Starting as an amateur, Binary Options is a kind of online trading based on Forex market. This term contains excessive information that can’t be explained in a few words. Basically, Binary Option can be explained as way of online investment for a fixed return with an expiration period, which is also fixed. It has gained […]
Starting as an amateur, Binary Options is a kind of online trading based on Forex market. This term contains excessive information that can’t be explained in a few words. Basically, Binary Option can be explained as way of online investment for a fixed return with an expiration period, which is also fixed. It has gained huge popularity in the last couple of years mainly because its simplicity and appeal toward the general public. To understand it first you should know Forex market.
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What Is Forex and How to Start Trading in Forex Market?
Forex means Foreign Exchange, in the Forex market you will buy/sell currencies. This is common description about Forex Market but today Forex market trading is the kind of online trading. Some companies offer you to trade in Forex market and the traders call them Forex Brokers. Forex is like Stocks market. Today a lot of Forex Brokers offer their clients trading on Stocks, Energies and metal markets too.
Just like stocks markets in Forex market, you can trade currency based on what you get about the currency value, but the main difference with Forex is that you can trade sell or buy just as easily. If your prediction is a currency which will increase in value, you can buy it. If you think it will decrease, you can sell it.
On Forex market you should choose symbols for trading. You can’t buy one currency and exchange it to your desire currency.
For example you can’t Buy GBP (British Pound) and convert it to AUD (Australian dollar), JPY (Japanese Yen), and Or USD (Us Dollar).
In the Forex market, you should chooce your desire symbols in the beginning and the symbols defined in Forex broker like these:
EURUSD, GBPUSD, AUDUSD, USDCHF, GBPJPY, NZDUSD and etc (we call them symbol)
For instance you choose EURUSD for trading. It means that if you buy EUR/USD, you should convert it to USD when you decide to sell your EURO. You are not allowed to change it to GBP or JPY. When you choose your desire symbol to trade, you have 2 options for trading Buy/Sell.
If you think EUR value will decrease against USD, you can sell EUR/USD and if you think EUR value will increase against USD, you can buy EUR/USD.
What is Binary Options Trading and How to Start?
On binary options, you can trade on Forex symbols like EURUSD or GBPUSD or USDCHF but you should predict the market directions only it looks like bet on the Forex market! On Binary Options we say Call orders and Put orders. In fact call on Binary Options means buy and Put means sell.
There is 2 big different between Forex market and Binary markets:
- On Forex market you can hold your positions (orders) for long time and close it every time that you like. But On Binary Options you have expire time. You can’t close or modify your orders till expire time.2- On Forex market your profit and lose is variable and depend on market movement But in Binary Options your profit and lose is fix.
The Binary brokers offer you fixed return if you guess market movement correctly. For example CloseOption.com offer you up to 85% on EURUSD if you guess market movement correctly.
Now maybe you think that this is pure gambling system and it’s not trading! Here I want to describe about this question:
Is Binary Options Trading Gambling?
No, on gambling you should use mathematical possibility and gambling is not predictable at all. But Binary options symbols are Forex trading symbols and all financials markets are predictable if you have enough knowledge to analyze markets behavior. How can you gamble on Binary Options or Forex market too? It’s your choice whether you like trading by chance or knowledge.
Learning CloseOption Platform
As you can see the CloseOption web platform is very easy and simple.
Binary Options Terminology
Real Account: Means your actual money in your broker’s account.
Demo Account: This is practice account and the numbers in the balance are fake not real money.
Put or Low Option: Sell Symbols
Call or High Option: Buy Symbols
Balance: Total your money in the broker.
Broker: A company, Brokerage or Website that allow you to trade binary options.
Current rate: it represents the current price of the asset.
Range option: Limited Binary Options brokers offer you to trade on range for instance the market price on EURUSD is 1.2010. You will predict that the market price will be between 1.2020 and 1.2000 till the next 5 minutes then you can open Range Option.
Expiration Time: When the option will expire? Expiration time is completely accurate by Seconds and milliseconds’.
Rate of Profit: The percentage of money that you get as return after a trade expires in the money.
Fundamental Analysis: Analyze and predict market movements according to the financial, political, geopolitical, demographic and macroeconomic news factors and others.
Technical analysis: Another way to analyze market according to the mathematical the main needed for technical analyzers is historical price data and volume charts.
When Am I Ready for Binary Options Real Trading ?
The answer is very simple, you are ready when you earned profit on your demo account. Don’t trade fastidious.