What Are Binary Options
Binary Options, also known as digital options, are a relatively new way of trading the global markets. Binary option trading was first legalized in the United States back in 2-0-0-8. Since then binary options have rapidly become the easiest and fastest methods of investing.
Binary Option Tradings are structured on a simple “yes” or “no” proposal: Will the chosen asset be above a certain price within a certain time frame? Because of its simplicity, this provokes a wide appeal among traders and newcomers to the financial markets.
Don’t confuse trading binary options with Stock Market trading. In fact, binary option trading is less risky than the Stock Market! You know how much you can win or lose. In addition, Purchasing contracts for Stocks, Currencies or Assets aren’t necessary.
In binary options you can trade with a large variety of assets:
- Stocks – Apple,Google,Amazon,…
- Currency Pairs – Eur/Usd, Usd/Jpy,…
- Commodities – Gold, Silver, Oil,…
- Indices –NASDAQ,…
Once an asset is chosen, its time to decide on your investment returns and expiry times
- Returns can range from 70-95% –invest $100 with a 70% return, you get $170 Not Bad!!
- Expiry times can range anywhere from 30 seconds to months in the future
So How Does Binary Option Trading Work?
- Pick your Commodity / Currency / Stock / or Index
- Each contains a current value –Strike Rate– right before an investment is executed
- Trading Binary Options depend on your ability to predict which direction the value will go within the future: 60sec, 5min, 30min, 1hour,….. You Choose!!
- Place a Call when the price will go up ↑. Place a PUT if you think the price will go down ↓
- Accurate Trades grants your money back that was invested PLUS a percentage. If you’re wrong you only lose the money that was invested on that single trade.
As simple as binary option trading may be, traders need to fully understand how binary options work, what markets and time frames they’re able to trade with, the advantages & disadvantages of binary Signal Services & Auto Traders, Companies who are legally authorized to provide such services to U.S. residents, and residents around the world.
♠PrestigeBinary has you covered!!♠
Choosing a Binary Options Broker
There are some important questions you must confront before you dive into the exciting world of binary options trading. It can prove confusing with countless information and misinformation floodind the internet posted by reviewers, disgruntled traders, and even competing brokers. How does one figure out a Trusted Broker from the SCAMS? The same way we do. At PrestigeBinary we investigate all areas to identify brokers who meet a strict criteria. Identify some various factors when contemplating a new brokerage account, such as…
- Operated Trading Platforms
- Customer Service
- Web Based or Non Web Based Platforms
- Mobile Trading
- Populated Asset List
Customer service is a key aspect. This factor alone can Make or Break a traders confidence within a broker. Verify the different avenues they offer in communicating with their staff (Email, Live Chat, Telephone, Skype). And also how quickly they respond. If they have email, live chat and phone numbers listed, great! Test them out. Send an email or live-chat message and ask questions about their offers. These are excellent methods to conclude how serious a broker is and how much they value their clients. When we review a binary broker, we begin with their customer service.
‘Security’ is defined in terms of how safe a brokerage is for conducting trading within their internet platform. This security measure isn’t just for binary options, but for all web based transactions like shopping and banking. To assure your chosen broker is safe, make sure a trading system is encrypted with SSL Encryption Keys. This allows all trades, transactions, deposits, withdrawals, financial data, and even online conversations to be hacker safe by encryption fire-walls.
Populated Asset List
Sometimes the currency pair markets can become very volatile, unpredictable, or temporarily unavailable depending on current time and zone. This would be a good time to move onto trading commodities and indices. The more populated the asset list, wider options are available, and the more serious a broker.