Why should you start trading binary options? We know how difficult it can be in this economic climate to save – if you have anything left from your wage after paying the essentials. There are plenty of things working against you – you don’t earn enough money from your job, bills are increasing, and the cost of living is skyrocketing. So what can you do?
Well, you could take on an extra job (or two!).
Or you could make a commitment to invest your money and make it work for you, instead of you working for it.
Binary options is an ideal way to begin. To put it simply, a binary option is a type of trade where you consider the direction that an asset will take (assets can be currency, stock, commodities, or indices), will it go up or down within a certain time frame. It is a popular investing option because (a) you need less start up capital than trading stocks and commodities, (b) you can trade anywhere – all you need is a computer and an internet connection, and (c) losses (and profits) are known before you place the trade, minimising the risk.
Binary options trading is actually very simple. To begin, you need to open an account with a reliable platform or broker – you will need to do your due diligence here. You can open a trading account with as little as as $100 starting capital. Of course you can start with more than that, but we recommend trading no more than 1% of your account on a trade when you are just starting out.
To begin trading, you will choose an underlying asset (stocks or currency) and select an expiry time (it could be the end of the hour or end of the week), which is when the option becomes void. And then you place your trade.
If you are making a “call option” it means you predict that the price of an underlying asset will go higher than the strike price (i.e., the value of an underlying asset when the option is bought) at expiry. When you make a “put option” that means you believe the price will go lower than the strike price at expiry.
Unlike trading traditional stocks, you really do not need to have extensive knowledge of an asset in order to determine the direction it will move, but it is important that you follow essential trading strategies. This will help you minimize your risk. You will need to learn the basics of binary options trading before you begin, and the good news is that there is plenty of information to be had, from acquiring tips from trading experts to trading signals that help you make informed decisions about your trades.
Of course you can always choose to work multiple jobs and try and save the money you will need for your retirement, but why do that when binary options could offer you far better rewards without the hard slog and long hours? Learn more about binary options trading and start your journey to a better financial future.