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• What Is Binary Options Trading Uk
• What Is Binary Options Industry
• Binary Options Brokers
• What Is Binary Options Strategies

An option, in general, is a financial instrument which allows its owner to sell or buy a specific asset (i.e. A currency, a stock, etc) at a pre-determined price and at a pre-determined point in the future. In other words, it is a sort of financial agreement which gives its owner the right (but not the obligation) to buy or sell a specific asset. In 2008 the Chicago stock market in the US witnessed the birth of a new trading instrument based on the concept of options; it gained popularity among traders in no time, mainly due to the fact that it simplified the trading process, while increasing potential profits.

The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words the best binary options expiration time is the 60 seconds time frame. We recommend highlighting on your charts the starting point and the ending point of your 50 candle low that you have identified.

What Is Binary Options Trading Uk

Moreover, even novice traders could have a go at the market starting with small investment amounts, in contrast to the tens of thousands of dollars required to participate in classical options markets. This trading instrument was named binary options, and in this article we are going to explain what it is, how it works – and how to earn income from trading binary options. How do binary options work? The name itself hints at how binary options function: the word ‘binary’ means ‘something that can be in one of two states’ and is used most often in computer science, where the unit of information – the bit – is represented by a single number which can either be 0 or 1. In case of binary options, which indicates two possible outcomes of any given trade: the option can either expire with a profit or with a loss.

What Is Binary Options Industry

When buying or selling a binary option, the trader needs to forecast where the price of the linked asset (which is called “underlying asset” in this case) is expected to go during the lifetime of the contract – if the prediction is correct, the trader will receive a fixed profit, often expressed as a percentage of the initial investment amount; for example, profitability of 75% means that, in addition to your initial investment sum, you will receive three-quarters of it as a profit on a successful trade. In case of a wrong prediction the trader gets back a fraction of the initially invested sum, usually from 5% to 15%. Let us look at a more detailed example. Imagine that you have analysed the market and determined that the oil price is going to go up within the next hour. Let’s say you decide to use this opportunity and purchase a one-hour “up” binary option on oil for $100 via your broker’s trading platform.

Binary Options Brokers

The option’s payoff, fixed and known before the deal, is, say, 80%. If, after an hour, the price of oil is by any amount higher than it was when you were opening the trade, you will get back $180 in total. 2 minute binary options. If your prediction turns out to be incorrect and the price of oil actually declines, you will get back $5-$15 depending on your broker’s offer. The expiration time, i.e.

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The lifetime of the option, may vary from 30 seconds to up to a year. The trader’s income in case of a correct prediction can go above 90%, with some riskier types of options allowing to make 200% and more on a series of linked trades. However, such level of profitability and convenience comes with a set of responsibilities: one needs to possess the relevant skills and experience, and also be ready to take higher risks. /no-deposit-binary-options.html. Lately, many forex traders are choosing to switch to binary options because of higher transparency: the profit levels, as well as possible maximum risks, are known in advance for every particular deal. In addition to that, account management is made easier – you can always determine what the minimum number of successful trades should be in order to ensure stable profitability. There are four main asset groups that are used as underlying assets for binary options: currency pairs, such as EUR/USD or GBP/USD; commodities, such as oil or gold; stocks of large corporations, such as Microsoft or Apple; as well as stock indices, such as NASDAQ or FTSE. Binary options therefore provide easy access to a wide range of investment instruments, some of which are not available to small investors: for example, if you wish to profit from Apple’s stock price changes, it is not necessary to pay the minimum $5000 to buy Apple stocks directly – you can purchase a $50 binary option on Apple instead, giving you the same results from Apple’s price changes.

What Is Binary Options Strategies

Some novices compare binary options trading to betting on sports events or even casino games, yet it is important to understand that this instrument has nothing to do with gambling. Financial trading is a craft, not a game, and if you have an intention to obtain stable income, it is important to take it seriously and work on your trading skills. Where can I trade? Just like with any other financial product, there are many brokerage companies that offer their specialized platforms for binary options trading. Before opening a trading account, it is important to choose a reliable broker with a good reputation.