We're going to start with the basics of what binary trading is how it works and some of the terminology you need to be aware of so you can get started quickly and confidently trading is the act of buying and selling assets in the financial market traders.
look for short-term price movements with the aim of making a profit in both rising and falling markets binary trading is a new form of short-term trading which is becoming increasingly popular because it is quick simple and open to virtually anyone binary trading is so called because there are only two possible outcomes to the trade either the trade ends up or down on its start price binary trading is much simpler than traditional forms of trading all trading is done via the online platform so all you need is an internet connection binary trading is also much less complex and risky than traditional forms of trading classical trading presents complex fees and costs either paid through spread or separated Commission's this makes it difficult to know how much you are risking on top of your initial investment in contrast binary options trading doesn't demand commission or any other fees in terms of profit and loss what you see is what you get the trading platform is free the data feed is free and your trading is free from commission and any other fees trading binary options is simply about predicting whether the price of an asset will go up or down over a set period all you need to do is select an asset and decide whether to place a put or a call a put is when you think it will go up a call is when you think it will go down then set the date and time of expiry so when you want the trade to end with binary options this can be as short as 60 seconds or as long as a month when the trade ends the price will be compared with the price when you started the trade known as the strike price to determine whether your prediction was right simple isn't it let's look at an example at 1pm the Euro against the US dollar rate is 1.3 20 zero and you predict this asset will close above 1.3 200 within the next hour all you need to do is choose the expiry time in this case it will be 2 p.m. and the amount you would like to invest and click call the strike rate for this asset will be 1.3 200 and if your prediction comes right in the asset closes at one point three 201 or above at 2pm you win the trade and your investment plus a return is credited to your account instantly now let's recap some of the terms we've learned and have a look at some more popular Binary Option terminology call you choose call when you predict that the price of the asset will rise higher than the present ray put you choose put when you predict that the price of the asset will fall below the present rate strike rate this is the rate at which you buy the option and this rate will determine the success and failure of your trade current rate this is the real time rate of the asset on the expiry time the system will compare the current rate to the strike rate to determine whether your trade was successful or not expiry time this is the date and time you choose for the trade to end in the money when your trade is successful ie you predicted correctly it is called ending in the money out of the money conversely if you are unsuccessful and you missed out on your position your trade ends out of the money at the money if at the time of expiry the current rate is equal to the strike rate the trade is deemed at the money and your investment will be credited back to your account.
