Binary Options Definition
The most important thing to know and understand before trading in the market is to have a clear idea of what binary options really are. The definition of binary options trading is very simple – it is similar to a contract which a trader makes with a binary options brokers during the prediction on a certain asset (commodities, Forex currency pairs etc). In case if the prediction is right – a trader wins which means that he/she gets the invested money back along with the commission which usually varies from 70% to 90%.
Types of assets a trader is capable to make a prediction on is really wide. For instance, according to the binary options tips it can be Forex currency pairs (USD/EUR), commodities (gold, silver), stocks (Google, Microsoft) and many others. The more assets the broker offers the more professional he is. Plus the presence of a wide range of assets enables every single trader to have more chances for victory.
The process of trading
During the binary options trading, a trader should always remember one very significant criterion. No matter how professional he/she is, binary trading is always a 50-50 result. This means that either a trader gets all 100% plus the payout percentage or nothing (loses the invested money). A good point that should be said here is the following – even a novice can try to trade binary options, as the investments can be as low as only $10 and also can usqe different binary options strategy to improve profit.
Expiration date is a certain period of time by the end of which traders must make their predictions acording to the binary options signals. Expiration times are usually divided into the following categories:
- Intraday – trading binary options at this particular day;
- Daily – 24 hours is given to invest the money and make the right prediction;
- Weekly – predictions should be made until the end of the week;
- Event-based – specific date and time in the future;
Online trading operates thanks to a special trading platform that is highly-developed and advanced. Usually this platform is developed by third-parties. When registering with a broker, a trader should be 100% sure and aware that a binary option broker uses this unique platform. Due to this exact platform, both traders and brokers will make a good cooperation which always leads to good conditions and high incomes for both sides.