Why is binary options trading so popular?
Over the last few years, binary options trading has become immensely popular and has developed into a full-fledged (and lucrative) industry. Millions of people around the world open new trades every single day, since there are absolutely no restrictions involved in this type of trading. You don’t have to be a professional, have a degree or something like that. No, this kind of trading is open to anyone who has a functional internet connection. Add to that the fact that binary options trading is extremely simple to understand, and you will know why this industry has grown so much in such a short period of time. We are here to show you the basics, so that you know exactly what awaits you if you choose to participate in binary options trading. Let’s go!
Binary Options Trading | Basics
Ok, let’s start with the basics. The reason it is called binary options trading is because you essentially only have two possibilities – either the price of an asset you choose goes up or it goes down. If you guess correctly, you win a predetermined amount of money (your investment + a percentage usually set to somewhere around 85%). Of course, there are numerous modes that add twists and turns to this concept to be more interesting, but the main principle remains the same. All you have to do is predict whether a price will go up or down and then set the expiry time of your trade. If at that time your prediction is correct, funds are added to your account balance. After that, you can invest again or wait for your other trades to close if you wish. The possibilities are actually pretty numerous.
Binary Options Trading | Regulation
Like we said, all you really need is an internet connection to open your trades. You don’t even need a computer because most brokers have their own apps, so you can trade from your mobile phone or tablet. But the fact that everything is done online causes concern among many new traders. Is this kind of trading safe? Will my personal and financial information be abused? We’ve heard these questions loads of times. In short – yes, binary options trading is completely safe. There are regulatory bodies, like CySEC in the EU, that make sure brokers behave according to law and that their service is of a certain degree of quality. Always make sure your broker is regulated before you deposit with them because that way you know the company has passed certain security tests.
Binary Options Trading | Brokers
But why do you need a broker, anyway? Well, brokers are your links to the market and it is via their websites that you get to place your investments and withdraw money. Not all brokers are the same, though, as their minimum deposit requirements, payout percentages for every trade, bonus policies and the number of assets they offer may differ. To find out what each broker offers, read a professional broker review about the company because they are written by people who test brokers themselves and who know all tricks of this trade. It’s the easiest way to get the desired information and information is vital in this business. Take a look at multiple brokers, compare their offers and see which one suits you best. Maybe you prefer a bigger bonus over smaller minimum investment, or one type of trading platform over the other – there is a lot to consider here.
Binary Options Trading | Strategies and education
One of the most common mistakes new traders make is that they invest everything they have in their account into a single trade. That’s how appealing the idea that they can almost double their money with just a few clicks is to them. But try to resist this urge because it can’t bring you anything good in the long run. Even if you make the right prediction the first time, you cannot count on luck sticking with you all the time. It’s actually quite impossible to be right 100% of the time in this business, which is why different strategies exist. That’s why education is extremely important. Like we said, binary options trading is very easy to understand, but not so easy to master, so we sincerely recommend spending some time on reading educational materials (many brokers offer them) and exploring new strategies. If you want to be a serious and successful trader, patience is most certainly needed.
Binary Options Trading | Tools
Apart from educational materials, there are loads of other things you can use to better analyze a price’s movement. There are different types of charts, indicators, indices and so much more you can use in binary options trading. Some brokers even offer tips in form of free binary options signals and you can even get robots to do the investing for you! Don’t hesitate to explore because there are loads of free things you can stumble upon if you dig a bit deeper and they can help you improve your trading efficiency. Risk-free trades are a good example of that, as some brokers offer them depending on the type of account you choose to open with them. Research things as much as you can!
Binary Options Trading | Conclusion
In the end, we can only say that if you approach trading binary options trading seriously, rewards could be big. It’s a very simple concept at its core, but with loads of options for everybody. If you’re new to all this, we recommend you look around a bit, compare different brokers and extract as much information as humanly possible before you make your deposit. That way, you will have a much better trading experience with the company you choose. There aren’t any restrictions and anyone can join, so if you’re looking for a way to invest, trading binary options just might be the thing for you. Give it a shot!
