To learn how to trade Binary Options your first task will be to select a top-class Binary Options broker. As a priority, you should ensure that your broker can provide you with a sophisticated Binary Options trading platform enabling you to execute quality and informed decisions on a consistent basis. Such a tool must also support prompt, secured and accurate trade execution. In addition, you will require status tracking; regular news updates and efficient depositing and withdrawal facilities.
Basically, you need a world-class binary option trading platform that is totally dependable and not prone to frequent crashes so that you can trade binary options with confidence. Many binary options brokers have made substantial investments in order to achieve such objectives. Consequently, you can be confident that their advanced, secure and highly sophisticated trading platforms will assist you in trading binary options as accurately as possible.
The prime specification of most brokers when designing their trading platforms was to create a simplistic but robust operational environment in which to trade binary options. Consequently, by making a wise choice of broker you will have some of the most powerful trading tools available at your disposal. Once you have completed your selection, you will then need to open an account and make an initial deposit which you can readily do using a credit card or by sending a bank wire.
Congratulations, you are now ready to trade. So, how do you make money trading Binary Options? This process could hardly be any simpler. Your first step will be to select an underlying asset. Your broker will provide you will an extensive list of such items covering the main trading categories, which are stocks, commodities, currencies and indices. In most cases, they also supply comprehensive tips advising on the best selections.
You then need to determine in which direction you think the price of the underlying asset of your option will advance. Again, you can consult your broker’s recommendations in order to assist you in making your choice. For example, if you expect the price of the underlying asset to appreciate then you should open a ‘CALL’ binary option. Conversely, if you anticipate that price will finish below its opening value at expiry time, then you should consider activating a ‘PUT’ option.
The next steps require you to choose a suitable investment amount and select an expiry time. You now just need to sit-back and wait until your selected expiry time elapses. When this event occurs, you will be in-the-money if price finishes just one point above your opening price for a ‘CALL’ option or one unit below for a ‘PUT’. Conversely, if price terminates in the wrong direction by just one division at expiry, then you will be out-of-the-money.