Binary Options Trading – How to Trade Binary Options?

binary optionsIf you are thinking of becoming a Binary Options trader then you will have to fully understand what these types of financial instruments are and how you can make profits from utilizing them. Binary Options are a very easy way of being able to trade and make profits on the constant price fluctuations on a range of commodities or shares but without you ever having to physically purchase any commodities or shares.

In their most basic form Binary Options will offer you the ability of placing a high or low option on things such as stocks and shares, worldwide indices, commodities or even Forex.

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This type of Binary options is going to see you hopefully making a fixed return over any given period of time, as each Binary Options you can place a trade on will have both an expiry time and also a fixed strike price.

So for example if you think that the price of gold is going to decrease in value over a certain given period of time then you should place a low option, and if gold then falls in value as predicated by you over the period of time chosen then you will have placed a winning trade and you will be paid out as the rate agreed with the Broker based on the amount you invested on that trade.

If on the other hand the value of gold rises in value over the given period of time allocated to your trade then you will have placed a losing trade and your invested funds will be lost. The reasons Binary Options are called Binary Options is that there are only two possible outcomes, with a winning trade or a losing trade, much like with Binary there are only 0’s and 1’s.

If you are interested in place this type of Binary Options trade then you will be faced with making a decision of whether the value of whatever it is you intent to base your trade around will rise or fall.

The terminology use for placing a trade when a trader is hoping the value of their chosen trade will rise is a “call” trade, and the opposite of that trade which is a trade on which the trader will be hoping the value decreases in value is known as a “put” trade.

The Broker at which you are placing your Binary Options trade at will offer something known as a strike price, and whatever it is you have based your trade around must finish over that value if you have placed a call trade or below that value if you have opted to place a put trade.

Every single trade you do decide to place will also have an expiry time, and it is at that exact moment in time when you will know whether you have placed a winning or losing trade, depending on the actual price achieved on the open markets for whatever it is you have based your trade or trades around.

The main attraction of Binary Options trades is that you are never going to have to buy for example the commodity or shares that you will be basing your trades around. So for example a gold bullion dealer will first have to source a supply of gold, pay for that gold take delivery of it and then store it, until the value hopefully rises and the dealer will then need to find a buyer and then sell the gold on to make his or her profit.

By placing Binary Options trade you can therefore base your trades around the price of gold but will never have to buy any physical gold, which as you know can be very expensive, more so when you factor in transportation costs and storage costs.

There are of course pros and cons of becoming a Binary Options trader with one of the downsides being you do run the risk of losing your entire investment placed on any one single trade. However, the benefits of placing Binary Options trades is that you are always in control of just how much you invest on any single trade you place, and you will also know in advance just how much you stand to make on each single trade you have chosen to place.

No Risk Binary Options Trading

If you would like to test out trading Binary Options online or via a mobile trading platform then you are going to find all of our featured brokers will let you open up your very own demo trading accounts at their respective sites.

This will enable to you get used to the way each trading platform works and operates and you will be credited with a huge valued demo credit account balance. You will be able to use those demo credits to place Binary Options trades on all of that Brokers live and open markets but without any risk.

You really going to be amazed at just how easy it will be to trade any type of Binary Options and by opening up a demo account you will be able to place some of the many more exotic trades which are available.

As soon as you have then going on to fully mater the way your chosen Brokers trading platforms operate you will be able to switch over to using a real money trading account instantly, and once you have made a deposit into that account you can then place trades for real money.

In fact by signing up to one or more of our showcased and fully reviewed Binary Options Broker you will find that once you have made an initial deposit you with then qualify for a new trader sign up bonus. The value of each Brokers welcome bonus will be displayed don their respective website and you will also find details of the bonus values throughout our website, so take a look at some of our Broker reviews and get trading today.