A binary option is the purchase and sale of an asset, as a result of a successful investment, the investor receives a fixed profit, in case of failure, it suffers losses.To work with options, it is enough to choose the direction of quotations for one asset (it can be gold, currency pair, coffee, etc.) put or call (down or up).To earn on binary options, you must carefully follow the schedule of movement of quotes after making a bet. You may ask, Binary Options What Is This? The answers are the followings.
- Typically, one option lasts about 30 minutes, but sometimes it takes less time.
- After this process it becomes clear whether the rate of profit or loss has brought.
For example, a trader put $ 200 on a call option, after the expiration of time the coefficient grew by 65%, the investor won, he gets back his $ 200 and a profit of $ 130. If the option is lowered, the trader loses his investments. If he puts $ 200 on put, and quotes go down, he gets a profit when the raised money is lost.
Advantages of binary options
To make a profit, a novice trader should read reviews about binary options and get the necessary knowledge.
But some experienced investors distinguish the following advantages:
High profitability
With a successful combination of circumstances for several options, you can increase your initial capital up to 200%.
Simplicity of work
To make bets, you do not need an economic education, but in the beginning you should still use a demo account of binary options, get acquainted with the market analytics to justify making forecasts.
Low threshold for entry
To start the auction, it is enough to invest $ 1. This allows you to participate in options for almost everyone.
The ability to manage risks
Trader can plan his bank roll, because he knows in advance what losses in case of failure can be incurred.
Interface. It is difficult for novice traders to navigate in an unfamiliar system. To quickly get comfortable, it is better to choose a convenient site, where much is intuitive.
Training and support services
This is another important criterion for selection. Some brokers of binary options offer new clients useful videos, you can read a blog and important tips on the site. Round-the-clock support service, which will help to quickly solve problems, is another undeniable advantage.
The minimum amount and methods of payment
For a beginner trader, the minimum amount of entry and betting is important. In order not to lose a significant amount due to a stupid mistake, it’s worth choosing platforms with a bet of $ 1. Payment methods are an important selection criterion, some brokers accept payments only on bank cardsand others work with most payment systems in Russia.
Profitability is important for all traders, including, and for beginners. Experienced players are ready to work with the inconvenient interface of the broker, if only the profit was as high as possible. Large brokers use the One Touch function, when the profit from one option can reach 1000%.