Binary options trading – features, advantages and disadvantages.

Many novice traders give up trading forex due to their inability to understand all the intricacies of technical and fundamental analysis.

It seems to a beginner that it is simply not realistic to make a forecast of the future exchange rate, taking into account corrections or possible trend reversals. But trading on the stock exchange has many options, and some of them allow you to trade quite successfully even without special knowledge - this is binary options trading.

Binary options trading is a simplified type of trading, which takes into account only the final result of a transaction for a certain time. That is, now you don’t need to be afraid that the next rollback will force the stop loss to trigger.

The bottom line.

In order to make a transaction with binary options, you just need to make a guess what the price will be after a certain time - lower, higher or equal to the existing quote.

You can try your hand literally from 1 dollar on the InstaForex website , this is the most loyal option, since other brokers usually fix the minimum transaction volume at 20-50 dollars.

Profit.

Unlike regular trading, there is no leverage; you receive a reward if you win in the amount of 70 to 85 percent of the transaction, depending on trading conditions.

That is, they bet that the euro will go up against the American dollar by 10 dollars. An hour later the forecast was correct - get 18.50. There are also more complex types of options, for which the profit margin can reach up to 400%.

Losses.

If the forecast is incorrect, you lose almost the entire amount of the transaction; you may be left with 10 to 15 percent as insurance.

That is, if you make an incorrect forecast with the same 10 dollars, you are left with 1.5. Duration.

The duration of transactions when trading binary options can range from 1 minute to several weeks.

Tools of the trade.

You can open transactions on currency pairs, metals and some commodity groups.

Complexity.

Although binary options trading is one of the simplest types of trading, the use of technical and fundamental analysis here can significantly increase the effectiveness of transactions.