How to trade Binary Options here
Now this instrument is one of the most frequently used in online money making. Since it is rather simple and available, traders use it for trading very often.
А binary option is а futures contract between а broker and а trader. In accordance with this contract, the trader receives а profit, provided that he correctly determines the direction of the selected asset, and the broker receives а specified percentage of the transaction.
Description of the process
A peculiar guide in the form of а step-by-step algorithm will help you understand the trading process:
First, you need to choose а broker with whom you will enter into transaction and an asset that you will trade.
Then you need to make choice of the time for which you are going to open а position. After passing of this time, the transaction will be closed and you will either get profit or loss.
Next you should choose the amount for which you are ready to buy options. It will be automatically debited from your trading account. If you correctly determine the direction of the price movement, this amount will be refunded to your account along with the earned profit.
Indicate on the chart the direction in which it will move in the near future and buy а binary option. After these actions being completed, it is thought that your transaction is open. You just should monitor the changes of the chart and wait for the result.
You will see the result of your trading after the time expiration of а binary option. If you choose the right direction of price movement, then you will profit; otherwise – you will lose the value paid at the opening of the transaction
Recommendations for opening transactions
The main aspect is that you need to monitor the trend, its direction, and enter into trade only in accordance with its direction. A trend reversal may occur at the time of the market volatility when many traders are actively opening positions in the market.
Therefore, it is recommended not to open transactions 2 hours before and after important economic events and news publications.
You can find out the time of any event from the economic calendar. Follow the risk management rules, so that the rate per transaction is not more than 2% of the total amount on the deposit. For example, if you have $ 2,000 in your personal account, then the investment should not be more than $ 40. Unreasonable investment can lead to losses.
Two directions of binary options
- Higher. The trader makes а profit if at the moment of the closing of the contract the price of the option is higher than the initial one.
- Lower. The trader makes а profit if the price is lower than it was at the opening of the contract. At first glance, everything is very easy. You just need to know the correct movement of the asset when making а transaction and the profit is in your bag. However, it's just the beginning. To reach success in this business and stability in money making, you need to have not only а certain theoretical background but also experience.