In some measure, because of marginal requirements, a lot of people are not eager to even start market learning because they simply cannot find a start-up capital. But there is an alternative method of income – binary indexes which let people trade with minimum investments.
Binary indexes- are a derivative with a profit and expiration time which is known in advance. Unlike futures, trading which one should predict accurate levels in the future to receive income, for binary option it is more than enough to determine the price direction of a chosen asset – either up or down, without any connection to specific goals.
Binary indexes trading is a very simple process as the most important is the fact of price movement and not the fluctuation figure which actually doesn’t even play an important role.
How to Buy Binary Indexes?
The first thing a trader should do is to select a reliable broker. IQ Option is one of the brokers that offers good trading conditions, has CySEC license and truthfully lets its clients know about possible potential risks.
In order to open a position, one needs to enter a broker’s platform and opt for an option type “Higher” or “Lower” based on a prediction. Buying an option “Higher”, a trader makes a bet that an index figure will increase and on the contrary.
It is clear that before an operation, a trader should find a suitable instrument in the list of assets as well as determine the sum of investment and an expiration time. Speaking about assets, IQ Option offers not only options for binary indexes but also similar instruments for currency pairs, shares, commodities etc which gives traders an opportunity to make systematic trading strategies, effective trading strategies and perhaps even create the most successful trading strategy.
Trading such options as DAX index, it is possible to make 80% profit from the invested sum in only ten-twenty minutes which is very good especially considering the fact that sometimes on derivatives market the maximum one can get is only a few per cent, and minimum- nothing which means a loss-making trade.
In such a way, binary options trading on stock indexes is very profitable and simpler comparing with futures. One more advantage considering the account opening should be mentioned – there is no need to gather and send documents via post as binary trading doesn’t require it, thus making an account opening easier.