What are the conditions for trading binary options?

What are the conditions for trading binary options?

The topic of binary options worries a lot of users of the World Wide Web. Absolutely everyone brokers try their best to provide the best trading conditions for generating income. And it does not depend on the status of the user at all.

The availability of binary options as a form of income

Trade binary options maybe a pensioner, a student, an engineer, a janitor, a businessman, it doesn’t matter what position or what profession a person has, the financial market is available to everyone.

Many people think that in order to make money on options, you need large financial investments. But this is absolutely not true. Anyone can get such earnings on binary options from scratch.

For example, connect free signals Enough of the minimum deposit in 250$, and if there is no money at all yet or you don’t want to invest for some reason, you can take part in real money where you will need to trade on Demo account and receive cash prizes. Also, with a minimum deposit, it will be available to you copying trades experienced traders.

Conditions on the trading floor

Marketplace is a special online platform for transactions with transactions. Unlike classic Forex, binary options do not require a desktop terminal, such as MT5.

Everything is simpler in BO, you have registered with a broker, verified your account, replenished your account and you can start betting on the growth or fall of assets right in your browser.

A trading platform with an online chart looks something like this:

Trading assets

Trading assets - this is actually a tool for traders on whom he trades. All assets can be divided into several categories:

  • Currency pairs, their number depends on the specific brokerage company;
  • Metals such as gold;
  • Commodity raw materials, such as oil, coffee;
  • Indices;
  • Shares, for example, you can trade shares of the gas industry or, for example, some kind of car factory, etc.;
  • Cryptocurrency is a high-yielding electronic asset that is backed by the popularity of people. With the right approach, you can get insane interest on payments in a very short time.

Assets are selected right above the chart, usually it happens like this:

Trade expiry or duration

On binary options, the duration of the transaction is strictly limited by time and it is selected in advance, after the conclusion of the contract - it cannot be changed.

For example, you have chosen an expiration time of 15 minutes and bought a contract, which means that in exactly 15 minutes you get the result, either your deal closes with a profit, or you get a loss.

You cannot lose more than the amount spent on the purchase of the contract. This is the main plus of binary options, compared to forex, where you can lose everything at once if you don’t know how to correctly set Stop Loss.

Varieties of options

Consider for now only the most popular:

  • Classic options (standard intraday time);
  • Turbo options (from 30 seconds to 1 minute).

Turbo Options have a short expiration time. Beginners are very fond of trading on these types of options, as there is an opportunity to earn very quickly on short expiration dates. At what earnings in fact is not limited.

For example, if you bet 100$ with a payout of 70% and an expiration of 60 seconds, you will earn only +70$, and if you bet 1000$, then in exactly one minute your deposit can be plused by as much as 700$.

Classic Options has a longer expiration time. Such options can last from several minutes to several hours and even days or weeks. But more often traders prefer to trade intraday, when the average expiration time is from 30 minutes to 1 hour.

Intraday trading has its advantages: you do not have to wait too long for the outcome of the transaction - the money traded, got the result. And there is enough time to make cold decisions, without haste and nervousness, as in scalping.

For beginners, working with classic options is more suitable, but it is better not to make the duration of expiration too long and, of course, too small. The golden mean is considered to be an expiration of 15 to 60 minutes.

Use exact numbers in expiration, don't bet on 14 or 27 minutes, it's very difficult to calculate, since the main timeframes are still more whole numbers, which are used by all traders for analysis.

This is 1,2,5,15,30 minutes, then 1.4 hours and a day, a week and a month go.

However, internal time frames have already appeared in the new MT5 platform, you can choose already more extended time intervals, for example, by 2.3 minutes or 2 hours. But still, not all the numbers are there, since this is simply not necessary. In general, in trading, you can get by with the limited number of TFs, this is quite enough for any technical analysis.

Options Yield

Profitability for each asset is different and there are also differences between brokers. Do not trade on those sites where suspiciously high payout percentages are offered.

You will understand that it is simply not profitable for a broker to give you such percentages, the ~70% area is considered a normal and adequate percentage.

However, this figure may fluctuate due to different volatility in the market, at some time % may be overestimated, and at some time it may be underestimated. More precisely, you can track these moments yourself on the broker's platform.

Well, in general, it’s better not to focus on percentages, believe me, they will be enough for you. The main thing is to focus your attention on technical analysis and choosing a strategy.

Option return conditions

The platform provides conditions for the return of the purchased option.

For example, if you bought a contract for an increase, and the price immediately or after some time began to decline, at that time the “Sell option” button becomes available to you. The percentage will certainly be lower than the cost of your purchase, but it's better than losing everything.

For example, you bought an option for 100$ to increase, and the price went down, then you can have time to sell the option and return some of the funds. It is difficult to say what percentage will be there, it all depends on many factors (asset, volatility, etc.), but this is approximately 50% of the contract value, that is, you return only half to yourself.

But it is better to use this function when you are already sure that your forecast did not work and you did not analyze the chart correctly — the price has changed its direction and will not return above the bought level already in 99%.

If there is no certainty, it is better to leave everything as it is, because in most cases, after such a rash sale, the price returns to the purchase level and goes towards profit.

The price goes “zagzag” and you should be prepared for this, that after buying an option, it can go into the minus zone, this is normal. If everything is calculated correctly, you make a profit of 95%.

The opportunity to sell the option is not always available, some time before the expiration closes - it will no longer be possible to sell the option, and you get a complete loss.

Expiration is the closing (fixing) of the contract. Expiration starts some time before, where the price is fixed in relation to the opening price and the result is set.

In fact, the conditions are simple, the main thing is not to panic, since in most cases the correct solution is always the one that came first.

You can try opening Demo account, where you will have virtual money and you can trade without fear, and only then switch to a real account.

Open an account now ›

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