Make Money with Binary Options Trading

There are several reasons for the popularity of binary options trading today. The first one is because it is the simplest form of trading available: all traders have to do is predict whether the price of an asset will be higher or lower than its original price when the trading period ends.The second reason is also its main difference from standard trading: all trades are timed, which will establish the potential for both profit and loss; whereas standard trading may result in unlimited potential losses.

Transparency

Traders are able to benefit from the transparency in binary options trading. For example, before making any investment, traders are always provided the potential profit and loss amount. In case of a profit, traders will be rewarded a profit percentage that is always provided by the broker. In case of a loss, traders will lose the exact amount of his investment, which never fluctuates. As a result, traders are able to fully control any loss in his accounts.

The Basics

Those who want to earn money but do not have any previous trading experience with tradition methods can totally make use of binary options trading. It is surprisingly simple, yet in order to win, traders should equip themselves with the basics of trading and trading strategies. For example, traders should be able to analyze the performance of an asset to make sure that the prediction will have a higher possibility of being accurate.

In binary options trading, it’s all about prediction: accurate predictions mean profits. Unlike standard trading, binary options traders are able to take advantage of both positive and negative market conditions. In a basic binary options trade, a trader has to pick either of the two options ‘Put’, which means he predicts that the asset price will increase, and ‘Call’, which means he believes the opposite: the asset price will decrease.

One of the most powerful tools for binary options traders is the variety of trade types. These include Boundary, Range, Touch, No Touch, 60 Seconds, just to name a few. Traders are given the best opportunity by being able to choose the trade type that matches current market conditions or the current asset price performance.

Expiry Time and Asset Types

Unlike standard trading, binary options trades always have a starting and ending time points, between which is the ‘expiry time period’. These periods vary from as short as just one minute to as long as weeks. Traders are allowed to choose their own expiry time from all the options provided by the broker. Choosing expiry time is important, as the decision whether a trade is a profit or a loss is based on the value of the asset at the end of the expiry period.
The ability to choose parameters make binary options trading very personalized. Winning or losing, it depends mostly on the decision of the traders. Besides expiry time, traders can also choose the kind of asset they wish to trade with, which is usually provided by the broker in the form of a list. There are 4 main classes of asset: commodities, indices, stocks and currencies. But that’s not the end of it: in each of these 4 classes, there are several underlying
assets, whose number may reach as many as 100 nowadays.

Brokers are an important factor in binary options trading. Because they are responsible for providing a platform for trading and paying profits to winning traders, different brokers may offer different benefits to traders. One thing, however, that all brokers have in common is that they do not assess any per-trade fees. This advantage differentiates binary options brokers from traditional trading brokers. Brokers always help new traders in their decision making process by offering them the broker reviews. They also allow the use of demo account (which is free) so that the new traders can try using their service and make comparisons to find out the most suitable broker.

In 2008, the Options Clearing Corporation officially approved binary options trading. Although this financial instrument has been around for more than 30 years, it was not until that time that it became increasingly popular and attracted more and more traders from all over the world. Thanks to the recent regulations changes which improved the safety of binary options trading, traders now do not have to worry about their money anymore. Becoming a trader to earn money is now as simple as choose a broker and take your first steps into binary options trading. Check out http://binaryoptionsdailyreview.com/ for latest binary options news, brokers reviews, binary options bonus.