Have you heard that binary options can bring you 85% profits? That is the key reason why this tool enjoys increased attention from traders. If you are among them, let us explain to you the basics about such investments. Below, you will find an easy description of this tool and learn how traders earn from it.
Why do so many traders choose such investments? They combine advanced security and low risks. In practice, you know how much you can earn and lose from the very beginning so the risk you take is well-weighed.
In short, a binary option is a contract, which assumes that a trader’s profit will depend on whether an asset chosen (these can be commodities, currency pairs, stocks, and others) goes up or drops within a timeframe specified. No need to determine the exact sum of a fluctuation, only its direction. If a trader fails to correctly predict the movements of the price, he earns nothing. But if his predictions are correct, he gets a significant profit, which can reach 85% and even more. As you can see, the scheme is pretty simple. Even beginners can successfully make money with binary options after certain self-education.
Also Read: Binary Options for Beginners: Understanding and Using them
Now, let us provide you with guidelines on how to start earning with this instrument:
- Study the theoretical basics.
- Consider whether you are ready to bear the risks related.
- Find a broker offering low fees, affordable deposit limits, full functionality, and faultless service.
- Choose the strategy. The most popular ones are those based on the candlestick pattern and fundamental analysis, as well as the Pinocchio strategy.
- Try it via a demo account. Pay enough time to this stage, do not haste to trade with real money. You need to get a clear idea of how market trends behave.
- Make your first deposit and open your first deal. But bear in mind the key rule ― do not risk more than 1–2% of your capital at a time.
In sum, it is an easy-to-use trading tool, which can bring you good incomes. But the main point is to keep the risks under control.