What do you understand by binary Option? Also know as Digital Options, it means that you are trading of specific financial instruments within an allotted period of time. It is mainly different from conventional trading because the instrument is never actually held by the trader and once the allotted time is over, the trader will either make a profit or a loss and the trade is now closed.

Take the example go Google shares. It is currently traded at 937 usd. A binary trade on Google would allow the trader a choice of whether the shares would go up or down. The trader will be able to see a graph that will represent the share price of Google over a period of time, the current price and two buttons to the right of the graph. These two buttons indicate the choices of up or down. The trader chooses up with an expiry trade time stamped at fifteen minutes from the exception of trade. After fifteen minutes, the trade will be closed. If the price is higher, the trader made profits and if the price is lower, the trader made a loss.

Are Binary Options for you?

It needs to be very clearly understood that all investments have an element of risk. People can either make profits or loss. The main difference between trading Binary and conventional trading are as follows:

• Options in a binary platform can be traded much faster than conventional trades.
• Prices in Binary platforms are always at the mid price, therefore there is no buy or sell price.
• Binary option trades have immediate execution.
• Executing an Option trade can be made as low as $20.
• The returns on a binary option trade are instant from the moment the trading has closed.
• There is no broker commission in between.
• The return is dependent on the length of the expiry time.

As a trader if all the above points get your interest, then opening option trades in a binary platform is the right choice for you.

Learn before you trade

For beginners, before making any decision to invest in the market, it is highly recommended that you should do your own research about the market, stocks and shares and how volatile trading can often become. You must know what makes the market change directions, how news affects the global economy and its effects on all the markets.

Yahoo finance has the quotes of every instrument that is traded within a binary option platform. Most common instruments are Forex, Commodities, Stocks and Shares. Until a potential trader has a fair understanding about these instruments, it is not recommended to start trading.

This entry was posted on Friday, June 30th, 2017 at 5:00 am and is filed under Binary Options. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.