Many brokerage firms are increasingly offering its customers a completely alternative method of generating income in the forex market, as well as other commodity and financial markets. In recent years, traders have begun to use popular binary options. Many market participants familiar with trading futures and options. But the existence and use of binary options know until the last still not far from many. What are these new features and how to use them? This is covered on many sites, including a resource brokerage firms. Whether or not to trade in this type of option, should each decide individually. But first you need to get a complete idea of what the binary option.
On the territory of the former CIS countries, the use of binary options got its start a few years ago. But the more widespread they only began two years ago. Binary options require a fixed payment for its acquisition, and the same fixed income. Binary options are different for other types of contracts that have not set a predetermined price within them. However, binary option, as well as a standard option or futures contract, to be executed after a certain date. In addition, the amount of the purchase option set by the trader alone.
The plan may be limited only by the brokerage centers, limiting the minimum bid. But as a rule, there are no strict limitations for beginners of this financial market it is possible to start trading with very small amounts. Sometimes, the first deal can be struck with the amount of five or even one dollar. The essence of binary options is to ensure that the trader should be able to make a correct calculation of the further movement of the price for a certain period of time. By entering into a transaction, you must specify, and the price will be above (or below) the existing at the moment than a certain period of time. In case of successful execution of the option trader makes a profit of up to 85%, and its cost of acquisition of the option and return to the score.
Terms of Use binary options
What does it take to start getting profit from binary options in your trading? It turns out, quite a bit. To get started you need to register in one of the brokerage centers providing such services. After that you need to make a deposit. Size insertion means is not regulated.
However, we must remember that the money made should be sufficient to conclude the minimum deal. In contrast to the standard trade in the forex market, there is a possibility of losing more than put into commercial operation. If purchased in the amount of $ 100 contract, the loss in case of failure will be $ 100.
And no amount of correction in the market can not affect that amount. By the way, some brokerage firms in an effort to attract more customers require a return of the deposit in case of loss. Typically, this amount is in the range 15 - 20%. That is, if you still lost $ 100, the company broker will return $ 15 to your account. In relation to win - here the picture is more cheerful. In case the correct calculation of a successful binary option can bring a profit of up to 85 percent. Again - nothing can affect the final amount of profit. When buying an option, but rather - even before its purchase is required to do the calculation upcoming earnings. This makes it possible completely to adequately assess their capabilities and financial risks.
The purchase option may be to use as much money as you consider reasonable. On the balance of the deposit, this operation has no effect - it is stored for future financial transactions. Such conditions can rightfully be called attractive because they provide a measure of stability of profits and risks.
Practical tips for dealing with binary options
In order to use binary options has brought considerable profit, it is important to be able to make the correct calculations. They may be based both on the basis of fundamental knowledge of the economic situation in the world financial markets, and on the basis of technical analysis. To conduct fundamental analysts can turn to the economic calendar, represented at all sites brokerage firms.
It covers all the important current economic events. Typically, they are labeled according to their degree of importance. It is possible to also take into account the current interest rates of national banks in various currencies. Together, these data can give a clear picture regarding future price changes. In addition, you can resort to the services and analytical centers where more detail considering the possibility of change in price direction, and the possible timing of such changes.
With respect to technical analysis - here you must have a trading platform that can be downloaded and installed on the site of any brokerage center, providing the opportunity to trade binary options. Then, using the set of indicators and graphical analysis, you can without difficulty to calculate the trend. Proper use of technical analysis can not only properly analyze the market situation, but rather to conduct a profitable trade, as it gives the opportunity to trade for a few days several times. At the same time increase profitability wash several times.