« »

Wednesday, March 5, 2014

How to trade binary options: The basics

Binary options trading tips
Binary options platforms simplify tading
If you have heard about binary options, then you already know it is a very lucrative new opportunity. An opportunity that awaits someone who knows how to trade binary options successfully.

Fortunately, it is quite easy to get started on this, as this guide on how to trade a binary options will show you. Also, contrary to the popular opinion, trading binary options is perfectly legal in the USA, so there arenít going to be any problems with that.

How to trade binary options: Step 1


Before you start trading, you have to determine which underlying asset you are going to use for trading. It is not very difficult or complicated. If you have an understanding of where the general trend of the asset is moving, you can choose to trade with that asset. While it is always better to have good knowledge of the asset, with binary options, you can just choose the one you are comfortable with and know the general direction of the trend. It is also worth noting that trading Forex pairs using binary options is often a good idea due to Forex pairs being volatile, which can help you trade big swings.
Binary options trading price movements
Binary options traders often do so within the forex market

Trading Step 2:


Binary options charting
A Fibbonacci retracement graph
Second step is when you decide where the asset price is headed. Itís by far the most important step when trading binary options, as it will make you lose or win on the deal. There is no advice here but to study trends and the asset you chose in Step 2. Applying RCI and Fibonacci retracements can be a good start.

If you decide that the trend will reverse and its price will decrease, you should choose a put option. If you think the opposite is true ñ meaning the trend is going to continue to rise ñ you should choose a call option.

Trading Step 3:


After you choose a call or put option, you must select the expiration time. Expiration time just shows the stretch of time during which the price will be moving in the direction you think it will. This step depends on Step 2 a lot since you might choose options that can have an expiration time of 60 seconds or 60 minutes.

Trading Step 4:


Now it is time to choose the type of binary options you are going to trade. There are several types of binary options, but the most common ones are known as digital options. Other popular types include touch or no touch, or in a certain range or outside of a certain range. Of course, other types of binary options exist.

The rest is just like any other type of trading. You are to decide how much money you are willing to risk, and then buy the binary option. Good luck!

Image license: Evo Signals, GFDL, CC BY-SA 3.0; 2. Cocochico, CC BY-SA 3.0; 3. MetaQuotes Software Corp., US-PD

3 comments:

  1. There seems to be a great deal of confusion these days regarding the legality of best binary option usa.

    ReplyDelete
  2. Thank you for sharing this post. This is a informative post and it will help the beginners to trade in binary options.

    ReplyDelete
  3. Some sites provide free guides to binary option trading to get you started. There are many EU regulated and licensed best binary trading usa.

    ReplyDelete