When you think about online investment, you probably imagine how you will spend hours and hours in front of the computer and try to figure out in which asset to invest in.
One of the major advantages when trading binary options is its simplicity.
Trading binaries enables traders all across the world to trade without having previous trading knowledge and profit from it. Binary trading is simple and there are only two possible outcomes; asset price with either rise or it fall fall.
However, there are certain elements which could be very helpful, especially for traders novice who are about to begin trading in binary options industry.
Read further our binary options guide for dummies and learn how to overcome binary options trading and get the most from binary trading with goal to earn money.
Understand How Binary Options Work
As initial step, traders should know binary options definition and how does binary trading process actually work in order to be a successful trader. We can define binary options or digital options as yes-no bet where traders need to determine price of an asset in predetermined time period.
To be able to accurately estimate price direction, traders have to get more involved into different markets, such as stocks, currencies, commodities and indices. The whole idea is to have better understanding of these markets and how does each react on a political situation or for example natural disaster.
Key Elements in Binary Options Trading
It could be said how focus is actually in trading conditions which can be related to a particular asset.
In binary options trading, risk is present and traders need to use market news and strategies which they have on disposal to reduce the risk.
In terms of what are the main three elements in binary trading process, we can list expiry time, payouts and strike price.
Each broker differs from another one by offered payout, time of expiry and features available on particular platform. So what is expiry time?
It is actually a period of time from the moment traders “buy” an option and close in the money. This time frame can range from 60 seconds, over couple of minutes to a month of 150 days with some brokers.
Traders who prefer riskier trades usually invest in time frames between 60 seconds to 30 minutes. However, as a trader novice long term expiry time might be a better choice.
Payout is yet another of key elements worth mentioning in binary options guide for dummies. Depending on a broker, returns can vary. Some brokers offer returns up to 91%, such as IQ Option, while other offer returns between 75-85% on investment.
To profit from binary options, traders are advised to use platforms which offer demo account option for practicing and test different strategies to have better trading results. This also belongs to a category which can be a valuable part of binary options guide for dummies.
Analyze Options for Better Performance
Analyzing options in which assets to invest in and monitoring market conditions is something that traders should keep in mind. Both technical and fundamental analysis can be very useful in short-term period and mostly in trading binaries on long run.
Simulation of performing best strategies serves as way to expand trading knowledge, which should be pretty handy for traders beginners since they lack financial background.
Minimum Deposits in Binary Options
Amount of minimum deposit is a significant part of binary trading journey and by providing lower deposit amounts, brokers attract more new traders to join it and begin investing in binary options.
For example, there are couple of trustworthy binary brokers who offer deposit amounts lower than average in binary industry, such as:
- Binary.com – deposit $5
- IQ Option – deposit $10
- Daweda Exchange – deposit $100
- 365trading – deposit $100
Since majority of brokers have minimum deposits of $250, trading platforms with lower amounts seem very attractive to traders around the worldwide. We can even say how binary options trading is for some people a second income, which is fantastic to know.
Also, not just minimum deposit is significant, but also minimum investment per trade, which can really be very low and therefore, more interesting among binary options traders. For example, with IQ Option broker, investment is only $1.
Although some might think how it is only possible to earn money while investing huge amounts of money, it is not so accurately. We find risk management to be extremely important segment. When traders get a better feel of the market, they will be able to easily predict price movement, which will result in reducing the risk and higher profits.
Learn and Benefit from Education
Novice trader usually don’t know from where to start and this where we, at BinaryPreview can help.
We promote trustworthy binary options brokers who are reviewed and tested in order to be offered for many interested people with goal to invest in binary options and maximize profit.
Under Guide tab on our site, we offer our readers valuable information about main binary definitions and a variety of guide articles which could be useful to the traders.
Our ultimate goal is to deliver quality content which can help traders to have better understanding of binary trading in terms of broker reviews, news on the financial market, guides and many more.
As noted above in our binary options guide for dummies, trading binary options is simple and can be managed by inexperienced traders in order to profit from this industry. We recommend traders to choose platforms with demo account, especially if they are new to binary trading.
Each binary broker prepares a different Education to traders worldwide, where they emphasize those areas for which they feel are the most significant for them. By our experience, FAQ, a variety of tutorials and webinars are considered as an inevitable part of successful binary trading journey.
Overall, anyone can trade binary options and doesn’t have to be financially skilled to make money from it.
However, in order to be a successful trader on long run, traders should be able to develop most suitable strategy in order to continuously profit from binaries and have more winning trades than losing trades.
With the help of education materials, traders novice should have enough elements to begin trading binary options with a success.
We make it our mission to not recommend anything but the best – which, according to industry experts, is IQ Option, the top regulated broker for your country with a minimum deposit of ONLY $10!
Between 74-89 % of retail investor accounts lose money when trading CFDs