How Do You Make Money with Binary Options Trading?
Binary options are gradually becoming more and more popular every day. You have probably heard of people who have earned a lot of cash by just speculating whether or not a currency pair will rise or fall. The best thing about binary options trading is that you can trade from anywhere and at any time. Binary options trading means choosing between two outcomes. For instance, you can select a currency pair like EURUSD and predict whether its price will fall or rise after some time. If your prediction is correct, you earn a profit, which is almost twice your money. If your prediction is wrong, you lose your money. Here is how to make money with binary options trading.
1. How the Trade Works. Binary options allow investors to predict whether an asset’s price will go up or down in the future. The time span is as little as 60 seconds, enabling you to trade for as long as you wish across any global market. Before placing a trade, you must know the amount you stand to gain if you speculate correctly. Often, the profit percentage ranges from 70% to 95%. The high-profit rate simplifies risk management.
2. Broker. To get started, you must have a regulated broker account. Take your time when selecting a broker to ensure you choose a trustworthy one. If you are a complete beginner, open a demo account with a broker and try out the platform before you deposit any money. Compare the features and offers of various brokers before making a decision. Choose a binary options trading broker who offers bonuses and low minimum deposits.
3. Asset List. Each broker has a different number and diversity of assets. However, most brokers will provide you with options on popular assets such as top forex currency pairs, major stocks, and commodities like gold or oil. You can also trade individual stocks and equities. The good thing is each broker has about 100 popular stocks you can choose from, and the list continues to grow as demand indicates. Every trading platform displays the asset list, and brokers avail the asset list on their website.
4. Expiry Times. The point at which a trade is closed or settled is called an expiry time. The expiry time can range from 30 seconds to a year. Initially, binary options trading started with a short expiry, but it expanded as demand increased. Some brokers also allow investors to set their specific expiry times. Expiry times are grouped into three categories including:
- Short Term or Turbo: this class has an expiry below five minutes.
- Normal: this category has an expiry ranging from 5 minutes to the local market’s expiry time or end of day.
- Long Term: this is any expiry beyond the end of day. The longest expiry can be one year.
5. Budget. Everyone opens a binary options trading account and makes deposits that fit their budget. However, brokers will have a range of different accounts available. If you are a beginner trader, you can open a basic account. This account allows you to try out binary options trading through modest stake levels. A basic account will also give you several trading opportunities and ways to make money. However, they are only suited to investors with a small budget.
6. Set Up. You can achieve the ability to set up trade by understanding terms such as strike price, settlement, and expiration date. When a trade expires, the price action’s behavior determines if it is in profit or not. Price targets are also key levels that you can use as benchmarks to determine the outcome.
7. Profit. When you log onto a binary options trading platform, look at all the available options. Choose your ideal opportunity and start trading. The amount you can make depends on the type of trade and how much money you place on that trade. Your broker website will clearly show the percentage profits beside each trading opportunity. If your trading opportunity has a potential profit of 81% and you place $100, you will receive $181 if you win. As such, $100 is your initial investment, and $81 is your trading profit.
8. Getting Paid. After placing one or more winning trades, it is time to get paid. Most brokers have an array of staking options. As such, you can choose one and decide how to get paid. You can choose to have your profits sent back to the bank account you linked to your debit card. You can also have the profits sent to you through a web wallet such as Skrill.
If you wish to become a trader, binary options can provide you with a better foundation to learn to trade.
Read The Full Article
This Content Was Originally Posted At: