How to trade binary options
To trade binary options is around speculating in which direction a good point is likely to move. No shares should be bought, no currencies traded. This is a simple and efficient strategy for investing in the real estate markets with a small budget and limited trading skills, whilst also benefiting the greater experienced trader too.
trade binary options
Trading on our platform is a matter of speculating higher or lower i.e. will the price tag on the underlying asset with a set time in the future be higher or less than its current price, called the strike price.
To trade binary options with us, an investor must select the underlying asset, the expiry some time and the direction where he speculates the asset will move. The underlying asset is what the choice derives its value from also it could be an index (e.g. Nasdaq), commodity (e.g. Oil), currency pair which known as forex (e.g. EUR/USD) or stock e.g. (Apple), that we have over 60 available. The expiry period of the binary option trade dictates if the contract ends and it can be the end with the nearest hour, or perhaps the end of the day, week or month. The investor then needs to consider the direction by which he believes the asset will move. If he thinks UP, he then will buy a CALL option. If he believes DOWN the real key will buy a PUT option.
An option is considered in-the-money if it expires above the strike price in a very Call option or below it inside a Put. An option is considered out-of-the-money if it expires underneath the strike price in the Call option or over it in a Put. If you trade binary options you will receive payouts of 65-71% for options expiring in-the-money and even a 15% refund for those expiring out-of-the-money.
Consider the below situation as an example of how a binary options trade can function:
Underlying asset - Nasdaq
Strike price - 2,164.460
Expiry time - 15:30
Investment - $1,000
Return - 71%
Expiry level - 2,167.20
Situation 1:
A phone call option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is higher than the strike price and for that reason in-the-money. We pay the investor a $1,710 payout
Situation 2:
A Put choices purchased. At the expiry time of 15:30 the expiry level 2167.20 is higher than the strike price and therefore out-of-the-money. We pay the investor a refund of $150.
how to trade binary options