Today's financial markets offer us unprecedented moneymaking opportunities. This holds especially true for Forex, the world's biggest financial market where trillions of dollars are turned over on a daily basis. Still, successful Forex trading requires specific knowledge, skills and experience along with profitable strategies and sound money management rules.
Still, the contemporary trading industry is evolving rapidly while new broking companies emerge, simultaneously brining in new opportunities. At the same time, new instruments appear in the industry from time to time.
At this point, binary options are getting increasingly popular worldwide despite being a relatively young financial instrument. Still, the secret of binary options is hidden in their simplicity and efficiency in terms of making money.
Indeed, binary options are much simpler and easier to trade than conventional spot or futures markets, including Forex, stocks, indices and commodities. Binary options are derivatives as you probably know. It means that you can trade binary options on currencies, indices, stocks, commodities and even futures. Any binary option has an underlying asset. For example, when you buy a put option on gold, gold is your underlying asset while the option purchased is the derivative of this asset since it derives from it.
Binary option trading requires less sophisticated strategies since the only thing you need to do is to choose between 2 scenarios – like up or down, inside or outside a certain price range etc. This makes binary options a good alternative to conventional trading!
These days, there are hundreds of brokers that render binary option trading services. In this article we will take a closer look at the broking company that belongs to the best binary option brokers in the entire industry. It is called Optionova.
Let's read what the broker itself tells us about binary option trading:
How it works
Binary trading, sometimes known as digital options, is a fast, exciting way to trade the markets. Binaries offer short window time-frames (up to 1 hour) and allow for simple, up/down trading decisions. Perfect for newcomers to the markets or more experienced traders looking to complement their existing trading strategies.
The way binary options work is based on whether an event occurs or not – that is whether the price of a financial asset such as gold futures or Eur/Usd will close above or below its current market price at the expiry of the trade. You look at the chart, forecast the trend, and make an up/down trade decision within a risk level you’re comfortable with. It’s that simple, and that’s why it’s a binary decision.
1. For example, above is a EUR/USD chart. As we see, the market is trending upwards. We predict that price will continue to go up so we want to open a CALL trade on EUR/USD. At exactly 11:00 GMT we open (1.3411) a CALL trade with Expiry at 11:15 GMT and invest 100€.
2. 15 minutes later, price has moved up by 9 points (1.3420) and our trade closes automatically in profit. We made 85% profit with just 15 minutes and earned 85€! On the other hand, if at expiration the EUR/USD’s last price is lower than the current last price, you may keep up to 19% of your initial investment amount as insurance.
Like traditional options, binary options are cash-settled and cannot result in the delivery of the underlying asset.
Learn how to trade binary options or open an account now
How to trade binary options?
Binary Options trading is as easy as 1, 2, 3:
1.Choose your market
2.Choose the asset to trade
3.Decide whether the asset will be above or below its current price at the end of the hour.
Choose a CALLBinary Option if you believe that the asset will end above its current price at the end of the hour.
Choose a PUT Binary Option if you believe that it will end below the current price at the end of the hour
There are two ways to be in the money and earn up to 85% profit. If you CALL and you’re right, you are in the money. If you PUT and you’re right, you are in the money. With Binary Options you don’t have to choose how much the asset will close above or below. It only matters that you choose the right direction to be in the money.
Well, as you can see, this is an easy, simple and convenient way to trade any underlying asset you want and make money by showing consistent results on a regular basis. Of course, you need to have experience in trading in order to make money by trading binary options. Still, for some people this may be the optimal choice due to simplicity and efficiency of trading strategies, instruments and many other benefits.
