How to trade binary options
To trade binary options is all about speculating in which direction a good thing is likely to move. No shares must be bought, no currencies traded. This is a simple and efficient strategy for investing in the financial markets with a small budget and limited trading skills, whilst also benefiting the harder experienced trader too.
trade binary options
Trading on our platform is really a matter of speculating higher or lower i.e. will the price of the underlying asset at a set time in the near future be higher or lower than its current price, known as the strike price.
To trade binary options with us, an investor must find the underlying asset, the expiry some time and the direction through which he speculates the asset will move. The actual asset is what the option derives its value from and yes it could be an index (e.g. Nasdaq), commodity (e.g. Oil), currency pair and this is known as forex (e.g. EUR/USD) or stock e.g. (Apple), of which we have over 60 available. The expiry period of the binary option trade dictates in the event the contract ends this means you will be the end from the nearest hour, or perhaps the end of the day, week or month. The investor then needs to consider the direction by which he believes the asset will move. If he thinks UP, create will buy a CALL option. If he believes DOWN then he will buy a PUT option.
An alternative is considered in-the-money if it expires across the strike price in the Call option or below it in the Put. An option is recognized as out-of-the-money if it expires underneath the strike price in a Call option or above it in a Put. When you trade binary options you may receive payouts of 65-71% for options expiring in-the-money and even a 15% refund for those expiring out-of-the-money.
Make below situation as an example of how a binary options trade can function:
Underlying asset - Nasdaq
Strike price - 2,164.460
Expiry time - 15:30
Investment - $1,000
Return - 71%
Expiry level - 2,167.20
Situation 1:
A trip option is purchased. In the expiry time of 15:30 the expiry level 2167.20 is above the strike price and for that reason in-the-money. We pay the investor a $1,710 payout
Situation 2:
A Put option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is higher than the strike price and so out-of-the-money. We pay the investor your money back of $150.
how to trade binary options