Profits with binary options trading will come from your accurate prediction of the movement of assets’ prices. Because trading binary options lets investors choose just between “Put” and “Call”, it is now enjoying its popularity. Never anticipate acquisition of the asset in this market, however. Only identify the asset that you will trade then predict if its price increases or decreases in specific time.
Trading binary options offers a unique opportunity of helping you earn returns instantly. When your prediction is accurate, you get earnings as high as 90%, dependent on the trading platform you signed up with. If your judgment is incorrect, you lose the money you used to trade – not 100%, though, because there’s this so-called protection rate of about 10% to 15% that will be returned to your account.
Types of Binary Options
The easiest to understand among all types of binary options are the “Call/Put” binary options. “Call” (or “High”) is when you place your wager on an asset that you believe will raise its value when the trading period is closed. “Put” (or “Low”) is when you anticipate that the price of an asset will fall at a certain period. If right in your prediction on either of these two, you win. You receive your payout, which can be to a maximum of 90%. When your assumption is incorrect, you lose your investment. But as mentioned above, you receive certain percentage back to your account.
Types of Assets
Indices are among the most preferred assets when trading binary options. These include CAC40 and NASDAQ. With several stock exchanges around the globe, an index is used as a measurement to know if the prices of the primary stocks will increase or decrease.
Traders also opt to buy binary options where two currencies are pitted against each other. The reason for this is they hope to be protected against the instability of the currency that will therefore influence the worth of purchases where they used foreign notes.
Trading binary options like commodity (for instance coffee and gold) is one method to gain revenue without the actual purchase. You only need to make assumption on the price movement at a given time.
You may ask: How to trade binary options successfully? First and foremost, know the fundamentals, including the ones written above for to have sufficient knowledge before you do the actual trading. Likewise, you must accept the fact that experience will teach you how to consistently make money because as you progress, you learn a lot of new things. More important, take the experts’ advice.
P.S. You may also check this selection of best binary options brokers in order to improve your binary options trading process.