Binary options - what is it? Binary options: strategies, trading, reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

On the Internet, everyone can find something to do and become a specialist in any industry of earnings. Among the most popular professions are freelancers - those who work for hire; copywriters - people who write articles to order; information businessmen whose niche is the sale of electronic goods and doing business on the World Wide Web, and traders - players on online currency exchanges. The latter occupy a separate niche, and such earnings attract many, because it is one of the most profitable and is quite capable of becoming the main source of income. Now there are a huge number of ways to get rich in the securities market, ranging from stock trading to ordinary speculation on the difference in exchange rates. However, in recent years, binary options trading has become increasingly popular. Howno matter how strange this phrase may sound, it is this way of trading that can bring the greatest income in the shortest possible time. So, what are binary options?

What are binary options

Generally speaking, an option is a special voucher that involves some expiration time, after which it is determined whether it is profitable or not. It sounds pretty tricky, but it's actually much simpler. In our understanding, a binary option is a bet on a positive or negative outcome of an event. For traders, this is an increase or decrease in the exchange rate of two currencies or a pair of securities. It is on whether the outcome of the option is guessed or not that the profit of the trader depends. Some compare such earnings with roulette, because if you discard any forecasts, then it is: either black or red. Although it is the ability to predict the behavior of currency pairs that distinguishes options from casinos. Nevertheless, the currency market is so unstable and the fluctuations there are so insignificant that even the most experienced traders are afraid to give forecasts for the behavior of pairs. Despite the fact that there are indicators for binary options, it still cannot provide a 100% result.

How to make money on binary options

Many are trying to learn how to make money in this market. In fact, everything is quite simple. The general scheme is as follows: making a deposit to a broker company (a site that is a trading platform), choosing a currency pair, depositing the amount of the option and choosing its movement (up or down), waiting for the expiration time. Quite a few try asearnings binary options. Reviews confirm this: there are opinions from the most flattering to negative. However, contrary to any criticism, you can make money on binary options. Of course, this will require a lot of knowledge and luck.

Marketplaces

Earnings are made on special sites-brokers. These projects provide an opportunity for traders to trade online immediately after making a deposit. Binary options brokers provide various conditions for partners: the amount of the minimum deposit, the percentage of the transaction and many other possibilities. By the way, there are a number of proven trading platforms with positive reviews.

Some offer to install a trading terminal on your device, others give you the opportunity to trade directly on the site. Now you can answer the question: "Binary options - what is it?" This is a voucher that allows you to choose one selection, and if you choose it correctly, you will receive a profit.

Option returns

Binary options are rightfully considered the most profitable type of online trading. One transaction lasting a minute can bring the average monthly salary of a Russian. Profitability in case of winning ranges from 50 to 80 percent. Such differences depend on the popularity of the trading pair and the position in the market. If, for example, there is a pronounced trend, the profitability will fall, since no broker will work at a loss. For this reason, there is a rigidcompetition: who will offer to sell binary options at the best price? Broker reviews also play an important role.

Analysis and strategies

As mentioned above, the difference between this type of earnings and roulette is that you can analyze binary options. Strategies are also being developed in large numbers. Why is it generally believed that currency markets are predictable? As it was found out, in a relatively stable economic situation, the fluctuations of a currency pair have a wave-like character and a frequency that depends on the mood in the markets. It is the ability to correctly guess when the trend will change that will help to be successful in options trading.

There are two types of analysis: technical and fundamental. They will be discussed below. Various trading strategies are built on the basis of technical analysis. But it should be understood that each strategy can be applied only in "their" market situations. In the arsenal of a real trader there are always several strategies that give him the opportunity to always be in the black.

Technical analysis

After a novice trader has chosen binary options as a market instrument (what it is, you have already learned above), the first thing you have to face is technical analysis, which consists in the ability to work with signals.

In fact, these are ready-made solutions that should give the trader an idea of which direction the option will go. But theyhave a number of significant drawbacks: firstly, their expiration time is not indicated, and secondly, they do not indicate by how many points the value of the pair will change. But, unfortunately, these are completely insignificant problems of these signals. A much bigger disadvantage is that in most cases they turn out to be wrong. Many understand how to use them correctly and focus on binary options. Strategies serve just for this. In general, technical analysis is an assessment of the behavior of the chart and the study of signals, economic news and other factors, on the basis of which the type of strategy that will be used during a certain trading time is selected.

Fundamental analysis

This type of analysis will be applied to the direct development of economic strategies. In fact, all situations occurring on the market are already a number of available ready-made solutions. Their correct understanding and ability to combine will be the key to success. To conduct fundamental analysis, you need to have good knowledge. Of course, it also includes technical elements, but the determining factor is precisely the ability to correctly predict what situation on the market will follow the existing one. Despite all the seriousness, its implementation will not take much time for an experienced trader, and the result will be much higher than with technical analysis.

Conclusion

In this article we answered the question: "Binary options, what is it?" Some will say that there are too many conventionsothers, on the contrary, will object that everything is quite simple. However, binary options trading is indeed a rather difficult form of earning, often depending on luck and luck. Sometimes even the most experienced traders do not risk using this market as the main one for their trading.