Getting started in binary options trading
To get started in binary trading, the first thing you need to do is open an account with one of the many Binary Options Brokers available. This will enable you to start placing trades, and more importantly gain access to their free market analysis tools and resources, as well as their educational and training programs. All binary option brokers offer basic accounts, starting at around $200. However, please note that the better part of their educational resources, free trading signals and bonuses are only available to the premium and VIP type accounts. These accounts usually require an opening balance of $5,000 or more, but considering what they are offering you, they are well worth the commitment. Some brokers even allow their VIP clients to communicate directly, on a one to one basis, with their top market analysts, seeking market trading advice. This advice is worth pure gold, while the extra bonuses also help boost your starting account balance.
Beginners are advised to open an account with a reputable broker that offers good training tools such as trading guides, webinars, trading signals and one-on-one market analysis and trading consultation.
Especially for beginners we recommend the following brokers:
- IQOption for their free demo account, this will enable you to test whether binary option trading is right for you, without risking your hard earned money.
How to trade Binary Options
Before you begin trading binary options with real money, you need to have focused on one asset and ideally the time frame you want to trade over. Once you have studied an asset well and you can confidently predict how it will move, you will be ready for your first binary trade.
Most binary trading platforms are very easy to use, and they look something like this:
If you choose one of the many assets and time frames available, a dealing window will open up. If you believe that the asset will rise, then you click on the CALL button. If you believe that the asset will fall, then you click on the PUT button.
By clicking on the CALL button a new screen appears, asking you to enter the amount of money you want to invest in this trade:
By entering for example $100, the system will let you know automatically your risk and potential return, before placing the trade! In our case, the AUD/USD currency pair is expected to rise above 1.04260 over the next 5 minutes. The capital invested is $100. If the trade ends up In the Money (above 1.04260) you will get back $167. If it ends up Out of the Money, you still get back a small amount which is $15. To place the trade you have to click on the BUY button.
As you can see the process of trading binary options is very easy. Of course the hard part is to predict the price movement correctly. For this you will have to spend time studying the market, analyzing charts and reading financial news. Alternatively you can use one of the many Binary Options Trading Signals services offered by many of the brokers, or by third party companies. Some of these signal providers have a very good track record. Of course no one can predict how the market will move every single time. And if a signal provider is claiming to have an unrealistic, enormously successful trading record, then you should be extra cautious. We always recommend that you test all signal providers with a demo account or with very small capital first, before you go ahead and invest your hard earned money.
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Risk Warning: Binary Options Trading has high potential rewards but also high potential risk and may not be suitable for all investors. We advise you to consider whether Binary Options Trading is appropriate for you in light of your experience, objectives, financial resources, risk tolerance, and other relevant circumstances. Don’t trade with money you can’t afford to lose. 