Anyone can trade binary. Even a dummy can win any given binary trade, too. It’s a two-way choice, it is hard to predict wrong. Like some brokers call it, it is an all-or-nothing industry. You win some and lose some. But how does one trade Binary Options?

Binary Options are designed to be very simple and easy. With only two possible outcomes (increase or decrease), any individual wishing to join the world of Binary Options trading may do so without any hassle.

Generally a trade can be achieved in just three easy steps once a deposit has been made.

  • First, you choose an underlying asset to trade from a wide range of Currencies, Stocks, Indices and Commodities.
  • Next, you decide the direction the price of the asset will move in.
  • And finally you decide the amount to invest and click Call or Put.

The length of the investment before the expiry time varies from asset to asset and can be anything from a few minutes to a week. The payouts are always predetermined according to a percentage and you can never lose more than you invested which limits your risks.

Key Things To Know About Binary Options Trading

Some key things you should remember before you dive in are these:

  • Your risk is limited to your trade amount.
  • The minimum trade is as little as $10.
  • You do pay for losing trades – you lose your trade amount.
  • There is plenty of risk involved. Never invest more with a broker than you can afford to lose. It’s risky!
  • You never take any ownership of the underlying asset – you only “bet” via a call or put option on the direction of the price movement.
  • Trading binary options are designed to be easy to do.

Your risk is limited to the amount you place on the trade. Your payoff is clearly stated before making the trade. If you win a binary options trade you win a fixed amount of cash. Since there are only two possibilities, that’s the origin of the name of binary options.

That’s the very basics guide to binary trading. It is that simple, and it is designed to be that easy. Your return is clearly stated before hitting the button. You can earn up to 85% on your investment if you finish the trade on the prediction you stated.

However, to be a long-term winner you have to develop a strategy that works for you. You have to consistently profit winning more trades than you lose. Since there is a risk involved, that means that you need to create a method to succeed. You can do that by studying the tips and tutorials given on each platform, like Banc de Binary, 24 Options, BigOption and many more. Finally, you are ready to start trading binary options and make your first extra income.

Source by John Lee Cain