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Introduction to trading with binary options

 

The binary options trading has been on a successful path all over the world. The trade has also experienced only about his an absolute boom, since private investors have been able to use this simple trading instrument. But in order to achieve long-term and lasting profits, the acquisition of fundamentals, strategies and expert knowledge is of great importance, as otherwise trade becomes a mere gamble.

The following introduction to Binary Options trading is especially recommended for beginners, or for advanced learners who want to deepen their knowledge.

Table of Contents:

For binary options, we recommend the following broker: Types of trading: What are they and what are they different from? /Li> Which strategies are there?

Binary options: What she see this site is and how do they work?

Binary options - also known as digital options - are financial instruments that can benefit from rising or falling rates. It is particularly advantageous that only a small amount of money is required for read full article when trading.

The function principle of the binary options can already be derived from the term "binary", since an option can only assume "2" states. So an option ends what is it worth now either "in money" (profit) or "out of money" (loss).

If the trader forecasts a rising price, he chooses a call option and the put option if the price falls. In addition, an option term must also be defined. In order to obtain a profit, the price must be higher or lower than the purchase date at the time of expiration (end of term). Thus the trader only makes a directional decision of the price of a certain underlying asset. This Underlying may be a share, a currency pair, an index or a commodity (eg gold or official statement time oil) and serves as the underlying for the Binary Options.

 

Types of trade: What are they and what are they different from?

In addition to the call and put options, there are a number of other types of trading where the type of speculation differs. Among the best known are the following types of trade:

Touch Options

The term "touch", which means "touch", is already explained by this trade form. This includes several variants:

One-Touch Options and go to this web-site person No-Touch Options

The trader determines in advance that a certain course will be touched. In doing so, the course does not have to be reached at the end of the term, but it is sufficient if it is touched at least once during the term. The option is new previous then terminated immediately.

The no-touch options are the exact opposite of the one-touch options. This is why a certain price is not touched or reached.

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Double-Touch Options and No-Double Touch

For these two variants, two predefined courses are reached or not reached. Since this type of trade is considered highly speculative, it is not recommended for beginners.

What are their read this the profit and loss chances?

Depending on the broker, the returns are 65 and 85 percent of the trading stake. Many brokers offer small-scale trading.