What are binary options? You may be asking that question. In binary options trading, instead of owning different types of assets, traders try and predict the movement of a particular asset. A trader may try and predict whether or not an asset will gain or lose value based on market trends. This kind of trading is much less risky than standard trading. A trader may lose money if he or she sells the asset when its value in the market decreases. While in binary options robots, traders simply try and predict the movement of the asset within the immediate future of the market.
- Types of assets traded
Within binary options trading, there are several types of assets that can be traded. These give traders several options to choose, and several ways to make money. The assets that can be traded are Indices, Forex, Commodities, and Stocks. Indices include Nasdaq, Nikkei and much more. Forex includes the various types of international currencies and their shifting values; these are US dollar, Japanese Yen, Euro, Australian Dollar, Chinese Yuan, and others. Commodities are the goods that are traded; these are precious metals, crops, coffee, silver, gold, and other raw materials needed for manufacturing. Stocks from various large companies may also be traded. These stocks include Coca-Cola, Apple, Google, and much more.
Binary options usually have a specific timeline that needs to be followed. This means that trades within binary options need to do within a specific period. These trades can last from as little as a few seconds to several hours. If you prefer quick trades, then an option of as little as 60 seconds can be selected. Some other trades may take as much as 5 hours or even longer. When you select a trade time, you are locked in within that period. You must wait until it is over for the trade to be finished. This differs from other types of trading; wherein you can sell your assets any time you want. So in binary options robots trading, you must pay very close attention to the times to become successful as a trader.
- Ways of trading
There are numerous ways to trade with binary options. These different ways of trading have contrasting differences, which make each way unique. Depending on your preferences, you are probably most suited to one way of binary options trading.
The first way of trading in binary options is the call or put. The call or put way is the most basic. With all you have to do is to predict whether the value of an asset has gone down or up.
The second way of trading in binary options is the one touch trade. In one touch trade, you are given a target price. If the asset you are trading has reached that target price by the end of the timeline, then you will have profited from your trade.
The final way of trading in binary options is the boundary range. You will try and predict whether an asset will fall within the price range that is set by the broker.
Now that you have a basic idea of what a binary options trade is, you are on the path to begin trading yourself. Just remember the points that are laid out in this article. With that in mind, it is time to take on the binary options market!