› How to trade binary options

How to trade binary options

A binary option is an investment tool, which will help to receive regular income for experienced traders and beginners from trading. There is no need to graduate from special educational institutions or have a ready fund of knowledge in the field of economics and finance, to learn how to work with this derivative. Also, you do not need to have a substantial initial capital, because when buying an option, the actual purchase of the asset does not occur, but only predicted the movement of the asset value at the time of expiration of the purchased contract.

The principle of the transaction in the binary options market is quite simple:

  • 1 Launch the trading platform.
  • 2 Choose the type of binary option.
  • 3 Choose a tradable asset.
  • 4 Set the expiration date of the option, which depends on its profitability.
  • 5 Invest any amount at your discretion.
  • 6 Make a forecast of the direction in which the value of the asset will go at the time of expiration of the option.
  • 7 Buy contract.

If you want to learn the process of buying an option, it is enough to watch the corresponding video courses 1 – 2 times and open a couple of transactions on a demo account. Much more time is needed, in order to learn how to analyze the market situation, and determine the points of entry into the market. It is extremely important for success in binary options trading not to make transactions randomly, but to follow to a well-developed strategy, which spelled out all the conditions for entering the market. Initially, you can use a ready-made trading algorithm, which is countless on the Internet. With the advent of experience, you can develop your own strategy, which must meet the following conditions:

  • Understandable. The trader must thoroughly study the trading algorithm, and understand each of its conditions, that to act quickly and in a timely manner.
  • The simplicity of the strategy. There is no need to use author strategies overloaded with various indicators. You can use simple algorithms that do not load the chart with many unnecessary tools.
  • Good statistical profitability. Before using the algorithm, it is necessary to collect statistics for at least 3 previous months. You can use only the algorithm that shows more than 60% of profitable transactions.

Before you start real binary options trading, initially, you need to check the effectiveness of the chosen strategy on a demo account. It is a very convenient and useful tool, which allows you to test your strength in trading without the risk of your own funds. When you are fully confident in the right strategy, you can safely start trading by binary contracts.

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