Types of options Traded
An option can be based on any type of asset that is traded in the market, including indices (such as Dow Jones), currency pairs (ex: Euro vs. Dollar), futures (such as the FTSE100 futures) and commodities (such as silver and oil).
Understanding the risk
Binary options are a simple way to trade price fluctuations in multiple global markets such as indices, futures, stocks, commodities and currencies. But a trader needs to understand the risks and rewards of these often-misunderstood instruments. Binary Options are different from traditional options. The major difference is that Binary Options are much easier to understand.
New to Binary Options?
Binary Options give traders who do not consider themselves experts on the most complex financial instruments, or who do not have the means to invest thousands of dollars in their first trade, a feasible option. With Binary Options, you can benefit significant profits when trading successfully, while not having to invest large sums of money.
Some of the benefits of Binary Option trading include instant results, simple trading, Web-based trading and potential of high rewards.
The simple way of trading is what most beginners like the best about Binary Options, it’s a great way to get to know the financial markets, without having to spend time to learn difficult to understand financial instruments. This way you can focus primarily on your trading.
Do your research
The down sides of Binary options trading, like other markets, are that without sufficient preparation in the form of research, you can lose money.
This is why we always advise our investors to open a demo account first and read our first time trader guide.
Before creating your account
First of all, there’s no real need to start binary trading if you are not interested in learning about the financial market. After all, your success in the long rung will be based on your knowledge, not your luck. In order to predict the direction of a market price correctly, you need to know what events are taking place at the moment that may affect the market trend. This means that you will have to read financial news, especially regarding the types of commodities you are looking to trade with.