How binary options work

Binary options are one of the most popular financial instruments in the world today. If you are a beginner at trading and have an interest for it, we will be glad to explain in detail how binary options trading works.

Binary options (or the exchange contracts) trading follows a simple mechanism of predicting the dynamics of a trading asset’s price. An optional trader with a trading account in a brokerage company uses a special platform with a number of stock assets to choose from to predict their value. Monitoring the quotations graph, the trader determines the direction (UP or DOWN) in which the asset’s price will move (for instance, in 1 minute) to receive a fixed income for a correct forecast. The trader concludes a transaction by manually setting the direction of his forecast, the amount of investment and the time during which he expects the asset’s price to move in the predicted direction. With a correct prediction, the player receives up to 90% of revenue; he loses 100% in case of an erroneous prediction. That is, by concluding a $100 deal, a trader either receives $90 of net profit or loses his entire investment.

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It should be noted that anyone with a capital of $10 and Internet access can start to trade and get the answer to the question «do binary options really work?» The main point is that you don’t need to visit stock exchange websites, sign any complicated cooperation agreements and invest money. All one needs to start trading on a broker platform using the above algorithm is to create an account on a the Binomo brokerage company’s website (takes a couple of minutes) and replenish his deposit with an affordable amount of funds.



How binary options work updated: October 7, 2018 author: admin

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