It is very simple and the traders can easily understand it. No matter if you are an experienced trader or a beginner; you can easily understand the trading process and various strategies which are used in the process.
Binary options works on a basic concept that involves the prediction of the price movement of the assets within a predetermined time frame.
If your prediction is correct, you will win the money and if you are wrong, you will lose your investment. Simple as that!
The price movement of the asset at the agreed date and strike price determines whether the trader wins the trade or losses the trade.
Option trading works on two basic options. These are call options and the put options. When the prices of the underlying assets are expected to go up, the traders are advised to purchase call options. If the prices are expected to fall below the strike price, the traders purchase put option.
In order to trade binary options successfully, the traders need to evaluate the market and make sure that the asset in which you are investing your funds will move as per your prediction. The next important thing to consider is the strike price and the expiration date of the asset.
You need to make sure that these values provide the best results. The traders can also use the software provided by the binary options broker to get the best options for strike price and expiration period. If the assets show the predicted price movements, the traders win the trade and earn huge benefits.
The only thing is the Predicting Part and sometimes certain Brokers aren't quite as helpful as you'd want on a small amount.
So it depends on how you want to trade and on what stocks,
My interests are Gold and Oil...
posted by Vicki c/- Vickispot V.
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