What are Binary Options? Get to know this form of investment that has been changing the way of investing from home.
What are Binary Options?
Binary Options are bets that are made on financial assets. The bet is to wager on the fall or rise in the price of a product / financial asset.
It is a regulated market that exists since 2008 and has experienced large growth due to the ease with which it trades, low investments and profit potential.
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How do Binary Options work?
It’s very simple. First, we open an account in a Broker, it’s free. Once you have the account open, let’s go on the trading platform.
We choose the asset where we want to bet (Shares, Currencies, Indices, Gold, etc). We choose the direction (up or down).
We place the value of our bet and how long the bet lasts (bets can go from 30 seconds in duration to 1 day or more).
How to start in Binary Options?
1 – You must choose a Binary Options platform and open an account. They are the binary options brokers. Account opening is free and fast. Check here the ones that exist: BROKERS – Check below the list
2 – Learn to negotiate. The advice is to look for a good course that teaches you to take profits. Although it is an easy-to-understand type of investment, it is vital to have good knowledge to increase the consistency of earnings.
3 – Deposit the amount you want to have in your account and start trading. You can and should always test your knowledge in a demo account before trading real money.
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Are Binary Options trustworthy?
Yes, they are a regulated market and have existed for more than 10 years. However, being trustworthy does not mean that there are no people and brokers who use this market to make money illicitly. You should be aware of who you trust and who promises you profits quickly and easily.
Read below the full article on Binary Options to get to know in detail what they are, and how they work.
Binary Options are a highly expanding investment instrument, where you do not invest in the purchase of assets per se, such as the purchase of Shares in the Stock Exchange.
The process consists in placing bets on the value that a certain asset can reach in a certain period of time, which can be short (60 seconds, 15 minutes, 1 hour, etc.) or long (1 day, 1 week, 1 month, etc).
Binary options consist of betting on the PUT, or on the CALL of a price.
If you do, you’ll be able to profit on average from 70% to 85% of the value of your operation. The Binary Options are an instrument regulated since 2013, having appeared in 2008.
They are a form of recent investment, although they already have many users, because of the potential of gains and the ease in negotiating.
Binary Options – The Simplicity As Advantage:
The whole process for those starting in Binary Options is extremely simple, which also explains the success Binary Options have had. The trading of this financial instrument is done through Brokers that make their online platforms available and where we do the negotiations.
We can either negotiate manually or use signal systems or automatic trading systems called Robots. For those who want to negotiate autonomously and manually, you only have to learn to use one or more trading strategies.
The simple way to succeed is to have training. For this you can opt for the Binary Options Courses developed especially for Beginners.
Watch the video below that explains what are Binary Options
Main types of binary options:
Cash-or-nothing: It’s the simplest and most used. It consists of betting on the increase or decrease in the value of the asset.
Here it does not matter what the final value is, but only if it is above or below the value at the time of placing the bet.
If you get it right, you will win an average of 70% to 85%. In case you fail, you lose 100% of what you bet.
If you can find a strategy that allows you to get more than 60% of certain bets, you will make a profit.
Assets-or-nothing: Unlike the previous option, the payment here is determined by the price of the asset itself.
It is a good option but it implies a better understanding of the financial markets or at least being inside asset prices and the latest fluctuations.
One-touch: This option ends when the asset reaches a certain value.
Here one of the difficulties is that the price reaches this value within the period of time that the operation lasts.
No-touch: Here the opposite is intended.
It is to avoid that the price reaches the limit value within the time that the operation lasts.
Download several useful files totally free here: FREE MATERIAL
60 Seconds: Very fast operations. If there is a well-defined trend of a price, this option allows you to close the transaction quickly before there is a price reversal. It is also very popular, especially among those who already have some experience. With the development of binary options, new formats or variations of existing formats have appeared. Each Broker tries to offer something different, so it is normal to find variations to these formats.
Steps to begin trading in Binary Options:
1 – First steps and registering with a Broker
Start by reading the articles on the first steps in Binary Options. Then you must open an account with a Binary Options broker. There are lots of them, although not all have regulation, support in your preferred language, or reliable platforms. The ideal is to choose a broker that is regulated by a credible entity.
