Trading
One of the advantages of binary options is, as said before, the easiness. You just have to sign up with a broker and deposit some money and you’re ready to go. Another advantage compared to ‘real trading’ on the stock market is that you can’t lose more then your initial trade. For example if you make a trade with an APPLE stock for $100, you can’t lose more than those $100 even if the APPLE stocks drop 70%.
On the other hand you are also limited to how much you can win. If you invest $100 and the payout is 87%, then you can’t win more than $87 with that trade even if the asset you picked rises in price, far more then expected. For example you win the same amount of money if an apple stock moves into your favor with $0.05 or $500.
The difference between traditional trading and binary options trading is that you don’t actually own shares of a company. You are just predicting the direction of the financial market.