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What is binary options trading

Many people - and I myself including - called online trading as a profession. This type of trading is the conclusion of transactions in the securities market or a global currency. This is a popular way to earn money on the Internet, attracting more and more fans. What is the essence of trading options? I'll tell you about the basic concepts of business and try to warn the error associated with the stereotypes on "binary options".

In the last sentence, I mentioned the word "business" - and this is an occasion to speculate whether trading is a business in general. Is - because it means making money. At the same time, there are many differences from traditional business. Differences are due mainly to the fact that all work is done online. You do not need to look for suppliers and buyers, you do not need to think about sales channels (after all, and products do not), do not need to recruit employees and attract outsourcers ... Your working tools are a computer and your own brain, and the success of your work depends only on that How effectively you will invest in binary options.

Why do I recommend traders to start their career with binary options?

Actually, I'm not alone: ​​many argue that binary options - a very easy way to earn money. Such trading, according to popular belief, is reduced to a choice of only two options: increase or decrease the price of an asset for a specified time. In this case, the results of the transaction become known very quickly: during the trading session, you can manage to spend a few dozen operations. This reduces the importance of individual transactions and to successfully "win back" even after a series of setbacks.

Tempting? Do not rush to consider options "miracle-way" earnings, for which the trader does not need to do anything! Yes, it is quite possible to earn a lot with the help of transactions on options - but for this you need to make great efforts. Trade "at random" will inevitably end in failure, and very quickly. The binary option trader, who is attentive to his work, does serious analytical work: reads charts, calculates changes in the value of assets, analyzes the situation on the market, makes forecasts, where the price will go at one time or another. Of course, this is not a simple job.

What you need to do to start trading binary options?

Firstly Open a Trading Account. And this can not be done without a broker. Let us examine another key concept that should know everyone who works with binary options.

To start trading, you need to gain access to the market. This access is organized by an intermediary company, or broker. All companies providing brokerage services can be divided into two types. A broker can carry out transactions on his behalf, but at the expense of the client's funds, or on behalf of the client (and, understandably, also at his expense). Companies that open transactions on their behalf include large corporations. Their clients are investors and receive a percentage of successful transactions. But this option does not interest us. But the second type of companies (which allow the client to act on his own behalf) is the best option for running an online business.

What is required of a successful trader?

Let's start with the fact that a stable profit in the binary options market is impossible without following certain strategies. There is a great variety of binary options trading strategies that can be applied and "pure", and combine. Most traders are not limited to standard trading strategies, sooner or later come to trade on their own algorithms.

Do not choose a strategy at random: the trader should take into account many important factors. This market conditions, and the level of experience of the trader, and especially trade in those or other assets. Therefore, the choice of strategy should not rush immediately start trading and risking their own money. It is recommended to test each strategy on a demo account, to understand its effectiveness - and only then decide whether to use it in real trading.

Trading options and strategies for successful trading

What are the trading strategies?

Many ways to classify, we will stop on one of the easiest. This strategy, taking into account the ratio of return and risk level. According to this classification, the strategy for the market and Forex binary options can be divided into three types:

  1. conservative strategy. The trader risks are minimal, but may win a little.
  2. aggressive. The risk of losing money is high, but it is possible to conclude a very lucrative deal with affluent circumstances.
  3. balanced. The application of these strategies enables the median income, and is connected with the average level of risk.

Should I try all the most popular strategy? It is unlikely that this is possible: there are too many. I would recommend you explore materials about the most popular strategies Binary Options and select one of them. And do not choose a single strategy: good traders always combine several strategies, forming of them unique, their own. Sooner or later it will come to you - if you work hard, take into account their errors, to analyze the transaction and constantly acquire new knowledge!

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