2 – Take a Course and Choose the trading strategy
In addition to the strategies that are the tools that help us to know how to put the trades and know where the price goes, it is important to have more knowledge.
This knowledge must be acquired with a complete Binary Options Course.
The courses teach the rules of trading but also the rules about having discipline and emotional control (when dealing with money and betting, discipline is fundamental) as well as a set of strategies to manage profitably.
Remember that there is no strategy that is infallible, as none is bad.
There are days when certain strategies simply do not work. Others work best at certain times or times of the day. Others work well with certain assets and not so well with others.
The ideal is to test more than one and try to specialize in which you feel better. Even because each person has its own characteristics and can better adapt to a form of negotiation that is present in one strategy and not in another.
On this site you will find some different strategies.
Although many people worry about finding the perfect strategy, the truth is that there is no such thing and also equipped only with a strategy we do not make any money.
It is fundamental to have other knowledge, either the rules of trading, or how to work in a disciplined way, or how to control emotions.
Only by achieving all this is that the strategy will work. Therefore it is fundamental to combine good strategies and the knowledge of everything else that includes trading, negotiations.
TRY THIS SIMPLE STRATEGY
Many people fail because they focus solely on strategies.
They try dozens and never make money. The advice is to get everything, strategies + emotional control + discipline + trading rules.
Take a course that offers all of this. Here are examples of courses that offer all of this: SEE COURSES.
You can choose to use a signal-sending provider, and let them be professionals to send you trading proposals.
It is a very popular form nowadays since there are companies that are dedicated to sending these signals with very interesting results.
3 – Recognize trends and use the resources
For those who want to use Strategies based on the technical aspects, it is important to recognize the trends. Recognizing a pattern in a chart is straightforward, but you have to pay attention to the type of chart being watched.
You can also use the chart by choosing the type of asset you want to track, how long you want to track, as well as adding some indicators that are important in order to use some strategies that work from technical indicators such as those found in the same graph.
Also important is tracking economic news that causes changes in assets. You should also use an economic calendar for this effect.
4 – Investing the right amount
It is important to know how to manage your funds. To learn the concepts, please read the article on Risk Management.
It is essential to understand how much to invest. The understanding of this rule can save your account.
5 – Know when to stop
There are days that the market does not have a defined trend so that assets are constantly up and down without taking a specific direction.
If you have losses on 3 consecutive orders, stop trading. Come back the next day. Sometimes, in an attempt to recover losses we experience an emotional meltdown and enter a downward spiral of loss after loss and when we notice we have already lost 50% of our funds.
The rule to stop when we see that things are not going well is very important. Be aware of it and always respect it.
Lastly, be sure to visit the bonuses and promotions section. If you are just starting we have several promotions, some are exclusive to our Blog.
Carefully read the articles I write and follow the Binary Options Blog because I’m constantly updating our information and writing new articles.
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References and Articles on Binary Options
– Binary Options (Investopedia – Cory Mitchell, 2017)
– Binary Options (WIKIPEDIA, 2019)
– Binary Options Opinion– (Forbes, 2010, Opinion before Binary Option become regulated)
– Binary Options ( Financial Times, 2011)
– Binary Options, how to invest ( Blasting News, 2017)
– Binary Options on Israel (Reuters, 2017)
– Online investors report losing (The Independent, 2017)
– Event-driven trade link between trading and clearing systems ( Baecker, J Buddendiek, K Carnahan 2008)
– Derivatives: principles and practice (RK Sundaram, SR Das 2011)
– Binary option pricing using fuzzy numbers (A Thavaneswaran, SS Appadoo, J Frank – Applied Mathematics Letters, 2013)
– Binary options: fixed odds financial bets (H Raw – 2011)
– Hedging by sequential regression: An introduction to the mathematics of option trading (H Föllmer, M Schweizer – Astin Bulletin, 1989)
– Rethinking risk management (RM Stulz – Journal of applied corporate finance, 1996)