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How to Trade Binary Options - The Basics of Call and Put

Example of Making a Binary Options Trade

QUICK INFO: Making a trade on the binary options trading platform is a simple process in which you have to select the trading asset, select the trade type, set the expiry time, make an investment and confirm the trade.

 

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How to Make a Binary Options Trade in Four Steps?

A large part of learning how to trade binary options is learning how to conduct analysis. The steps below are for trade execution, but prior to these steps being taken, market conditions must be studied. While it is possible to guess at price movement, long-term earning capacity only comes with knowing how to use market data and reports to accurately determine 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. Learn more about Binary Options Trading Strategies - CLICK HERE.

 

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 Option 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 that the expiry runs out, and at that point the final result of the investment 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.

 
 

 

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