In the last few years online trading has become more and more popular around the world, experienced traders and newbies are interested in trying online platforms. But how many of these people are really familiar with binary options? Probably the reason why they are gaining so many followers is their easy access to financial markets and getting to know the financial field.

The general difference between the traditional trading and binary options is that instead of buying and selling stocks you are predicting their movement, whether their price will go Up or Down. And of course if your prediction is right, you are winning and profiting the percentage of payout for the current option. In case of wrong prediction, the trader loses only the amount of money that he/she has put as an investment.

In binary options you can make almost instant profit with the different options. A trader has the opportunity to choose between a variety of trading options such as 30 seconds, 60 seconds, 15 minutes, up to 1 hour or long terms trading.

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If the trader predicts correctly, then he makes a profit of around 85% on his investment, however if the prediction was not correct, then the whole invested amount is lost. If you want to know more about binary options read this article.

Let’s say you think the price of Gold will increase in the next 1 hour. You place a High (or Call) order in the broker’s platform and you enter the money you want to invest, let’s say $50. There are 2 possibilities: your prediction was correct and the price of Gold increased, therefore you will make 85% profit or $42.50 from this trade OR your prediction was not correct and the price of Gold decreased, in this case you will lose the whole invested amount of $50.

With binary options you can trade a variety of assets, such as: currency pairs (Forex), stocks, oil, gold and other commodities, and indices. One can easily learn how to trade them as different platforms have put valuable resources for traders’ understanding.

The basic idea is a simple ‘yes’ or ‘no’ in trading, as in, will the asset go above a certain price at a certain time, or not?

 They also provide useful advises to the novice traders.

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To keep your investments safe, you have to find reliable and reputable broker or auto trading system!

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Is it easy to trade Binary Options?

Yes, trading binary options is one of the most simple ways to trade on the financial markets.You only have to predict if the price will increase or decrease in the future.

There are 4 easy steps you need to do in order to trade binary options.

  1. Select the asset.
  2. Choose your expiry time.
  3. Enter the amount you want to invest.
  4. Choose the direction of the price (High or Low).

how to trade binary options

To make things easier for you to understand, there is an option of opening a demo account with most of the brokers out there in the market. While going through the demo stage you will be able to understand all that happens in the market and exactly how to trade with them.

It does not need you to have a lot of knowledge or have a fantastic skill to master this. You will be guided throughout the steps. There are three types of markets in which you can trade. These are the commodity market, stock market and currency market.

Each of these individual systems of dealing are made with such simplicity that just about anyone can deal in them.

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Binary Options Pros & Cons

On the plus side, you can win high returns if you are doing well in this market. This means, you gain without having to put in any extra effort and by simply predicting the ups and downs of the market. On an average, the returns are typically between 60-90%.

This means that anyone has a good chance of making money with binary options. This is unlike Forex trading, that has a typical return of about 10%.

That being said, the risks associated with binary trading are higher indeed, but then there are ways to understand and predict correctly the market fluctuations.

Just like any other market, there are a few pros and cons of this market as well. One of the cons is that you can incur losses if you’re not careful. One way to be smart about this, is if you request a demo account from your broker.

danchoI am really thankful to have found Binary Option Robot – I don’t need to spend endless hours in frond of my laptop anymore. This is really great as I can set the risk level in the auto trading section and start earning in relaxed mode !”

Dan Norris, 27

 With some brokers you will have to first open an account and deposit with your broker (200-250 USD) and then you will receive a free demo account with virtual money. This way you can test and explore the market before you actually start placing bets with more money.

You will learn a lot during the demo phase and will quickly pick up. However the bottom line remains that the cons are mostly related to your losses. But you can keep trading with small amounts of money until you feel like you have gotten more experience and knowledge.

What Are the Payouts in Binary Options?

If you want a quick payout, there is no option better than binary trades. They have a very fast turnover rate and therefore their payouts are much quicker. Most binary traders usually trade for 15-30 minutes.

payout percentageThose who are more aggressive, even go for the 60 seconds option. The payouts can be as high as 70-85% depending on the broker.

However when you lose a trade, there is a chance of getting back 5-15% of your investment even on your losing trades.This is made possible by some brokers. They understand that due to the higher risks many people avert from taking up binary trading and therefore offer a small return even on the trade you are losing.

For example, if you are about to lose 100% on a bet, you may expect to get around 5 to 15% of that back!

Even if you have spent years on trading platforms, a binary option has something more to offer you. Each of these comes with its own level of risk and difficulties. From the simple “call” and “put” to the double-no-touch binary option, there is a huge variety to choose from.

The trading is actually so simple that just about anyone can start with it. However once warmed up, one can go for the more complex options which have better payouts and higher rewards.

Bottom Line

Be careful with the “Auto trading systems” promoted via email, these often are unreliable and scam systems.

At Botscam.com, customer safety is our #1 Priority – that is why we have tested and selected only the Best Binary Option Robots to save you time and money.