Trading binary options is a rather new but one of the simplest investment strategies. You don’t have to be a finance guru to make some extra money, however, you still need to know what you are doing. Let’s look at the basics involving binary options trading and how to get started.
What Are Binary Options?
Binary options, or digital options as they are also called, are options that only have two outcomes. You can either make lots of profits or lose it all. When you are trading these options, you need to predict whether the asset will go up or down during a certain time limit, you don’t really need to buy the asset. Some of the better known assets to trade are Equities (stocks) or Forex (foreign exchange).
There are two types of binary options you can invest in:
1. Call Options – this should be bought when you think the price of the asset will go up.
2. Put Options – this should be bought when you think the price of the asset will go down.
All binary options have an expiration time, which is usually quite short ranging from minutes to up to a month. Usually people trade with 1 hour or less options. This time limit is also one major benefit of this kind of trade – you can make money fast. Then again, if you don’t know what you are doing, you can also lose it fast.
Binary Options Trading Software
One way to stay safer, trade faster and hopefully make more profits is to use good binary options trading software. Using this kind of software has a lot of benefits.
First of all, the platforms are usually very easy to understand and use. Also, the software gives you all the real time market information you need to make your decisions and predict whether the asset will go up or down.
Most providers let you set up a demo account for free so you can practice before spending any real money, or they give you some money to practice with. It’s not rare to get an up to $300 start-up money for free to play around with and get a hand of the process. You can learn some strategies and develop your style without losing any of your own hard earned cash. From the software you get tips and tutorials to help you and give you support, all you need to do is sign up and download it or in some cases, just use it in your browser or on a mobile device.
By using binary options software you also get access to option signals that help you decide how the price of the asset will fluctuate. Still, it can’t do everything for you. You need to learn the ropes and find out how this market works, how to follow trends and which kind of strategy will give you the best outcome.
How To Choose The Right Software
If you are just a beginner, you need to choose a broker/software that is the easiest to use and understand, one that puts their clients needs first and provides great customer service. It needs to give you all the stats and signals to make your investment decisions easier.
The broker you choose also depends on what kind of assets are you interested in, for beginners it’s recommended to look for short term options involving forex. This is probably the easier to predict and understand.
Last but not least, the software you use must have fast and secure payment and withdrawal options – after all, you are in it to make money so you must be able to withdraw your funds quickly.
Investing is never easy, however, trading binary options has made it much more attainable for the average Joe. So if you are interested in learning the trade, find a good binary options software with a demo account and maybe some start-up credit to get you going.