If you’ve got some spare money, some spare time and enjoy a gamble, then Binary Options might be for you. Binary Options provide an easy introduction to the stock market’s complexities for those who are new to stocks and shares.
You don’t need to commit large amounts, can control exactly how much you are spending without running the risk of losing large amounts of cash.
So, what are Binary Options?
How do Binary Options work?
Binary Options are much easier to find your way around than traditional stock markets. Your first decision is deciding how much to commit, play around with £100 or £200 until you’re comfortable and happy it works for you. Binary Options are traded online over a set time, of usually just a few minutes.
If, when the clocks stops, your Binary Option is ‘in the money’, you have succeeded and get a return, whether you chose to buy or sell. If, however, your option is ‘out of money’, you don’t get anything back. With Binary Options you can make a full risk assessment before you trade, remembering never to commit more money than you can afford to lose.
How do I trade Binary Options?
As you become more experienced you’ll develop a sense of whether an option is going to move up or down, and then you predict a ‘call’, or upward price movement, or a ‘put’, a downward movement. A huge advantage of Binary Options is that the amount of movement is unimportant; all you have to do is predict whether the target price will be met when the clock stops.
Return rates are decided by your Binary Option Broker before the trade, so you always know how much you will win or lose. Binary Options Brokers study the market to get a feel for whether a movement is going to be upwards or downwards, by getting a sense of how a large portion of the market feels about the settlement price.
How to trade Binary Options safely?
Like all gambling, trading Binary Options carries a risk. If Binary Options Brokers advertise introductory offers that seem to good to be true, they probably are! Contracts with brokers can be long or short term, sometimes so short, they just last for one trade, so you don’t need to stay with a Binary Option Broker you’re not totally happy with.
Find out what the hidden transaction costs are, as Binary Option Brokers don’t charge individual trade fees, or visible commissions. If the option is available, do a test trade, and then start with small amounts of money, until you are happy with their trading and customer service, and you have developed some market confidence and knowledge.
Until you have become a bit of an expert you will find it hard to consistently outguess the stock market, so it will help your returns and ensure you stay in pocket if you spread your investments widely. This does have a downside though, of higher transaction costs and a lower overall return.
Which Binary Option is the best place to start trading Binary Options
The best Binary Option Broker to get start learning how to trade binary options a is Opteck for the following reasons:
- Opteck has an extensive educational resources, including: video training library, eBook, webinars, tutorials and daily reports.
- Opteck Free Demo Account with $50K you can experiment with what you learned.
Sign up for Opteck’s free trading webinars, where you’ll find out how to analyze trends, choose a trading strategy, and personally answer any questions you may have!