Binary options are simple, yet highly effective, tools that allow investors to predict the price of assets. These assets can be anything from the USD/EUR exchange rate, the stock price of Apple, the price of Bitcoin, the price of gold, etc. Binary options can be conducted in no more than 60 seconds, meaning that you can make hundreds of trades in one single day.
This form of trading is called binary because there is a “Yes” and a “No” option to every trade. You conduct trades based on your predictions. You predict a certain thing will reach a certain price. If you are correct, you gain money based on the amount you’ve invested multiplied by the odds. If your investment has a 70% return rate, you will gain 70% more of what you’ve invested. If you’ve invested 100$, you will earn 170$. The binary option also means that there are a lot of risks involved. Since you can either win or lose if you do lose you lose everything you’ve invested. Everyone should understand the risks and rewards in advance before partaking in such trading.
But How to Succeed with Binary Options?
Well, before you start trading you would need a broker account. There are hundreds of brokers, so make sure you choose a reliable and reputable one that best suits you. Visit here if you’re looking for a list of the most reputable brokers.
Binary Option Types
There are a number of of ways you can start trading binary options and each one of them would advise you to find a reliable broker who would help you in making money in binary options. This is very important since this would help you to avoid binary options scam that can happen. According to business24-7, IQ Option is one of the most trusted binary options brokers you can go with.
- Up/Down (High/Low): The most basic and most common type of binary option. It gives you a price range and asks the question of whether the final price will finish higher or lower than the current price after the time expires.
- In/Out, Range or Boundary: This option sets a “high” and a “low” figure that you can trade. It’s your job to predict whether the price will finish within or outside the boundaries.
- Touch/No Touch: This type of binary option has set levels. They are higher or lower than the current price and you have to predict whether the final price will “touch” those levels at any point until the trade expires. In touch/ no touch binary options, the trader can choose to immediately payout even if the trade doesn’t expire yet. All it needs is for the prediction to come true, and the trader can choose instant payout without having to wait for the session to end.
- Ladder: This type of binary option works the same as the Up/Down but it has a “laddered” price that goes progressively up and down. These trades are usually the ones with the payout going beyond 100%.
How to Trade? Fairly Straightforward Short Guide
Before you start trading, you need a few things.
- Choose a Broker: Find a broker that most suits you
- Select the Asset or Marketplace: Once you’ve made an account, you need to find the things you want to trade in such as commodities, stocks, crypto, the price of oil, the stock price of Apple, etc
- Select the Expiry Date: You can set binary options to expire anything from 30 seconds and up to a year
- Set the Size of the Trade: You can set the size of the trade however big you like, do understand that anything above 100% is considered a huge risk
- Click Call/ Sell: Click call whether the final price of the asset rises or falls. We mentioned above the different types of binary options, and different traders label buttons differently
- Confirm Trade: Make a final assessment before confirming the trade.