Let’s go straight to the point. How to define Binary options using your own words? It is a financial instrument that will have its own price (quote) in the certain time; the new price may be higher or lower that the current one.
For example, now we have price of EUR/USD on the level 1.1179 and in 10 minutes the price will be higher or lower than the stated price (pic 1). In case it goes to 1.1180 means the quote increased.
So this changing to the positive or negative side is the double (or binary) opportunity to earn money (up to 90%) or, unfortunately, to lose it. Meaning the trader has two possible scenarios and he has to make the correct prediction. In case 70% of forecasts are made correctly that means you can trade binary options quite profitably.
The main goal of the trader is to make the correct forecast about the further movement direction and open the appropriate trade by clicking the button and choosing the amount of the trade. If your prediction is correct you have the profit 80-90% in your pocket.
The example of trading platform for the binary options.
Main advantages of options trading
Why Binary options may be interesting both or the beginners and professionals?
In contrast to Forex, options trading is much more fast and dynamic, the trading strategies are quite simple there and you don’t have to make a detailed analysis before setting your trade.
How to choose the Options broker
In case you have decided to try options trading, you need to choose the partner of your trading. There are a lot of companies on the market that offer trading services and the beginner in this field may be lost.
The main features that should be counted:
- The minimum deposit. You can find different options starting from 10 USD or 250 USD. So it’s better to make a correct decision based on your potential.
- The minimum option size. Here you should understand that you can trade with 1 USD or 25 USD. Your choice should be based on your financial stability.
- The maximum profit. This criteria is more or less the same in most companies. We recommend to use those that offer 80-90% from one instrument.
To make your choice easier we offer two kind of companies:
Olymp Trade is a new dawn on the market of binary options. This broker have created a company that meets the highest requirements of clients. In Olymp Trade all the stages of trading are as simple as possible, and the entry threshold is lowered to a record sum — 10 dollars.
The broker of binary options 24option established itself as a leading choice in the binary options market. The broker possesses all modern tools and favorable options for a successful trade. 24option is the regulable broker and meets all standards and requirements of CySec. The broker provides training seminars for beginners and qualified technical support.
As well you can check the rating of Binary options companies and be aware of the whole list of the companies.
There is the useful video below that will show you how to trade binary options and stress the aspects for better understanding of the process.
Other useful information for traders: