Binary trading is an alien subject for most people and this deters them from ever giving it a try! There is lots of cash to be gained by getting involved in binary trading and once you have swotted up on what exactly it is and how it works you will be kicking yourself that you didn’t get involved with binary trading sooner! Carry on reading if you want a general overview of what exactly binary trading is, the options you can choose and things that you will need to remember before you start making option trades!
What is Binary Trading?
Unsure of what binary trading actually is? Then this is probably the best place for us to start! Binary trading provides people with a fixed risk and a fixed reward with a simple option contract. Essentially, with binary trading you are working from a traders perspective and trying to predict what you think will happen to an asset. This asset could be a stock, commodity, or a currency amongst many other things. You can then wager money on this prediction and how much you will win if you are correct in your prediction is always shown before-hand, so there will never be any nasty surprises with receiving a smaller payout than what you had expected. If the prediction that you have made is incorrect you will then lose your bet money. Those who guess correctly will receive back not just their money risked but also a return on this investment which can be as much as 85%!
If you are new to binary trading then we would suggest sticking to the simplest and most common trad which is the Up/Down trade. There are lots of other trades for you to choose from, however, you can always look in these binary trading options in more detail once you are more comfortable with binary trading.
What to Remember with Binary Trading
Before you start binary trading there are a few things you will need to remember before you get stuck in as you want to make sure that you are making lots of cash and not losing it!
One of the first things to remember is that you cannot lose more than you put in to any trade. Any risks involved are known up front and these are fixed. You can also not be burned by leverage which can be common with forex trading. Newbies to binary trading should also remember that the payouts are clearly stated and you will know up front any risks before you decide to risk any money on a trade.
On average the returns are set at around 70% to 85% and what you will love to hear is that you do not have to be a financial expert to win and receive a big return! Finally, players also need to remember to be aware that with binary trading you are not the owner of that asset and all you are doing is predicting what will happen to the price of the asset.