A guide to Binary Options Trading

These days Binary Options have become a way of earning profit from the movement in value of a large and dynamic range of commodities, assets, stocks and shares or even FOREX. The reason behind their popularity is that traders do not have to make a purchase, they just have to make one or two possible decisions while placing them that being yes or no.

What are Binary Options?

These are estimates of underlying assets performance during a given time period. The word binary stands for “having two parts.” The trader needs to predict either ‘Call’ or ‘Put’. BO trading has two investment options – to predict and then to choose between them.

One investment possibility is expressed when you predict the price of the asset will rise, this type of investment is named “Call” option. The other possibility is when you predict the price of the asset will fall, this type of investment is “Put” option.

Choosing an asset is the first step of your investment. If you have interest in gold prices, you may choose to place a binary investment in gold.

Assets that can be traded as Binary options

ETX Capital has a wide variety of options available for its traders. You can either deal with:

  1. Indices – Such as Dow Jones, NASDAQ, FTSE, Nikkei and many more
  2. FOREX – combinations for all major currencies EUR, GBP, JPY, USD and AUD are just to name a few
  3. Commodities – Gold, Silver, Coffee, Oil , Corn and several more
  4. Stocks – All major giants in the market are listed with the financial market to name a few are Google, Deutsche Bank, Aviva, Coca Cola, etc..

Choosing a Broker –

Each Broker has a wide variety of tradable assets and many of them have additional offerings like welcome bonus, which massively increases the value of the initial deposit. Brokers also have a range of account types, choose an account that will give you access to the maximum benefits based on the level and volume of trades you place.

Choosing an Expiry Time –

Now it is time to decide ‘the time’ – the time for your trade. You can place trades, which last for 60 seconds or can place much longer term trades say they will expire in a month’s time. It is imperative that you select the expiry time wisely because there are many events that could affect the value of any financial asset that you place trades upon.

Trending Options –

Now that you have taken all the important decisions it time to focus on the choices of trade you have made. The option that you have selected will it result in financial gain or not. Your broker should provide you with a Trending Options feature.

Early Exit –

As soon as you become aware of any potential events that could lead to a swing in the opposite direction and bring a change in the value of your chosen trade, consider it the right time to exit.


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