Trading binary options is usually overwhelming when there is a lack of knowledge and experience. Many people are interested in trading binary options but don’t know where to start. If you are in this category, this blog is perfect for you.
This comprehensive guide will help you understand where to start and the basics of binary options. By the time conclude reading this guide, you will realize that binary options trading is not as complicated as it seems. So, let us get started.
Introduction to binary options trading
Binary options trading is a financial instrument that permits trades in two options, call options or pull options, that is, buying or going long in the market, then selling or going short in the market.
Binary options trading is executed with a time frame, either short-term frame, normal/medium-term frame, then long-term frame.
Beginners step-by-step guide to getting started with binary options trading
It’s time to try your hands on binary options trading. Trust us, binary options trading is straightforward to understand.
We have compiled an easy step-by-step guide to get started. With these few easy steps, you can be a pro trader quickly. These simple steps outline how binary options trading works, but with just this knowledge alone, you could be well on your way to starting your journey to becoming an established and experienced trader.
Let’s have a look at these four (4) step-by-step guides on how to get started.
Choose a broker:
Before thinking about trading, you must find a broker that suits your demands and preferred trading style. Some brokers offer more complex trading options, while others may be more user-friendly for beginners. Make sure to do your research when selecting the best broker for you.
Select an asset:
Once you have found the broker that suits your needs, the next step is to select an asset you want to invest in.
Traders can choose from stocks, indices, commodities such as gold or oil, currencies such as USD/EUR/GBP, etc.
Choose an expiry time:
Now that you have selected an asset, it’s time to choose the expiry time of the binary options trade, which could be anywhere from 5 minutes to one month, depending on your strategy and risk tolerance level.
Predict price direction:
All that’s left is to decide whether the asset price will go up or down over the predetermined expiry period and make your predictions accordingly. This could be either call (buy) if the prices will rise or put (sell) if the prices are projected to fall.
Having an adequate understanding of how to start trading binary options should be a priority, and we believe that this guide has given you a detailed understanding of the steps you are to take to succeed and make profits in binary options trading. We wish you luck as you enter and exit trades. Learning and research are key, so keep acquiring knowledge as you trade.
Frequently Asked Questions (FAQs)
What are binary options trading?
Binary options trading is a financial instrument that permits trades in two options, call options or pull options.
What is the time range to trade binary options?
There are three (3) time ranges to trade binary options, the short-term, the medium-term, and the long-term. This time ranges from five (5) seconds to one hour.
What ways can I place a trade?
In binary options trading, traders can place trades in two ways. The first way is to forecast a rising market, that is, a higher price (call options), or to forecast a falling market, that is, a lower price (put options).
What is a financial instrument?
A financial instrument refers to a contract with monetary value that could be bought or sold.
Is binary options trading safe?
Binary options trading is safe though we advise you to trade with a reliable, regulated, trustworthy broker. If this is done, you are going to enjoy trading binary options.