Many people find binary options trading complicated; the majority don’t even know where to start. Well, this is true if you don’t have the right information and the necessary tools to equip you when betting on these types of investments. Binary trading can be very profitable if done correctly. Unlike traditional forex trading, binary options trading is much simpler and quicker to understand.
With this type of investment, it is easy to make a lot of money in a very short time, but it is also easy to lose a lot of money over the same short period. This guide will show you how to open a binary account, start trading binary options, and make money in seven simple steps. Keep reading.
A Step-By-Step Guide to Trading Successfully
Trading binary options is not a market you should toy with. You need to get a good broker and develop a binary strategy before you stake any real money.
1. Find a good broker
One of the top things you need to note on your to-do list is to find a good broker. There are two types of brokers, there are those that are high-risk takers and those that like to manage their risk to a minimum. You need to determine where your preferences lie before investing. You should also look into their reviews and only work with the most well-known and trustworthy brokers.
2. Create an account
Before you can begin trading binary options, you need to open an account with a broker. Opening an account is usually easy, below are the steps to follow when opening a binary options account:
● Get internet access
Connect your preferred device to a stable internet connection. Unstable Internet speeds
up the process and can cause you to lose money if you trade in real time.
● Pick a trusted broker
Learn the advantages and drawbacks of the brokers you wish to work with. Choose one that suits your needs best.
● Open and activate your account
Once you pick a trusted broker, you can create an account with them. You must provide your information in order to sign up with them. These include your name, email, password, country, currency, еtс.
● Start using your trading account
Once you have registered with the broker, they provide you with two accounts: a demo account and a live account. You are required to activate the latter by placing real funds in it. A demo account enables you to learn how to trade using dummy funds.
3. Pick an asset to trade
Binary options trading offers traders multiple assets to trade with. The variety and number of assets available vary from broker to broker. However, most brokers have a list of popular assets displayed on their sites. These popular markets include currency pairs, commodities, stocks and indices.
4. Select the closure time
The time of closure, also referred to as the expiry time, is the period at which the contract is executed and closed. Initially, the binary market only permitted short expiry dates. However, over the years, the growth of the market has enabled a wide range of expiry dates that go up to a full year. Closure time is generally classified into three groups: short-term, normal time, and long-term.
5. Determining the size of your trade
At this point, you need to determine the type of lot you wish to buy or sell. You need to consider the size or percentage you are willing to risk. Seasoned traders understand the risks involved and only stake 1% to 2% of their 100% investment.
6. Buy or sell
Binary options trading allows traders to predict whether the price of an asset will go up or down by the time set. If the price of the asset is expected to rise above the strike price, you buy the asset; if its price is expected to fall below the strike price, you sell the asset.
7. Confirm your trade
Before you confirm your trade for it to go through, ensure that you check if all the details are correct. If there are changes to be made, they should be rectified before confirming the trade.
If you are looking forward to trading binary options, we hope this article will help you start. Binary options trading is very simple because it focuses on price and time. Having the right strategies to read market conditions will help you make correct predictions.