Binary options are financial products that give investors the ability to choose whether or not an asset will rise or fall over a certain time period˳ Returns are fixed which makes the risk relatively low˳ Knowing the return you will receive at the end of a time period takes the ambiguity of trading decisions˳ Basically when you buy an option you will receive a fixed payout or loss of your entire investment˳ There is no guesswork on your outcome˳
Before determining how and where to invest your funds, follow financial journals that will list the best brokers with the highest payouts˳ For instance, Cedar Finance offers a minimum deposit of $200 with a payout of 81%˳ You can also invest with Easy XP that allows $200 minimum deposits with the same 81% payout˳ Neither company, however, offers demo accounts˳ There are risks and you do need to be educated on binaries and trading options before you invest what money you have˳
Binary Types
If you are a beginning investor the most common form is the basic binary or “vanilla” option˳ You will sign up for an account and receive a web page to take you through the trade˳ The current price of an asset is shown on the trade screen and you will be required to predict a rise or fall at a particular time˳ If you believe the price of your asset will be higher, mark “call” option on your screen˳ If you predict the price to be low, choose the “put” button˳ Watch the expiry or future time limits˳ When the trade expires you will receive your winnings or lose your investment˳ You are not able to exit the trade until time has expired˳ This can be a bit of an anxious time if you have invested more than you can afford to lose˳
Touch binaries payout when an asset prices touches a specific level before the expiration period˳ There is only one price and you choose “touch” or no touch”˳ Again, you are predicting whether an asset will reach the noted price before the expiry˳ Hitting the price gives you a payout, but if you miss the mark you again lose your investment˳
Assets
Trading assets vary from broker to broker˳ Most legitimate brokers offer binary options on forex pairs, major stock indices such as the S&P 500 or Dow Jones Industrials˳ You can trade on commodities as an underlying asset and these include gold, oil, silver and agricultural merchandise˳
You cannot trade on all stocks; however, you need to choose from a list of about 50 popular and registered stocks˳ Apple or Microsoft are good stocks to use as assets for a trade˳ If you want to know what assets your broker offers, go to their exchange screen and view their menu of assets˳ You can also go to the Asset Index to learn more about what assets are available for trade on a particular time of day˳ Reading about the history of an asset also gives you a good background for predictions˳
Source by https://ezinearticles˳com/?About-Binary-Options-Trading&id=8091858
