WHAT IS A BINARY OPTION?
A binary option is a trading instrument with a fixed price and a fixed payout. In other words, when you buy an option, you bet. For example, you expect that the dollar-yen pair will rise or Tesla shares will slide in the next ten minutes. If your expectations are correct, then you get profits, but if they are not, then you just lose the sum that you have spent for buying an option. Thus, a binary option gives you an opportunity to earn on making forecasts about movements of a price of any asset.
Despite concerns of some traders, binary options do not involve high risks and this type of trading is as safe as currency trading. Besides, the advantage of binary options is that you know beforehand how much you risk and how much you may earn.
Our clients can track the purchase and cancellation of options, the beginning of their action, as well as gains/losses of other options traders in the Live Feed.
TYPES OF TRADING BINARY OPTIONS
Binary options trading has been attracting market participants with its simplicity. The key advantages of it are low risks, profits known beforehand, and different execution terms. Another boon is zero swaps, spreads, or commissions. To profit from buying binary options, one has to correctly forecast where an asset price will go. If the price goes in line with the forecast, the deal will be successful even if the change is marginal.
There are three types of binary options trading: intraday, short-term, and long-term. InstaForex offers intraday and expiry binary options and gives access to multiple trading instruments such as gold and silver, 21 currency pairs, and 49 CFDs on shares.
Intraday binary options
To purchase an intraday binary option, you should determine a time interval for buying the option on the next day, forecast where the asset price will go, and buy a call or put option with a certain value.
Expiry binary options
These are fixed contracts with a predetermined income that are limited in their term up to 4 weeks. The option will bring profits once the forecast for a price direction comes true. When buying expiry options, one should keep in mind that they should be bought in advance – within 2 weeks from the current date; for a sale – up to 4 weeks from the moment of purchase.
HOW TO TRADE BINARY OPTIONS?
STRATEGIES FOR BINARY OPTIONS TRADING
Simple strategies forbinary options trading are useful not only for beginners but also for experienced traders. Professionals employ simple strategies in difficult situations in the market.
Such strategies require minimal skills. The most popular of them are Martingale, Rapid Fire, Strangle, 60 Seconds, Doji pattern. These simple and understandable strategies were developed by professional traders. They do not require deep knowledge of the market. They can be used by novice traders forincreasingthe deposit.
Strategies based on indicators
These strategies are based on indicators that assess price movements ofbinary options. Atrader receives a signal whenan indicator behaves in a certain way. The most popular strategies for the basic indicators: No Touch, Breakout, Puria Method, as well as strategies based on the trend lines:EMA, MACD, and RSI. Trading on such strategies ishighly profitable.
In addition, some strategies, for example, on trend lines, give the opportunity to trade several instruments at once.
This type of strategiesis intended for professionals of the forex market since graphic strategies includeelements of technical analysis. This system requires working with price charts. Atrader should determine the trend model and make a forecast based on the pattern. A trader canapply graphic strategies if he/she already has experience in trading, understandstrading process, and knows how the market works.
Popular graphic strategies for binary options trading are Triangle, Trend Reversal, Bottom – Top and others.
TRADING BINARY OPTIONS WITH INSTAFOREX
Terms of trading binary options with InstaForex!
- The currency of your account: USD, EUR, RUB
- Minimum deposit from $1
- Wide choice of trading assets: currency pairs, gold, silver, CFDs on shares
- Trading on a demo account
- High payouts: 80% profits of the option value in case of winning
- Different expiration periods: intraday or expiry binary options
- Archive of quotes