Here are a few basic things you should know before you start trading binary Options.
Binary Options trading gets its name from binary code, as in a series of 0’s and 1’s.
The reason it is given this name is down to the results you get when trading.
You either win (1) or lose (0).
Forex and Binary Options trading are very similar. The difference is, instead of purchasing an asset, and selling it after a certain amount of time, or once it has earned some profit like in Forex trading. Trading Binary Options, you simply predict if an asset is going to go up or down, over a certain time period.
To trade Binary Options, you will need a broker to place your trades with. There are hundreds of brokers available these days. Most good brokers will offer you multiple trading options over hundreds of different assets. Usually ranging from Currency, Stocks, Commodities and Indices
Brokers work in a similar fashion to a casino, if you win, they will pay out around 82% of your investment.
If you lose, they take 100% of your investment.
Make sure you do as mush research on your broker before funding. There are several brokers out there who have ended up on many scam watch lists. So make sure you get a regulated broker like 24 Options if you can.
Most brokers minimum deposits are $250, but there are other brokers which will let you start up with less.
Some brokers offer a free demo account to try it out first, and see if trading is really for you.
All brokers vary, but they accept a wide range of payment methods including Debit/Credit Card, Skrill, Neteller and more.
Check with your chosen broker for their payment options
All Binary Options brokers offer a bonus scheme, where they will sometimes match your investment up to 100%. Accepting a bonus will enter you into a different set of terms and conditions with the brokers, which will result in you being unable to withdraw your funds, until you have worked off the bonus. In most cases, you will need to trade up to 40x the bonus they gave you.
So for example, if you accepted a $100 bonus, you will need to place up to $4000 worth of trades, before you can withdraw.
Once your in a position to trade with higher amounts, then it wont take long to work off a bonus, but if you are trading small amount, then it can take a very long time to work off a bonus, and withdraw your fund.
Signals are usually instructions to place a trade. They come in many different formats. Most brokers will offer their own signals. You can also get systems specifically designed to read the markets and send you signals automatically. You can also get signals sent to you by Email, SMS and social media platforms.
Placing Your First Trade
When you place a trade, you will need to find the asset you want to trade on your broker. Once selected, you can then choose an expiry time, the amount of money you want to trade, and which direction you think it will go in. Then click the Confirm/Approve button and you are done.
An expiry time is the point you wish to exit the trade. You should usually get a good selection of expiry times. But bare in mind, the broker ultimately has control of the expiry times, and can offer whatever expiry times they wish. So don’t be surprised if you find some brokers have less choice sometimes.
Some brokers offer trade options with much shorter expiry times like 30 second, 60 second ect. This can be a fun way of trading as it is quick and easy, but is also quite risky.
A chart should show you the current price of an asset and its history. There are several different types of charts available. The most common to are Candlestick and Line Charts.
A good chart will allow you different views over longer time periods, from 1 minute, 5 minute, 15 minute, 1 hour, 6 hour, 12 hour, 24 hour and even years.
Withdrawals usually take between 3-5 business days to process. Depending on the payment method. It can take longer sometimes. Some brokers offer same day withdrawals.
Of course, there is a lot more that we could put on this list, but these bits we be enough to give you a basic understanding.
Feel free to comment below with any questions or anything you would like to add.