What Are Binary Options?
A binary options is a way which everyone can profit from the movement in the value of a large and dynamic range of commodities, assets, stocks and shares or even Forex. It is also a way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often-misunderstood instruments before trading. A trader may earn a certain amount of profit in a binary options if the options expire in the money or earn nothing at all if the option expires out of the money. Furthermore, binary options has a range of different expiry time available, which are as short as 30 seconds to as long as 2 minutes period. Besides that, it is different from the traditional options, which it has different payouts, fees, and risks, not to mention an entirely different liquidity structure and investment process. A binary options is including two main decisions, namely, the “Call” and “Put” options. A “Call” option is expressed when a trader predict the price of underlying asset will rise. The price must be above the strike price at the expiry time for a “Call” option to make money, whereas for a “Put” option to make money, the price must be below the strike price at the expiry time. This is presented when a trader predict the price of the assets will fall. Strike price is a fixed price or rate that one agrees to buy or sell an asset. For the call option, strike price is where the asset can be bought, while strike price is where the asset can be sold for put option.
Why choose Binary Options?
A binary options is actually a new form of investment compared to Forex trading. Nowadays, there is a growing industry in the trading market due to its potential to make huge gains in a short time frame. It is simple to understand and trade, thus a binary options becomes famous very quickly among financial trading platforms. Traders have more trading assets to choose instead of only trade on currencies. A successful trader will be determined by predicting a correct direction for the asset price since binary options trading is as simple as determine a right price movement of certain assets or markets during a particular time period to earn profits.
Benefit of Binary Options
A binary options is a simple and extremely profitable investment method, which has high payout rates on any underlying assets and price directions. Besides the potential high returns, binary options provide other benefits to traders:
- No Download Process is Required and 100% Automated Binary Trading Platform – Traders are able to trade binary options with easy and fully automated binary trading platform without any installation.
- Simple Trading – A Binary option trading is simple because it has only a few steps to trade which include the selected asset, investment amount, direction and expiry time.
- Extensive Range of Traded Assets – Traders can simultaneously trade different sets of assets, thereby diverse their risks.
- Easy to Make Profit – Payout of Binary Options contracts is not a proportional price over expiry time but only its direction. Hence, traders will receive payoff even the options are settled ahead by only one tick.
- Quick Return – Make quick and profitable returns with short timeframe ranging.
- Risk Control – Binary options have a controlled risk-to-reward ratio which traders may know their maximum potential profit and loss in advance. Therefore, traders will never lose more than their initial investment.
- Protection Against Volatility – Traders are free from volatility risk because the transparency of risk and short timeframes by the binary options.
How to trade Binary Options?
A binary options is known as a new way for traders to make significant money through variety types of financial assets. IGOFX is providing you with a great platform to start a binary options trading. There are a few steps to trade a binary options:
Choose the types of Binary Options for your trade.
Choose your expiry time for your trade.
Select your currency pairs from the listing menu.
Choose the direction by clicking “High” or “Low” if you are trade on High/Low options.
Enter the amount of investment from your estimation.
Binary Options Webtrader.
Don’t mess with your profits...
The most common way for Binary Options traders to place their daily trades is via computer or laptop. Trader of all levels, from novice to expert, have the same opportunity to benefit from trading on more than 100 financial assets and make potential profit on their investments. They can choose to trade from the Binary Options types at a set of trading period.