Binary Options Trading Guide Welcome To Our New Traders “Dummies Guide” On The Basics Of Binary Options Hi and welcome to the BinaryTrading.org’s New Binary Option Traders Guide. This page covers the basic but important facts about binary options you need to know before you begin trading. It is a good idea to bookmark this page as you will likely reference it in the future. Here is an outline of the things you will learn. • What is a Binary Option? • Types of Binary Option Trades Available • Basic Strategies • Tools You May Want • List of “Things To Know” • Example Trades • Getting Started What Are Binary Options Themselves Binary options are very simple option contract with a fixed risk and fixed reward.

Beginner’s Guide to Binary Options Beginner’s Guide to Binary Options > What are Binary Options 6 Before diving into binary options, a look at Forex trading and the stock exchange is a must. What differentiates these types of trading and binary options trading is the process through which traders have to undergo to start trading. Binary Tutorials We know there is a lot of information to digest when it comes to binary trading or any kind of trading for that matter. Assuming you read all the major components of the BinaryOptionsU.com website it is now time to break down into a visual look at the markets.

These options are called binary options because there is a “one or the other choice” and a one or the other payout after the option expires. One or the other choices include up or down, or touch and no/touch. In computer code binary means 1 or 0, or one or the other. [scg_html_rbox_marketsworld] The way a binary option works is from the traders perspective (yours) is that you choose whether or not a certain underlying asset (a stock, commodity, currency etc) is going to go up or down in a certain amount of time. You essentially bet money on this prediction. You are shown how much money up front you will earn if your prediction is correct. If your prediction is wrong, you lose your bet and the money risked.

If you predict correctly you get your money risked back PLUS a return. These returns usually are between 70-85%. A brief example would be that you predict the price of gold to rise from it’s current price of “$1612.75” one hour from now. The winning trade offers a return of 80%.

You place a $100 trade on this idea. One hour from now the option contract expires (closes) and the contract is graded as a “win” or a “loss”, or “in the money” / “out of the money”. trading sessions forex kiev Gold goes up to $1613, you predicted correctly.

You get your $100 back and a return of 80% – or $80 for a total of $180. Even though gold only went up a tiny amount, you still earn the 80% return.

Magnitude of price movement is not a factor in the amount of your return. Key Ingredients Of A Binary Option Trade All of the different binary option contracts have these three key ingredients that traders need to take note of. They are the expiry time, the strike price, and the payout offers. • Expiry Time • Strike Price • Payout Offer The expiry time is simply the length of time from the moment you ‘buy’ the option contract until it closes.

/binary-options-trading-newsletter.html. Binary Options Trading Binary options is a simple trading instrument that can be used to earn money by guessing the future of the Forex, stocks, commodity and other prices. With binary options you either win if you guessed it right, or lose if you guessed it wrong.