Types of Options
At their most basic, there are two main types. The call option is what you will use when you think that the price of the asset in question will go up. You utilize the put option when you think the price will be going down.
This is extremely simple to learn—only one of two things can happen. You are either right and you see a profit returned to you, or you are wrong and you lose your risked money. This creates an illusion of simplicity. Binaries might be simple in how profits and losses are set up, but this is where they stop being easy. If you want to be successful trading, you need to have a mastery over chart interpretation, sentimental and technical analysis tools, and even have a good eye for spotting significant fundamental trades.
The best way to start a career in binary trading is to get some practice in with a demo trading account. With a demo account, you can practice trading in real time with certain brokers. There is no way to duplicate the experience that comes with real trading.
The way it works is pretty easy. With demo trading, you are given a certain amount of fake money to start out with. You can use that money anyway you see fit. The platform you will be using for demo trading is the same platform that you will use when you’re actually trading with real money, so demo trading helps eliminate the learning curve and any mistakes that you might make while figuring out how to use the software.
Demo accounts will differ from broker to broker, and some places do not even offer demo trading. Still, this is an important part of your trading tutelage. 24option and Traderush offer ongoing practice accounts.
There is a downfall to using a virtual account, however. Most brokers that have it will only allow you to keep it open for a very short period of time. Some will only allow you to demo trade for 72 hours. This is more than enough time to figure out how to use pretty much all aspects of how the software functions, but if you are brand new to trading, this is hardly enough time to work out an effective trading strategy. If you are new to trading, you will want to give yourself as much time as possible before starting out. Experience is something that you need to accumulate over time.