Lead you dreams with binary options
Binary option is a financial instrument where the trader speculates the whether the value of the trading asset is going to appreciate or depreciate. The assets that can be used for trading are shares, equities, commodities, currencies, etc. The binary options offer fixed returns to the investor. The trader may either earn profit or incur loss. The extent of loss cannot exceed the amount of investment. This indicates that binary options provide defined risk and outcome for every trade. If you are a beginner than you can use demo accounts to understand the working of binary options. It would be favourable if you trade binary options with signals.
Types of binary options
- Up/Down: This is the most common type of binary option. The trader has to speculate whether the price of the asset will end at a price higher or lower in comparison to the current price at the time conclusion.
- In/Out: In this type of binary option a high and a low price of the asset is fixed. The trader has to predict whether the price of the asset at the time of expiry will fall in and out of these boundaries.
- Touch/No touch: This binary option type also has a set level of higher and lower price of the asset. The trader has to foresee whether the actual price of the asset will touch those levels at any point within the expiration time.
Steps to trade in binary options
- Select a broker: The first and foremost step for trading in binary options is to select a broker.
- Select an asset: The trader cannot trade without an asset. Hence, after selecting a broker select an asset in which you will trade.
- Determine expiry time: Decide the time frame of your trade. It may last between 30 seconds and a year.
- Confirm the trade: After completion of the above steps you can proceed to confirm the trade.