Binary Options is a new type of financial trading instrument in the trading market. It has gained a rapid popularity among the investors. It is especially an alternative for Forex (Foreign Exchange) Trading which is more complex than binaries.
Binary Options in Europe
Binary Options trading has been banned by The European Securities and Markets Authority for European retail traders. This means that EU regulated brokers will no longer be offering these products to European traders. However, if the broker is regulated by some different authority, they are able to offer Binary Options.
Avoid brokers that are not regulated at all as they usually are pure scams. Brokers that use the blockchain platform are considered as trusted brokers since the blockchain effectively makes an end to trading frauds.
What is Profit in Binary Options?
In classical trade, we all define “profit” as a difference between the sales price and cost of selling product/service. Or simply “Sales – Cost = Profit”. But in Binary Options trading, as long as the market conditions are suitably formed, your profit from the correspondent trade is guaranteed.
Unlike the traditional trade, you do not need to invest a bulk amount of capital and make a real buy-sell action. And you even do not need to keep a stock for a specific good or commodity. You only need to perform just a few clicks on your computer or mobile gadget to execute a particular trade.
Besides, as you are defining the investment amount, you do not have the probability to lose the amount larger than your invested money. Above all, some of the binary options brokers even offer you 10%-15% Money-Back on your losses and let you reinvest the lost money back.
How to Trade Binary Options?
In binary options trading, we have two option buttons as we clearly understand from its name. These are “Upper Option” and “Lower Option”. By the aid of these buttons, you can realize all of your binary options trades and earn high profits with low investments.
- Select an asset to trade (for example, forex, Google, NASDAQ, gold, oil)
- Make a prediction, will the price go higher or lower
- Enter an amount to trade with
As a result, having fixed profit percentage (between 72% – 85%), usage practicability and low investment amount requirement (even as low as $100), binary options trading are far more advantageous incomparable with tradition trade.
In order to start trading at binary options market, the crucial thing to do is selecting the most trusted binary options broker from comprehensive “Binary Options Trader Reviews” that completely fits your needs and expectations. Then, open an account with the right broker you have chosen and follow the market analyses regularly before you realize your trades.
Sample Binary Options Trade:
Let us assume that you will trade on “Gold” and the existing market price for gold is 1646.428.
For this trade, you will invest $100 from your investment budget and set the “Expiry Date/Time” as 5 minutes.
If your assumption is a declining trend, press the “Low” button or “- (minus)” button.
If after the expiry date/time, market price of Gold becomes 1 PIP or more under 1646.428 value, then you will earn 70% profit on your initial deposit ($100 * 70% = $70).
The Same situation is also valid for the increasing trend of trade. So if you have provisioned that Gold will increase from 1646.428, you will earn 70% profit after the value of gold reaches 1 PIP or higher than 1646.428.
This means that in binary options trading, you can easily earn in either trend.