We have created this manual to help you work your way through the phases one should know about when trading binary options, every step from the very start right up till the end. Although this manual covers the whole process, we strongly suggest read what binary option is first if you are not familiar with the term.
First Things First – Create Your Trading Account
To get started, all you should do is look up for a legit binary options brokers and then sign up. We will not cover the topic on finding a trustworthy binary options broker in this particular guide because the internet is flooded with information. But what we are just going to tell you is that you first have to find a broker, create your trading account and then fund it in order to begin trading afterwards.
Be sure to put your correct personal details when registering if you want to get paid once you decide is time for withdrawal. After creating your trading account it is now time to put some money in it. Your first deposit with many of the legitimate brokers usually has to be $250 to get started.
Choose the Right Binary Option for You
1. Choose the Type of Binary Options
The commonly known binary options are the put or call options. That means that you should decide if the value of the asset of preference will rise or go down from the current price by the time the trade ends. There are more binary options to trade with, including touch, no touch, boundary options, range options, but we suggest sticking with the put or call options for now.
Most of the traders believe that short term options are not for newbies, but this is not true. You cannot gain experience if you don’t try all of the trading options and also the short term expiry time helps you train your reactions.
Still, always trade with caution, don’t put more money than you can afford to lose and follow the market trends.
2. Choose the Asset
Another important decision you have to make prior to actually start trading is to pick the asset you are going to trade. You should firstly understand that with binary options you are not purchasing the actual assets, you will simply be making prediction if the prices of the assets of preference are going to rise or are going down.
Today, there is a vast palette of assets you can select from. The most common ones are the forex binary options where investors trade currency pairs. Other options you can choose from are the commodities like gas, coffee, gold etc. and the stock assets like facebook, yahoo and other major indices. We will suggest start trading the asset you feel most comfortable with.
3. Choose the Expiry Time
Your last decision for the binary options setup has to be regarding the expiration period. This is the time when you see if the trade is winning or losing and if your investment is going up or is going down. The expiry times can be as little as 60 seconds, but normally they are a few minutes. There are also hourly, daily and monthly binary options, but the short-termed options are the most traded ones.
4. Investments and Risks
The reason why trading binary options is becoming even more popular among investors each and every day is because both the investment and the risk can be close to almost nothing. You don’t need a five or six-figure investment to trade assets, because you can actually start by investing as little as $10.
As an investor you also don’t have to worry about great losses. If the prediction on the result of the binary option you trade is wrong then you will just lose the value of the asset that is fixed and not all the invested capital in your account.
Now when you have finally chosen your preferences for the trades you want to make there is one last thing you need to do.
5. Choose Put or Call and Push the Button
If you are all set and ready to go in the trade now is the time. You will be given two options you need to choose from. Your prediction is what matters now. Is it going to rise or fall? After you decide if it is the Call or Put button just push it and you are in. Now all you should do is to wait for the expiration point to come and cross your fingers for a profitable prediction.
The best part, however, is that many brokers offer an early expiry option where you can close the trade a bit earlier than the finish point. That gives a bigger chance to save your investment and add some more to it.
Start Binary Options Trading Online Right Now
If you feel excited and you want to try it, why not start today? Now, with the variety of online brokers you can trade every day even on the weekends. You just have to learn the working hours of the markets in the global financial centers (like London, Tokyo, New York and Sydney).
Although this guide does give you the foundation to start trading and profit today, we do recommend a demo account first to help you develop binary options trading strategies and techniques that will work in your favor. Do your research and select your broker very carefully. Find out if the binary options broker is legitimate and reliable.
The popularity of binary options trading is just taking off, so get a ticket and jump right into it while it is still hot and lucrative.