Binary Options Trading for Beginners

It is a financial trading system with two probable outcomes, thus the name- Binary options trading. This trading system like all other trading systems also carries some risk. You can buy Binary Options on currencies commodities, major indices and stocks.

When trading binary options, as a trader, you just have to guess whether the market value of an underlying asset will increase or decrease in a particular time period (in the day or week). If the prediction you made is right, you earn a fixed amount while if the prediction goes wrong, you will lose your invested money.

Here we are answering some common questions that usually beginners ask when considering Binary Options trading to make money.

Will I get ownership in the Company?

A. This is a very obvious question because you will be trading assets of a particular company. But, these are not shares, thus, you will not get any ownership. Buying a binary option gives you the opportunity to make money by the movement of the market price of an asset. As the expiry time approaches, you won’t have any other ties to any company.

How does Binary Options trading work?

Firstly, you have to pick an asset. Let’s say for example, your asset to trade is gold. You think the market price of gold will increase in the next three hours from now. So, you decide to buy a Binary Option worth $100 on gold. The broker you choose commits that you have a return of 76% on the particular trade.

If the price of gold increases, then you will get $176 back (this means you will be able to make a profit of $76). If the price of gold decreases, then you lose the amount that you invested i.e. $100. After the trade is complete, you have no further ties to it and the maximum amount you can lose is your investment.

Where can I trade Binary Options?

A. Several brokers are available via internet. Each has its own pros and cons. Some have platforms that are very easy and fast to use even for binary options beginners. Others provide great strategies for people who are interested in using their services and ready to pay for it. You can compare and choose.

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Binary options where to start ↓