What is Binary Options Trading? Are Binary Options Scam?

What are Binary Options Trading?

Basics on Binary Options • Binary Options are financial exotic options.

• Traders will predict the price according to the market condition.

• If you guess correctly, you win a payout. If you are a wrong, you gain nothing.

• The expiry period for binary options is very diverse as short as 30 seconds or last up to a year.

Buy a call option When you predict the price of the asset will increase

Buy a put option When you predict the price of the asset will decrease

Types of Binary Options

Types of Binary Options - Definition High/Low

In/Out

Touch/ No Touch

Ladder

Trader buy a call or put option if he thinks the price of the asset will increase or decrease from the current market value.

Traders have to predict whether the price of the asset they have chosen will stay within a given price boundary or stay out of it.

In Touch, the market price of the underlying asset much reach the strike price at-least once before the expiry and in the case of No Touch it is the opposite.

In Ladder, there are multiple price limits and requires different price movement from the current market price.

Common terms in Binary Options trading • • • •

Binary Call Option Put Option Strike Price

• • • •

Expiry Date In the Money Out the Money At the Money

To know detailed on Common Terms of Binary Options

Binary options Underlying Assets

crypto

Commodities

Indices

forex

Stocks

Example of Underlying Assets Forex AUD/USD

Stock Apple Google Barclays PLC

Indices

USD/JPY EUR/USD

Crypto Ripple

Ethereum Bitcoin

Commodities

DAX 30

Crude Oil

FTSE 100

Gold

S&P 500

Silver

How to Trade Binary Options

Choose an expiration date

Choose a broker

Choose market and asset

To know detailed information

Place your trade

Allocate the amount

Binary Options Explained with Example We are using high low/ call put method of binary trading for Forex Traders

A Forex Trader

Binary Options Explained with Example We are choosing EUR/USD as a trading pair where broker offers 90% payout

Binary Options Explained with Example We have chosen 10 minutes as an expiration time

Binary Options Explained with Example Predict the market price of EUR/USD pair

If the price will close above, you buy a call option

If the market price will close below, you buy a put option

Binary Options Explained with Example A lot of analysis involved to win a trade Follow the market news Win the trade with High Payout

Guess the asset price accurately

Use trading tools and indicators

Binary Options Explained with Example Suppose the EUR/USD pair price is 1.14 After the market analysis, you decide to buy a call option If your prediction goes right you will earn a 90% return or get nothing in return

Deposit $10

Binary Options Explained with Example Let’s examine the two scenarios

If your prediction is correct (EUR/USD price rises above 1.14 after expiry), you get 10 + (90% of 10) which is equal to $19.

If your prediction is wrong (EUR/USD price drops below 1.14 after expiry), you get nothing in return i.e. $0.

Advantages of Trading Binary Options High Payout Percentage

Simple Nature of Trading Flexibility in Trading Instruments

Flexibility in Time Low Initial Deposit Fast-paced Trading

Disadvantages of Trading Binary Options

Many traders consider trading binary options as gambling

Losses are substantial

Not permitted in certain locations

Lack of risk management

At the end‌

Start with a small investment and invest in those markets that you are comfortable with.

Find a few strategies which will help you to trade a profitable Binary Options.

Greater the price movement, higher the payout.

Take trading losses as a lesson instead of a setback

To Get More Knowledge On What is Binary option

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