binary-options-tradingBinary Options Basics

How to trade binary options? - AlphaBinary

The word binary represents ‘having two parts’ says it all about binary options trading. There can either be an incremental rise or drop in the asset price movement over specific time lapse. Given its simplistic nature, mastering binary options basics is easier than one may think. Thus, binary options basics becomes the key to successful trading.

Traders are offered only two investment possibilities that they can choose from to open a trade. They are simply denoted by the Call or Put options. Traders choose the first possibility if they predict that an asset will take an upward directional movement while the Put option if they believe that the asset will follow a downward movement. Also, traders are often confronted to terms like in-the-money and out-of-money which signifies either winning or losing a trade respectively.

What can traders transact with?

Underlying assets also known as trading instruments are categorized into four main classes: currency, commodities, indices and stocks. Traders are recommended to keep a close eye on the different asset markets. AlphaBinary offers over 55 tradable assets which are of utmost importance on the international level.

Types of tradable assets in binary options

Currency Trading

This is one of the most popular assets that traders opt for. It is normally traded as pairs whereby a country’s currency value is traded against another. It is to be noted that the predetermined timeline for this type of investment varies from 30 seconds up to years.Let us get a clear picture currency trading using EUR/USD as example. The currency exists as a pair where the first derivative for Euro is identified as the base currency. On the other hand, the counter currency, being the American dollar, is known as the quote currency.

Commodity trading

A commodity, having an economic value forms an integral part of binary options trading where traders can choose from an array of international commodities such as gold and oil among others. To be able to trade this set of assets, traders are required to learn how to trade binary options and practice with the most tradable commodities and then try new ones.

Index trading

An index is usually referred to as a portfolio of companies representing a portion of it.Each index comprises of major international companies whereby each company’s performance is directly related to the overall weighted value of a specific index. For example, in index trading, the S&P 500 is one of the most traded indices by the worldwide binary options traders.

Stock trading

In stock trading, a stock refers to a valuable stake of a company that can traded as an investment. Traders tend to trade on Facebook and Google among others. The prices of the numerous international stocks vary on a daily basis. For instance, as the demand for a particular stock increase, the latter’s price also escalates. Strong demand are normally triggered by the quarterly earnings reports. Thus, if traders wish to trade on specific stocks, it is advisable to track each published report and make the most out of it.

Basic Terminologies

Before executing a transaction, traders need to understand the 3 main binary options basics terms and their importance. They are as follows: the expiry time, the strike price, and payout rates.

Expiry time

The expiry time is described as the time period as traders open a transaction until it reaches the end. It can be as quick as 60 seconds, or for months and even up to a year. For instance, at AlphaBinary, traders choose to transact using Chrono Trading due to its 60 seconds time limit, ensuring faster payouts.

Strike time

The strike price is simply the value that traders enter before a trade based on their own assumptions. At expiry time, it is this value that can determine whether the trade would be in-the-money or out-of-the-money. For example, a trader predicts the strike time of gold to be 1.545 at expiration time. Thus, if the strike time is hit at the end of the transaction or close to the value forecasted, he/she wins the trade.

Payout offer

The payout rate is the predefined returns on investments that traders earn at the end of a transaction. Most of binary options brokers offer a payout of 85%, depending on the market fluctuations. As traders grab binary options basics, they can gradually develop their skills.

Binary Options Academy: SquareOne

Most binary options brokerage firms have implemented an education center for traders to see the broader horizon of binary option trading. At AlphaBinary, the education academy, SquareOne, is geared towards providing aspirants and professionals with a step-by-step guidance through interactive eBooks, videos and manuals.

Trading assets with AlphaBinary

Trading with AlphaBinary is considered as fast-paced as well as a reliable way to access international financial markets. An aspiring trader with a minimum financial background, can easily enter this lucrative business and earn amazing payouts. Also, accessing a binary options platform is easy. Traders are not required to download a software to be able to start trading.

Why trade binary options?

  • No particular trading experience required
  • Wide range of account plans
  • Predetermined payouts
  • No registration cost
  • Potential returns on investment

How to trade binary options with AlphaBinary

  • Traders are firstly required to open an account with AlphaBinary to gain access to the trading platform
  • Choose an account type that suits their needs and trading style
  • Select the most convenient trading tool
  • Traders are required to choose a specific asset to trade on.
  • Enter the investment amount and expiration time prior to start trading
  • Based on the market fluctuations,traders are expected to select the Call or Put option for the directional price movement.
  • The last step is to click on ‘Apply’ to validate the transaction