After answering the question “What are binary options?“, Let’s see the key features of this investment instrument simple and highly profitable and how to invest in Binary Options.
First of all you need to choose a broker, in our section best brokers for trading with binary options you will find a detailed review, a lot of information highly interesting as the minimum deposit, the presence of bonuses, minimum amount for single trade, and more.
In addition, we invite you to read our tips for choosing the correct and consistent with your needs and abilities a broker. Clearly, some brokers are specialized in offering only binary options of any kind and form, while other brokers are involved in general trading , the range of binary options will be only one of many possible investment forms.
At this point, chosen the broker with which you want to start, you need to open an account. All brokers allow you to open free accounts, that is accounts commission free. You have to fill out an online form with a series of data, such as name, surname, email, date of birth, user name and password to access the platform. Later, It’s necessary to deposit money to invest.
Remember that depending on the broker the minimum deposit changes, but is usually between $ 100 and $ 300. The minimum deposit also changes depending on the investment methods used. Generally will be accepted various forms of deposit as the bank transfer, the various credit cards and electronic payments Moneybookers type.
Deposited minimum funds you can start to work, in this regard we want to remember that for binary options you don’t need to download any software, specialized brokers allow trading directly from their online platform (web Based), just log in with your user name and password. Clearly, the only thing that serves to the trader is a connection and a tool to connect, such as a computer or the latest technologies: iPhone, Android, tablets etc…
Now we have reached to the choice of markets, select the one you want to work in, for example, stock market indices like the Dow Jones or the FTSE, commodities such as oil crude, coffee, corn, sugar or gold, the various currencies as EUR / USD, or stocks (such as Google, Apple, Microsoft).
Chosen the market you need to select the type of binary option in which to invest, such as high / low, one touch, boundary, and then select an asset:
For example, for commodities the assets are gold, silver, platinum, oil, wheat, coffee, corn, stocks are Google, Apple, Generali Bank, Microsoft, Coca Cola, etc.
Now choose the expiration of the option, which is the date on which the transaction comes to an end. In this regard, remember that the binary options are generally offered by the broker with a very short expiration, 30 minutes, 1 hour, 24 hours, but also with longer maturities such as one week or one month. In general, you can still buy an option up to 15 minutes before the expiration.
You just need to choose the amount to be invested and select the buy button.
However, don’t forget to pay attention to these terms:
Market (or market price)
It is the current price of the asset, that is the price that at that precise moment assume the asset, or the market price. Is taken as the reference price to determine if on expiry the investment was closed in positive or loss.
It’s the reference market on which it invests.
It’s the price that the title will have to achieve or maintain so that the investment closes in profit.
In the Options Up / Down is the price that you take as a reference. If you choose “Down”, the investment closes in profit if the stock falls below that price, if you choose “Up” the investment closes in profit if the stock price rises above that.
Indicates if the broker for that investment includes the possibility of closing the position before the expiration date, so you can sell the option before it expired.
Amount or buy
It’s the section where you have to indicate how you want to invest in one single trade.
Indicates when the option expires.
Indicates how makes the investment, that is, how much you will be paid if the investment is successful. The return is clearly expressed in percent, usually depending on the type of option varies from 70% to 600%.
Once you have entered the amount you want to invest, profit is automatically calculated.
The graphs will indicate second by second movements of the asset on which you are investing and its trend.