Totally new to the field of Binary Options? This Binary Options Trading for Newbies guide is gonna help you big time! A binary option is referred to as a financial contract (or rather an option in technical terms) where the payment is either in the form of a fixed amount or you get nothing at all. Binary options are generally used as a means to asset pricing. This type of trading is simply based on a ‘Yes’ or ‘No’. You have to make a guess about the price of an underlying asset at a certain time, whether the price will increase or decrease.
Mainly, two types of binary options are there in the market. One is Cash-or-nothing and the other one is Asset-or-nothing. There are also all-or-nothing binary options, digital binary options, and fixed return binary options. To make the maximum profit, take a look at the following binary options tips and strategy.
Binary Options Trading for Newbies
How to Trade?
- First of all, you need to choose a broker. There are many brokers in the market like OptionRobot.com, AutomatedBinary.com, BinaryMate and many others. Take your time to choose the broker by doing proper research.
- Now, you have to choose the type of account depending on the sort of money you want to invest.
- Once you get your account up and running, all you need to do is choose the financial option you want to trade in. You can choose from a variety of options like commodities (for example gold), currencies (for example USD), indices (for example NASDAQ) and stocks of various companies (for example Apple).
- Now, you can start betting. If you think that the price of your asset will go up, select Call. If you believe that the price is going to fall, select Put. It’s all about estimating whether the market prices will go up or down.
- Next step is to decide how much money you want to invest. You will also have to choose the expiry time of your
- Depending upon the assets behavior, you can win up to 100% of the trades.
- You can withdraw your winnings whenever you want. Just log into your account, select the withdraw option and type in the amount you would like to withdraw.
Also read Best Times To Trade Forex Pairs In GMT!
Binary Options Tips and Strategies
If you are completely new to Binary Options Trading, you can apply the following strategies to start earning more in the least time-
- Start by opening a demo account with your broker. A demo account helps you to get some practice about real time trading. For opening a demo account, you need to make the initial deposit and then contact your account manager. He will inform you about the virtual funds you get in your account and you can start trading.
- The broker you choose must be a regulated broker. Some brokers do not offer the option of opening a demo account. So, when you are selecting a broker, make sure there is an option of demo account.
- Make sure that you do intensive research before you decide to invest in an asset. If you want to be successful, you do not want to risk too much or too little. Proper research will help you in choosing winning trades which will eventually help you in earning a lot of money.
- Keep yourself well-informed about all market events which can lead to price movements.
- Use technical indicators like Fibonacci ratios or relative strength index. Always choose the indicator depending on the asset, not all indicators work for every asset.
- Start making your own strategy as you gain experience in trading. Sometimes you will lose, sometimes you will win. Just don’t lose heart.
- Register yourself for signal services. These services send you a text message every time the price of an asset is expected to change. This will help you out in placing your bets in the right direction.
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There are a lot of Binary Options Brokers in the market today but you have to be careful about where you put your money. In a way, you will be betting against the broker, so you need to find a trustable broker who won’t pull a scam on you. Binary Options generally trade on the internet so it is more prone to frauds. So, before you think about investing, you need to keep all the above binary options tips and strategy in mind.
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