Many people have probably heard of binary options. Opinions are quite contradictory, this article will provide information for those people who are interested in options. From this article you can find out what binary options are, is it possible to make money on them, or is this a complete divorce for suckers.
Concept of option
What is it? An option is a special type of trading in certain trading assets in the financial market. Options are different, they are distinguished depending on the conditions on which the assets are provided. Such conditions are expressed in the activity of the option itself and instruments for trading. Next, we will consider the main conditions of BO and their impact on the work of the trader.
Option time
Since an option is a certain type of trade, any options are traded with different conditions. They are always distinguished by their duration. There are classic and turbo options. Turbo options include short-term BOs that last literally from a few seconds to several minutes. Basically, such BOs have a duration of sixty seconds. Due to the fact that they are traded on small time frames and have a short expiration time, it is on such options that you can earn very quickly.
This is currently the most popular BO group. Turbo option is an instant money earning, the result can be found out immediately, as soon as the expiration time is over.
Classic options are traded for longer time periods, sometimes their duration can even reach several days, it all depends on the broker who provides this type of trade. In most cases, traders buy and sell medium-term binary options, that is, for intraday trading. In one day you can sell and buy several dozen of these options and also make good money. Unlike Turbo options, it is much easier to work with such BOs; they do not require the constant presence and emotional stress of the trader.
Profitability
The yield of any binary option is determined by the trading asset and the percentage ratio that a particular broker provides. Binary options have an average yield of 70 to 90%. The broker himself sets the percentage yield. Even one broker can have different returns, it all depends on specific trading assets. For example, in the same brokerage company, the return on commodities can be much less than trading using currency pairs or indices, stocks and other assets.
It is the yield on a particular asset that will affect the trader’s earnings, respectively, the higher it is, the more the trader will be able to earn more.
What are options in practice?
Before you start trading in the financial market, you need to determine for yourself the appropriate binary options. When choosing an option, the following parameters should be considered:
1. You must choose a trading asset. Any trader has a great opportunity, provided by a broker, to choose an asset for his trade. It can be currency pairs, stocks of various companies, indices, metals and other raw materials, the variety can reach 70-80 types. Therefore, any trader always has a choice. Assets need to be selected based on their profitability; the higher it is, the better.
2. Then it is necessary to determine the time of expiration. Here you also need to consider: the longer this time, the greater the likelihood for a trader to win an option. The classic option is the best solution, since you can choose the expiration time of several hours.
3. It is necessary to make an analytical forecast of the market.Each trader uses analytics in his work, with the help of which he conducts analysis. This is done in order to find out which way the market will go, that is, where the price will move. The fidelity of such an analysis and its accuracy will depend on whether this option wins or not. Therefore, the preparation of an analytical forecast is one of the most important factors when working with BO.
4. Now you can choose the cost of the bet. The amount of the bet depends only on the ability and desire of the trader himself, on the result that he wants to get.
Binary options can become a permanent and unlimited source of income, however, before you start working with them, you need to undergo mandatory training.
5. The preparatory stages are completed, you can buy an option, and at the end of the expiration time, get the result.
Options - divorce or earnings?
Is it possible to have a steady income with BO? Binary options - a divorce for suckers or real earnings? These are some of the very first questions any newbie asks. The answer to them depends on several factors.
1. Attitude. If a novice trader does not take options trading seriously, but simply as a game, in this case there is practically no chance to earn anything in the financial market with the help of BO. It will be the same as playing in a casino. In this case, a probability theory with a percentage ratio of 50 to 50 will work. And since the gain on the BO is not 100%, but on average about 80, gradually such a frivolous trader will simply lose his deposit. Therefore, many newcomers and believe that binary options - a divorce for suckers.
2. Practice and training. This item depends on the attitude of the novice trader to trade. Any beginner needs to undergo training and gain theoretical knowledge. And in the future, get appropriate practice on a virtual account, which is provided by almost all brokerage companies.
Turbo options: is it possible to make money on them?
