One of the most popular ways to earn money at home is by Online Trading. Until a short period of time it was difficult for normal people to step into the international trading market because the costs to begin were too high and the way of trading was to complex. As on many levels internet left these boundaries away and for this reason normal people are stepping into the online trading market. Because the online competitors are battling each other the costs to start trading online are decreased and the data processing is much easier to understand. For this reason every person is now able to contribute into the global online market.
Online trading gives everyone in the world, don’t matter where you live, an opportunity to take this chance which was only available for professional traders in the past. The only thing you need is a personal computer with internet connection, a bank account and you are ready to go. These simple way of online trading has three different methods. We are focussing on the most popular form of trading and that is Trading Binary Options.
But before we start with Trading Binary Options we would like to advise you to read this manual so you know all the different aspects that Binary Options has to give, and you can minimize the risk of your risk.
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What is a Binary Option?
Binary means single of one, an Option means a choice which direction something is going to go. When you are investing in Binary Options, you are investing in the prediction of the movement of an asset (option, stock or valuta). Binary Options have different names like all or nothing Options or Digital Options. Both names are representative for the concept behind the Binary Option. They are easy yes/no proposal with a fixed pay out price.
Trading Binary Options are easy to understand and you will pick it up the skills of trading quite easily, even for people that don’t have any experiences of trading it is possible to earn money in a short period of time by taking on yes/no Options on assets like Stock, Commodities or Currencies. Binary Option Brokers give traders the several opportunities to earn money in a short period of time by doing 60 seconds trades, mobile trading, and higher pay out prices.
Each Binary Option has an expiration time, the time that an option is over. The Binary Option can end in three different ways when the expiration time is arrived. In the money, were a fixed price is paid out. Out of the Money were you lose your investment. Or at the money, when you get your invested amount back. At the money is unlikely to happen at Binary Options, but it happens sometimes.
The different Binary Options Brokers gives traders online the opportunity to earn money in a relative short period of time because traders can use well known stocks, indices, currencies, and other assets. With the use of customer friendly interfaces that are supported by professional help desk employees it makes it even easier to start trading.
Most of the time traders use specific trading instruments to make profit in relative short period of time based on their own experiences or knowledge. There are three different kind of trading instruments available at Binary Options.
- High/Low: a trading instrument used by a trader to predict which movement a specific asset is going to make. Does the asset will be higher or lower compared to the fixed price when the Binary Option expires.
- Limits: an instrument that is used to predict if a specific asset stays into a certain bandwidth when the Binary Option expires. The bandwidth exists a low and high price level.
- Touch/No Touch: an instrument that a trader uses to predict if the asset will reach (Touch) the target price or not (No Touch) during the time the Binary Option is active.
Binary Option Brokers do have more trading instruments available. Some of them exclusively offer Binary Option Traders another three extra trading instruments. Some examples are High Line Touch, Up/Under and High Line Limitation.