When you are looking to invest in the futures exchange, binary options are the most popular and viable investment. You just need to understand the terminology and know the benefits offered by each broker.
“Risk Warning: The financial products offered by the company carry a high level of risk and may result in the loss of all of its funds. You should never invest money that you cannot afford to lose. ”
This post serves as a high quality resource, in everything related to the binary options market.
Binary options, also known as smart trading. Instead of having to buy shares in a company, you can simply speculate which direction it will go (up or down) at a predetermined time.
For example, you could choose to buy an APPLE binary option for $ 35, with the expectation that it will be worth more than the purchase, by the end of the day. If you are correct, you will receive between 70-90% return on your investment (depending on the broker you choose and other factors).
If you are wrong and the value of the stock ended up decreasing, the broker usually returns a symbolic value to you on your investment (usually $ 1.50 for every $ 10 invested).
In the beginning, binary operations were only traded by those involved in the financial system and with direct access to the market.
Fortunately, in the last few years binary options can be obtained through these so-called “brokers” who use their individual platforms, with direct access to the user.
Some offer bonuses for a novice investor but their platforms are not the best. Others offer excellent platforms, where the investor can carry out his transactions with ease and independence, but do not offer bonuses on the initial registration.
Here, we will carefully analyze the most popular brokers so that you can make your choice.
10 tips for investing in binary options:
As with any investment, in the beginning it is always recommended to check our investor profile to find out if the product we have chosen is the most suitable for us.
Once we are clear that our profile is ideal for trading in binary options the next one will be the choice of the trading platform.
Choose a platform that suits your needs.
Among the characteristics to be taken into account when choosing a trading platform, we must focus on the following:
Whether it is regulated or not:
It is always advisable to choose a regulated broker.
Your security system: The platform should give us confidence. Make sure that the security system is administered by a trusted provider within the market and that the encryption is at least 128 bit SSL.
The percentage of return:
It is advisable to choose a trading platform that offers a return on investment between 65% -90%. The advantage of binary operations is that we can see in advance what profitability we will obtain when the options are finalized and have an idea of the benefits.
If you offer refunds for out of the money transactions:
If we do not want to lose all the capital invested in a bad decision, the most convenient option is to opt for a platform that offers a refund on transactions that finalize out of the money. In general brokers offer a 15% refund.
That doesn’t require high fees and extra commissions:
Beware of platforms that charge high commissions and additional overheads for just about everything. Forget about sites that ask for extra payments. The goal is to make money, so the less the platform requires us economically, the better.
Asset selection with a wide variety:
It is always interesting to look at the selection of underlying assets that the platforms offer. Above all, it has a variety of currency pairs, indices and commodities.
Once the most suitable trading platform for our investor profile has been chosen, it is important to have knowledge about how the markets will affect this type of operations and what factors should be taken into account in order to operate with more favorable results.
Take into account the volatility of the markets
Trading in binary operations is often complicated by fluctuations in the markets, which can cause changes in the direction of trends from one moment to the next.
Start trading with minimal capital.
Especially in the beginning, the most recommended is usually to invest as little capital as possible. Without experience, the risks are much greater, so it is advisable to manage capital in the best possible way so as not to lose completely when starting with trading.
Use a demo or simulator account.
For the more indecisive, Open a free binary option demo accounts can help to get an idea of how these types of operations work.
For others it can also be a good way to gain experience. Free simulators are also useful for planning a strategy and seeing if it works or not without exposing us to any risk.
Learn to manage the risk.
Investing is not a game of chance. It is partly true that we are just as likely to hit our prediction as it is to lose, but it doesn’t work that way.
It is really important to analyze the markets to carry out operations with more fruitful results and to know that there are ways to manage the risks.
Stay well informed
As they say, information is the key to success. The more information we have about the markets and everything related to the financial assets that we are going to deal with besides the factors that will affect their trends, the better the results will be.
Always operate according to a plan
Investments must always be made in the most objective way possible. Investing with a previously established plan can increase the chances of carrying out happy ending transactions.
For our plan, we can rely on some or other strategy and use technical and fundamental analysis to study markets and their movements more deeply.
Master emotions.
Investors require discipline, so it is important not to get carried away by emotions. Success will depend on how well we develop in trading, how calm we are when it comes to doing online trading.
Diversify capital and operations.
Even if large investments offer greater profitability, the risks to which we are exposed are also greater. That is why it is convenient to open several operations with more or less honest deposits and to diversify the capital in several underlying assets.
Don’t forget to learn from mistakes.
If you make mistakes it is good to face them to do better next time. Do not allow yourself the luxury of making the same mistakes over and over again.