How to Trade
Trading binary options is not a complex task. Unlike traditional options, anybody can do it even if he or she doesn't have an in-depth knowledge of business and finance. It is actually a matter of predicting whether the price of stock, foreign currency, index or commodity will go up or down at a designated expiration time. It is only during expiration time that binary options can be exercised.
If the options settle in-the-money at expiration, you will receive a pre-specified amount in dollars. But if the options settle out-of-the-money at the designated time, you will receive nothing. Although you need to do some market analysis before trading, what really matters is your prediction. It must be correct to enable you to garner profits.
Here are some easy-to-follow instructions on how to trade binary options online:
1. Create a binary account.
You need to register or create an account with a trusted binary trading platform to be able to trade in binary options.
2. Fund your account.
You should fund your account so that you can qualify for the trading. You can fund your account in a lot of payment methods including wire transfers and credit cards. You can also deposit cash to your account either in either of the following denominations: US dollars, Canadian dollars, British Pounds, Australian dollars, or Euros.
3. Do your analysis.
Firstly, you have to determine the period or time of expiration you want to trade in. After this, you need to make a forecast or prediction which way the price of your chosen asset will go (either up or down). Here is where your analysis should come in based on your evaluation of current market conditions. As a binary options trader, learning the basics of how to analyze market trends can help you make the right prediction, although you can still trade even without it.
4. Set an amount to invest.
Once you have made a prediction, you need to decide how much money you should invest on it. You can trade on any binary option for as low as $10 or as high as $5,000.
5. Pick your position.
If your analysis makes you believe that the price of the asset will increase at expiration time, you should click on "Call". But if you think that the price of that asset will fall, click on "Put".
6. Wait for your option to expire.
Now that you have picked your position and invested on it, the next thing for you to do is wait for your option to expire. Most online trading platforms allow their traders to keep track of how their trades are performing. If your prediction is correct at expiration, you will receive a payoff in a fixed amount in cash that is channeled through your binary account.