Binary Options And How It Works

Binary Options are simply ways a trader tries to wager on market fluctuations, which is the irregular rising and falling in the price of a particular asset or commodity. It’s just a yes or a no proposition. Binary Options happens to be the most straightforward financial assets to trade as traders place their trades on whether they believe the price of a particular asset is going to rise or fall at any given time. It might look simple but traders are expected to understand how Binary Options work entirely, and also know the disadvantages as well as advantages of various assets, and most importantly which companies have legal rights to provide Binary Options services to traders.

In Binary Options, traders purchase “call orders” (buy orders) if they believe the market would rise in a particular time frame. Likewise, “put orders” (sell orders) are placed if the trader believes the market would fall. Any trader who wagers correctly on market’s direction at the expiry of the selected time frame gets a fixed percentage irrespective of how much the asset moved.

Types Of Binary Options Trades

  1. High or Low Trades: This being the most common type of Binary Options trade has to do with traders having to use their tools to determine the price direction from current market price of any asset, be it stock, currency, commodity, or index.
  2. One Touch or No Touch Trades: This Binary Trading system is similar to the High or Low, but traders are asked if the price movement will hit a particular/target price in a specified period. If your prediction is correct and the target is hit, you win the trade and payouts are made, if not, you lose your investment.
  3. Boundary or Range Trades: This trading system has to do with traders predicting on whether price movement will remain in a particular price range and not exceeding or breaking out. If the price stays within the giving range, then you win, if not, you lose your investment.
  4. The 60 Seconds or Short Term Trades: These trades are offered as High or Low and One Touch trades but with a short expiration period of 60 seconds. All the action takes place in a minute. You get your return on investment within the minute if the trade goes your way.
  5. Long-Term Trades: These Option trades are the opposite of the Short Term trades. They last for more extended periods. You choose to predict price movements in a matter of hours, days, or even weeks. You get your profit after the expiration of the contract.

How To Trade Binary Options

Six basic steps you need to take to start making money with Binary Options:

  • Choose a reputable broker
  • Select what asset to trade in the market
  • Choose the duration of the contract
  • You set what percentage of your deposit you are risking for any trade
  • Click on Call or Put / Buy or Sell
  • Confirm the order

Note: With a little research, make sure to find reputable brokers that won’t manipulate your orders or end up closing down with your money. Always look out for users review as this is the best way to be sure that you are giving your money to a reputable broker.

A great list with a lot of Binary Options platforms that accepts Bitcoin can be found on bitcoingg.

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