what binary option trading?
Binary option profit
The binary options market is fast, exciting and at the same time very profitable. This market is easy to learn and the trading platforms are designed in such a way that any user can easily work with them.
what binary option trading, Binary option contracts offer defined risk and clear results. They are considered “binary” because there are only two possible outcomes at expiration: either you make a pre-defined profit or you lose the money you paid to open the trade.
Actually, a trader answers a simple yes/no question when opening a trade. This makes it much easier for you to make trading decisions because you know exactly how much you stand to lose if the markets move against you. And if they don’t, you know the exact size of your potential profit, making it a controlled yet exciting way to trade.
You have access to four different markets to trade in binary options and you can trade in them
2- Stock indices
Trading in binary options is like answering a simple question: will the price of a stock, for example, after 5 minutes pass, be higher than the current price? If you think yes, you buy and if you think no, you sell.
Binary options are priced between $0 and $100, so you can decide how much capital you can risk. Each contract shows you the maximum you can win and the maximum you can lose, so you always make an informed decision and losses don’t get out of hand.
Trading time in binary option
Buying and selling binary options is possible 24 hours a day and 7 days a week, and even on weekends, i.e., Saturday and Sunday, when the global market is closed, you can trade on the OTC, and there are no restrictions, and this is one of the attractions of this market. is, that you can access this market at any time of the day or night.
The expiration time for each trade you open in the binary options market varies from 5 seconds to several hours. And you can set this time before opening a trade.
Amount of capital for each binary option transaction
The minimum dollar amount to open a trade is $1, and the maximum amount to open a trade is $1,000.
If the trader wants to open a trade of more than $1,000 , for example, he can open several trades of $1,000 in a row. And therefore there is no limit.
Binary option profit
Binary option profit: The amount of profit that can be made from a binary option transaction is always variable and depends on what you want to trade, for example let’s say you want to trade currency pairs.
Here we assume that you want to trade the EUR/USD currency pair and currently the profit you can get if you predict the market correctly is %79, but at the same time it is possible to make a profit on the USD/JPY currency pair. If you predict the market correctly %88 you can get it.
More profit is not always the only reason for trading, and a trader pays attention to the right positions in addition to the amount of profit.
Binary option trading
How to buy or sell in binary options: A trader in the binary option market should pay attention to the following points from beginning to end.
1- Market trend
You should check the market trend so that you can decide according to your analysis whether the trend is bearish or bullish and whether you want to buy or sell based on your prediction of the market trend.
2- He chooses the market in which he wants to trade
You should check different markets so that you can decide which market to trade now based on the position you have found.
3- Selects the strike and expiration price
You must decide to open your trade when the market reaches a certain price and you must also specify the expiration time of that trade before opening the trade.
4- Do your work
Once the above is clear, you can now make your purchase or sale transaction.
5- And finally, it waits for the expiration until the transaction is closed and the result is determined
After the transaction is opened, now you just have to wait for the transaction time to elapse, this time can vary from 5 seconds to 4 hours depending on your transaction time.
An example of binary options trading
Here is an example of how to trade binary options contracts using the EUR/USD currency pair:
EUR/USD > 1.66500 (6 PM)
Deal ends at 6pm. Simply put, this binary option asks you: Will EUR/USD be above 1.66500 at (6 PM)?
If you think it will, then buy it. If you think it won’t happen, sell.
In this case, let’s say you’re shopping.
If so, then there are two possible outcomes:
The price of the index at 6 PM is at or below 1.66500. This means you don’t pay this time and lose the capital you invested in the trade. The seller receives an amount in return.
An example of how to execute a transaction in the EUR/USD currency pair:
It is now 19:00.
Currently, the price of the EUR/USD currency pair is 1.25000.
You have decided to trade for 5 minutes.
The amount you want to enter in this transaction is $100
The current profit percentage in this currency pair is %85.
At 19:00, after analyzing the market movement in the EUR/USD currency pair, you conclude that the price will be higher than the current price of 1.25000 in the next 5 minutes.
You click on the buy button and your transaction opens and closes in the next 5 minutes.
Now 5 minutes have passed and it is 19:05, and the price has reached 1.25045.
You made a profit of $85 on this transaction and a total of $185 is added to your account balance with an initial capital of $100.
Binary option trading platform
Binary option trading, while profitable and very exciting, can also be complicated, a trader needs to manage many things in order to trade, and it may be difficult to track and manage all the different things.
This is where trading platforms come in handy, and traders use trading platforms to manage everything easily and effortlessly.
If you’re interested in trading binary options, then it’s typically helpful to start with a demo account. You can fund your demo account with virtual money and start trading binary options without having to risk anything. Your demo account gives you the opportunity to figure this trading style out before you start placing real trades.
If you’re interested in binary options, you’ll need to choose a platform to trade them on. Each platform on our list offers trading for different underlying asset options. You’ll also find that various sites have different minimum deposit requirements, trading tools, withdrawal and verification requirements, and more.
It’s important to take all of these factors into account before choosing a binary options platform if you’re going to invest real money.
How to open a binary option account
You only need to have an email and password to open a binary option account on trading platforms, and you can easily open a free trial account in less than 1 minute.
We have compiled a list of the best binary options brokers in the world for you to compare.