Start Binary Options Trading as an Amateur! Binary Options is a kind of online trading based on the Forex market. Basically, Binary Option can be explained as a way of online investment for a fixed return with an expiration period, which is also fixed. It has gained huge popularity in the last couple of years mainly because of its simplicity and appeals to the general public. To understand it first you should know the Forex market.
What Is Forex and How to Start Trading in Forex Market?
Forex means Foreign Exchange, in the Forex market you will buy/sell currencies. This is a common description of Forex Market but today Forex market trading is the kind of online trading. Some companies offer you to trade in the Forex market and the traders call them Forex Brokers. Forex is like the Stocks market. Today a lot of Forex Brokers offer their clients trading on Stocks, Energies, and metal markets too.
Just like stocks markets in the Forex market, you can trade currency based on what you get about the currency value, but the main difference with Forex is that you can trade sell, or buy just as easily. If your prediction is a currency that will increase in value, you can buy it. If you think it will decrease, you can sell it. Start Binary Options Trading as an Amateur
On the Forex market, you should choose symbols for trading. You can’t buy one currency and exchange it with your desire currency.
For example, you can’t Buy GBP (British Pound) and convert it to AUD (Australian dollar), JPY (Japanese Yen), and Or USD (Us Dollar).
In the Forex market, you should choose your desire symbols in the beginning and the symbols defined in Forex broker like these:
EURUSD, GBPUSD, AUDUSD, USDCHF, GBPJPY, NZDUSD and etc (we call them symbol)
For instance, you choose EURUSD for trading. It means that if you buy EUR/USD, you should convert it to USD when you decide to sell your EURO. You are not allowed to change it to GBP or JPY. When you choose your desire symbol to trade, you have 2 options for trading Buy/Sell.
If you think EUR value will decrease against USD, you can sell EUR/USD and if you think EUR value will increase against the USD, you can buy EUR/USD. Start Binary Options Trading as an Amateur
What is Binary Options Trading and How to Start?
On binary options, you can trade on Forex symbols like EURUSD or GBPUSD or USDCHF but you should predict the market directions only it looks like a bet on the Forex market! On Binary Options we say Call orders and Put orders. In fact call on Binary Options means to buy and Put means sell.
There are 2 big differences between the Forex market and Binary markets:
- On the Forex market, you can hold your positions (orders) for a long time and close it every time that you like. But On Binary Options you have expired time. You can’t close or modify your orders to expire time.2- On the Forex market your profit and loss are variable and depend on market movement But in Binary Options your profit and loss are fixed.
The Binary Options brokers offer you fixed return if you guess market movement correctly. For example, CloseOption.com offers you up to 95% on EURUSD if you guess market movement correctly.
Now maybe you think that this is a pure gambling system and it’s not trading! Here I want to describe this question:
Is Binary Options Trading Gambling?
No, on gambling you should use mathematical possibility and gambling is not predictable at all. But Binary options symbols are Forex trading symbols and all financial markets are predictable if you have enough knowledge to analyze market behavior. How can you gamble on Binary Options or Forex market too? It’s your choice whether you like trading by chance or knowledge.
Start Binary Options Trading as an Amateur
2 Responses to “Start Binary Options Trading as an Amateur”
Nice article!….I believe it could useful for me and others people outside for sure..we could earn more money as long we go to the right channel..thanks for sharing this information, keep it up!
try forex trading too. at the end you will choose which is more profitable for you forex trading or binary options trading