How To Invest In Binary Options
What are the advantages of investing in binary options over other market-based tools? For binary options, the distance in points that the asset price moves doesn’t matter. You can profit on just one point in the direction of your forecast. And most importantly, that one point will bring you up to 90% profit on each transaction. And no other kind of stock exchange trading is capable of that. And if you want stable and high earnings, you won’t find anything better than binary options!
A step toward profit in 1 point
The idea behind binary options trading is to make the right forecast of which way the price will move, up or down, and open a transaction in that direction with a binary option. At the time of expiry (the end time) of your trade, the platform determines whether you chose the direction or not for your transaction. If your prediction was right, that is, if the asset quote moved at least 1 point in the direction of your forecast, about 90% of the size of your investment will automatically be credited to your trading account.
It’s simple! And in order for your investments in binary options to bring you a profit, it only remains to find out in which direction the asset quote will move – up or down. And you can find that out in the following manner:
1. Using an indicator strategy.
This option involves the use of a trading system in which the direction of quote movement is shown by technical indicators. A simple example of using the MACD indicator on the Binomo trading platform lets you identify reversal points on the asset quote chart and, accordingly, conclude trades in the direction in which the price will move with the greatest probability.
2. Trading binary options on the news.
Trading binary options on the news is another type of trading that allows you to make trades with a huge probability of profitability, that is, in the direction of future price movements.
Trading binary options on the news is done using the macroeconomic calendar of the financial market, in which important news events are published at precisely appointed times, and which greatly affect the dynamics of asset price movement. All you need to do to make a profit is wait until the next important news item is published in the calendar and make a trade according to the results of this news. That is, if the statistics turn out worse than expected, a trade on the reduction in the price of the asset, or if it is better, then a transaction on the rise in the price of the asset. The idea is that 80% of transactions on the news move with known dynamics. That is, in 80% of cases and you will make a profit!
The basic requirement for binary options trading on the news is to learn to analyze the macroeconomic calendar and quickly respond in time to make a trade. We think anyone is capable of that!
And one more point – it is important to find a binary options broker with whom you can make trades without slipping and with maximum speed, so as not to lose extra points in the trade and to further increase the likelihood of a positive outcome of your trades.
3. Mathematical strategies.
One of the easiest ways to invest in binary options is trading on a mathematical strategy. It’s even easier. Take the trading platform of any brokerage company. We’ll take the Binomo platform (view) as our example. Determine in which direction the asset price will move (that is, the general direction of the trend) and conclude the transaction in the direction of that trend. If the trade closes in a loss, increase the size of the following investment by 2 so that the double size of future profits covers the previous loss, and the rest is credited to your trading account as income. The idea is that if the asset is moving in a trend, most often your transaction will close with a profit. And doubling the lot will help you trade without any losses at all: