Binary options and trading has been around since 2008 but a lot of people still haven’t got to grips with it. Binary options are actually quite straightforward, which is why they are popular amongst beginners to the trading world. The industry is heavily regulated by the Financial Conduct Authority with brokers needing a license to trade.
What are binary options?
Binary options are a high to low or fixed return option that provides access to stocks and commodities as well as foreign exchange. These ‘assets’ as they are called are given an expiration date and time along with a strike price. As a trader, you bid on the market direction and whether you think the asset with be worth more or less than the strike price. If you guess correctly, the trader is paid a fixed return. If you guess incorrectly, then the money is lost.
When you begin trading in binary options the risk and reward is known beforehand. This gives you an advantage, and a 50/50 chance to win. Generally, there’s no additional fees and if you choose a regulated broker you may get a chance to practice before investing any real money. You can also bid on multiple assets at any time.
There’s always a risk with binary options. If you guess wrong, then you’re likely to lose money. In order to make money, you need to be right most of the time. In fact, losing normally costs more than if you were to win. Whilst the premise of binary options trading is relatively simple, it still takes some knowledge and skill to get it right.
Find the right broker
One of the best ways to get started with binary options trading is to find a reputable broker. There are plenty out there, so it can be tough to find a decent broker amongst the scammers. As the industry is regulated, find a broker that demonstrates this clearly on their website. In addition to this, check out reviews and forums to make sure they have a good reputation amongst experienced binary options traders.
Industry insiders rate BDSwiss reliable as a binary options broker that offer attractive bonuses too. But there are plenty of sites out there you can use. You’ll want to look for an all-rounder that can help you achieve what you need. It’s also worth shopping around because once you get started you may have your own style and strategies. Ideally, you’ll want a registered trader who is respected in the industry and you’ll be off to a good start.
Binary options trading can be a great way to get into the trade world. With its relatively simple concept and what is quite a regulated industry you can get started without worrying about losing too much. What’s more, there are plenty of firms out there that set smaller minimum trades, so you can get to grips with trading before investing any real money. Once you get your strategy right, you can really reap the rewards from binary options.