Binary Option Trading
- by SergeyIntroduction to Options Trading
Binary options have quickly become one of the most interesting and popular types of trading. They attract more and more supporters today as almost anyone can learn to trade binary options. Among the key benefits – binary options trading can take place anytime and anywhere, as long as the trader has a reliable internet connection and appropriate device. The name itself "binary" limits to just two possibilities, the price or currency rather grows or decreases. So what are binary options exactly?
An option is a contract to buy or sell a stock, usually 100 shares of the stock per contract, at a pre-negotiated price and by a certain date. Just as you can buy a stock because you think the price will go up or short a stock when you think its price is going to drop, an option allows you to bet on which direction you think the price of a stock will go.
Two types of options are calls and puts. When you buy a call option, you have the right but not the obligation to purchase a stock at the strike price any time before the option expires. When you buy a put option, you have the right but not the obligation to sell a stock at the strike price any time before the expiration date.
There is one important difference between stocks and options. Namely, stocks give you a small piece of ownership in the company, while options are just contracts that give you the right to buy or sell the stock at a specific price by a specific date. It is important to remember that there are always two sides for every option transaction, a buyer and a seller. So, for every call or put option purchased, there is always someone else selling it.
How to Trade Options?
In order to trade options, you will need a professional, regulated and transparent binary broker. The important thing before starting trading is to make a proper check-up on platforms, trading conditions, compare commission costs, minimums, and more to find the best broker. To make it easier for you, you will find below our personalized recommendation on the best broker for your needs, IQ Option, a smart and convenient platform and your reliable partner in binary options trading.
Why choosing IQ Option?
IQ Option is one of the leading options brokers in Russia and worldwide. A really nice advantage for newcomers is that you can open an account with only 10 US dollars (which is only offered by 2-3 large brokers) and this will give you an opportunity to fully trade and perform any operations. The minimum cost of the contract is only 1 US dollar.
The broker allows you to open a demo account, an essential tool for those who only start trading and prefer not take a risk of losing real money. This enables to develop your trading style and your skills in a risk-free environment and without real investments until you feel you have gained the confidence and experience to make a successful binary options trading.
When opening a demo account you will have the opportunity to view the webinar and get some additional useful information that will help you in trading. Given the feedback from traders about IQ Option broker, this material can greatly contribute to your learning and help you save significantly on trading costs at the very beginning of your trading journey. In order to get started with trading, you will have 13 assets, whereas all in all the company offers up to 500 basic assets, including currencies, shares, as well as indices and commodity assets.
$ 10 US dollars account already gives a perfect option to practice your skills and try almost all the possibilities of the binary options trading.
IQ Option platform has simple and user-friendly interface, yet is very functionally advanced. Among other things, the company offers fully functional versions of its web based trading platform for tablets and smart phones. Withdrawing funds from your trading account is also quick and easy – bank transfer, credit cards, online payment systems like WebMoney and Skrill, and other options available. Concluding on all above mentioned, we can really say that this broker cares about its clients.
Notice: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.