In the world of developing technologies binary trading occupies its own niche. Many people make a shot at trading in forex in the hope of reward and that is not in vein.
A binary option is an up-to-date tool and a very good solution both for beginner and advanced traders. It gives an opportunity to trade currency pairs and liquid goods and get the financial result pretty fast.
There are many articles on forex trading but not many give right answers to all questions. It is no doubt that a beginner trader should hire a broker to avoid possible mistakes and loss of profit. The main point in binary trading is the right forecast; you should have either intuition or experience or both.
In comparison with vanilla option, a binary option has significant advantages:
The entrance costs not so much (usually providers give an access starting from $10).
The profit is known beforehand (it fluctuates between 65 and 85%; the percentage depends on a chosen broker).
There is a chance of insurance (you will get 15% in case of loss).
The risk can be controlled by proper mathematical calculation.
The trade is simple and convenient even for beginners.
Good forex brokers are trained with years in both intuition and experience. That is why they can easily predict whether to buy a call or a put. Still there is a question how to define a good broker. There are some basic characteristics:
Reputation in the market and among the traders
They always care about their spread, because the better they work the more prosperous you are and this brings them money too
They support you technically and morally
They provide with current information, software and news
They give 15% in case of loss (in this case the percentage of profit is closer to the lower line of 60-65%)
They have a permanent legal address and telephone number
However, if you are confident of your talent and skills you can examine forex by yourself. Special education is not obligatory as well as big investments. You can attend free webinars like “forex for beginners” and practice your skills on the base of demo-accounts. These will be quite enough to get a general idea of forex and create your own trading strategy.
The advanced traders have a secret that allows them minimize the risk of loss and stay in profit. It is called practice. To make one’s best in trading they always study and consult experts, they hire best binary brokers, they are not afraid of risk because they learn the details every day. They also cooperate with each other: if one has some doubts, another one is pretty sure. Such cooperation is efficient for both of them, because sometimes it is easier to invest in a partner than try everything by oneself. Besides you get a report regularly and are always able to withdraw the funds.
As far as binary options are concerned, a trader can choose a kind of it according to his or her wishes and experience.
There are the following binary options known as far as profit is concerned:
Digital option (with fixed profit)
Digital barrier option
Touch option (when the target price is foreseen and reached)
No touch option (the price does not reach the target price)
Out range option
There is also a classification according to the period of duration:
One day option
One year option
Options with fixed period of validity
Options with long-term performance
For those who just start their way in the world of binary options the best strategy will be a digital one – an option is bought on the base whether the price increases or not. With time and experience a trader may not only use providers’ options but create his or her own and do their best at trading.
In conclusion it is worth saying, that there is a various range of goods in binary trade, from currency pairs and gold and silver up to commodities and weather. The opportunities are really great and if you are good at mathematics and your intuition is good enough, this kind of options is a great resource of profit and success.