Introduction to Binary Options
Binary options (Digital options) trading online is a relatively new form of investment which has become OTC and has been made accessible to retail investors. The massive rise in binary options trading has been widely observed all over the world due to the ease in understanding the trading platform and the simplicity with which which a trader can place orders using the binary options trading platforms.
The true beauty of binary options trading is the ease with which a beginner trader can profit from having some knowledge and understanding of what is happening in the financial markets, and the fact that the risk is fixed. New accounts can be created starting from an investment of only $100, with each trade paying out as much as 70%-90% if successful.
First Steps in Trading Binary Options
Binary options have become one of the more popular ways of investing OTC (over-the-counter). With this rise, hundreds of brokers and technology providers have popped up to meet the rising demand of investors. The first steps that a beginner trader needs to take is to find a reliable and helpful broker with which he can make his first trades. The reason this section was created was to highlight the fact that choosing the correct broker could often make the difference between a positive and successful trading experience to not such a happy one. In the Brokers List section you will find several highly recommended, trusted and reliable brokers who are considered as industry leaders in binary options trading.
Making Your First Trade
Once you have selected the broker that suits you best, the next step is to make your first trade. As mentioned earlier, the beauty of binary options trading is that it is so simply and easy to use the trading platforms. You must first select the asset or financial instrument which you would like to trade. Leading brokers offer a wide range of trading options such as stocks, currencies, commodities and indices from all over the world. Once you have found what you would like to trade, simply click on “call” if you think that the price will close higher than the current price at the time of expiry, or click on “put” if think think that the price at time of expiry will close lower than the current price. A running countdown is always visible to indicate when the option will expire. Once you have selected to go either buy (call) or sell (put), you will need to enter how much you would like to invest in this trade. Some brokers offer a 85% return on any one trade. So as you can see, the process is definitely not difficult and is actually quite fun, exciting and can be extremely profitable.