If you spend time reading books about binary options, there is one thing you will quickly learn. That you can make money as an accomplished binary options trader . Like any money making venture, do not fall victim to the hype of making quick money. Instead spend some time learning and finding the right broker. You can only succeed in trading through hard work and dedication.
Before you become a successful trader you first need to learn what binary options are.
What are Binary Options?
Most investments require you to purchase the asset you invest in and the value of the profit and loss is determined upon the changing value of the asset. If you sell the asset back the market whenever it’s value increases then you make a profit. If you sell the asset back to the market whenever it’s value decreases then you lose your money.
This type of investment gives you constant worry. You continuously look at the market to know when to sell your asset and avoid the market’s volatility. Binary options trading is different from these types of investments and is much simpler to handle.
In binary options you trade on the market and not in the market like the other forms of investments. So you do not suffer any form of psychological stress, all you need to do is predict your assets movement in a predetermined time frame.
When you predict your assets movement there are two possibilities. Either the price of your asset will rise, named “call” option or the price of your asset will fall named “put” option.
What assets can be traded as Binary Options?
You can trade with the following assets in binary options;
- Commodities-Such as coffee, corn gold, oil, silver and others
- Indices– some examples include, Nikkei, Dow Jones, FTSE, NASDAQ and many more
- Forex– This include major currencies. Which are, EUR, USD, JPY and GBP
- Stocks– There are more than 50 stocks from the biggest companies in the world. Some examples include Coca-Cola, Deutsche Bank and Google. There are many more
How do I trade binary options?
The first step in binary option trading is choosing your asset. For instance, you may choose Oil. Your success in placing a binary investment in oil will be determined by how familiar you are with the oil market. This knowledge is what will help you to successfully predict the fluctuations of oil prices.
If you think that oil prices will rise in the next 1 hour, you need to decide how much you are willing to invest within the said period of 1hour and you could make 100% profit from that investment.
As a new binary options trader you need to educate yourself before jumping into trading. Most traders get into trading without educating themselves and having unrealistic expectations. Since you are reading this article you have set yourself apart from the many new binary options traders who jump into binary trading without educating themselves.
Your journey of successful binary options trading has just began. With us you will find a strong ally and partner who is dedicated in ensuring you succeed.
The Writer is: Osystems – your complete binary options solution