Lesson 2 - How to trade binary options? HOW TO TRADE BINARY OPTIONS Some people afraid to trade binary options, considering that it is difficult technically. I am introducing a simple step by step instruction that will dispel your doubts. While trading is conducted through finpari.com, this should not confuse you because trading platforms have very little differences. Simple steps: Choosing an asset. Assets: Currency pairs, Stocks, Commodities, Indices.
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Choosing the expiry time.
Next click on Up (Call) or Down (Put) button depending on a preliminary analysis and price movement forecast of a chosen asset. Note that the result of the trade will be calculated based on the price at the time when you opened a trade. This is very important! There are brokers who have other conditions; in particular the profit of the bought option is calculated after couple of minutes from the time when trade has been executed. We do not advise for beginners to start trading with such brokers. open in browser PRO version
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Now is the time to enter the amount of your investment. At this step you must be very careful, because sometimes during psychologicall stress people do crazy things. Before your click “buy� button, properly check the amount that you don't have extra zero at the end. Remember, that in case of a loss due to carelessness no one will refund your money. Trust my experience; stupid mistakes often occur especially at the first stage of trading.
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If you have made an accurate forecast and currently your option is in-the-money (in profit) you will see the following picture:
After the expiry time, you will see the level where your trade was closed.
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As mentioned above, different brokers have their own additional tools. But in general, all have the same steps which won't be difficult to understand.Trading with FinPari I found out very useful feature – possibility to cancel a trade in 5 seconds after placing it. It’s a perfect protection against accident actions!ADDITIONAL TYPES OF BINARY OPTIONSApart from the regular binary options - Above (Call) and Below (Put), where you need to determine if the value of an asset will go up or down, brokers offer other options.
For example, you might have a choice of the following types of options: Options to touch - "One-Touch" Here you need to predict whether the value of an asset will touch a certain level set by the broker prior to the expiration of an option. There are several varieties of such options. However we will not describe them all here, because despite the enormous profit potential (from 250% to 500%) they are hardly ever end up in open in browser PRO version
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the-money. So if you are a beginner it is better not to pay attention to these options. Options for 60 seconds Very tempting kind of trading for beginners. You can earn 80% on your investment very quickly, but only at a first glance. Such short-term options are difficult to forecast because you will have to analyze not the price on the chart, but market noise. Therefore in the long term it can lead to losses. Options Builder Can be useful to beginner in particular when choosing the percentage of the profits ratio. Parameters may be different. We won't get into details here; you just need to choose a suitable ratio for yourself. For example, Finpari offers this feature when buying a regular option.
Recommendation: start trading with simple binary options, especially if you are a beginner. Keep others for later time when you'll have enough experience.
In the next lesson we will learn how to calculate the win ratio in order to trade without losses and also go through money and risk management principles. Now few assignments: 1. To learn Binary Options trading techniques, make a few test trades; with the trades size not more that 5% of your initial capital. 2. In order to better understand the principle of working with them, use the minimum trade size to buy additional options.
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Want to know more? Subscribe to my YouTube channel, where I publish useful video examples, how to trade binary options.
Sincerely, Abe Cofnas Professional trader
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