Today, trading in financial markets is becoming popular. Many people want to earn money from the comfort of their homes. Who hasn’t seen himself in a suit in an expensive car.
After
reading this article to the end, you will learn and understand how the binary trading mechanism works, how you can
make money in the financial market
and what is required for this.
- Binary trading or how to start making money wisely
- How to Trade Binary Options
- The main types of binary options
- Assets for binary trading
- Analysis and analytics of binary options
- Binary Options Trading Strategies
- Where to trade binary options
- Binary Options Trading Platforms
- Taxes on Binary Options
Binary trading or how to start making money wisely
What is binary trading ? Let’s figure out what binary options are. There are many instruments in the financial markets such as stocks, contracts, CFDs , etc. Binary options is a financial instrument that allows you to buy a contract instead of an asset to determine the price change of the asset itself. You don’t need to buy a share for $1000, you just have to buy a contract for $5 to change the price. Which will bring you a profit of 70% to 500% profit. The name binary option speaks for itself. You have only two investment options. Either you earned it or not.
The popularity of binary options is due to the fact that you immediately know how much you can earn and when you will receive your profit.
Let’s look at an example: You bought a binary option on a Google share for $ 5%, and your forecast showed that the share price will rise within 60 seconds, exactly 60 seconds later, when the price rises, you will receive $ 5 to your account. Your profit will be $ 5 for 1 minute.
Definition of Wiki :
A binary option (digital option,
all-or-nothing option, or fixed-profit
option) is an option that, depending on the fulfillment of a specified condition at a specified time, either provides a fixed amount of income (premium) or does not bring anything. Since the option is bought in advance at a fixed price, the total is either positive (in the amount of the difference between the premium and the option price) or negative (by the value of the option).
How to Trade Binary Options
Binary options trading is simple, however, this does not mean that everyone will earn. Knowledge is required to start trading. Which can be obtained quickly and free of charge.
The trade itself is divided into two steps. Analysis of the asset and opening a trade.
At the beginning, you choose a trading asset and do the analysis. Which should show you the behavior of the asset in the future. When you have made a decision, all you have to do is open a trade in the direction of your forecast. You can also choose the time frame for your binary trading. You can get results from 60 seconds to several weeks, you decide.
The advantage in binary options trading is SIMPLICITY
. To trade, you only need to take three simple steps.
Select an asset » Analysis » Open a trade
[list style=”check”]
- Choose a binary option, an asset. These can be stocks, currencies and commodities.
- Analysis and forecast of asset movement. Using binary options charts, you can predict the movement and changes of an asset using binary options strategies
- Opening a position on a binary trading platform
- Making a profit[/list]
Binary options trading is a relevant and seductive topic for many. But few people know what binary options are, what types of them there are and how to trade them.
So, a binary option is an option that either brings a fixed amount as a profit , or does not bring anything, not a single cent. The outcome depends on the price movement, the payment is made regardless of how much the price has advanced in the predicted direction, the main thing is that the direction of price movement is predicted correctly.
The main types of binary options
Options are divided into the following types:
Up/Down Options – When working with this type of options, the trader must predict the direction of price movement at the beginning of the contract and at its end. That is why this type of option got its name. If the price moves up, and an Up option has been purchased, the trader earns, and if the price moves down, and a Down option has been purchased, the trader also earns.
Call / Put options – when working with this type of options, the trader tries to predict the direction of price movement at the time of buying options, that is, if a price increase is predicted, a Call option should be purchased, and if, on the contrary, a price decrease, then the trader is recommended to purchase a Put option.
Touch options – when working with this option, the trader predicts whether the price will reach a certain level, that is, whether the price curve will touch the curve of the corridor limit. If the price reaches it, the trader makes a profit, but if the price of a given level does not reach, the trader incurs a loss.
No Touch Options – it is logical to assume that in this case the trader predicts whether the price will reach a certain level. If this happens, then the trader makes a profit.
Touch Up / Touch Down options – the trader makes a profit in the case of the Touch Up option if the price rises above a certain level, that is, crosses the upper curve of the corridor. Conversely, in the case of Touch down options, if the price falls below a certain level, that is, the price curve crosses the lower curve of the corridor, the profit is accrued to the trader.
Assets for binary trading
What can you trade if we are talking about binary options trading? In fact, you can trade almost anything. Assets for binary trading include commodities such as gold, silver, grain, oil and so on; stock; stock indices; Currency. The availability of goods for trading can be different for different brokers, so if you prefer a certain asset, it is better to find out in advance whether the trader with whom you are going to trade has such an asset or not.
