Binary options as an option for stock trading.
When considering the topic of stock trading, one cannot ignore binary options trading, since this type of trading has recently been gaining popularity among traders at a breakneck pace.
What is this earning option, what is the basis for making a profit and what nuances should be taken into account when trading?
Binary options are a type of contract during the conclusion of which the amount of loss and profit is known in advance, for example, if the forecast comes true, you receive 90% of the contract amount, and if the transaction is unsuccessful, you lose 95%.
Distinctive features of binary options are:
• Simplicity - the most simple trading process that does not require much time to study technical issues.
You just have to choose two forecast options - up or down, the amount and time of the transaction.
That is, if you play to increase the euro exchange rate in relation to concluding a contract for 100 dollars and after an hour the rate has actually increased, the amount in your pocket will be already 185 dollars. • Trading terminal for options - in most cases, there is no need to install anything on your computer; trading is carried out directly in the trader’s office using a 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.
• The presence of demo accounts - allows beginners to first practice with virtual money, and only then risk real money.
• Trade from $1 - Most companies have a minimum trade of just $1.
• Brokers for options trading - there are quite a few firms that specialize exclusively in this type of contracts, but gradually there are also universal brokers that work with options.
You can read about the best of them in the article “ Binary options brokers ”.
You should not think that options trading is an exciting game, since the success of transactions here depends not only on luck, but also on a correctly made forecast, which significantly increases the chances of success.
Read what to consider when trading and how to correctly make those same forecasts in other articles on the website time-forex.com