In this post, I will write about What is Binary Options Trading? I believe that you guys already know what is Binary, Right? Actually, Binary means 0 or 1. Let’s talk more simply. You will get money or nothing, Simple.
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 make sense. Let’s says, If you invest $100 in binary options trading, You will get $170 in the case of winning trade and you will get nothing in return.
Return in Binary Options Trading:
So If your Investment is $100 —— (70% Return). You will get:
$170 = In case winning trade
$0 = In case losing trade.
The most interesting part is that you will win trade even the market is in only 1 micro-pip positive from your direction point.
So to be profitable in Binary Options Trading, You have to keep getting 75%+ profit consistently. This is a little bit tough for the beginners. But if you follow the binary logic, it is not a big deal to get a consistent profit.
In binary options trading, there is two type of option to place your trade. One is called Buy trade and one is called put trade. Generally if the direction goes up, It is called “Call” trade and it the direction goes down, it is called “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
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 $10 with 1-minute expiry, you have to set the time at the beginning. There is no chance to change the expiry time after your place the trade in binary options.
There are the different type of expiry timeframes in binary options trading. Like 1 minute, 2 minutes, 5 minute, 10 minutes, 15 minutes, 30 minutes, 1 hour and end of the day. But whatever, you have to predict the expiry time at the beginning. That’s the point. Among them, 60 second is a very common used trading time in binary options.
There is the very basic information for the very beginners. If you guys are very beginner and don’t know nothing 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 question, just comment below. I would love to answer your question.