Binary options as an option for stock trading.

When discussing stock trading, we can't ignore binary options trading, as this type of trading has recently been rapidly gaining popularity among traders.

What exactly is this type of earnings, what are the principles behind profits, and what nuances should be considered when trading?

Binary options are a type of contract in which the amount of loss and profit is known in advance. For example, if the forecast is correct, you receive 90% of the contract amount, and if the trade is unsuccessful, you lose 95%.

Distinctive features of binary options include:

• Simplicity - the most simple trading process that does not require a lot of time to study technical aspects.

You only need to choose two forecast options - up or down, the amount and time of the transaction. That is, if you play on the rise in the euro exchange rate by concluding a contract for 100 dollars and an hour later the rate actually rose, you will have an amount of 185 dollars in your pocket.

• Trading terminal for options - in most cases, you do not need to install anything on your computer, trading is conducted directly in the trader's office using the web terminal.

This issue is described in more detail in the article " Terminal for binary options ".

• Large selection of instruments - you can trade almost everything from oil and metals to currency pairs and stocks.

• Availability of demo accounts - allows beginners to first practice on virtual money, and only then risk real funds.

• Trading from 1 dollar - in most companies, the minimum transaction is only 1 US dollar.

• Options trading brokers – there are quite a few firms that specialize exclusively in this type of contract, but increasingly, there are also general-purpose brokers working with options.

You can read about the best of them in the article " Binary Options Brokers ."

Don't think of options trading as an exciting game, as the success of trades depends not only on luck but also on a well-formed forecast, which significantly increases the chances of success. What to consider when trading and how to make those very forecasts correctly can be found in other articles on time-forex.com.