Binary Options Trading

Published: 30 March 2016 Updated: April 24, 2023

With the development of information technology on the Internet, many different ways to generate income began to appear. Financial trading stands out among others. exchange tradingThis approach has become the most popular because of the high yield of the process, its accessibility and simplicity. This approach to exchange trading has become the most popular because of the high profitability of the process, accessibility and simplicity. So what is Binary Options Trading and How to make money from it?

First of all, we want to make it clear that binary option - is one of the types of stock exchange contracts used to make a profit on the movements of asset prices (currencies, shares, commodities) on the world financial markets. This type of exchange instrument has been known for more than 20 years. But only after the development of the Internet has it become available to ordinary citizens.

Income in binary options depends not so much on the price of a financial asset, but rather on the correct forecast that a market participant makes. In order for a contract to make a profit, you only need to determine the direction of price movement on the chart, in which the next moment the quotes will move:

Price movements on the chart

All option traders ask themselves the same question - up or down, it is necessary to draw up a contract to make it profitable. Agree, it is not difficult, and the chances of getting profit and loss are absolutely equal.

The next indicator that determines the profitability of a binary option contract is the expiration, or simply the expiration or life of the contract. This is the time after which you expect your prediction to hold true. For example, you made a prediction that quotes will fall in 5 minutes. If at the moment of expiration of the period set by you the price of the asset has fallen at least by 1 point from the level of the price, at which the deal was made, then you get your profit, which can be up to 87% from the contract sum. To choose the expiry time Binary Options Brokers on their terminals place a special menu with the available range of time periods.

Time period diapasonon

To prevent binary options trading from turning into a guessing game or a game of chance where the winning depends on chance and luck, traders use different kinds of trading strategies. There are many varieties and classifications. Some are based on simple laws of price movements - the so-called system of trading on pure charts, others use the fundamental indicators of the economy of states for trading - the fundamental analysis of the market, and others use automated technical means - the automated analysis of the market. indicators. Trading on pure charts requires special skills and is difficult enough for beginners to understand, fundamental analysis is more suitable for long-term investing, but trading binary options on indicators is a simple and accessible way even for beginners.

Technical means - indicators

Judge for yourself, what can be difficult in obtaining income in binary options, when the direction of price movement will show you a special indicator, the variety of which is also a huge amount. For example, a very accurate and popular indicator Alligator By crossing its lines it shows where the quotes will go:

Popular Alligator indicator

Seeing such a crossover, each of you can make a contract in the right direction and get your share of the profits in the financial market.
Or another example, MACD indicatorIt is also well-known and popular among traders, even among professionals:

MACD indicator

This indicator, in addition to the direction of the movement of quotations, can also indicate the force with which the movement will occur, which can also be effectively used in the trades.

Among the factors that determine the accessibility of the method of earning income on binary options, it is also worth highlighting the low bar, in financial terms, to gain access to the market. For example, in order to start trading with Binomo brokerI'm not sure how much money I have to put into my trading account, which trading platform we showed in the screenshots, but I only need to put $10. Although you can simply take advantage of the broker's bonus program and trading will start without any investment at all. It distinguishes trading with binary options from other ways of getting income over the Internet which often require considerable financial investments.

So, to summarize. Binary options trading is a simple, straightforward, affordable and highly profitable way to generate income through the World Wide Web.

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