If you’re new in trading business and don’t know much about Binary Options, then you’re at a right place and reading a right article. As in this article, you will read everything you need to know about Binary Options which includes What is Binary Options and its related terms as well as the facts which will help you in understanding the Binary Options in a better way.
We are sure that after reading this article about Binary Options you will not become professional in the field, but you will have complete knowledge which you need while doing trading with one of your selected binary options trading system.
So without wasting no second why don’t you start reading about Binary Options
What is Binary Options?
Binary options is a part of the financial market and known as one of the easiest ways to earn a profit online. It is very easy to use and the features which these binary options provide have made trading much easier. Using binary options you can trade anything like indices, stocks, currencies, and commodities. Unlike old investment programs, in the binary options industry, you don’t need to get the asset you trading with.
Binary options have different types but the high-low option is very popular among investors. The reason why it popular is because it includes the type of asset and expiration time. The good thing about this type of binary options is that the amount you will get in return is fixed and you alway know about the amount which you’re going to get at the time of expiry.
All you need to do is to compute the direction in which the price of the instrument which is effected by economic changes, financial indicator, market volatility will move.
Whenever you trade using the Binary options it always ends in two different ways:
In The Money (ITM)
This means that whatever you have predicted about the trade is right and has gone in the same direction as predicted by you. Let us take the example of OIL Stock. You predicted that cost of the trade will be higher at the time of expiration and by keeping this thing in mind you have set your investment cost for the trade and wait for the expiration time. Now if the price of the trade is higher in contrast of the price at the beginning, then your trade ends as ITM. Even the broker will give you profit with a fixed return rate
Out the Money (OTM)
This means that what you predicted about the trade is wrong and the value of the asset has gone in opposite direction as predicted by you at the time of expiration. For Example, According to your prediction the cost of the trade will be higher at the time of expiration, but at the time of expiry your trade price dropped, then your trade ends as OTM and you have to face loss.
Advantages of Using Binary Options
There is a variety of reason why user prefers to use Binary Options, but the thing which makes it little different from other is that you always know how much you will earn or lose when you win or lose the trade.
What is a Binary Options Brokers?
Binary Options Brokers provides you the platform where you can do trading. There are lots of Binary Options broker available over the internet. Ever broker has something new for a user with different benefits or advantages. Every day the new broker is introduced in the trading business. As per our data, there are 600 plus brokers exist on the internet out which most of them are available for user all across the globe, while the rest has geographical limitations (Like limited to Canada, UK, and the US)
Due to the great competition between existing binary options broker, every new broker that step into the trading world provides some unique features to investors. And this is the reason why trading is becoming easier day by day and user who don’t have much knowledge about trading can earn great by little efforts.
Importance of Binary Options Broker
Selecting a Binary Options Broker while doing a trading is the very important part. Winning or losing a trade depend on your selected broker. Even it is the duty of brokers to suggest a right path to an investor who decided to continue their trading journey with them.
The Internet is full of Binary Options Brokers, but not all of them are genuine and real. So before selecting your broker, it is highly advisable to do a research about them. You can also check your country financial authority to confirm how genuine they are, whether they are regulating a particular broker or not.
What is a Binary Options Robots?
Binary Options Robots is an Auto Trader. The main function of these auto traders is to assist you during the trading session and help you in earning a profit. Binary Options Robots are very useful for the users who are new in trading and don’t have sufficient knowledge and experience of trading.
Binary Options Robots is a type of software which run in the background of the system, analyze each trend, and provide you huge amount of data on the basis of analyses or fetched by analyzing the market trends and moment. These auto traders are totally based on an algorithm which is created by the developer. Now if the developer of the algorithm has great experience of trading, then he will definitely create a good algorithm. How better your Auto Trader will perform for you totally depend on how good algorithm is created by his developer.
Binary Options Signals
Binary Options Signals is a type of information which you need to make any decision related to trade while doing a trading. Binary Options Robots use these signals to execute the trades. It always alerts you with a percentage which gives you an idea about how far a given outcome will be reached.
Let us take an example of Apple. All you have to do is to select the price of the trade, whether it will go up or down. Binary Options Signals will give you an alert in the form of the percentage that this trade has 88% chances of going up at the time of expiry. Now it is all your choice whether you want to trade or not.
Signs of SCAM or FAKE Binary Options
You must follow these tips before selecting any binary options broker or software:
- 100% Winning rate is not possible in Binary Options so avoid these type of brokers
- No binary options can make you rich overnight, so avoid brokers who make these type of promises
- Before selecting any broker or trading system make sure to check about him on the internet
We time to time expose fake and SCAM binary options available on the internet so regularly visit our site to read about latest SCAMS.
We are sure that after reading our this article on Binary Options you are aware of What is Binary Options, and how this all whole system works. Still, if you have any query let us know in the comments. We would love to assist you and answer your queries.