A binary option is trading that most people have been hearing but don’t know how it works. In this article, I have given the guide of binary options trading to get success.
What you should know is that a binary option is a simple financial instrument that will allow the investors to speculate and decide whether the price of a certain asset should go up or down. In binary options trading, that time span could also be 60 seconds and therefore possible to trade many times in a day ad across the global binary options market.
When you want to trade with binary option, you already have an idea of the gain you should expect if the prediction will be correct. The prediction of gaining will be 70 -95 percent. In case you have money to invest and place $100, then when the option expires, you are likely to get a credit of $170 -195 after having a successful trade. So, trading and risk management will be simpler. For an outcome, expect Yes or No answer always. It, therefore, means you are either winning or losing in binary options trading and consequently referred to as “binary option.” For the risks and rewards one will face are known as advance, but the structure of payoff is what attracts most investors. Today, there are exchange-traded binaries available and therefore meaning that traders don’t have to trade against the brokers.
However, so that you can trade in binary options platforms, you need to have a regulated broker account. Don’t forget that it’s not all the traders that are reputable. Some of these brokers are scams and will steal your investment. So, you have to be cautious about the type of broker that you will use. Try and research for a reputable binary options broker before investing your money. Some of the best brokers are always regulated to ensure the safety of the investment.
In case you are new to this type of trading, choose a broker offering the clients with the demo account. Most of the broker platforms will be having these demo accounts and therefore know how you should trade before depositing real money.
Binary options types of trading
Currently, the common type of trading is the “up and down.” However, in binary options trading, there are other types of trading. The common factor of these types of trading is the outcome of the binary option that will result in “yes or no.” in this article, look at some available binary options below:
- Up and Down or High and Low
It is the basic and a common type of binary option that you will meet as an investor. So, the main question here is whether the price will finish in high or low option compared to the current price during the expiry time.
- In and Out or Range or Boundary
In this option, there is a set high figure or low figure. So, it’s the trader who will predict in case the price can finish within or even outside of the levels.
- Touch and No Touch
These types of binary options trading have their set of levels that are higher or lower comparing with the current price. It is the trader who will predict whether the actual trading price touches the levels at the point between trading time and expiry.