Binary Options is a way that anybody can profit from movements in value from a dynamic and wide range of shares, stocks, assets and commodities and Forex. The main reason why these kinds of financial trades have grown to be so popular is due to the fact that traders need to just make one of two potential decisions when they place their trades, of yes or no. In Binary Options trading, this decision is referred to as Call or Put trades.
You are not required to actually buy anything (gold bullion, for example) if you are wanting to make a Binary Options trade based on what the value of gold is. All you need to do is make a decision whether gold is going to rise in value or drop in value over a certain period of time.
One main advantage of making Binary Options trades is there are a range of various expiry times that are available, from as short as 60 seconds up to one month maximum.
If you are a new Binary Options trader, then our ten step guide below will teach you everything you need to know about making Binary Options trades with one of our feature Brokers.
Once you have had a chance to read through our guide, we are very confident that you will have the ability to place various online Binary Options trades either using real money or starting with a no risk demo trading account.
1. Type Of Binary Trade To Make
The very first decision that you need to make when you are considering placing a Binary Options trade is what type of stock exchange, commodity or other asset you want to place your trade on.
After you have made your decision on what kind of stock exchange, commodity or other asset that you want to place your trade on, you will then need to make a decision on which way you think the value of your trade will move.
For example, if you believe the value of oil is going to fall, then you would place a Put option. On the other hand, if you believe the value of oil is going to increase, then you would place a Call option.
2. Select your Broker.
You will need to choose a Binary Options Broker that you can place your trades with. We highly recommend that you take the time to look through all of the Binary Options Brokers that we have reviewed.
Every Broker that we have selected to review on our site is regulated and fully licensed. Each of the offers a wide selection of tradable assets. In addition, many of them offer a welcome bonus offer to new traders which can substantially increase your initial deposit value.
Each of the brokers also offers a range of various account types. It is very important when you are deciding where to open your account that it offers you the maximum benefits and extras based on the volume and level of trades you are placing.
You ideally will want to consider opening an account with each one of the Brokers we have featured. In step four you will discover that there are numerous benefits to doing this.
3. Select an Expiry Time
After you have selected the kind of asset you will be basing your Binary Options trade on and have chosen a Broker for placing your trades with, the next decision that you will need to make is to decide on your trade’s expiry time.
You can place a trade that lasts as few as 60 seconds up to long terms trades that expire in up to one month. It’s very important for you to choose your preferred expiry time since there are so many different events that can affect the value of the financial assets you are placing your trades on.
4. Understand What Your Potential Gains Are
Whenever you are considering buying a large ticket item that costs a fair amount of money, you always shop around to make sure you get the best possible deal.
You should consider doing this with your Binary Options trades as well, since the financial gains that you can potentially make from each trade you do will frequently vary from one Broker to the next.
The next step you make should be taking a look at what your potential gains are going to be on the trades you want to make at several of the Binary Options Brokers we have featured. When you compare them, you’ll be able to choose the Broker that offers you the maximum returns for your investment.
5. Trending Options
When choosing which trades are going to most likely result in financial gains for you, it will take a concerted effort. Always utilize all of the tools that are available to you to make sure that the trades that you are thinking about placing will result in gains for you.
Although many Brokers provide the most recent financial stories on their news feeds, some brokers also let you view which trades are popular at this moment with other traders.
So look for Brokers who are offering some kind of Trending Options Feature, since when you utilize this tool it will help you easily spot the trades that are attracting the largest volumes of trades currently from other active traders.
6. Increase Your Trading Budget
As a trader, you want to always remember that there is competition among various Binary Options Brokers. The reason why this is important is because it allows you to use various promotions offer to your advantage and help increase your trading budget’s value.
For traders, of course sign up bonuses are quite attractive. However, you will also want to watch for loyalty based promotions that might be offered to you by many Brokers. Loyalty promotions and bonuses may include things like risk free trades and deposit match bonuses.
Always check to see if there are any other trading bonuses that you qualify for since they will make it possible for you to lock additional value in. It is definitely worth investigating these before using all of your own funds for placing your trades.
7. Placing Trades Instantly
You will never know ahead of time when trading opportunities that are potentially profitable will become available suddenly. You need to keep that in mind.
Therefore the best thing to do is have access to a mobile trading account in addition to an online trading account with every Broker you have signed up with.
When you have mobile trading account access it will allow you to place your trades from anywhere at any time.
8. Hedging Your Trades
There are many traders who look into possibly hedging any active and live trades they have or they might place trades where both sides of a trade are covered with two separate trades.
One way to do this is to open accounts up at multiple brokers and take advantage of the generous welcome sign up bonuses that they offer, and then utilizing the bonus funds for covering both sides of a trade.
9. Roll Forward Feature
Another feature that many Binary Options Brokers are starting to offer is the Roll Forward Feature. It is a kind of extra trading opportunity that only becomes available after you have live trades already placed.
The Roll Forward option provides you with a wide to extend the expiry time on all of your lives trades that you have already placed. When you use this option it extends the expiry time to the one that is next available.
10. Early Exit
Although many traders are more than fully prepared to wait for the expiry time to occur on all of the trades that they place, if you happen to become aware of potential events that might cause the value of the trades you have placed to swing to the opposite direction of what you have selected while you trades are poised for a payout currently, you might want to think about taking an early exit.
The early exit option is offered by many brokers. Although it will be necessary for you to pay a fee in order to end your trade prior to its expiry date, if you do this it will lock in a trading profit at least from your trade.
However, you should only think about taking an early exit when you are convinced that whatever potential gains you will earn after your trade expires at the regular time will turn into losing traders because of current events that you might have become aware of suddenly.
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