A quick binary options guide might give you just enough details to determine whether or not this type of trading is for you. Users become familiar with the basics, determine the actual benefits and risks associated with this form of trading, but they may also give it a try with a demo account. At some point, they become experienced enough to make the difference between the will to move on and the necessity to quit. Most of them choose to move on, especially when they count the opportunity to make a lot of money over quick periods of time and without too much work.
Before making a first deposit, every binary options guide recommends choosing a broker that can provide your favourite assets. If you are after foreign exchange currencies, make sure that you find a pair that you are familiar with. On the other hand, if you are interested in commodities, look for the industry that you know a lot about. You do not have to adjust to a broker’s offer, but adjust the search to your personal necessities. Other than that, once you decide on the broker, ensure that they provide free demo accounts. A free demo account gives users the opportunity to try out the platform, become familiar with the rules and understand what trading truly is.
Familiarizing with the assets is a main necessity when checking out a binary options guide. Users gain access to currency pairs, commodities, stocks and indices. Each of these categories targets a different industry. What works for some people may not necessarily work for everyone else, so try to avoid letting yourself influenced by others. Instead, pay attention to what appeals to you, but also to whatever you are experienced with.
Currency pairs target some of the most popular currencies in the world. There are more pairs out there, yet most brokers introduce the most reputable ones. Common pairs include GBP/EUR, EUR/USD and GBP/USD, yet it is not unusual to run into less common currencies either. On the other hand, commodities target elements and industries. According to every binary options guide, most beginners rely on silver, gold and oil. However, the list is way longer.
Stocks target world renowned companies. As long as they go out on the stock market, shares may go up or down. Do not forget about indices either. They require a bit more economical experience though. No binary options guide recommends indices for complete newbies.
Assuming that you have already decided what you are good at, unveiling the trading procedure is among the first things you should study in a binary options guide. Trading opportunities in binary options are somewhere between classic trading and gambling bets. You trade normally, but you do it over a limited period of time. The investment price goes up or down and you place a bet on it. There are two different options – call and put.
The call option is recommended when you believe that the asset will gain in value. It depends on the duration of this trade. It is up to you to choose it. The trade may go for 15 seconds or 15 months. Almost every binary options guide agrees that long-term trading will provide better results. When you trade over short periods of time, there are literally dozens of fluctuations within a minute. How can you tell if you are going to be on the right wavelength? Long-term trading becomes more reliable, while results are easier to anticipate.
The second option – put option – is when you think that the respective asset will lose its value and end up lower. Both options work on the exact same principles. From this point of view, binary options feel like sports bets, only they focus on specific industries instead of working on games and matches.
In order to start your new venture, no binary options guide will ever recommend using your real money. Use the demo account and practice your anticipation skills with virtual money. You will not lose any money, but you will not be able to win anything at all either. You earn free experience and that is more than enough. Once you are finally ready to use real money, advance with small amounts. Choose an asset that you do have experience with. Carry some research, identify trends and allow yourself to lose as much as you can afford only. This is a golden rule that every binary options guide will mention. Besides, self-control is one of the best qualities in a trader.
As a short final conclusion, binary options trading is not the hardest job in the world. In fact, it can actually make a decent source of money if you respect rules in small details. Getting over the basics is simple, but you need a more complicated binary options guide if you like this path.