Wednesday, December 16, 2015

Trading in Binary Options - Explained

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 Binary Options are a way that anyone can profit from the movement in value of a large and dynamic range of commodities, assets, stocks and shares or even Forex. The reason why these types of financial trades have become so hugely popular is that traders have to make just one of two possible decisions when placing them, that being a YES or NO decision which in Binary Options trading are known as Put or Call trades. There is no requirement to actually purchase for example gold bullion if you wish to place a Binary Options trade on the value of gold, you simply need to decide whether the value of gold will rise in value or fall in value over any given time period. One major advantage of placing Binary Options trades is that you will find a range of different expiry times are available which can be as short as just 60 seconds or as long as one month.
If you are new to the world of Binary Options trading then below is a 10 step guide which will enlighten you on all there is to know about placing Binary Options trades at any of my featured Brokers.
I have more than confident that once you read through the following guide you will be able to place a large and very varied range of Binary Options trades online either via a no risk demo trading account or as a real money trader.

Steps to trading...

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1.Which Trades to Place 
The first decision you need to make when you are thinking of placing any type of Binary Options trade is just what asset, commodity or stock exchange you wish to place your trades on.
Once you have made an educated decision on just which type of asset, commodity or stock exchange you are interested in placing your trade or trades on you will need to decide just which way you think the value of that trade will move.
If you think for example the value of let’s say oil will fall in value (meaning you think the price will go down) then you will need to place a Put option, however if you think that the value of oil will increase in value (meaning you think the price will go up) then you will need to place a Call option.

     2.   Choosing a Broker 
You will of course need to select a Binary Options Broker to place your trades at, and with that in mind we would advise you to take some time taking a look through each Binary Options Broker.
Each Broker I have chosen to showcase on this post is fully licensed and regulated, and each of them offer a very wide range of tradable assets and many of them are also additionally offering new traders a welcome bonus offer which will massively increase the value of your initial deposit.
Each Broker will also have a range of different account types, and it is important that you choose to open an account that will give you access to the maximum benefits and extras based on the level and volume of trades you place.
Ideally consider opening up accounts at each of the featured Brokers, for there will be many benefits of doing so as you will find out in step four.

3 Choosing an Expiry Time 
Once you have chosen the type of asset you wish to base your Binary Options trades around and have selected a Broker at which to place your trades at, then you need to decide on an expiry time for your trades.
You will find that you can place trades which last for just 60 seconds or can place much longer term trades     which will expire in one month. It is important that you select the expiry time you would prefer as there are     lots of different events that could affect the value of any financial assets that you place your trades upon.

     4.   Understanding Potential Gains 
When you are considering making a purchase of a large ticket price item, you will always shop around to ensure you get the best deal possible.
This is something that you should consider doing when a Binary Options trader, as the financial gains you can make out of every single trade you do decide to place can and often will vary from Broker to Broker.
So your next step should be to take a look at what the potential gains will be on your chosen trades at several of our featured Binary Options Brokers, as by comparing them you will be able to select a Broker offering you the maximum returns on your investment.
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5.   Trending Options 
Although you will have made something of a rigorous effort when selecting just which trades are likely to result in a financial gain, you should always make use of all tools at your disposal to ensure the trades you are considering placing will result in a gain.
Though many Brokers offer the latest financial news stories which are often found on their news feeds, some traders also allow you to see which trades are currently popular with other traders. Always be on the lookout for Brokers which offer some form of Trending Options Feature, as by making use of the tool you will be able to easily spot which trades are currently attracting the highest volumes of trades from other money traders.
Trading Budget
6 Increasing Your Trading Budget
Competition between Binary Options Brokers is of course something you should always keep in mind as a trader, for you will often find you can make use of a range of promotional offers to help you increase the value of your trading budget.
Welcome sign up bonuses are of course very attractive to traders however be on the lookout for loyalty based promotions that many Brokers will offer you. Those loyalty bonuses and promotions can include deposit match bonuses and even risk free trades. So always double check to see if you qualify for any additional trading bonuses as they will allow you to lock in additional value and are certainly worth investigating before you simply place your chosen trades with your own funds.

7 Instantaneously Placing Trades (Mobility) 
You are never going to know in advance when a potentially profitable trading opportunity will suddenly become available, and that is something you do need to keep in mind.
As such you are best advised to have access to both an online trading account and also a mobile trading account at each Broker you sign up to. By having access to a mobile trading account you will of course be able to place your trades at any time and from anywhere.

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8   Hedging Your Trades 
Many traders will look into the possibility of hedging(meaning placing both PUT and CALL trades on a certain stock, or commodity, etc.) any live and active trades they have open or they may place a range of trades on which both sides of the trades are covered in two completely separate trades. One way of doing this would be to open up accounts at different brokers and make use of their high valued welcome sign up bonuses, and then using those bonus funds to cover each side of a trade.

9 Roll Over or Roll Forward Feature
 You will find another feature has started to become available at many Binary Options Brokers and this is something known as a Roll Forward feature. This type of additional trading opportunity will only become available to you when you have a live trade placed.
A Roll Forward option is a way of extending the expiry time on any live trades you have placed, and when you take this option the expiry time will then be extended to the next available one.

10. Early Exit 
While many traders will be more than prepared to wait until the expiry time has been achieved on all trades they have placed, if you become aware of any potential events that could see the value of your chosen trades swing in the opposite direction that you have chosen, while you trades are currently in line for a payout, then you can consider taking an early exit. Many Brokers will offer you an early exit option, and while you will have to pay a fee to end your trades before they are due to expire, by doing so you will have at least locked in a trading profit from those trades. However, only ever consider taking an early exit if you are convinced any potential gains you will make once you trade naturally expires are going to become losing trades due to current events that you may have suddenly become aware of.

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Professional Training
If you would like to learn how to trade like a pro you might want to consider taking a trading course.