You can join the industry of binary option trading either by opening a demo account or creating a real account. Here you can find the basic steps of getting started with the binary option trading.
STEP 1 : Specify the Expiration of the Binary Option Asset.
In binary option trading the minimum expiration is 1 minute up to one month. After you have chosen your asset, specifying the expiration of the asset is important. Mostly, binary option contracts do not last less than one hour, but depending on the platform, traders can purchase options up to 5 minutes before the time of expiration.
In order to get the highest welcome bonuses (but know the conditions of these bonuses before you sign up) from the most reliable binary option brokers online, review the brokers account and sign up. In as little as 5 minutes, you can realize how easy it is to start binary option trading and start putting money in your pocket. High profits can be made from binary option trading.
STEP 2 : Direction of the Binary Option Asset
Basically, in binary option trading you make a prediction about which direction (up or down) the asset will move by the time of expiration. Generally binary option traders conduct technical and fundamental analyses of the assets they have chosen.
STEP 3 : Choosing the Binary Option Type for the Asset
The next step in the binary option trading is to choose the option to trade your assets. There are three different option types in binary option trading. These are above / below option, range option and touch options.
- Above/ Below option means that you predict if the price of your asset will either increase or decrease by the time of expiration. If you think that the price will increase you need to buy a call option, or you think the price will decrease then you need to buy a put option.
- When it comes to touch option, we see that there are two types of this, called as “double touch” and “no touch”
- By the range option you need to decide wheter your asset will stay in or go out of the predetermined range by the time of expiration.
STEP 4 : Amount of Investment
Now you should decide how much you will invest on your trade. You can trade with a minimum investment of $10 up to a maximum of $5000 depending on your broker. After opening an account with a binary option broker, you can easily deposit funds into your account.
STEP 5 : Waiting for the Contract to Expire
After placing your trade, you will wait until the option expires, which will depend on your specified period of time. When the time comes and your choice was correct, your profit will be immediately reflected in your trading account. If your option expires “in the money” you could obtain a return between 75% – 85% on your initial investment.