Binary Options Explained and Made Simple
The obvious question to the above would be what are binary options? Binary options are known as estimates of any of your underlying assets and their performance during a specified frame of time. In order for you to understand all about binary options or BO trading, you need to understand how trading market investing works.
How trading market investing works
When it comes to investing, investors will purchase assets they want to invest in. The profit and loss value is usually determined by the changing values of the assets. The investor might decide to sell his assets back into the market when he finds the value has increased in order to make a profit. When he sells it back to the market when its value has decreased, then he loses money.
The investor will be constantly worried about when the right time is to sell assets and get out of the market. But with binary options, trading is easier. Trading is done on the market and not in the market such as the other methods of trading. This way you only predict the movement of the asset in the time frame predetermined.
Binary options explained
If you look the word binary up in the dictionary, you will see it means “having two parts”. In the market, you would either predict two options, such as “Put” or “Call”. With binary options in other words, there are the two investment possibilities that you can predict on and then choose between them. A “Call” option is when one possibility of investment is expressed where you predict that the asset price will rise. The other one, the “Put” option is when it is predicted that the asset price will fall.
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The first step in investing will be to choose your asset. If you are interested in gold for instance, you might choose your investment in gold to be a binary investment. The more you know about the gold market, your chances of predicting any fluctuations in the gold prices will then be much more successful.
What can be traded
You can either trade in the indices like the Dow Jones, the Nasdaq, the Nikkei, FTSE and much more. You can also trade in Forex which is a combination of all the main currencies such as the USD, GPB, JPY or EUR for example. Commodities such as gold, silver, coffee etc. are also tradable. So are stocks from some of the top companies of the world such as Coca Cola, Google, etc.
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If you want to learn how you can trade, then the Opteck Academy will provide you with valuable resources to learn and improve your knowledge on binary options; the strategies and techniques enabling investors to rely much more than just on gut feel and good luck.
Trading with Opteck
Choose your asset you want to invest in such as gold. Opteck has created a professional and advanced multi assets online trading platform. You’ll enjoy the fastest and most secure trading platform. All you need do is Open an account to start right away with your trading. If you want to practice first, with no risk involved, then try the Binary option demo platform.