Binary options trading is relatively young in the market and people are always asking questions about it. We will focus on FAQS for binary trading and explain a few important facts that any investor should understand prior to investing in this market. Even after decades of existence, people will still have some questions to ask about binary options because though it is a fast way to make money, it might take quite some time before people get it into their systems. The FAQS for binary options mostly involve the following issues:
What are binary options?
In the financial world, options refer to financial instruments belonging to Exotic options family. Binary options are therefore options that have two outcomes at the end of the trade and pay a fixed amount which is the percentage of the traded amount upon expiration.
What is a Call option?
A call option is a term used to refer to the estimation by a binary options trader who thinks that by the expiry time, the price of the asset in question will go up.
What is a Put option?
A put option is the opposite of a call option, it is the estimation by a binary options trader that by the time of expiry, the price of the asset in question will go down.
How do I benefit?
Binary options trading is a great way to make money in a relatively short time period. It does not involve a lot of work as all you have to do is place a bid and wait for the expiry. The trade either will be in your favour or against you but this will entirely depends on the accuracy of your prediction.
Are binary options better than trading Forex?
Yes, while Forex trading involves risking your entire investment and a need for hedging, with binary options trading, you cannot lose more money than you deposited. You will only be risking the amount you have put into a specific trade and not your entire investment.
How do I start in binary trading?
All you have to do is find a genuine and experienced broker and join their platform. The registration does not cost any cent and you will only be required to deposit any amount of money when you are ready to start trading binary options.