The steps below explain how to execute a binary options trade on the trading platform. Before trading for real, it is advised to learn more about technical analysis, trading systems and strategies.
While it is possible to guess a price movement, long-term profitability with trading only comes by knowing how to use market data to accurately determine in which direction the asset price is likely to move in next. Those, who are able to master the processes of research and analysis, stand to generate a substantial income when trading binary options.
To learn the basics of trading, the first advised step is to join a free trading education center. There are quite a few good education courses available, where you can watch video tutorials or even join free trading webinars.
GOOD PLACE TO LEARN BINARY OPTIONS TRADING
There are various resources available online, which can help you learn how to trade. The best place to start is by joining educational programs offered by some brokers. Very good and free educational center for beginners is offered by popular and trusted broker - 24option.
Join 24option Trading Education Center for Free:
Making a binary options trade on the trading platform is very simple. Only five steps have to be taken in order to place the trade.
STEP 1: SELECT YOUR TRADING ASSET
The first step in the process is asset selection. Each binary options platform is going to provide fifty or more assets that can be used in trades. Some platforms now offer as many as two-hundred or more. Expect to see options for stocks, commodities, currency pairs, and indices. There are a few platforms that do include bonds, but these are becoming hard to find. Bitcoin may also be included and when provided, will likely be listed under currencies.
STEP 2: DETERMINE THE TYPE OF TRADE
After the asset has been selected, a trade type will need to be chosen. The most popular trade type is the Call or Put trade. With this trade, an investment will be made based upon whether it is believed that the price of the asset will be higher or lower than the starting price when the trade is over. There are other options as well, such as Pairs, Boundary, Ladder and One Touch. When learning how to trade binary options, it is wise to start out with the most basic trade type and then branch out from there.
STEP 3: SELECT THE EXPIRY TIME
The next step is the selection of an expiry time. The available options can vary quite a bit among platforms. There should be short, medium, and long expiry times to choose from. Binary options are now viewed by many as fast profit options, so expect to find some really short expiry times, possibly lasting even less than one minute. Each trade ends at the exact moment at which the expiry runs out, and at that point the final result of the trade will be known.
STEP 4: MAKE THE INVESTMENT
The final selection that must be made is the investment amount. Most binary options brokers do have minimum requirements, but these should not be pricey. At times, minimums will vary along with trade type. Often, lesser amounts can be paired with faster running trades, since these present the potential for fast losses. Aside from minimums, each trader can decide how much money they would like to risk along with each trade. This ability provides plenty of financial control along with each investment.
STEP 4: CONFIRM THE TRADE
When you have selected your desired options and have prepared your trade, only one more step needs to be taken. You simply have to click on the button to confirm your trade. As this action is taken, your trade will be open and the expiry time will start counting down. After the time expires, the trade outcome will be known. With binary options there are three possible outcomes: win, loss or draw.