Binary options for beginners
Why do beginners choose binary options?
It will be interesting for new exchange trading participants to get to know what binary options is and why they are so popular now. A person, who doesn’t know the market, should choose the simplest instruments. In this case he will be able to come into the world of “bears and bulls”, better understand it and have the minimal risks. No doubt, such useful instrument will be options, for novices they are the best variant. Binary options gibe an opportunity to not just get profits, but also to insure your risks in the complex with traditional trading.
The definition of binary options for novices
Studying options from the beginning, you should know that an option is a kind of contract for a basic asset. An asset can be a certain product, currency, shares or indices. A trader buys an option, investing his money. The price of invested object is important not only at the moment of buying the binary option, but also for a moment of expiration. The principle of binary trading is very simple, that’s why they become so attractive. Many people are interested how to play on binary options. A trader closes a deal for a chosen term with a certain asset. According to investor’s prognostics, an option can be for price increase (Call) and for its fall (Put). If at the end of the term the price went the right side, a trader gets his profit (on average 60-100% from invested sum for the contract). When the price doesn’t realize expectations, a trader doesn’t get anything. The risk is within the price of the option. For the first sight you can compare such trading to the roulette. Only in roulette the luck helps you, but here technical and fundamental analysis can help, they don’t let you down if you use them correctly.
The advantages of binary options for beginners
This kind of instrument will be useful not only for beginners. Also options will make interested practicing investors of stock and financial markets. The reason is that we can point out several important advantages in binary options trading:
- The simplicity of the deal. You must just identify: whether the price will go up or down. And it doesn’t matter how many points it has gone;
- The duration of one entry into the market can be from 30 seconds to several months, that gives a possibility to double your capital even for a minute;
- A player knows beforehand why and what he risks, it makes the relationships between him and investor easier;
- Deal’s prediction. You can always estimate and predict the market’s behavior. There are many instruments to do it nowadays. A simple platform on-line – interface, which includes graphic and some buttons. You can trade in any place, if you have an access to the Internet. That’s why for binary options trading the education will not take a lot of time;
- The possibility of risks hedging.
Types of binary options
Depending on chosen broker, several types of options can be available. Let’s take some of them.
ПSimple or up\down option gives a possibility to buy contract for a certain period, beginning with 30 seconds and finishing with several months. We advise you to do your first steps with simple бbinary option for a novice. It is necessary to enter the deal and prognose the price changing to the right direction Even if the price of an asset for the end of expiration period will move one point to your side, the deal will be lucky and a trader will get the profit.
Range– an option, buying which you must not only know where the price will move, but also you must identify the maximum level. Price graphic shouldn’t overstep this line. It is more difficult option to use, but it gives high profit to investor.
One-Touch. Levels up and down the real price are set up. If you bought the option CALL and graphic touched first the high level, you get the profit. With contract PUT everything differs. We wouldn’t recommend you to trade difficult options ионами without edccation.
What must a novice know before to start to trade with binary options?
All binary options lessons are in mastering of techniques of the analysis of market condition. There are two main direction of analysis: technical and fundamental. Traders mostly use technical analysis. Some of them tend to fundamental learning. The most experienced investors don’t avoid each of them and use the both. Technical analysis suggests the use of geometrical figures on graphics and mathematical formulas for calculating. The main principle is that technical analysis takes into consideration all political, economical and even psychological factors. Fundamental analysis is based on the studying of economical indices and political news, that gives a possibility to show the situation in a separate company or economics of the country on the whole.
Having studied all details of analysis of assets market, binary options for novices мcan become a powerful gun in your hands. With its help even the beginners are able to increase their capital in many times.