The No-nonsense Guide on Trading in Binary Option.
Binary options allows you to trade on a wide range of financial assets, including currencies, stocks, bitcoin and commodities. To make money trading, you need to have the ability predict if the assets will go up in value or down in the future.
If you predict prices will drop in the future, you opt for Put and Call for rise in asset.
If your prediction is accurate you can make a profit of up to the % of your investment.
We will assume readers know how to to trade binary options, we will focus on mistakes to avoid.
types of Binary options
– high low
– one touch
To win with High Low binary requires that the price at maturity is higher than the initial price set when the option is bought. Winning the Put option requires that the price is lower than the initial price.
To win One Touch binary option requires the price has to touch at least once a set price before the maturity.
While the to win No Touch option. The set price has to never reached before the maturity.
To win Range binary option requires the final price is between an upper bound and a lower bound.
– Whenever a trader wins a trade, the broker has to pay the profit from its own pocket. This is the truth and do not believe in any other theory that anyone tries to feed you
If you don’t have an honest broker, say goodbye to your wins or profit.
Honest broker is a must.
– In truth, making profits in binary trading isn’t possible unless you use results-oriented strategies
– Binary option by design is a pro-broker and anti-trader instrument.
– Brokers make money whenever a trader lose
– Monitor rise and low
– Choose the right time to start trading
– Candle light chart is recommend, the candles are shown in colour, with the respective time period which asset has risen or fallen. It is particularly suited because it displays interval.
– A strategy is very important. Without one, you will lose your money faster than you know
– Failing to factor earnings or dividend payment dates into your options strategy
It pays to keep track of earnings and dividends dates for your underlying stock. If you have sold calls and there’s a dividend approaching, it increases the probability you may be assigned early. This is especially true if the dividend is expected to be large. That’s because option owners have no rights to a dividend. In order to collect it, the option trader has to exercise the option and buy the underlying stock.