You may have already seen dozens of headlines like: “The most profitable return. Earn up to 80% on the deal!”, tempting offers to turn $100 into $1000 in one night.
They’re new, but they’ve already managed to find a lot of rumors and myths and fables. Let’s figure out what of all the myths is a lie, and which is true, and let’s take a closer look at this topic.
What are binary options and why are they needed?
A binary option is a financial product in which a buyer receives a payment or loses its investment depending on the conditions under which the option expires – a price increase above par or, conversely, a fall.
They are called binary because they assume only two options: either you get something (for example, a specified amount of $100) or nothing. As a rule, the following assets may be used for day trading of binary options:
- Stock indices;
- Commodity futures.
How do binary options work?
The concept of the day trading of binary options is quite simple. A trader opens a trading position and then closes it during the same trading day. It is important to remember that all binary options have a validity period and a time for expiration.
Potential profits are known beforehand, prior to the purchase of binary options (they can amount to 80% of the transaction). And since binary options can be realized on practically any financial product and in any direction, day trading of binary options can be easy and profitable, generating high returns that the trader receives immediately.
Popular myths about binary options
Myth: 1 Trading binary options is a 100% scam. A lot of people believe that binary options trading is a scam. Yes, there is such a thing, because there are so many dishonest brokers in the market who cheat their customers. To avoid being caught in a network of fraudsters, you have to choose your broker as carefully as possible.
Myth 2: You can earn up to $1,000 a day from scratch. Mathematically, you have this probability, given an average of 70-80 percent profitability. In reality, we all understand that for such an outcome it is necessary to trade successfully at least 9 deals out of 10, it is very difficult. Such an outcome can only be achieved after a long and arduous trade over time.
Myth 3: Intuition will help you win. No one has a mystical connection to the market. Rabbit feet, icons, amulets, cures – they’re as useful as intuition here. The market is a system that has its own laws. You know how they work, you can make predictions and trade. [You know how they work – you can make forecasts and trade. Trading binary options requires at least minimal trading knowledge.
Myth 4: Traders of binary options cannot live on profit. At the beginning of your journey, you don’t have to quit your job and go only to the market of binary options. Everything in our lives needs experience.
I can say one thing – to live on profit from binary options is real. There are a lot of blogs on the Internet where traders prove it.
What does it take to make money on binary options?
Get a closer look at the candle chart. Until you realize what the figures are and what they’re doing, you don’t trade.
Study the basic asset of an option before trading. Knowing the behavior of an asset, you can learn to consciously choose the right options.
Monitor price trends. Trend bets – a good strategy for trading binary options.
Step-by-step guide: How can a newcomer earn money on binary options?
If you need a short step-by-step instruction on how to start trading binary options, you can use this guide:
Step 1: Select your broker.
Binary options are a fraud’s paradise. Therefore, we choose the broker not according to the attractiveness of the conditions, but according to the duration of his «life», the general reputation, payment statistics and other similar parameters.
High-profile advertisements and beautiful promos usually attract the attention of quick-dying scam-projects of low-priced brokers.
Binany is a young but reliable platform for working with binary options that will suit both newcomers and experienced traders. These are just some of its benefits:
Security and transparency
The company is certified by the Financial Market Relations Regulation Center (FMRRC) which guarantees security for all participants of transactions. The platform interacts with each client strictly within the limits of the law.
Simple and understandable video lessons will help even those who first learned about binary options today. The lessons are conducted by experienced traders who have been trading on Binany since the opening of the site. The service has also a useful mailing which details working strategies.
Demo account for training
After watching the video with the theory, you can gauge your strength on the demo account that every user receives when registering to Binany. This is a good opportunity to acquire binary option skills without the risk of losing money.
Transaction amount from $1
The minimum transaction amount on Binany is $1. Newcomers can play for real, test different strategies without risking too much money.
Convenient ways to withdraw money
You can withdraw money and replenish your account at any time in any convenient way. Binany does everything for the convenience of customers, so there are no hidden payments and commissions.
Round-the-clock support service
Binany users live and work in different time zones, so the service support never sleeps. The service staff immediately answer any questions 24/7.
Browser and mobile application
Binany binary option trading does not require special programs and extensions. Everything happens directly on the service’s site. For those who prefer to work from a phone, there is a convenient mobile application for iOS and Android.
Step 2: Register and replenish your trading account.
This is the easiest step if we already have money. Just follow the step-by-step instruction of your broker to create an account. To register and start working on Binany is an e-mail and a strong password. Quick registration via a google account is also possible. Later, you need to verify the account linked to your bank data, and deposit the amount for the start.
Step 3: Open your first deal.
If you have only come to the trading world, do not risk real money, first practice on a demo account. Once you’ve worked out 10 successful deals, you can boldly switch to a real account and build up your capital.
Tips for beginner traders
These binary option tips are designed to provide a general direction in which you should move:
- Learn theory until you know the basics;
- Choose a broker based on reputation rather than profit;
- Follow news and events on the stock market – they move quotations;
- Set your trade schedule;
- Set a budget and stick to it.
To expect income from binary options, you have to make an effort and not be afraid to start. No one is born a professional trader, everyone here goes from beginner to pro. Almost everyone who is not lazy and willing to make an effort is rewarded with good returns.