Binary options trading is a simple process that involves a number of steps. Before you can start, however, you will need to choose a broker that will provide the trading platform. This can’t be just any broker because they all don’t support binary options trading.
Select one that not only deals with trading binary options but actually specializes in it; one like AnyOption because you’ll get a bigger choice of assets to trade binary options and so have more opportunities to make money. You’ll also get plenty of advice.
To open an account, you’ll need to register your details. This is necessary to identify your account and also for regulatory reasons. You’ll also have to make a deposit that funds your initial trading. Once you’ve done this, you can start to trade binary options.
Four Simple Steps to Trade Binary Options
If you’re not sure how to trade binary options, follow these simple steps:
- Choose the asset you want from those available through the trading platform
These will generally be a company’s shares, a complete market index, a commodity or a currency pair on the foreign exchange market. Some assets, such as foreign exchange, are sometimes more volatile than others, making predicting price movements more difficult when trading binary options.
You can generally choose from a number of assets of each type for trading. For each one, you will see the asset’s current price, the expiry time of the trade and the percentage payout. It’s often best to choose an asset that you know something about, especially if you don’t know how to trade binary options, because you are more likely to be able to predict price movements correctly when trading binary options.
- Make your prediction
Choose a Call option if you think the asset price will increase by the expiry time or select a Put option if you expect the price to go down.
- Enter your stake
This is the trading amount. It’s the maximum amount you can lose if your prediction is wrong. If you predict correctly, you’ll receive this amount back plus the stated percentage of your stake.
- Wait until the expiry time
You’ll automatically receive your payout if the price has moved the way you predicted. If you’re wrong, you’ll receive nothing from trading binary options.
Here’s a binary options trading example:
You decide to use gold on the commodities market.
Current price: $1793.03
Current time: 13:00
Expiry time: 15:00
Price at expiry: $1795.00
Stated return: 75%
Amount staked: $100.
Successful binary options trading
Purchasing a call option to predict a higher price will cause the option to finish in the money. A payout of $175 will be the outcome.
Unsuccessful binary options trading
Purchasing a put option in anticipation of a fall in the price will cause a loss of the original stake.
Binary options trading is simple to understand and involves no complex steps. Anyone can easily follow the process and have the opportunity to make quick returns through trading binary options.