We will explore some of the key questions that come up on binary options trading.
What are binary options?
Binary options are a way of trading where you make a prediction on whether the price of an asset will rise above the strike point or fall below it. If you make a correct prediction, you will win a predetermined amount of money. If your prediction is incorrect, you will lose everything.
What do I need to do to start trading in binary options?
The first step is to register on a platform, you then need to select the items you want to trade with, determine what you wish to invest then do a prediction of whether the price will rise or fall. If you make a correct prediction, you can collect your winnings. If your prediction is incorrect then you lose everything.
Are there trading software’s that one can use?
There is a number of binary options software available for traders. These include the binary options robot program which will help you trade better and generate more winning thus more money.
What binary trading options are there when making a prediction?
You have two basic options, the cal/up option where you predict that the price of the asset will rise or the put/down option where you predict that the price of the asset will fall.
What is the contract period?
A contract period is the time it takes for the prediction to expire. Contract periods range from 30 seconds to several months. If you make a prediction based on a contract period of 30 seconds, it means that the trade will only last 30 seconds. You can then either collect your winnings or accept that you have lost.
What is the payout percentage?
This determines your returns based on your winnings. The average payout option for most companies is 85% while others may go lower or higher. Pick a broker who gives you a good payout because this determines the amount of money you will make.
Where can I trade?
There are many places you can trade including publicly traded companies, banks, and even retailers.
What are bonuses in binary options?
Bonuses are an incentive given by brokers as a way of getting customers. The types of bonuses vary depending on the broker and how much you put in as an investment.
How much knowledge do I need to start trading?
The beauty of binary options is that you do not need so much knowledge, binary options are simple to learn and easy to understand. However, this does not mean that you should not know how trading is done, get a good understanding of binary options trading so that you are able to protect your money.
Do I need a lot of money to start investing?
Binary options trading allow you to trade with as little as a dollar to larger amounts of money. However, be advised that most brokers do not accept to trade in large amounts of money. You should also be careful not to spend money that you cannot afford to lose because it is very possible to make a wrong prediction.