Before to start trade, it is important to know what binary options trading is and what its important aspects are? Binary trading is a type of bet on the underlying assets where the strike price or price of bet displays as an index between 0 and 100. If the asset, which is being bet on crosses the strike price at the time of expiration of trading contract, even by 0.001 percent, the situation of profit will create. If it does not surpass the strike price, the trader will have to face the loss. A binary broker quotes price on the event, if the trader thinks that it will happen he will buy the bet, it he does not have will sell the bet.
Options trading is all about predicting the direction of an asset in particular point of time in the future. As it is an easy and safe form of trading, many traders are switching over from traditional form trading to binary options. The binary trading allows traders to invest in the market with minimal budget and earn huge profits at the end. Seeing its popularity more and more are associating them with this trading. Though this trading does not require any special knowledge to begin with trading, it is important learn at least basics for reliable and effective trading. Here are some steps that involved in starting with binary options trading in the most perfect manner.
Select a Platform
To start trading, a trader will have to search a platform integrated with all the important tools supporting effective trading. The platform must display features such as easy to use, reliable, easy to navigate interface, multilingual, safe, availability of multiple assets, higher payout percentage, and many more. There various popular options trading websites on the internet such as 24Option, AnyOption, StartOption, OptionBit, TraderXP, Zoneoption, XpMarkets, etc, which make trading smooth and easy for traders.
Once the platform is decided, a trader can now start trading. Trader needs to create an account on the platform or website; it is the first step of binary options trading. Opening an account is really easy; what all a trader needs to do is to go to the home page of a respective website and click on ‘create an account’. Some websites charge membership fees and some do not. It is a decision of a trader to which website he want to go with. However, it would be good if a trader analysis the market position of the website and success rate before starting trading with a particular website.
Select Asset for Investment
A trader must select an asset he is the most confident in. It is advised to put bet on underlying assets a trader has the knowledge of as it helps in manage investment and generate high returns.
Select Expiration Time
After deciding market and asset, a trader needs to figure out which trading expiration time he is comfortable with. Trading websites offer expiration time for minutes, hour, day or week. A trader needs to determine what direction his asset is likely to take place after certain time. In case the asset value attains the strike price before expiration, a digital options trader can buy call option to secure profit.
After following these steps, if the asset value falls in the in the money option, a trader can earn 71-81% return on his investment, if it is out of the money then he will get 10-15% refund on investment.