The Ins and Outs of Binary Trading

Somewhat exotic to the fresh trader, binary options are in fact quite simple to understand. Allowing you to trade anything like indices, shares, currency and commodities, this type of trading is an easy and less stressful way to increase your capital.

How does binary trade work?

The very first step is to choose a good broker with a valid licence that also abides by the laws of the relevant government. You should know that there are many on-line platforms such as that had lists of all the best brokers on the market. Secondly, your future investment should be based on an asset you are familiar with. From precious metals to shares and everything in between, knowing all the relevant information related to the chosen asset will reduce any potential risk.

What is great about binary trading is that you don’t have to purchase the said asset. You are basically just predicting whether its value will either increase or decrease to a certain period. If you strongly believe the value will go up you have to go with the ‘call’ option and if you believe the contrary, go with the ‘put’ option.

Basic guidelines for a successful venture

Whether you are a beginner or a seasoned financial trader, binary options are a great way to make money easily. Though not without a certain level of risk, much like every financial venture, there are a few guidelines that will help you minimise it.

  • If you are just beginning, familiarise yourself with the process by trading in a demo account. This way you will gain experience without losing any of your hard-earned money.
  • It is best if you use more than just one broker. Sites like have complete lists of licensed brokers, all with great references.
  • Choose a good trading platform and deposit the minimum sum in your account. There are many great ones out there that only require a deposit of 100 GBP/EUR/USD, depending on your account’s main currency.
  • Choose just one asset to invest in at first. If you are new, you could become easily overwhelmed. Remember, you could always enlarge your portfolio after you gain some real trading experience.
  • Decide on the sum to invest. Try not to invest all your money on just one option. If you are unsure, you can always use the hedging strategy. Using both ‘put’ and ‘call’ options on the same asset at the same time will go a long way in protecting your investment.

After the trading period closes, if your predictions were correct, you win. No matter the time frame, if you invested £100 with a 90% payout, then you win £90. To be correct, though, whatever the nature of your chosen asset is, it is best you are well informed of anything regarding it. A good investor doesn’t just guess, he makes well-informed predictions. To be fairly accurate, you need to do your homework first and read any information about the said company, from financial statements to earning reports and everything in between.

If you decided that binary trading is the thing for you, pick an asset, choose one or two great brokers from trustworthy platforms such as, strategic and never look back.