Over the years, trading currencies have been one of the popular investment choices. It is because of its flexibility and simplicity. However, trading Forex is precarious. To succeed in this field, you have to be prepared. The forex market now offers binary options trading which provides traders with several trading options. Unlike forex trading, binary options trading is simple. If you are interested in binary options trading, then there are a few things you need to know before getting started. Here is just a guide on what you need to know.
What is a binary option?
Binary options, simply put, are an option that offers traders with a fixed payoff or nothing. Depending on the investment, the trader can gain 70% o 85% of the invested amount. As a dealer, you have to determine whether an asset will go up or down.
You can either win or lose depending on your prediction. Binary options do not require marginal calls. Perhaps, that is why it has gained popularity in recent times.
What can you trade?
There is a wide variety of assets that you can trade in binary options. You can trade indices such as FTSE, NASDAQ and Jones among others; currencies like AUD, USD, EUR, and JPY; commodities such as gold, oil, silver and coffee; and stocks. Binary options trading do not limit you, unlike forex trading. In case a given asset is not performing well, you have the choice of trading in a different one. There are countless options for traders who use binary trading.
How to trade binary options
To get started, you need a trading account. You will need your personal information to set up your account. Some of the information required is the birth date, country, and your name. In case you are not ready to start real trading, then you have the option of using a demo account. There are several brokers that you can choose to carry out your binary trading. However, you need to do research before you settle with a given broker firm.
It is easy to conduct trades since all you have to do is determine when an asset will increase or decrease. There are no hidden costs. You can get started within a few minutes of setting up your account. Trading binary options is an investment that has become very popular. All you need is just to make the right decisions on the change in prices. If done well, you will be smiling all the way to the bank.