VFXALERT
WHAT ARE BINARY OPTIONS?
Before starting to trade, let’s clarify what binary options are. A binary option is a bet for the movement of the price for a certain asset based on the suggestion of whether the price for a certain asset will fall or rise for a specified amount with the expiration of this bet. The answer in this situation has only two variants: yes or no. The main goal of the trader is to make an accurate forecast for this movement. Then, there can be two variants for the development of events: the loss of money (if the forecast turned out to be incorrect) or payment (if the forecast was successful). That’s why these options are called binary.
TYPES OF BINARY OPTIONS
With the development of binary options, new trading formats or variations of existing ones appear. Here are the main types of binary options. You can find them on most trading platforms.
Cash-or-nothing. The trader makes a bet on a decrease or increase in the price for a certain asset. The sum of the price and its change doesn’t matter. Investor needs to make an assumption whether the price will be above or below a certain level. If the trader guesses right, he wins from 70% to 90%. If he fails, he loses everything.
Assets-or-nothing. Unlike the previous case, the payout for the winning is defined by the price of the asset.
One-touch. The option expires when the asset’s amount reaches a certain value.
No touch. This is the opposite situation. The main goal of traders is to avoid the price touching a certain level.
60 Seconds. This quick transaction allows the trader to make money in a short timespans before the trend reversal.
Is it possible to make money on binary options?
Yes, you can earn on binary options if you have enough knowledge and practice. Trading is competence and like every competence, it requires training and thought-out actions. Firstly it is better to open a demo account and practice without financial risks. Also, on the demo account trader can understand the principles of work and develop the trading strategy.
Then, the trader builds the trading strategy through trial and error, and through constant education. And only when the trader has enough experience, he may open a professional account. Start with small sums and improve your technique constantly.
HOW TO TRADE FOREX WITH BINARY OPTIONS?
If you want to trade forex but don’t have enough funds to enter the market, you can use the forex assets for binary options trading. Forex assets include numerous currency pairs. Select stable assets such as the American Dollar. Use the economic calendar and pay attention to the financial news. Also, follow the economic situation in the country whose currency you trade.
PLATFORMS FOR BINARY OPTIONS TRADING
The platform for trading is the software provided by brokers that gives the opportunity to trade the different assets and to manage the trading account. Every platform is provided by a broker. A broker is an intermediary between buyers and sellers. The broker takes a small part of the client’s turnover as a commission.
A trustworthy platform provides the customers with good service, numerous assets to trade, and different ways to withdraw the earnings. Often, the brokers give you the opportunity to test yourself on the demo account to build the strategy.
