Category Archives: Binary Option Education

Binary Option Education – Learn to trade secure binary options

Why should you trade Binary Options?

Binary Options Trading offers a variety of advantages over other forms of trading that has made it a popular choice for many traders.

One of the main reasons people like Binary Option trading is that it’s extremely easy to get started. Once you understand the basics of placing a Call or Put trade it’s as simple as putting in the amount you would like to risk, and either pressing Call or Put and then waiting on the result.

Another advantage is that you know exactly how long you will be in a trade for. Binary Options Trading has set expiration times so when you enter a trade, rather than having to decide for yourself when to exit the trade and potentially exiting too early or too late and losing your entire bank, you already know the exact time the trade will end. A lot of traders prefer this as it allows them to accurately plan and predict their trading patterns and allow them to be out of trades during times of volatility.

Unlike other forms of trading, with Binary Options Trading you will never risk in a trade than your initial stake. With Forex Trading you can set your pip size and also a stop loss, but there is always a risk that you will lose more than you intended, and any slight miscalculation in the heat of a trade can leave your account emptied in a matter of seconds. With Binary Options Trading you set the amount you want to stake when making the initial trade, you can also see the % gain you can expect to make on your initial staked amount therefore allowing you to work out how much you can expect to profit and know exactly how much you’re risking regardless of the amount of movement within the markets.

Many people new to Binary Options Trading are also surprised to learn that there are no commissions either. This further allows you to plan your trading finances better as the exact amount you risk and the % payout will be exactly what you Win or Lose with no extra or hidden commissions from a Broker.

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What are Binary Options?

A quick summary of Binary Options.

Binary Options are a form trading, across a variety of different options that involves an all or nothing outcome to winning. The name Binary Options comes from the fact in the sense that Binary is made up of 1’s and 0’s, Binary Options trading has two possible outcomes, Win or Lose.

To Win or Lose in Binary Options, it’s necessary to predict the price movement of preferred assets over a set time. This set time is called the ‘expiration period’ and can be as little as 60 seconds, or as long as 60 minute depending on the broker of choice.  Within this time period the chosen asset will rise and fall but it is the final position of the asset at the end of the expiration period that matters in Binary Options trading and decides whether you Win or Lose.

When placing a Binary Options Trade you must decide whether you think the chosen asset will finish above or below the chosen price and in line with this place a CALL or PUT trade. If you place a CALL, you think the chosen asset will finish above the chosen price at the expiration time and if you think it will finish below the chosen price then you chose a PUT trade.

When the expiration time is reached, If your chosen trade was correct you will be ‘In the money’ and receive a payout usually a set % that you will be aware of before placing the trade. Most brokers will have this % displayed next to the assets that you are trading so you will be able to work out how much you’re set to profit in the event you finish ‘In the Money’ If however, your chosen trade is wrong, you will finish ‘Out of the Money’ and you will lose your initial deposit you put on the trade. This is where the all or nothing aspect of Binary Options trading comes into play.

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