WHAT IS A BINARY OPTION

Binary options – The simplest way of online trading

Binary Options are currently the plainest and simplest to understand and complete tools for trading. A Binary Option is, in reality, no more than a prediction on which direction the price of a stock, commodity, index or foreign currency will move by a designated expiration period. With Binary Options, you never purchase or own the asset as you’re only speculation the direction that the asset;s value will change There are only two possible outcomes and the price of the asset does not matter. As far as you’re concerned, all that matters is if your prediction was right or wrong.

Steps to trading in binary options

Choose the asset you want to trade
Choose the amount you want to invest.
Click on CALL if you think the asset price will increase by the expiry time, or PUT if you accept that the price will fall
Wait for outcome
Advantages of Trading Binary Options:

Managed Risk: The percentage reward is known from the onset, as is what you stand to lose
Simplicity: You only need a sense of direction i.e. ‘Will Apple stock price increase or decrease by expiry?’
Attractiveness: For a profitable trade to take place there is only the need for the price to close in-the-money and the winning trade will receive the entire payoff, even if it was ‘right’ by a single pip.
Hedging possibility: A safer option to take if a trader has an open opposite position to his holding. currency, stocks etc. Utilizing a binary option can reduce an additional loss elsewhere.
Flexibility: Binary contracts are being assigned around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.

types of Binary Options:Category Archives: Binary Options