A binary option is a financial instrument involved in day trading. A binary option refers to a type of option with a fixed payout. Binary options trading is a relatively new form of trading and has gained popularity in the last few years. In this form of trading, there are two possible outcomes: either the price of the asset will rise above the current entry rate or fall below the entry rate. If the prediction made in the specified time frame was correct, this is referred to as ‘In the Money,’ or a successful trade, and if the prediction was incorrect, the trade is unsuccessful, ‘Out of the Money.’ Investing in binary options is safe and secure, because the potential payout is a fixed number and is always clearly displayed on the platform. There are no hidden fees, spreads or other surprises when trading binary options.
This type of stock options trading can be very profitable when executed in the right way. Binary options trading is extremely simple, it does not require pip counting or an extensive study of the markets as in forex trading. Traders can profit by just a fraction of a pip when investing in binary options. The best binary options brokers offer high payouts from 70 to 81 percent, depending on the specific option. Binary options traders have made impressive profits by trading online from the comfort of their own homes. Binary trading is convenient and can be done on your own time, as mobile trading is available as well.
Binary options trading is as easy as 3 simple steps. First, select an asset to trade. This asset may be a stock, commodity, index or forex currency. The majority of binary options platforms offer a wide selection of over 100 assets to choose from. Popular digital options trading assets include Gold, Oil, Apple and Google. Binary options forex pairs such as EUR/USD and USD/JPY are also commonly traded. Some traders prefer to trade with their local currency. After selecting an asset, it is necessary to choose a time frame. This time frame may be as short as 60 seconds or as long as a few months. In binary options trading, it is up to you to decide whether you prefer short term or long term trades.
The next step is executing a digital options trade is an important one- selecting the direction of the price within the time frame selected. If a stock is bullish, a trader may select the Up direction, also known as Call. A Call position indicates a prediction of the price rising above the entry rate. A bearish stock may be designated with falling below the entry price, referred to as Put. It is important to learn the terminology involved in binary options trading. Selecting Call or Put on a trade should be an educated and informed decision based on market trends. The last and final step in binary trading is choosing your investment amount and completing the trade. Then, all you have to do is wait to see if your trade will be ‘In the Money’ or ‘Out of the Money.’ The potential payout is clearly displayed on the platform.
Each binary options broker differs in terms of what they offer to traders. Not all binary options platforms are alike; one key difference may be the platform provider. Other differences include design and user-friendliness. Your binary options platform should be easy to navigate, with all of the necessary information clearly displayed. It is important for a binary options broker to offer a complete variety of Assets, the full list should be available in an Asset Index. Make sure that your assets of choice are listed. Other considerations include variety of trading modules, such as 60 seconds trading and customizable trading options such as Option Builder. There should be trading tools for short term trades as well as longer term trades. One of the most important factors in choosing a binary options platform is the payout percentage, with a minimum of 81% payout for 60 second options and 70% for other trading tools. A high payout means higher profit on each individual trade.
Make sure to read a binary options review or two before selecting the platform of choice. Although you may not be able to evaluate the level of customer service from merely opening up a binary options trading account, other traders and a reputable binary options affiliate program have had the advantage of experiencing account management. It is recommended to do your research and find a binary options review with details about the level of customer support. The binary platform should have around the clock customer service hours and toll free international support numbers. Each broker should be able to be contacted via phone, email or Live Chat. Most binary options brokers offer different trading accounts and some level of account management. This management can range from money management advice to market analysis and long term investment advice. Certain brokers provide access to professional market analysts. Whether you are a beginner or experienced trader, these are important factors to consider when choosing a binary options broker. The best binary options affiliate programs provide reviews for you with evaluations of these considerations.
Different binary options trading accounts are available to traders of varied experience levels. Each account should offer different benefits and access to resources.
When choosing a binary options system, take the time to evaluate the ease of use on the site and the quality of customer support. One aspect that is especially important when comparing brokers is the level of assistance you are able to receive. This assistance can come in the form of a comprehensive binary options eBook or guide to day trading. Other brokers offer one-on-one phone lessons to learn a binary options strategy or signal. A good way to determine the details of broker offers is to view their account package options. The top binary options systems today usually offer four or five accounts, one for practice and a few more depending on experience level. Each account includes a bonus on a deposit and other exciting features.
Not all binary options systems offer a demo account. Practicing on a demo account without an actual investment is a good way to get a feel for the rhythm of binary options trading. You will be able to simulate trades in real time and better understand the platform. However, demo accounts are not always recommended for first time traders because practicing without a real investment has shown to lead to bad trading habits. It is more important to gain a skill set and learn about time frames and how to choose investment amounts on each trade. A simulated experience can only do so much, but a platform walk-through with an account manager is highly recommended.
Beginning traders should seek out account packages that offer an overview of the platform and an overview of binary options in general. New traders should take the time to learn the new terminology involved in digital options trading. These types of packages often feature an eBook or another type of guide. Bonus amounts vary, but usually may range from 15-30%.
Binary options traders who have some experience in the field should seek an intermediate level account package. This package may offer skills training that can build on the trader’s past knowledge. Intermediate accounts usually include candlestick chart training, whether it is through a video or over the phone with an account manager.
Traders who have a bit more experience under their belts should seek to invest in an account that can offer new strategy approaches or binary options signals. At this stage of digital options trading, users should be able to read charts but might need more training when it comes to studying the markets. Most binary brokers offer this as part of an experienced trading account. Forex professionals can still benefit from binary options strategy lessons, as forex and binary options differ significantly. The most advanced account packages usually feature a session with a professional market analyst via phone or Skype.
Successful investors study the stock market trends and watch for market movements. Financial global events affect the performance of specific stocks and currencies, so it is important to follow the news yourself or work with an account manager who can help point out these significant factors. Make sure that the broker you choose to market via Rushbucks.com offers these features.
Feel free to contact us if you have any further questions about binary options trading or the advanced platforms we market.