1) What Are Binary Options?
Binary options are instruments that are used to predict the performance of underlying assets performance during a given time frame. To further understand the simplicity of Binary options trading, let’s first take a quick look at how other investment usually work.
In most forms of investment the investors purchases the asset they invest in. The fluctuation in value of the profit and loss is determined upon the changing value of the asset. If the investor sells the asset and its value increases then they’re making a profit, and if they sell the asset back to the market when its value decreases, then they will take a loss.
This type of investment requires the investor to constantly monitor and watch the asset. Constantly worrying about when to sell the asset at a loss or profit and get out of the market to avoid the market’s volatility. Conversely, Binary Options trading is much simpler.
In binary options we trade futures on the market and not in the market like other trading methods, and thus the amount of psychological stress isn’t exactly the same, as you are just simplypredicting the asset’s movement for a predetermine time frame.
2) The Definition of binary options
The word binary “means composed of two pieces or two parts”. Generally speaking, all you need to do is predict either “Call” the price will rise or “Put“ the price will fall. BO trading has only two investment possibilities for you to predict and then choose between.
One investment possibility is expressed when you predict that the price of the asset will rise, this type of investment is named “Call” option. The other possibility is presented when you predict that the price of the asset will fall, this type of investment is named “Put” option.
Choosing an asset is the first step of your investment. For example, if you have an interest in gold prices, you may choose to place a binary investment in gold. Obviously, the more familiar you’re with the gold market the better your chances are of successfully predicting the fluctuations of gold prices.
Indices – Such as Nasdaq, Dow Jones, FTSE, Nikkei and many more
Forex – Combinations for all the major currencies such as USD, EUR, GBP ,JPY and AUD just to name a few
Commodities – Gold, Silver, Oil, Corn, Coffee and several more
Stocks – Many of of the biggest and most interesting companies in the world from a variety of industries are available in the Iqoption asset list.
4) Where Can I learn How to trade?
has an education section that provides novice and experienced traders a valuable resource for learning. This can help improve your success with binary options trading. Every registered Iqoption trader has high quality educational material at his fingertips and a smart and diligent trader will always be more successful.
5) How do I trade With Iqoption?
You begin by choosing an asset you wish to invest in, let’s say that you are in fact interested in the gold market. If you think that the price of gold is going to rise in the next hour – you simply decide how much you want to invest, the time frame (60 seconds to an Hour). The consequence of these actions could mean a up to 85%.