Binary options strategies
Binary Options Strategy and Concept
Trading binary options isn’t the same as gambling, for example. Therefore the most important thing to do before trading binary options is to make your own strategy or the so-called concept due to which chances for right predictions will only increase. There are a few simple steps to follow in order to understand how the binary options system works and how to make high profits from every trade.
How do Binary Options work?
Binary options really do work very easy yet it is still significant to understand the process. The word “binary” has a meaning of “two”, which automatically leads to two possible ways of outcome: either you win (100% – get the invested money back plus the payout percentage) or lose everything (0%). In order to win, every trader no matter if he/she is a beginner or novice should be aware of a financial situation in the country and around the world 24 hours a day. Additionally to that it is advised to read newspapers, watch the latest news, surf the net for even more detailed information, charts etc.
Let’s take an example: our chosen asset is commodities (oil). In case if you predict that its value will rise, you have to place a Call option (buy), yet if you think its value will decrease you have to place a Put option (sell).
Types of assets
A good and respective broker should offer a variety of different assets, such as: commodities (oil, wheat etc), Forex currency pairs (USD/EUR), stocks and shares etc.
It is a well-known fact that the payout ratings vary according to the type of binary options. For example, when dealing with high/low options the payout is around 80%-90%. Whereas the payout of boundary or one-touch options is around 400% and can even reach 600%. That’s why it is already for a trader to decide which binary option to choose.
Expiration date is a certain time by which the prediction should be made as then the options will expire. This is the exact time when the outcome will be known. If the prediction turned out to be right then a trader wins, if not, then unfortunately he/she loses.
Main Tips and Strategy
There are a few factors that play a pretty important role in trading binary options. As it was mentioned above, one of the strategies is to read, watch, surf as much as possible. You can experiment with different tools like ADX trading strategy, etc. The sources can be different starting from TV, newspapers, magazines and finishing with Internet and perhaps even discussions with your broker. The presence of a trusted broker in a trading part of your life is very significant as exactly he gives you a wide range of assets, high payout commission and after all a possibility to win. What else could one wish for? Consequently the rule of a successful binary options trader is the following – to have own strategy or concept as well as be as informative as it is only possible.