WHAT ARE BINARY OPTIONS?
Binary options are a type of options where a trader gets the opportunity to trade on various assets of the financial market. One of the advantages of binary options is that the trader knows in advance, before opening a position, information about the payout from the transaction. When a binary options position is closed, the trader receives a fixed payout on the trade he has chosen to open the position, regardless of how the price of the traded asset has changed.
A binary options contract has the following characteristics:
- An underlying asset is required;
- Time and date of expiration of the transaction;
- Choosing the direction of the price;
- Option purchase price – strike price;
- Fixed payout ratio.
HOW TO START TRADING
To trade you need to open a real account and make a deposit. Once you are ready to start trading, you need to take the following steps to open a position:
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- Choose an asset to trade;
- Select the date and time of expiration of the option for the selected asset;
- Click “CALL” if you believe that the price will rise above the current level at the time of expiration of the option, or click “PUT” if you believe that the price will fall below the current level at the time of expiration of the selected option;
- In the pop-up window, specify the amount of investment in this option, based on it, a fixed payout will be calculated, which you will receive after the expiration of the option;
- After filling in all the required fields, check all the parameters of the option, if everything is correct, press the “Enter” button.[/list]
TYPES OF OPTIONS
Classic binary options: traders receive a fixed payment, depending on whether the price of the asset is higher or lower at the time of expiration of the option, compared to the price at the time of opening the transaction;
- Constructor: provides traders with the ability to customize their trades according to the trader’s strategy and level of conservatism;
- 60 seconds: these are binary options with an expiration date of 60 seconds;
- One Touch: An exotic option that gives traders high payouts as soon as the price of the underlying asset reaches or exceeds the target level;
- Black Dragon: These are classic binary options with the additional possibility of selling certain options before expiration.
- Renewal: Allows the trader to change the expiration time of an asset based on the rules of the extension function.
- Doubling: allows you to duplicate an existing position, taking into account the new price.
WHAT ASSETS ARE AVAILABLE FOR TRADING?
- Stock
- Indices
- Goods
- Currency
- Fume
Better risk management
Trading in financial markets is an extremely risky business. Trading in conventional options, futures or commodity markets is even more dangerous. There are many things that can go wrong in trading in the foreign exchange market. With binary options, some of the market phenomena that affect traders in other markets in an unfavorable way are missing. In the binary options market, there are no re-quotes, slippage, and so on. Binary options traders know in advance their fixed payout after the expiration of the transaction and, moreover, can manage the payout-to-risk ratio.
PlusOptions offers its traders various types of options that allow you to get a payout of up to 80% on the capital invested in the position; the ability to sell certain options before the expiration date if the trade does not go as expected; The unique ability to change the level of a fixed payout, as well as set a more suitable option expiration time, gives an advantage in the selection of trading strategies. All these factors combine to give traders in the binary options market a more efficient and comfortable management of risk levels when trading.
Reduced trading costs
Financial markets are highly leveraged markets. This allows traders to control larger positions with less money. However, this brings to the fore the concept of margin, which is defined as the amount of money that a trader must deposit with a broker to cover the trades in which he is involved. If the trade starts losing money, the trader’s money will be affected. If the losses approach the amount when part of the broker’s borrowed capital is at risk, the broker automatically liquidates the position and requires the trader to increase the collateral by depositing additional funds.
With binary options, the situation is very different for the better. Traders don’t have to worry about leverage and margin as these two factors are simply missing from the binary options market. A binary options trader does not need such a large capital to start trading.
Today, a trading account can be opened with $200. In addition, commissions are included in the cost of transactions, so this is a huge advantage for binary options traders, as there is no need to worry about paying impressive commissions.
