
Trading FAQ! What Does Binary Options Mean?
“Binary options” means, put very simply, a trade where the outcome is a ‘binary’ Yes/No answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses. So, in short, they are a form of fixed return financial options.
How Does a Stock Trade Work?
Steps to trade a stock via a binary option;
- Select the stock or equity.
- Identify the desired expiry time (The time the option will end).
- Enter the size of the trade or investment
- Decide if the value will rise or fall and place a put or call
The steps above will be the same at every single Binary Options Broker. More layers of complexity can be added, but when trading equities the simple Up/Down trade type remains the most popular. Trading FAQ
Put and Call Options
Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade. Trading FAQ
Different trading platforms label their trading buttons different, some even switch between Buy/Sell and Call/Put. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in. Trading FAQ
Spot Forex vs Binary Trading
These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools. One is more TIME centric and the other is more PRICE centric. They both work in time/price but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake. The successful binary trader has a more balanced view of time/price, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose.
Hello, thank you for this website and information!
great article about binary options trading. you must read if you are a beginner
I got this web page from my pal who told me on the topic of this web page and now this time I am visiting this website and reading very informative articles at this place.
I will right away snatch your rss feed as I can’t to find your email subscription link or e-newsletter service. Do you’ve any? Kindly allow me understand so that I may subscribe. Thanks.
I’m now not positive the place you’re getting your information, but good topic. I needs to spend some time studying much more or figuring out more. Thanks for wonderful information I used to be on the lookout for this info for my mission.
Oh my goodness! Awesome article dude! Thank you, However I am experiencing problems with your RSS. I don’t know why I cannot subscribe to it. Is there anybody else getting identical RSS problems? Anyone that knows the answer can you kindly respond? Thanx!!