It has not been long since binary options online became available to mass traders. After in 2008 American Stock Exchange and Chicago Board Options Exchange expanded their activities into binary options, they turned into a rather popular type of trades. Today, binary options online are considered to be the best way to earn money at the exchange.
Binary Options: What Can Be Easier?
Binary options gained popularity not only due to their high profitability, but also to their simplicity. Everyone knows that one is not born a trader – one becomes a trader. While Forex trading requires vast knowledge and experience, binary options are much easier to trade with.
This is true for the trading process as well. The trader chooses one of the two alternatives: the asset price will go up (Call option) or the asset price will go down (Put option). In other words, forget about complex chart situations, multiple tabs in your browser, and difficult calculations.
Minimum Risk and Fixed Profit
The main idea behind binary options trading is to estimate the asset price over a certain period correctly. If your assumption is correct, you earn money. Otherwise, you lose. When making a decision about buying or selling an option, the trader knows exactly what amount of money is at risk and how much he or she can earn. This is one of the main differences of binary options from other types of trading, where losses can exceed the asset price multiple times.
Depending on certain terms, every successful trade brings to the trader at least 65% of its amount. In most cases, it is up to 91%.
Fast Trading and Fast Money
Another important difference is that a trade is made over a short period of time. Binary option online can be bought or sold even for a minute by making a short-term prediction. Therefore, even without significant amounts of money, the trader can conclude many trades and earn fast money. At the same time, too short expiry time is related to extra risks.
If you fear that binary options trading will require significant investments, calm down. To get an opportunity to trade with binary options, you do not need to have a fortune on your account. A number of brokers offer access to their trading platforms for as little as £10. Even the largest broker company expects the trader to pay £250 – anyway, this money will be used by the trader to make trades. In other words, there is not a bit of doubt that binary options trading is easily available to the wide public.
No Success Without Training
Despite easiness and wide opportunities offered by binary options, you can hardly become a successful trader at once, As in any other line of work, training is an essential part of the trading process. Good news is that there are a number of competent guides and textbooks explaining in detail how to trade binary options online. Also remember about a free demo account that you can open with some broker companies.
On our website, you will find not only the ratings and reviews of the best brokers, but also practical tips on binary options trading.