Guide to Binary Options Trading

Guide to Binary Options Trading

A binary option trading is one of the latest forms of trading and it is getting lots of attention from the financial market. The reason behind its popularity is its simplicity. Binary Options trading has a digital nature of trade and hence named as binary options. It is also called “all or nothing” trade.

If you make a correct prediction of the underlying asset you can substantial profit else you loose almost your entire bet. Let us illustrate binary options trading with a simple example. Suppose you purchase a call option of a stock at $100 with a binary payoff at $5000. At anchor the maturity date, if stock trades above $100 you get your $5000 payoff. If it trades below $100, you get nothing.

Currency Binary Options or Currency Pairs.

However some trading platforms provide you a compensation of 10% to 15% if you made the wrong call. There are several types of assets on which a binary option bet can be made: Forex, indices, stocks and commodities. Forex binary options are also called currency binary options or currency pairs.

They are made up of 2 currencies e.g. USD/EUR. Stock binary options are placed on stocks of individual company shares. For example, you place a bet on Stocks of Apple or Microsoft. The direction of movement of those stocks will determine the success of your bet. When you trade on index binary options, you trade on combined value of several stocks within that index.

Index trading allows investor to gain exposure to wider section of market in single trade. A trader must plan a calculative strategy for stocks, index, forex or commodity options trading. A well planned strategy will help in gaining high profits and reduce the degree of risk involved. Further investor must be equipped with the latest set of tools, such as live financial news, references to financial sites, live feeds.

It will help the new investor to predict the direction of underlying asset. Once such tool is New investor must be cautious while choosing binary options broker. The important aspect while choosing binary options broker is the terms of contracts they offer. As the look at this site market is relatively new, many binary options brokers are not well established. It is therefore becomes necessary for the investor to investigate thoroughly about the binary options broker they are considering. Every month we publish new articles .

Our unique Binary Options Guide

This guide is rich with information about how to trade binary options. From basic information about finding a reliable binary option broker and managing your online portfolio, to highly developed articles about using technical and fundamental analysis to make high return trades. Since binary option is new to the market, it can be hard to determine if the websites and information that you find online is trustworthy.

That’s why our highly skilled Team has developed a sophisticated process for reviewing binary option brokers, software, affiliate programs online resources and promotions that we publish online. Binary options are a type of futures trading. The goal is to correctly predict which direction the price of an underlying asset will move by the time of expiration. The learn this here now time of expiration and the maximum potential pay-off is known at the onset of the trade, making it easy to calculate your risk before you invest your money.