If you’re just getting started some of the terminology can be confusing. You’ll quickly learn though, that trading binary options is actually very simple.
Here’s an overview of what you should be looking for and what you need to know when it comes to binary options.
Choose a Trading Platform
Before you can begin trading binary options you need to choose a platform. Not all trading platforms are the same so it’s important that you spend some time on this.
Here’s what to look for.
- A secure platform
- Fixed returns of at least 65%
- Good customer service
- Asset choices
- Returns for losing outcomes
Check around with a few platforms to see which best suits your needs.
Know the Basics
Before you can learn how to trade binary options you first need to know the basics. To get started let’s look at some terms you’ll frequently see.
The “Put” is what you would place if you think an asset will be going down in value. The “Call” is what you would place if you believe an asset will go up in value.
The “Strike Price” is different for the call and the put. For the call option a strike price is when the security can be bought. For put options the strike price is when securities can be sold.
Now that you know some of the common terms let’s look at the most common binary option: the high/low.
With the high/low option you’ll simply choose an available asset (this can be a stock, commodity, or other security) and decide whether you think that asset will increase or decrease in value over a specified time period. If you choose correctly you’ll receive a return. If your pick is wrong you could lose all of your money.
There are three other common options when it comes to trading binary options.
First there is the One Touch Option. With this choice you’ll simply be betting on whether or not an asset will reach a strike price.
Secondly is the Boundary Option. With this choice you’ll set boundaries for a particular asset by choosing a high and low point. If the asset stays in your boundaries in a set period of time you’ll receive a return.
Last we have the Sixty Second Option. This is exactly like the high/low option except you only have sixty seconds to decide.
Binary options are fairly straightforward. Once you get started you’ll quickly learn which options are the best for you and be able to develop your own strategy.