Trade Binary Options and FAQ For Beginners
During the past few years binary options trading became a mainstream financial trading type offering traders the possibility to cash in large amounts of money in very short periods of time. Binary options are not only very profitable they are also extremely entertaining and exciting.
Likewise they may also underestimate the potential risks of binary options. For this reason we have created a full article explaining everything related to binary options trading.
Frequently Asked Questions about Binary Options Trading
What are Binary Options?
Binary options are a form of online trading where the trader will have to bet on one of the two possible outcomes of a proposition. In digital options trading traders will not be able to actually buy any assets instead they will have to predict the development of an asset, commodity, forex pair, or stocks. Trade Binary Options
Binary options are a very easy form of online trading because they only require the trader to predict one correct outcome from a possible of two. But this also means that binary options are some of the riskiest forms of online trading – which is compensated by the possibility of very large gains. Trade Binary Options
How many Types of Binary Options?
There are many types of binary options spanning from very effortless options to more complicated ones. But in the essence they are always the same in the sense that in each case they only have two possible outcomes. The difference lies in the way the option types are constructed. Trade Binary Options
- One Touch Options – In this case the trader will have the possibility to bet on the outcome that the price of an underlying asset (such as price of a stock, development of a currency pair exchange rate, etc.) will reach a predetermined level during a certain period of time. If the bet will be successful, then the trader will be awarded with the promised money. If the prediction didn’t fulfill, then the trader will fail all money invested. Trade Binary Options
- No Touch Options – No touch options ate basically the opposite of one touch options. In this case the trader will bet on the likelihood that the price of an underlying asset will not reach a predetermined amount during a certain period of time.
- Double One Touch Options – In this option type, traders will be able to select two price levels that an underlying asset will have to reach during a fixed period of time. If one of the levels is reached, or “touched”, then the trader will be paid out. If none of the fixed price levels is reached, then the trader will fail his or her bet. This option is recommended in cases the trader is not sure in which direction the price of the underlying asset will move. Trade Binary Options
- Double No Touch Options – In this case traders will bet on the outcome that the price of an underlying asset will not touch two previously selected barriers. If only one barrier or level is “touched” at the expiration time of the option, the trader will fail the bet. This option is recommended in cases the trader is very confident that the price of an underlying assent will not change in a very substantial way during a certain period of time.
What about Binary Options Trading payouts?
We explained above that investing in binary options gives the possibility to earn a lot of money. This is because the payouts in binary option trades are percentage based. Each time the trader manages to correctly guess the outcome of an option, he or she will be rewarded with the repayment of his or her bet as well as a certain percentage of the bet. Trade Binary Options
The most common payout percentages in binary options are between 75%* (Amount to be credited in case the operation is successful) and 85%* (Amount to be credited in case the operation is successful). However some binary options types – usually the most risky ones such as double no touch options – may even have payout rates of 200%* (Amount to be credited in case the operation is successful) and more.
Example: The trader bets $100 on a given option and the broker promises a payout of 85%* (Amount to be credited in case the operation is successful). In case the trader managed to make a correct prediction, he or she will be awarded with a sum of $185. If the outcome of the bet was not what the trader had predicted, then the $100 will not be repaid. Trade Binary Options
What kind of assets in Binary Options Trading i can trade?
Pretty much all tradable assets are available in binary options trading. This includes Forex options, stocks, commodities, agricultural goods, rare earths, precious metals and more. Please remember that traders will only bet on the development of these assets and will not actually buy any of them. Trade Binary Options
What is Binary Options Trading expiration time?
Every binary option has an expiration time. The expiration time is the time when the conditions that will trigger the payment will have to come true. In case these conditions aren’t met, then the trader will not be paid and will fail his or her bet.
Most of the time, the expiry times are set in advance by the binary options broker but in some cases the trader is able to decide on its own when the selected binary option should expire. Trade Binary Options
What are Binary Options Payment solutions, deposits and withdrawals?
Every binary options broker offers traders the possibility to deposit cash using a multitude of payment processing methods such as bank transfer, credit card, PayPal, Neteller, MoneyBookers and a huge number of others.
The same is valid for withdrawals as well. Since most – if not all – of the reputable binary options brokers are also licensed, traders should never worry about the possibility of data theft or fraud. Trade Binary Options
What Binary Options Brokers and Platforms there exist?
Today there are a large number of binary options brokers available on the market. Everyone of these brokers uses one or multiple binary options platforms that enable the trader to trade. Such platforms include 24Option, Anyoption, Banc De Binary and much more.
Binary options brokers constantly try to improve their services in order to attract new traders. For this reason they offer so-called binary options bonuses that traders can cash in. The most common binary option bonus is the first deposit bonus. This bonus will award the trader with a certain percentage of extra money of his or her first deposit. Trade Binary Options
Regulation of Binary Options
Binary option trading is regulated in many countries and jurisdictions. In order for a binary options broker to become licensed it will have to pass a series of security checks that will determine if the broker offers a and fair trading environment.
Licensing usually touches the issues of financial security, accuracy and fairness of the software, correct execution times and more. If brokers pass all tests they will become licensed and are legally allowed to offer binary options services. Trade Binary Options
Conclusions about Binary Options Trading
As you can see binary options are rather effortless due to the fact they only involve two possible outcomes. But this also means a greater losing risk but as explained initially this is compensated by the possibility of very large gainnings. Trade Binary Options
Binary options are extremely popular today with many brokers offering this service. For this reason the binary options market is slowly becoming regulated offering traders a and fair trading environment.
binary options lessons
ultimate4trading live signals
binary options news
binary options no deposit
binary options mentor
GENERAL RISK WARNING:
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose