Binary Options Tutorial | Step by Step Guide
You can trade forex, stocks, commodities, cryptocurrencies and more. This trading tutorial will show you exactly how trading the financial product works. The process is always the same, as you can see in the video and image below. Just practice it in a free demo account.
Learn how to trade successfully:
Now you need to imagine and predict the direction of asset prices in the future (forecast):
You can use a binary options broker's specially programmed trading platform to analyse the charts and get trading ideas. It is very important to have a well-functioning strategy for maximum profit. Beginners should use technical analysis to trade the chart. You can learn more on the broker platform through various training videos/centres.
Therefore, every binary option expires after a certain time. You can use the time horizon between 30 seconds or 5 months or more. Sometimes it depends on the broker. As you can see, you can trade short or long term Binary Options.
After you have decided on the direction and expiry time for your trade, you can "sign" the contract with your broker. Simply click on the call or put button. On some platforms you will need to confirm the trade.
- Call (higher): The price will go up in your expiry time.
- Put (lower): The price will go down in your expiry time.
If you are correct in your decision, the broker will pay you a large capital gain of 75-95%. After the expiry time, the trade will be closed automatically. Sometimes the broker will allow you to close the trade before the expiry time. This is a way to reduce the impact of a wrong decision.
Example - EUR/USD - 95%:
This means that if you invest the amount of 100$, you can earn the amount of 195$ in a certain time horizon. 100$ is the return on your investment and 95$ is the profit.
- Look for an asset with high profit. In my experience, if you trade the assets with the highest returns, the result will be much better in the end. Some binary brokers offer you different account types with different asset profit.
- Analyse the chart on the platform. You can choose different time frames, indicators or financial news for your strategy. Actually every binary options broker also offers you some trainings. Learn the best strategies in the world through webinars, videos or coaching.
- Now you should choose the expiry time of your binary option. There are many options for your trade. Some traders like to trade short term options and other traders like to trade long term options.
- Choose an amount to invest in your trade. Most of the time it starts at $1.
- Now trade the binary option with a call or put. There are only 2 options on the market, so it is called "binary". In the end, you make a high return or you lose your chosen amount.
What are the conditions for trading binary options?
You can trade any asset with binary options. It can be stocks, commodities, forex in exness or cryptocurrencies! Most brokers give the option to trade more than 100 different assets. The expiry time depends on your broker. Some companies offer Binary Options with a time horizon of 30 seconds or less. Nowadays you get a lot of different options on each broker.
Conditions:
- Trade stocks, forex, commodities, cryptocurrencies and more markets.
- Choose between a variety of time horizons (short-term - long-term)