The question of what to trade depends only on the strategy and on the volatility of the market. The most popular in binary options trading are currencies and stocks. You can choose a binary asset from the binary broker’s list.
Analysis and analytics of binary options
Many people believe that trading is like playing in a casino, it all depends on how lucky you are. In fact, this is far from the case. Binary options trading, like any other type of trading, depends on market trends. Thus, if a trader knows the market laws, then it is not difficult to predict the direction of movement of the asset price. For this, various methods of analyzing binary options are used. The works of many financial and market analysts are devoted to the analysis and analytics of binary options, many strategies have been developed, so it depends on the trader which strategy he should choose. Binary options market analytics includes fundamental and technical analysis of the market, and again, it depends on each trader which of the analyzes he should choose, but ideally it is better for the trader to use both. It is the combination of both fundamental and technical analysis in the trading process that allows you to most accurately predict the direction of price movement and, therefore, make a profit.
In technical analysis, a trader studies the indicators of certain indicators, while fundamental analysis involves an analysis of the general situation on the market and in areas affecting the market.
Also, when predicting the direction of price movement, a trader adheres to certain binary options trading strategies.
Binary Options Trading Strategies
There are many binary options trading strategies, so every trader can really choose which strategy to work with. The main thing is to carefully study as many strategies as possible in order to be able to decide which strategy is close to you and suits you best.
Among the most common binary options strategies are the following:
Martingale principle – this principle is based on doubling the bet if the previous one was losing. You should double the bet until you make a profit. The advantage of the Martingale Principle strategy is that with the right bet, you will compensate for previous losses. But there is also a significant drawback – the costs can be really very high, you simply may not have enough resources to bring the trade to a positive conclusion.
Triangle strategy – if a pattern resembling a triangle has formed on the chart, a price breakout should be expected, the direction of the breakout will depend on whether an ascending or descending triangle has formed on the chart.
The “Head-Shoulders” strategy warns the trader about an imminent change in the direction of price movement in the market. If a trader sees a figure on the chart that is even remotely resembling a head and shoulders, he should prepare for a change in the direction of price movement by purchasing the appropriate option.
There are also many other strategies, both older and completely new. It should also be remembered that the use of one strategy may not be reliable enough, it is best if the trader knows and uses several of them. This allows you to compare forecasts and make the right decision.
Binary Options Trading Platforms
An important step on the way to making a profit is choosing a platform for trading binary options. There are many platforms for trading binary options, both for beginners and experienced traders. The most popular among them are Tradologic, SpotOtion, Keystone , and many more. When choosing a platform, you should pay attention to how secure it is, the choice of options and functions, the availability of a mobile application that greatly facilitates the trading process by making it accessible from anywhere in the world where there is access to the Internet.
Which binary options platform to trade on?
Each binary options trading platform has its own advantages and weaknesses. If you have experience in trading, you can already decide on your profiteer. If you don’t have experience, then it’s best to find out and choose a platform based on the following criteria. [list style=”check”]
- The number of assets that are offered on the platform
- Minimum and maximum trades
- Technical indicators and problems – requotes, etc
- Types of options
- Platform Stability [/list]
Much also depends on the binary options broker, so read reviews about brokers
Taxes on Binary Options
Many traders are concerned about the question of whether it is necessary to pay taxes on profits received from binary options trading. The fact is that there is simply no legislation that would regulate binary options trading and taxation in the relevant field of activity. So each trader decides for himself whether to pay taxes or not to pay.
Thus, making money in binary trading is quite attractive, especially since everything that you earn, you can keep for yourself. The advantages of binary options are that trading them is quite simple, especially. Compared to Forex, you don’t need a lot of investment to get started, so almost everyone can afford it, and the Internet is replete with a huge amount of educational materials on binary options trading.
Where to trade binary options
One of the main questions asked by those who just want to start trading binary options, as well as those who have been on the market for a long time, is the question of where exactly to trade binary options.
It is best to choose a good and reliable broker to trade binary options. When choosing, it should be remembered that reviews on the Internet are not always objective, so it is better if someone from your acquaintances who are successfully engaged in binary options trading, the broker will advise you, especially for starters, or carefully study all available information about your potential broker, and only then invest in trading.
Read the article “How to choose a binary options broker”
Best Binary Options Brokers
| Брокер | Бонус | Мин. депозит | Доходность | Регуляция | Обзор | Открыть счёт |
|---|
