What Is Binary Options Trading

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What Is Binary Options Trading

 

Binary options trading are the most popular form of investment amongst small time private investors.

 

Trading binary options are known for their simplicity, which is one of the many reasons why they are a sought after form of investing your capital.

 

 

Simple Trading

 

Any trader new or expert investor has to simply deduce whether a specific asset is about to go up or down in value in a given time frame.

 

Binary options can be traded from 60 seconds trade and upwards.

 

If we take currencies as an example (as they are the most volatile and popular in binary options trading), if a trader looks at a chart in their trading platform and deducts that the USD/EUR pair will keep moving in the same direction they place a trade and wait for it to close.

 

 

High Returns

 

When people ask what is binary options trading all about? One major point comes to mind and that is “high profits”.

 

The basic investment can make a minimum profit of 70% and will vary according to the binary option traded and the strategy chosen. There are trades which are of higher risk but will give a trader a return of up to 350%.

 

 

Money Management

 

Managing your capital in the financial market is crucial to a trader’s success.

 

What is binary options trading and money management? Well, as opposed to other financial markets where a stop loss strategy should be undertaken in order to ensure the loss on a losing trade does not escalate out of proportion.

 

The only risk in binary options trading if a trade goes bad is a loss of the initial investment.

 

The main advantage here is that the loss if it occurs is well known in advance and cannot be greater than the initial sum invested.

 

 

Money Back Guarantee

 

Most online brokers will also offer their traders a money back guarantee if they make a losing trade, this amount varies and ranges anywhere from 15% to 25%.

 

 

To conclude

We hope we have managed to give new comers to binary options trading an idea of what is binary options trading all about.

 

If you are a new comer to binary options trading and you wish to make your first steps to financial freedom, we suggest you visit our Educational section and familiarize yourself with trading basics.

 

Before you can start trading you will need to open a binary options trading account, we suggest you read our Brokers reviews and choose the one which will suit your trading needs.

 

What Is Binary Options Trading

 
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