Binary options business is the most recent form of trading, in which a trader has to purchase an asset, and predict the future price of that asset. The main aspect of binary trade is that the trader is not bound to buy the asset physically but only invests in that asset virtual. The level of profit is based upon the selection of the asset and the trader has to speculate the shift in the price of the underlying asset at the time of expiration of trade. Moreover, in binary trading, the strike price refer to the price when trader buys or sells the underlying asset. The flourishing platform of binary options trading is due to the instant results from each trade and predetermined percentage of profit with every trade. In case of the winning trade, the expected percentage of profit ranges from 65% to 85% depending upon the broker's policy, and in case of loss, the profit would be either zero or 15% as provided by the selected binary options broker.
Main Considerations in Binary Options Trading
In every binary trade, there are almost three basic factors that each and every trader needs to emphasize upon and it includes the underlying asset, time of expiry of the trade and the price shift of the asset. The trader has the choice of selecting the right and profitable under asset like forex, indices, commodities, assets and other. The expiration date is the time at which the trade gets expired and it can be a minute, an hour, day or year. The next factor is the movement of the price of the asset that can occur in two directions ie upward and downward on the basis of which put and call options are selected.
In a trade, if an investor speculates the price shift in the upward direction, then he will select the call option and on the other hand, if the price move determined by the trader is below, then the put options will be selected.
Online Trading Without Any Software Download
Binary trading is basically conducted online by becoming the member of the broker's website and creating a trading account on it. The broker's website has some updated software for the trade and does not require the trader to download them to begin the trade. Only the trader has to choose the currency of trade and makes an investment in the account. After that, the trader has to make the asset selection, determine the expiration date and predict the price movement.
Source by John K Adam