With binary options trading system you are simply making a guess on whether or not the trade will end up with a price that is ↑higher↑ or ↓lower↓ than its starting price.
Read the short EXAMPLE.
What Is Traded?There are three major categories which are traded. First are currencies such as the $US dollar and the €Euro. Stocks like Microsoft and Coca-cola make up another category and the major indices like NASDAQ are the third.
Forms of Options TradingBesides the option price and the expiration period, there are four basic divisions for options trading which are: one touch, double one touch, no touch and double no touch.
- With one touch options the trader gets a predetermined profit if the option trades at a predetermined rate.
- When the market is more unpredictable, double one touch options are made by choosing two targets and the trader will profit if either of the targets are hit.
- Options that do not reach the target before expiry are called no touch options.
- The opposite are called double no touch which are options purchased in a range bound but unstable market.
Are There Drawbacks?You will need a basic understanding of how binary trading works in order to be successful though you don't need extensive training to get started. Similarly, if you don't do some research before making a trade you may not experience as great of success. You shouldn't just pick based on feelings, but rather, you should have a little evidence on which to base your decision for making a trade. Use common sense when making trades and you will do all right.
Why BINARY OPTIONS ARE NOT A SCAM?
Tips for Making Successful Trades
- Go For Securities: Trade in liquid securities with companies that show positive growth. If oil is doing well, buy oil options and you will get to share in some of the monetary success that the oil companies are enjoying.
- Look for Quantity: Usually quality is better than quantity, but with options trading you can take advantage of market triggers who act aggressively and make prices rise. If you think they will fall just as quickly as they went up, due to being artificially high, make your trade on the assumption that they will go in the opposite direction to profit.
- Go the Other Way: Likewise, if you think prices are too low, go the other way and profit when prices return to normal.This form of trading is appealing to a great number of people. From hobby investors to those who want to get out of climbing the corporate ladder. Even stay at home moms can earn a living during nap time! Start slowly and continue to educate yourself so that you can be added to the ranks of successful traders.