Nowadays, few people have not heard about binary options. You can earn good money on them, as well as lose money. Before you decide to trade them, you need to find out what they are.
Definition of Binary Options
In fact, these are contracts, or transactions concluded between a trader and a broker regarding the movement of the price of an asset:
- cryptocurrencies;
- precious metals;
- commodities;
- company shares;
- indexes.
The scheme resembles bets in bookmakers. The type of contract and asset is determined by the company, the user voluntarily accepts the terms and puts money on the event:
- increase or decrease in price in relation to the base value;
- achievement by the course of a clearly defined point;
- the same, but multiple values are assumed to be passed;
- stay value within some limits.
The list contains the main types of options. It all depends on the broker's imagination and the user's desire to bet money.
Expiration and profitability
All types of BO have something in common:
- Expiration is the period of time during which an event must occur. It happens that options are bought for the long term (a week or more), but this rarely happens. Short expiration is in great demand – 30…300 seconds. The advantage is that it is easier to predict the result in a short time and more bets can be made during the day.
- Yield - the amount of profit that the client receives. For simple contracts, it is set at 70...85% of the contract price. It happens that the broker offers 300% or more, but the chance of predicting the result correctly in this case is very low.
How to choose a broker
Various selection options are known - advertising, advice from friends, independent search. The last option will be successful if you use the rating. The advantage of this method is that these are ready-made collections of important information.
Experts carefully studied the trading conditions on the sites, filtered out the weakest and those that were involved in scandals. The brokers with the highest scores formed the top group.
Often, a suitable site is chosen from among these operators. The user needs to find several companies, trading in which will best match his ideas.
After that, the proposals of all candidates are compared and the best option is determined. It is worth giving preference to companies that have a genuine license and a good reputation.
Feedback from beginners and experienced traders
In order to read honest reviews of beginners and traders, you can visit a reliable binary options website. For example, the Binium website will answer all your questions and help you quickly understand binary options.
Reviewing reviews is a good way to determine the reputation of a site. Of course, user opinions are not always adequate. In addition, on the websites of the operators, a fake from the employees themselves can be published.
Before studying, it is worth looking at tips on how to determine constructive opinions. Often they can be divided into categories. Beginners usually write about different levels of difficulty, using a demo account.
The comments of experienced traders are distinguished by calmness and more constructive information. They specifically mention the problem and give some recommendations. It is useful to look at all real reviews of brokers - this is how an objective opinion is made about a company that will have to be entrusted with its own money.
