Easy as 1, 2, 3
Binary options trading is incredibly straight-forward. If you think that the underlying asset is going to go up in value during the set time period allotted for the trade then hit the green CALL button. However, if you think that its value is likely to drop over the given period then hit the red PUT button. If you predicted the direction correctly, then your contract is “in the money”, when it expires, and if you failed to correctly predict the outcome then it expired “out -the-money”.
Making a trade is done in three easy steps.
1st – Pick an asset to trade- any currency, commodity, stock or index.
2nd – Make a prediction- CALL or PUT.
3rd – Choose the amount you want to trade- then click APPLY.
Need for Speed
Binary options trading is incredibly fast-paced. No download is required, so set-up is quick.
The process of making a trade is also very brief, while offering high payouts in a short space of time. Trades can be made with a wide range of expiration times. Traders who prefer the adrenaline rush of the fast trade can opt for daily, hourly, 15 minute expirations and even those that from start to finish, take a matter of seconds, while the longer term trader can select, weekly, monthly and even end of year expirations.
More experienced binary options traders decide what to trade and then anticipate the direction it will take based on news events. For example, above average rainfall could impact the sale of agricultural commodities like wheat, while political upheaval in an oil rich region could impact the price of Crude Oil. Additionally, major economic announcements, or reports published on a regular basis, such as unemployment rates may impact a country’s economy and effect the whether its currency rises or falls. Even a new Apple announcement on the release of the latest iPhone OS can impact stock rates.