Introduction to Binary Options Trading, Explanation and Examples
QUICK INFO: Internet is filled with promotional websites and videos, promising easy money with various binary options strategies and systems. But it can be hard for a beginner to tell the difference between purely promotional information and real trading strategies or quality educational programs. On this website and trading blog I try to provide quality and real binary options trading information for beginners and advanced traders.
If you are considering to start with binary options trading, you really don't want to jump heads down into trading on the real account, thinking you are going to make money with such ease as presented in some quite deceiving trading videos on youtube. However, if you have the interest and will, it is not so hard to learn the basics of binary options trading and even come up with a good trading strategy. In fact, you can find quite a few good strategies right on this website. If you are serious about learning how to trade, you will need to follow a few steps first, to be able learn how the financial and stock markets move and find the most profitable trading opportunities .
Binary Options Trading is a very simplified way of online trading with stocks, currencies, indices and commodities. Trading binary options is lucrative, because it allows traders to generate high profit in relatively short amount of time and the basic trading methods are very easy to learn for beginners. As is case with all types of investment into financial markets, also binary options trading holds a certain degree of risk. Potential profits are always dependent on the risk you are prepared to take. However, there are many tactics to limit the risks and still aim for highest profits in shortest amount of time. All systems are based on correctly predicting the movement of the market charts. With binary options trading you only have to decide between two options - will the chart go up or down.
For example, if you know that Facebook company will launch a new service in a few days and you follow the news and see that economic predictions indicate that the company stock will rise - you can invest $100 in prediction of that movement and place the Call trade that predicts that at the end of the week the value of Facebook stock will be higher as it is in current moment.
If your prediction is correct and the Facebook stock value at the end of the week is just as much as one cent higher than in the moment of your trade entry, you will earn 80% on your investment, meaning you will have $80 pure profits. However, if the price of the stock goes down and moves below your entry price and is at the end of the week lower than at the time of your trade entry, you will loose your investment of $100. For successful trade with binary options you have to make the correct prediction of Up or Down (also named Call/Put or High/Low) movement of the price of underlying asset (currency, stock, index or commodity) in a predetermined time frame (expiry time).
This is just one example of the long-term expiry trade you can make based on economic or business news, however there are many possibilities of much faster investments with binary options trading. An outcome of the trade can be decided in 60 seconds, as many brokers will offer even such short expiry times.
You can make the trades based on various binary options trading strategies and systems and relying on economic forecasts is just one of them. Also, there are many manual trading possibilities as well as semi-automated and also fully automated trading solutions for binary options trading.
On this website you can find all the information and some of the best complete trading solutions, that will enable you to learn how to trade with profit. All information is completely free. However, some of the best complete systems are accessible upon free registration, but there is absolutely no need to buy or invest into anything to be able to test the trading strategies and confirm their profitability by yourself.
If you are a complete beginner and you do not know anything about binary options trading or investments in financial and stock markets it is advised to follow a short tutorial on this website to take you through initial education. There are many different systems and strategies of binary options trading. To become a successful trader, a beginner has to learn the basics of trading, decide on the trading strategy and develop the trading discipline. There are also many automated or semi-automated trading solutions for beginners, who are not interested to learn how to trade by themselves. Follow the steps in this binary options beginners tutorial, as this is the fastest way to learn the basics of trading and learn a few simple but efficient strategies, get some practice on the demo account, and eventually start trading on the real trading account.
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