Binary options trading is a new type of trading where you will put money to get a fixed amount of return in the right prediction or nothing… Before you place the trade, you will set the time, and at the end of your trade, you will get a profit if you can predict the market correctly otherwise you will lose your investment. In recent years, Binary Options Trading has become a buzzword in the online trading industry because of its availability. Everyone can enter this trading with just only $10. The minimum trading amount is $1, which makes it more beginners friendly.
According to Wikipedia, It says
“In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount or nothing at all”
Hope it makes sense. Let’s say, If you invest $100 in binary options trading, You will get $180 in the case of winning trade and you will get nothing in return.
Return in Binary Options Trading:
So If your Investment is $100 —— (80% Return). You will get:
$180 = In case winning trade
$0 = In case of losing trade.
The most interesting part is that you will win the trade even the market is in only 1 micro-pip positive from your direction point.
So to be profitable in Trading, You have to keep getting 75%+ profit consistently. This is a little bit tough for beginners. But if you follow the binary logic, it is not a big deal to get a consistent profit.
In binary options trading, there are two types of options to place your trade. One is called Buy trade and one is called put trade. Generally, if the direction goes up, It is called the “Call” trade, and if the direction goes down, it is called the “Put” trade. Or You can simply call it Buy or Sell. So let’s clear it.
Up Direction is called = Call, Buy
Down Direction is called = Put, Sell
Where to trade in Binary Option?
You need to select a platform to trade in the Binary Option. It is called a broker. There are a large number of brokers which gives you the opportunity to trade in binary, digital options. IQ Option is the most reputed broker among them. Read the IQ Option Review here to get the details of a broker.
In binary options, the expiry time is predefined. If you guys already know about Forex trading, you may know that there is no expiry time in forex trading. But in binary options trading, there is some limitation of time. You have to set your expiry time when you place the trade. For example, if you place a trade of $10 with 1-minute expiry, you have to set the time in the beginning. There is no chance to change the expiry time after your place the trade in binary options.
There are different types of expiry timeframes in binary options trading. Like 1 minute, 2 minutes, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, and end of the day. But whatever, you have to predict the expiry time in the beginning. That’s the point. Among them, 60 seconds is a very commonly used trading time in binary options.
There is very basic information for the very beginners. If you guys are very beginner and don’t know anything about binary options trading, This post should give you a minimum idea about binary trading. If you don’t like reading the text, just watch the video.
If you have any questions, just comment below. I would love to answer your question.