BINARY OPTIONS – A BRIEF GUIDE
Binary options are currently the most straightforward trading instrument. A Binary Option is in essence nothing more than a prediction on which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. With Binary Options, you never purchase or own the asset as you’re only predicting the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter. As far as you’re concerned, all that matters is if your prediction was correct or incorrect.
Through the Financeyards platform, you simply:
- Choose the asset you want to trade
- Choose the amount you want to invest.
- Click on CALL if you believe the asset price will rise by the expiry time, or PUT if you believe that the price will fall
- Wait for outcome
Advantages of Trading Binary Options
Controlled Risk: The percentage reward is known from the onset, as is what you stand to lose
Simplicity: You only need a sense of direction i.e. ‘Will Google stock price increase or decrease by expiry?’
Attractiveness: For a beneficial trade to take place there is only the need for the price to close in-the-money and the winning trade will receive the entire payoff, even if it was ‘right’ by a single pip.
Hedging opportunities: A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.
Flexibility: Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.
Our platform is continuously developing and adding new features and products, currently providing 7 types of Binary Options:
You can trade Binary Options on: stocks, currencies, indices, and commodities in real-time and you can select a viewing method that suits your individual needs.