Binary Options can be said as the easiest way of trading. It is because it is easy to understand and it is not complicated, compared to other types of trading. You only need to get familiarized with the certain terminologies you need to understand to help you get through the trading process, and then you can trade for as long as you want. However, even though it might be as simple as it seems, you also need to be careful since before you can trade, you need to register with a broker. You should only sign up with a legitimate broker or else, you may be scammed. There are some cases of faker broker that have managed to fake traders into the investment process, so you need to be extra careful. Once you know all the basics of binary trading, there you can trade already. However, there are many kinds of binary trading you need to know and see which one is most appealing to you.
The most common binary trading option is the high and low. In this option, you are going to predict the movement of the market at an expiry date, compared to its current price. You get to purchase the option “call” if you think it will go higher, and “put”, if you think it will decrease in value. If you predict correctly, you get to earn up to 100% of the trade’s profit but if you predict incorrectly, you lose all your investment. This is more than just a guess because for you to be able to predict correctly, you need to study the financial market and learn how it can increase your probability on winning a bet.
Another type of binary options trading would be the One Touch. In this trading, you would choose if you would put a boundary either above or below the price level. If the market reaches the boundary you expected it to be, you earn up to 100& of the trade’s profit. It does not matter if at expiration, the price goes down because what matters would be if it broke the boundary of the upper price.
Range high or Low is another type of binary option. With this, you choose whether the price will go high or low at a given range either below or above its current price. If you correctly predict, then you get to earn also up to 100%. You choose the down option if you think that the price will drop.
Lastly, one type of binary options trading would be the Spread High or Low type. In this type, you will have to predict if the price will go high or low at a company’s price level offered. If you predict correctly, you earn, but if you don’t, then you lose your investment. If the investor decides to choose the spread option, meaning the growth will continue and you choose the call option then finding out you are correct, you make a profit. To learn more about these types, check Trading Binary for more details.