Binary Options Trading 101

Before you get into binary options trading there are few things you need to know and understand about this method of earning an income. Basically, binary oprions can go only one of two directions, either up or down. You can be right or you can be wrong. You are going to win it all or earn nothing.There is no middle ground here.

You start a trade by executing three simple steps. First, you select an asset and then predict whether you think that asset will go up or down in price. Next, you select an expiry date which can be any from a 30 seconds up to days and even months. Once you figure this out, the broker or the platform that you are working with will display the percentage amount that you will have returned to you prior to officially committing your money to the trade. Finally, you then select the amount that you want to risk and the timeframe with which you want to work within. Once these basic factors are all accounted for, you will click on the "call" button if you are predicting the price will go up or "put" button if you are predicting the price will go down to execute the trade.

 One of the reasons why binary options trading is becoming so popular is because you have a lot of information about how the trade will end. You only risk what you put on the trade. You are able to make rational predictions of what is going to happen to the price of the asset. This give you an edge over gambling to make a profit. You are not depending on just luck to make a profit. There are people who have done very well financially in binary options trading.