Binary options are one of the most popular financial instruments and methods of investing online. What you have to do is predict how a price of your asset changes, e.g. currency rate of exchange, at a specific time. First, you have to buy an asset you wish to invest your cash in, and the profit or loss is dependent upon a change of the value of this asset. If you choose to sell the asset on the financial market after its value has been increased, you gain profit. If you resell an instrument on the market after its value has dropped, you have a loss.
Definition of binary options
„Binary” means composed of two parts. It is assumed that in terms of earning on binary options, this notion takes a form of growth (“Call”) or drop (“Put”) of an asset.
In order to anticipate either growth or drop of your asset, you need to choose a type of an asset in the first place. You can choose between e.g. currencies, shares, goods, indexes. The example can be an instrument in the form of a pair of currencies – EUR and USD. Here an investor must choose which of the aforesaid currencies will be higher (e.g. an investor assumes that EUR currency will rise dramatically and exceed the rate of USD within one hour). If the anticipation is accurate, you regain the cash you have invested plus a profit.
BINARY OPTIONS BROKER:
Binary options broker acts as your agent on the stock market. Its task is to take actions to your benefit as a representative of an option buyer and seller. We must mention that a broker does not take over responsibility for your decisions but fulfills your requests only.
A broker can be a brokerage house that deals with brokerage, that is buying and selling financial instruments on the stock exchange. This broker also charges a commission for transactions.
Which broker to choose?
Inexperienced traders who are about to start investing in binary options often have difficulties in choosing a suitable broker. This is why you should have a close look at our ranking of the best and most frequently recommended broker platforms which are the top international brokers. For each of the brokers we have prepared a detailed review and description, thanks to which you gain an access to detailed information.
|Broker||Additional information||Min Deposit||Payout||US Traders||Review||Open Account|
|(General Risk Warning: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.)||$ 10||up to 91% in case of correct prediction||Review||Visit Broker|
|$250||Up to 92%||Review||Visit Broker|
|Banc De Binary
|Here’s what you get as a TopOption trader:
• New line of 5 exclusive e-books
• Personal 1-on-1 training
• Packed video library of tutorials
• Online Economic calendar
• The latest breaking business news
• Exclusive market analysis
• Dedicated support
• Ongoing giveaways
|100 $, €, £||85%||Review||Visit Broker|
|OPTECK - FREE $10,000 DEMO account||$250||65% - 89% (up to 400% using One Touch Options)||Review||Visit Broker|
|10 USD/EUR/GBP||85%||Review||Visit Broker|
|$250||Up to 85%||Review||Visit Broker|
„Call” option is a form of investing in binary options. If you use this option, you assume that the price of your basic asset will grow at the moment when option expires and will be higher than the initial price. “Call” option often has its equivalent – “Up” option on broker platforms.
„Put” option is a form of investing in binary options. If you use this option, you assume that the price of your basic asset will go down at the moment of option expiration, that is will be lower than the initial price. “Put” option often has its equivalent – “Down” option on broker platforms.
A minimum deposit defines a minimum amount you can pay in your account on a broker platform. Most brokers assume that a minimum deposit is 100$ but there are also others who accept 10$. Once this amount has been deposited on your account, you can start trading.
A minimum transaction is an amount a user can use to trade at any time. Most brokers accept minimum transactions of max. 25$ thanks to which beginners can make small investments.
Assets are nothing but the aforementioned basic instrument. If you wish to start investing in binary options, you must choose a specific asset available in the following forms::
- currencies (currency pairs, e.g. EUR/USD)
- stock exchange indexes
The biggest international brokers have over 150 various assets on their platforms. Aside from a detailed list of assets, you can also see how long you can trade with a basic instrument and find additional information to make your investment easier.
„ONE TOUCH” OPTION:
„One Touch” option is a type of binary option known to have the highest likelihood of profits basing on a single transaction. If you choose “One Touch CALL”, you assume that the price of your basic instrument will grow at the specific moment, that is will be higher than the price of initial purchase. If you choose “One Touch PUT”, you assume the reversed situation – you predict that the price of your basic instrument will decrease at certain time, that is will be lower that initially.
„Up/Down” option is one of the most frequently chosen type of binary options popular with beginners. It can take a form of “Call” (Up) option, which means that when you buy a basic instrument you assume that it will grow, that is its price will be higher than at the beginning. If you choose “Put” (Down) option, you expect the price of your asset to drop, which means it is lower than initially.
„60 SECONDS” OPTION:
„60 SECONDS” option is one of binary options and forms of option strategies. It is often chosen by experienced traders because it entails considerable risk but may assure very high profits. As the name suggests, this option has a predefined expiration time which is 60 seconds (the so-called short-term option).