What is binary options

Successful trading requires specific knowledge, time, patience, intuition and developed analytical skills. In general process of trading in relation of any asset includes: analysis performed, prediction conducted, strategy defined, calculation of desired profit, maximum loss and respective amount for investment. For those, who don’t have enough experience, but want to perform some operations while studying, binary options will become a best investments.

Patterns

Leaders amount brokers, who allows operating with binary option, such as IQ Option, added to the basic assets different objects: stocks, goods, futures, FX , and so on. The purpose if to define what change is expected in a certain time and date. Deal is considered to be successful, in case trader correctly interpreted analyzed trends.

Level of precision doesn’t influence profit earned, because gain is fixed, so any change is specified direction is favorable. In a same time in case actual change was opposite to expected, trader will lose amount invested, no additional losses occur.

Detailed process

Bidding

What is binary options

First of all trader should choose an asset to work with. As more it volatile, as probable price changes. Unexpected dynamics is what can lead to losses and decrease of own funds. Predictable and stabile assets would become the best choice.

Research on appropriate information in relation to selected asset. The best method of analysis in such case is technical one. It delivers better understanding of historical assets changes, showing reaction of it on different parameters: news, external influence, international relationships and so on.

Acknowledging with current situation on selected market and define main indicators that may influence selected assts.

Matching information from previous two points will should future direction to be moved on graph (up – increase and down decrease).

On these step trader defined asset and can make a bid.

The last one action required is to define what amount should be invested, because it will define as profit (fixed) and loss (equal to initial investment).

Taking responsibility

Respective information of selected basic asset movements will be reflected in section regarding binary options. Here is a graph showing last deviations from current price, price available for buying. During dealing amount of investment will be specified together with time, when predicted change is expected to become effective.

So if predicted outcome is the same as actual, remuneration fixed is a deal will appear in a balance of the user.

Differences with Digital Options

The main difference, is that binary option allows to take basic asset at a current price and make a bid on increase/decline in its cost. Digital options that are also provided by IQ Option, allows to choose as basic asset as basic price (point higher/lower out which the price will go on).

Binary Option allows to control loses, safe time on analysis and doesn’t require high precision level of trader.

Of course strategy and understanding of “behavior” of selected assets should be present.

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