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WHAT ARE BINARY OPTIONS: INTRODUCTION
If you want to start trading binary options, 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 is presented in some promotional 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 and learn how the financial and stock markets move, to be able to find the most profitable trading opportunities.
BEST PLACE TO LEARN BINARY OPTIONS TRADING
There are various resources available online, which can help you acquire the basic knowledge of binary options trading. But the best place to start is by joining free education centers offered by binary options brokers.
One of the best educational programs for beginners is offered by popular and trusted broker - 24option.
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What are Binary Options: Basics of Call and Put Options
Binary Options Trading is a 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.
Basic trading methods are very easy to learn for beginners. However, as with all types of investments into financial markets, also binary options trading holds a certain degree of risk. Potential profit always depends on the risk you are prepared to take. The bigger the risk, the bigger the profit.
However, there are many tactics to limit the risk and still aim for highest profit in shortest amount of time.
Goal of all binary options trading systems is to correctly predict 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.
What are Binary Options: Example of a Binary Options Trade
If you know that Facebook will launch a new service in a few days (for example a new VR gadget), and you follow the news and you see that economic predictions indicate that the company stock will rise, then you can invest $100 in prediction of that upwards stock movement and place the CALL trade.
To be able to actually place the trade, which is very similar to making a bet, you have to have an account with one of the online brokers who offers trading with Facebook stock. There are number of brokers available and all types of assets can be traded - stocks, commodities, indices and Forex.
So, you place the trade which predicts that at the end of the week the value of Facebook stock will be higher as it is in the 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.
If you prediction is not correct an the price of the stock goes down and is at the end of the week lower than at the time of your trade entry, you will lose your investment of $100.
For a successful trade with binary options you have to make the correct prediction whether the price of the traded asset will move Up or Down (also called Call/Put or High/Low) in a predetermined time (expiry time).
ABOUT TRADING METHODS AND STRATEGIES
Above example is just one method of making a long-term expiry trade, which you can make based on economic or business news. There are many other possibilities of much faster trades with shorter expiry times. An outcome of the trade can be decided in 60 seconds, as many brokers will offer even such short trading times.
You can make the trades based on various strategies. Basing the prediction on economic forecasts is just one of the possibilities. There are many manual trading strategies based on technical analysis of the market charts, as well as semi-automated (binary options signals) and also fully automated trading solutions (binary options robots).
On this website you can find lots of information and some of the best complete trading solutions, that will enable you to learn how to make your trading profitable. All information is completely free. However, some of the best complete systems are accessible upon free registration. 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.
Binary Options Guide for Beginners
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.
To become a successful trader, a beginner has to learn the basics of trading, decide on the trading strategy and develop the trading discipline. As mentioned, 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. Learn a few simple but efficient strategies, practice on the demo account, and eventually start trading on the real trading account.
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