How to Trade Binary Options

Binary options lets you estimate the performance of an asset within a limited timeframe. Many people like to trade binary options because of the benefits it offers. Some of the benefits of binary options trading are minimal risk, high rewards and fast returns.  The following are a few tips on how to trade binary options.

Choose an Option Type

The first step is to decide which option to trade. The high low binary option is the most common option for traders. In high/low options, you predict whether the price of the asset will go up or down at the expiry. There are also other types of options such as one touch, 60 seconds and boundary options. One touch option can offer a maximum payout of up to 500%.

Sixty seconds option allows traders to profit within a short period of 60 seconds. In boundary option, you must forecast whether the price will stay in the defined boundary. In spread option, you predict whether the price of the asset will be above or below the price level set by the broker at expiry.

Choose a Good Broker

When choosing a broker, you must first check whether they are regulated. It is much safer to deal with a regulated broker as they will handle your funds securely and payout the profits promptly. The broker should be equipped with a responsive customer service team that give you accurate solutions to your problems.

Don’t forget to look for a broker that accepts your preferred payment method. Popular methods are Visa and Master Card, Skrill but there are also some brokers that accept paypal like Finpari – top10binaryoption’s review of finpari has many details and real user reviews. The broker should offer live chat support so that you can easily contact them at anytime. There must be a wide range of trade types so that you can diversify your portfolio.

User Friendly Trading Platform

The trading platform must have a user friendly layout that allows you to navigate around without any hassle. If you want to use mobile phone to trade, make sure the broker supports a mobile version of the platform. Another thing to take into account is the payout the broker offer.  The payout varies across different brokers. Some brokers offer payouts of up to 80% per trade.

Many brokers also offer special features such as roll forward and early exit on their platforms. Roll forward feature enables you to extend the expiry time of your options. The Roll forward feature gives you a second chance of making profits in the event that you make the wrong prediction. This feature will usually appear about 15 minutes before the options expire. Early exit lets you exit the option before it reaches the expiry time. Early exit will come in handy if the value of the asset goes in an opposite direction than the one you have chosen.

Choose an Expiry Time

You must decide on an expiry time. The expiry time will start from as short as 15 minutes to as long as 1 month. Short term options has an expiry time that is as short as 60 seconds. Long term options can last for up to a quarter or 1 year. When choosing an expiry time, you must do research on the chart history and latest news. For example, a new product has just launch and you are sure it will have a positive impact on the price of the asset. In this case, you must select an expiry time that end following the release of the news. If the chart history shows the asset going down for weeks, you have to rely on technical analysis to choose the expiry time.

Conclusion

In conclusion, you won’t be an expert in binary options trading overnight. Making mistakes in binary options is an inevitable part of the process. The most important thing is to never give up on binary trading easily and keep on learning from your mistakes.