Binary Options trading is gaining more attention these days because it is simple and straightforward. You can get your returns in a shorter period of time and as you put in your trade, you will be able to find out right away the amount of money that you can possible get from the trade. It does not involve too much decision making as there are only two options that you will need to choose from. So are you ready to get started? Here is a step-by-step guide for doing your Binary Options trading.
Open your trading account
Before you can start trading, you must be registered on a Binary Options website. So head on to the site that you want to join and set up an account with them. You can either use a real account or you can start out with a demo account to practice with.
Select your asset
After creating your account, you will be able to start trading right away. The process will be the same for demo and real accounts. Choose the market that you want to join. Select from stocks, indices, commodities or currencies. Once you have selected a trading market, choose a specific asset. It would be advisable for beginners to start with something they are familiar with. Trading binary options for currency pairs would be the best option to start with for a Forex trader. Once you get the hang of it, you can start selecting assets from different markets.
Choose the direction of the option
Choosing the direction of the asset’s price will be your next step. Will it go up or down? If you want to increase the chance of success, you might want to read up on any articles that might help you make the decision.
Choose the expiry time for your option
Expiry time can vary from just a few minutes to a month. Choose when the option will expire.
Buy the option you have chosen
At this point of time, you have already selected your asset, the direction it will go and when it will expire. So the next step is to choose the type of option that you want to trade. Three of the major options are as follows:
- Digital options – will the price go up or down by the expiration time? If you think it’ll go up then select call otherwise select Put.
- Touch Option – you will need to decide if the asset’s price will reach a price before the option expires.
- Range Options – this where you will have to determine if the asset’s price will be inside or outside the range when the option expires.
Setting the amount
The last thing you need to do is select the amount of money that you will be investing on this option. It is possible to trade for as little as $10 and you can go all the way up to $5000. Successful traders buy various options though as they trade.
The waiting game
Now you just need to sit back and wait for your option’s expiration. If the trade happens to end up in-the-money, then you will get your investment back and an additional return for making the right guess.