Binary Options Basics

Learn all about the basics of Binary Options Trading

Are you new to Binary Options trading? Then you need all the help and information on Binary Options basics! We will show you where to go to help you get started with options trading, one step at a time.

Just as in real life, it takes a lot of dedication and motivation to succeed in binary options trading. The training services we recommend are designed to educate our visitors regardless of whether they are novice beginners or experienced veterans. The topics include some of the latest developments in the field of option trading and bring you up to date with information you can use to hone your trading.

The training has been designed to show you exactly how to trade.

But to start, here are some of the Binary Options basics.

What are Binary Options?

Binary Options Basics

Binary Options are perhaps the simplest financial trading instruments that you can find in the market. The options are “binary” because the trade can either be in the money or out of it, all you are required to do is predict whether the price of the asset increase or stay below a predetermined value when the contract expires. If your prediction ends up coming true then you are awarded the full amount stipulated in the contract, and if it does not then you win nothing.

Unlike the stock markets where the amount you can make depends upon the value of the underlying asset, the returns in binary options trading are fixed and non-negotiable.

Binary options have become a very popular form of trading in Europe because of their simplicity and also because you are not required to invest thousands of dollars in order to get started. All you have to do is signup with a broker and start trading, most will only require you to deposit between 100 to 500 dollars and many of them give attractive signup bonuses.

They are also becoming ever more popular in the USA. They used to originally only be the realm of Large investment banks that used them as an OTC (Over The Counter) instrument.

How Do Binary Options Work?

Depending on the broker you sign-up with you have a number of different asset classes you can trade using binary options; these include commodities, stocks, indices and currencies. When you buy a trade, you place a Call Option and when you are selling a trade you place a Put Option. The contract can last from 1 minute to 30 days and once again, the length of the contract will depend upon the broker(s) you sign-up with.

Before you can get started, you will have to sign-up with a broker who is basically an intermediary who provides you with a platform through which you can place your trades. You will be required to deposit a minimum amount with the broker and it will be from this amount that your trades will be placed.

What is a Binary Options Broker?

A broker is a service provider who has access to the financial market. These intermediaries have all the tools needed to help you trade and provide you with the assets and the options. Most brokers are situated in Europe and many have their head offices in Cyprus, mostly because of better regulation and tax structures.

A broker also has the required software which helps you to place your trades, these platforms have many different features and come with advanced charting and reporting features that can help traders place more informed trades.

Our Preferred Broker

Types of Binary Options

While the basic Up/Down Binary Options are provided by almost every broker, there are several variations which enterprising brokers have added to their platform, here are a few of them:

  • High/Low Options: In these types of contracts, you have to predict whether the price of the asset will be higher or lower than a predetermined value. The target price that the rise or fall is measured against at the expiration of the contract is known as Strike Price. You can set the expiry deadline on the price of the asset along with the call or put options.
  • One Touch Option: In these types of options you have to predict whether the price of the asset will touch or stay within a certain value. When selecting one touch options, you have to determine the position of the barrier and the time of expiration of the contract. In these types of options, only two outcomes are possible, i.e. the option breaches the barrier or it does not.
  • Range Options: These are options where you have to determine whether the price of the asset will fall between two ranges or stay outside of them. You can determine the range of the assets as well as the expiry time. Finally, you will have to predict whether the price will remain within the range or stay outside of it.
  • 60 Second/Turbo Options: These are simple High/Low Options however with a time bar of only 1 minute. You have to determine whether the price of the asset stay below or rise above the strike price. These types of options are ideal for persons who are looking for a way to make some quick money by capitalizing on short term market trends. You should also know that these options are perhaps the riskiest there are as the movement of most assets tends to be very erratic on shorter trends.
  • Ladder Options: These are perhaps the best kind of Binary Options there are! In them, you are given a range of different price levels which are placed in an equidistant manner from each other. You have to determine whether the price of the asset will end up above or below at each price level. The advantage of ladder option is that it can allow you to “lock” your profits in place if the price of the asset goes according to your prediction on a particular price level. Such a system to an extent mitigates the “all or nothing” character of binary options trading and returns at least some profits if your predictions pan out on some of the rungs of the ladder.

These are some of the basics that should help a trader get started, when trading in binary options you have to bring yourself up to speed on many aspects including the historical trends that an asset has traced, and how the market has been behaving among other things.

The Trading Club is designed to help you trade better by understanding the underlying dynamics of both binary options in general as well as your chosen asset(s). The training provided by the Trading Club is offered via Skype as well as the phone and has some of the most experienced traders in the field sharing their views and expertise with new and upcoming traders. Some of the things covered include:

  • Binary options fundamentals.
  • Chart analysis.
  • Technical analysis.
  • Market research.

…and much more

In short, the Trading Club will point you in the right places for all the training you will need to succeed in Binary Options Trading. Remember, the information that you will be introduced to will come straight from highly experienced professionals who themselves are raking in thousands upon thousands of dollars per day.

Sign up with the Trading Club today to learn the basics of Binary Options.

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