Before we jump into our topic of Binary options trading, let’s talk a bit about importance of investment.
Warren buffet, the world’s most successful investor and a billionaire, suggests to invest. If you really want to get rich or financially stable, you should always invest. Without investment, there is no way to move forward. If you do not invest, you will stay where you are.
But the question is
Where to invest?
Which is the safe investment option?
Well, there are many kinds of investment. Every investment involves some kind of risk. However there are few which are not much risky. Binary options trading is one such kind of investment which, though is risky, but its risk is defined and limited unlike forex in which risk can go beyond boundaries.
Binary trading is all about speculation. The investor who invests in binary options speculate about the price of an underlying asset whether it will increase or decrease within a certain span of time. In case his speculation proves right he earns profit and vice versa.
As incurred from the above explanation and as its name implies, there are only two options in trading. When you speculate an increase in price of an underlying asset, you buy a call option. Similarly, you will buy a put option if you think that price will decrease over the certain interval time. So this is a zero sum gain. If your speculation happens right, you will get all the profit, otherwise you will lose all.
How to do Binary Trading?
Binary option trading is done through a broker. There are dedicated binary option brokers who offer binary option trading on stock, currency and commodities. If you ever wish to do binary option trading, make sure that the broker is regulated one. Only a regulated broker is reliable and provides secure platform for trading options.
It is important to note that in binary option trading, whether you buy a call or put option, you are not dealing with the asset physically. It does not give you ownership of the asset. You only make prediction about the price of the asset. However the price movement fluctuates quite predictably giving traders a good chance to making a lot of money.
In binary option trading, risk management is quite easy. Investors invest only that amount, the loss of which they can bear. Because risk is defined, they exactly know that how much amount they will lose if their speculation happened wrong. The good news is there are such brokers who even offer a 15% refund of losses.
How to Choose the Best Binary Options Broker?
Because of growing popularity of binary option trading, there are a large number of binary option brokers operating in the market. A reliable and regulated broker is high in demand. Unfortunately, there are more scam brokers than reliable ones that makes it difficult to choose a reliable broker. Scam brokers can cause huge losses to traders.
Reliable and successful brokers have certain characteristics. To make sure that your broker is trustful, base your selection on following attributes.
- It should provide you with a binary option software having simple and user-friendly layout.
- It should provide you with maximum expiry periods so that you may have more control on your trades.
- It should provide you at least 75% to 90% on every successful trade and 5% to 15% return on every unsuccessful trade.
- It should provide you with the binary trading software in your mother tongue so that you have convenience in using the software.
- It should allow free registration and either no or low initial deposit.
- It should provide multiple payment methods for easy withdrawals.
- It should extend excellent customer support.
If your broker has all these characteristics, you can do fearless binary option trading. Because a right broker is your way to profitable trading.
Start trading now derayoptions