Monthly Archives: January 2015

What is Binary Trading all about

Binary trading

Binary trading

Binary options are new way of options trading. It is getting popular every day with its simplicity and immediate returns. It has great potential of providing extraordinary profits to the investors. But new investors should also be aware of the fact that high profit means there involves high risk factor. There is every chance of failure if you are not having adequate knowledge and guidance. But it dosen’t mean that you should be too worried to invest here. General people can easily invest in binary options with proper knowledge. There are many good websites regarding binary options trading. Here you can easily get good articles and then research a bit with your own merit. All these small things will make you a good option trader.

What is binary trading? The main theory of binary options trading is predicting the value of the asset after a limited period of time. It is based on the two possible outcomes, “Up” or “Down”. The terminology of Binary option trading is very important for you to know. Two of them are “call” and “put”. For higher market you need to buy a “call” and for lower market you need to buy a “put”. It can be dealt in stock market indices, foreign exchanges, commodities etc.

Types of Binary Options

Different types of binary options are there for trading. Traders choose different types of binary option for their suitability. It depends on the current market and trends of the market. Choosing the best suited method for you needs good study and experience. Here are 4 types which are well known:

  1. UP/DOWN Option and the CALL/PUT Option
  3. 60 Second Option
  4. Boundary Options

For a new investor, if you think you have proper knowledge and idea on this popular trading option then it is the right time for you to go for binary option trading and get success.

You may be confused about the time when you need to trade. Actually there is no specific time to trade. Trade when you feel better. Although there are two key times to trade:

a)      Trading at the time of opening the market

b)      Trading at the time of closing the market

Binary options are modern method of speculation on Forex, stocks, commodities etc. It has advantages as well as disadvantages. You need to research the present market and make a very good strategy to be successful.