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Binary Options Trading For Dummies

Binary Options Trading For Dummies

In this article, we will see an overview of binary options basics 101. To start, Binary Options are bets on financial markets. As there are bets on sporting events, which can be done at online bookmakers, betting exist for financial markets, i.e. for increases or decreases in prices, made ​​on forex platforms, also called Binary Options brokers.

Binary Options allow betting on rising and falling prices of currency pairs, stocks companies, and “commodities” such as oil, natural gas, gold, and silver, among others .Through Binary Options you will never buy these securities. Instead, we will only invest if, in a given time period, their price will rise or fall.

Binary options trading explained

The profit that we can make is defined by the “payout”, which is the percentage of return on investment. If our focus is correct, we will receive the amount wagered plus the percentage of profit. If you are wrong, you will lose the amount bet .The advantage of trading in Binary Options is the ability to get results much more quickly, since we are not dependent on price developments in the medium / long term. We just need to know if the price will go up or down at a given time .There are also platforms that return part of the bet , if it is lost . Normally the value of the return is around 10%.

Let see a Practical Example

 Imagine for example that the actions of “Apple, Inc.” present at any given time, a value of $ 450.

This will be the price you will get at the Binary Options platforms. Additionally, you will get the chance to bet if that price will go up or down after 15 minutes. For example from 10:00 to 10:15.

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At 10:00 If we bet that the option price will rise and after 15 minutes, the price of the shares present more than 450 $, you will win the trade. The same goes for the drop in price, that is, if a bet made past 15 minutes (below) and the price is below the $ 450, you will win your bet. That is, just like in sports betting only a selection is given as the winner at the end of “playtime”.

Binary options strategies

How Binary options are very short (they are thrown into periods of a few minutes or hours), and you only have to hit up if certain value will go up or down, the best strategy is to keep up-to-date of news and graphical analysis. This can be done by reading newspapers like Bloomberg and Financial Times and pay special attention to announcements like the Federal Reserve, and others who have immediate influence on economies.

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There are those who use martingale tactics (always double the bet amount when a bet is lost) with these markets, however I discourage the use of such strategies, which are not beneficial in the long term. The best strategy is to follow the news and keep up-to-date of the currency or action in which we invest. You can learn more in Binary Options Strategies and Tactics That Work.

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