Many of you, being around the finance industry for long now, must have got to hear a lot about a fast and very simple financial tool known as a binary option. Well, this is a flourishing financial instrument that gives a chance to the investors to predict regarding the growing or falling prices of world-famous assets. These assets can range from some of the leading multi-national companies to cryptocurrencies like Bitcoins. In fact, it is also related to the gold prices in different sections of the globe. By taking less than 60 seconds, binary trading makes it possible for the traders to carry out their business multiple times in one single day.
If you have correctly predicted the upcoming rise in the values, then you stand a chance of gaining a lot of profits out of the venture you have indulged in. This is the reason why ideal risk management and wise trading decisions are important in binary trading. The result that would be coming out of your investment will either be positive or negative; there is no grey shade here. This is why it is termed as a binary option. Since investors are aware of the potential risks and profits involved in these projects, investing capital in this form of trade has become a huge attraction for financers today.
Types of Option available
The modest “Up/Down” trade is considered to be the most common option in this field. However, few other options that exist here and can serve you equally well include-
In/Out, Range or Boundary: There are “high” figures and “low” figures in this type of option. The people floating their money here guess if the price will stop within or outside the pre-defined levels.
Touch/No Touch: The levels are set previously here and they are either higher or lower than the existing value of the asset. Here, the trader is required to guess whether the real value ‘touch’ these levels in a given time before expiry.
Ladder: In this particular option, there are pre-set price levels.
How to begin trading
To start trading in binary options, follow the below given steps and lead way to pool in ultimate profits.
Selecting a broker: The first thing you need to have is a licensed broker account to get started with binary trading. Research in the industry and try to find out which broker is enjoying the best and most reliable reputation amongst the investors.
Pick the target market or asset: Next important step for you is to select which market or asset you would like to trade in. The market can deal with anything- from commodities to stocks and from cryptocurrency toForex.
Decide on the expiry time: You can choose a time frame ranging from 30 seconds up to a year to decide when you would like your options to expire. Once this is set, you would be focused on your target
Fix the trade size: You should ensure to carefully decide the trade size keeping in mind all the risks and hurdles involved in the procedure.
Check and get started with the trade: Once all these settings are made and you have cross-checked, get in the loop with your broker and look for your first trade in the market.
These simple steps can actually help you make maximum profits, provided they are dealt with judiciously and timely.