Binary Options Trading is something that you don’t take likely. The rules may be the same like the toss-coin game; but predicting stock prices and its trend is not an easy task. These investors are very serious when it comes to trading because their money is at stake. Nobody plays its easy when it comes to money. Their investments should be well protected or else it will slip away with just one false move. In this case, investors who are into Binary Options Trading need to be careful on who or what stock they are dealing with.
Unlike other markets, Binary Options Trading is very beneficial because it allows you to invest money for a shorter period, like an hour, instead of longer trends and analysis for days or months. Although you have the upper hand of the expiry date, but the main ingredient here is that you predict the trend of your stock price on whether it goes up or down within the time frame.
Here is a simplified way on how to earn money using Binary Options:
In traditional trading, you have a “middle man” or a stock broker to do the trading for you. But not in Binary Options. You only need to rely on your computer and sign up on any platform that you want through the Internet. Once you have an account, you can start a small deposit.
Now that you have funds in your account, select an asset that you want to trade. It can be stocks, commodities, currency pairs, or indices.
Place an amount that you want to invest. Choose a price between $50 and $5000. You can trade multiple times with the same asset as long as you have the budget.
Like a toss-coin game, predict your asset’s price. Choose if the price will go Up or go Down. If it increases, use the Call Option. But if your prediction is quite the opposite, use the Put Option.
You have the option if you want your trading to end within an hour or for days, weeks, or even month. Remember, you have control of the expiry so choose wisely.
This is the best part when you’re into Binary Options Trading! If your predictions turn out to be correct, your return could reach up to 70% from your initial investment. But if the odds are not in your favor, you may completely lose everything.
To ensure that your investments are well protected, you can utilize a series of Binary Options Brokers. These strategies or tactics provide several services where you can guard your investments, learn what goes on inside the market, and trade on a daily basis while assessing the risks of your money.
There are a few Binary Options Trading strategies that you need to learn. Here are the following:
This type of trading is also called as Binary Options. It is ideal especially for first-time traders who want to earn money as quickly as possible. This is where a trader’s payout is already fixed and does not depend on the trend or the results of its underlying stocks. So if you put in a $3 or $10 in-the-money investment, the payout will have a fixed rate.
Those who use this Binary Options Trading technique can trade stocks, indices, currencies, and commodities. Most people prefer this one because it’s very fast. Also, the turnout rate is higher compared to other traditional trading. According to experts, the value of the payout may increase up to 81%.
Another feature of this strategy is that you can penetrate the market slowly through buying and selling your stock. You can have a starting account with only $100 investment and start your trading using that small amount. And since duration of the expiration date is set for an hour or at the end of the day, you receive the payout instantly.
The Binary Rang Options is a strategy where you risking your premium to receive a maximum return. This is not a call or put option because the investor gets a specific pay out if the underlying currency stays in a pre-determined price range option due to the expiration.
Customers of the Binary Range Option will benefit because traders already knew the maximum potential gain and its premium in advance. In this case, they already have an idea of the risk of their investment and are willing to lose if the outcome is determined.
What’s interesting is that traders are given options to trade with a selection of costs. For instance, if the reader thinks the price of Gold is stable, he can buy an “In” range option, but if the price is far from stable, the trader has an “Out” range option. Simply put, you must accurately predict an asset even if the price will expire in or outside of a pre-determined range option to receive a high payout.
Touch option is a unique way of Binary Options Trading because it follows the concepts of Forex trading and can be utilized by novice and professional traders. In this strategy, you need to predict if the asset will touch any set strike before the expiration ends. If your prediction turns out correct, not only you will end up getting the in-the-money, but you will also receive a pre-determined payout between 75% and 81%.
There are two types of Touch option: the One-Touch Option and the Double-No Touch Option.
The One-Touch option allows an investor a payout once the price of the underlying asset achieves or goes beyond a pre-determined barrier. The investor has the option to set the position of the barrier, the time of expiration, and the payout once the barrier is defeated. This is ideally for traders who believe that the price of an underlying asset will go beyond a certain level in the future. This is less expensive than the Double-No Touch Option.
On the other hand, the Double-No Touch Option allows an investor to agree on a payout if the price of the underlying asset never reaches one of the two pre-determined barrier levels. The investor may pay a premium to a broker and has the option to choose the position of the barriers, the time to expire, and the payout if the outcome fails. The possible loss is only the cost of setting up the option. Investors may very well use this option if they believe that the price will remain constant for a longer period.
So do you believe in the power of Binary Options Trading? Don’t hesitate to use any of the strategies that you learned because it may be the only solution for your investment to gain profit.