How to trade binary options?
Learn to trade binary options
Learn to trade binary options is lucrative business. You can earn up to $5.000 each week. But please don’t believe you will get this from now to tomorrow unless you will get professional help, for example by a legit autotrader. Although you can make much money, don’t believe to become a millionaire after one week, month or year. This is simple not possible. That unrealistic promises are often used by fraud services trying to scam you.
Before you become a rich investment banker, you have to learn. If you have read the article What are binary options and how to make money with them you know already that the forex market the most important thing is and that you need understand price movement of the assets. For conclusion of this article, if anybody buy an asset (fewer assets are available) the price will raise, if anybody sell an asset (more assets are available) the price will fall. Price movement is most easy to learn if you watch resources like Gold, Silver and Oil (more = lower price, fewer = higher price) but for newbies it is recommended to trade only currency pairs.
Trade classic binary options
The first binary options newbies should learn are classic binary options. Each classic option has 4 important arguments: asset, directory, entry price, and expired date. It is a good beginner strategy to trade only few currency pairs. You learn the behaviors of the difference assets known better than you trade all assets.
The second step to make money if you don’t use a legit autotrader is to analytic charts. For this analytic is the full free software MetaTrader recommend. This is a fast chart software with a lots of technical indicators. You have a lot of ways to predict the market movement. Read the article Trading indicators to choose the right for you. The right strategy depends at your personal favors.
Next step is to wait until the price is on a good area. In this case place select an investment sum, an expired date and place an option in the expected directory. These are mostly 2 clicks. After that, wait until the option expire. If the price is at the expires date in the right the option is “in the money” (ITM), if the price is on the exact same like the entry price the option is “at the money” (ATM) else they is “Out of the money” (OTM).
For example, assume that you place a CALL (High) option on the asset EUR/USD. The option gets the entry price 1.12898.
In this case the option got ITM, since they closed at 1.1294 and that is higher than 1.12898. The option give $25 + $18.20, that is 182 % of the investment sum, back. Additional you see here a good example for Support/Resistance.
Practice is the key of success
Alternate there are Touch/Notouch options. The exactly implement depend on the broker. But the basics are every time the same. You have a price limit, based at the expires time. The limit gets with the time near to the current price. Your option says only if the price will cross or won’t cross the limit until the expires time. It’s making no matter where the price ends, only the cross. Touch/Notouch options are an interesting variety but need another strategy than classic options.
Nearly all brokers support short term options too. There are similar to classic binary options but the expiration date don’t are fixed dates but are relative to the open date. This option type support sometimes very small investment sums and short expiration dates like 30 – 120 seconds. Its strong recommend to don’t trade them as beginner since it’s too hard to calculate the direction.
Don’t forget: You need training to reach the right entry point and test your strategy. The platform SpotOption is recommending because they offer training account where you can test all using play money. Please contact their support before you join them.