If a novice trader will have the necessary knowledge and trading experience, as well as a psychological attitude, only in this case you can earn on binary options. In the opposite situation, all his earnings will turn into an ordinary game of "roulette", he will very quickly lose all his money.
Basically, all novice traders come to turbo options. What it is? These are the same options, with absolutely the same conditions, but they only pass in a very short period of time. The average time for turbo options is 120 seconds. In general, such turbo options are considered BOs up to 5 minutes.
Before you start trading in BOs, you need to learn as much information as possible about binary options, reviews, and opinions of more experienced traders should also be studied.
This is what experts practicing traders say: “Many beginners do not even know that there are options lasting 1 hour, one day, and even several days. The bulk of those who came to binary options believe that they should be short-term, literally instant That is how newcomers try to make money. "
It is also necessary to add, since they do not have enough knowledge and experience, they completely lose their deposits or partially lose them. The whole problem is that for very short time periods it is quite difficult to predict market movements. The price is constantly moving, the market never stands still, and in what range it will be in a few minutes, or rather even seconds, it is very difficult to predict.
Another problem for beginners is that most do not make a forecast at all, that is, they act at random, in case of an unsuccessful transaction, they simply double the initial rate in order to recover their losses. Thus, it turns out a real game, the result of such a game - you can lose your money investment.
Therefore, it is not recommended for novice traders to work with turbo options.It is necessary to choose a longer expiration time.
Opinions of experts in the field of binary options
A lot of people are interested in binary options. The opinion of specialists who have been trading on the currency market for a long time is unambiguous: in binary options it is simply impossible to make money like that.
In order to earn money, you must pass a training course. Such training programs are offered by brokers. Absolutely each of them provides a free initial course. Such training can be taken at the office of a broker or online. And also a wide selection of training programs, video tutorials, webinars, articles and books about financial markets are always provided. It is from the broker that you can find out various new products, and most importantly for any newcomer, choose a trading strategy for yourself.
After the novice trader goes through the training phase, you must definitely get good practice on a special training account, which is also provided by the broker for free.
After performing such actions, you can already earn. Any professional once also started exactly like this, however, having gone through all the stages of education and training, such a specialist was able to achieve certain results and earned more than one initial deposit on options.
Reviews of experienced traders
There are quite conflicting opinions about options. Many newcomers believe binary options are a divorce. The opinion of specialists on this issue is unambiguous: it is impossible to earn without special training. A professional in the financial market is a trader who has been trading for quite some time and has certain positive results. Even if a trader has been working with the BO for several years, but has been “trampling in one place” and all his activities are in transactions, then with a plus or a minus, there is no regular increase in profit, moreover, stable, in which case he cannot be called a specialist, he I could not fully work out binary options. Reviews of traders of varying degrees of preparedness are ambiguous, however, all professionals and more experienced ones believe that it is possible to earn on BO, and they themselves earn on the financial market.
What are newbies thinking about?
Initially, newbies, when they only learn about binary options as a quick method of earning, and unlimited, start trading with great enthusiasm. Later, when they have already lost their deposit or most of it, they begin to think. Why it happens? Why do beginners in almost all cases lose their investment? The thing is that they begin their trade absolutely unprepared for it both theoretically and practically, and psychologically as well. To start trading, you need to learn a lot of specialized information and get the appropriate skills and practice, as well as read about the options of more experienced traders who can help with advice in a specific situation. Unfortunately, newcomers do not think about this and are not serious about trading, hence the corresponding results.
How to start earning?
1. Choose a broker. It is necessary to choose a broker that would provide not only forex trading, but also binary options. Feedback on the broker you have chosen should be positive.
2. Take specialized training on the broker's website, practice on a training account.
3. Open a live account and start trading.
The choice
Having learned the necessary information, anyone can make a choice for himself and decide whether he should engage in trading. You should always remember that binary options are increased risks, and there are practically no insurance, but there is always a real danger of losing your initial investment. And also it is not recommended to trade for the last money, because at any time due to an incorrect forecast you can lose them.
