Binaries are fast gaining popularity in financial markets. Perhaps, it is because they are easy to trade. All you have to do is only predict how the prices of a given assets move. The assets that you can trade in binary options are indexes, stocks, currency and even commodities. Binary options trading give traders an easy way to trade. The terms mostly used are put and call. This article provides you with ways on how to better understand binary options trading.
How do they work?
There are only two options in binary trading. You either win or lose there is no other way. You choose a particular asset and make predictions whether its price will increase or decrease. Next, you choose the amount that you want to trade and the time frame.
When trading binary option, you know how much you will receive at what time. It is very simple to trade binaries, and even beginners can make profits at the first attempt of trading.
Items that you can trade
Binary options allow you to trade indices, currency pairs, commodities, and stocks. It does not limit you to just one commodity. You can trade Apple’s stock, gold futures or currencies using one platform. The best part is that binaries enable you to trade internationally without the need to change your broker. The broker will be your one stop for all trading options. You have the choice of trading everything in one place without even switching the screen.
How long a trade lasts
When trading binary options you have to know that there is a strict time for your deals. At times, the time can be short or last for a long time. To be on the safe side, you have to decide on a suitable time frame. The expiry time for the trade expires when you choose to trade. Once the trade is locked in, you have no option but to wait.
Types of options
Binary options are available in three categories. The call/put is the first type. Under this category, you make a prediction on whether the price of a given asset has gone up or down. The second type is one touch trade.
Under this category, you get a target price. Your investment will be profitable when it reaches the set target. The third type is boundary trade. The boundary trade is whereby the broker gives you prices to choose. Here you have to make the decision o a suitable price.