When people start talking about trading and the stock market it can seem really daunting and even though a lot of people want to get into trading – either as a hobby or purely to make some money, it can seem like it’s just too complicated.
Thankfully there is a much simpler way to dabble in the stock market (And in other markets in fact) and it’s called binary options trading.
The reason this is much more simple than standard trading is because of one word – binary. Binary, as anyone in the computer industry will know, basically represents a two-digit system involving 0s and 1s. And similarly, in trading the binary part of binary options means that you have two choices. So there is no more worrying about what price a stock is going to rise to or when to pull out of a trade or how much do you need to make before you sell. With binary options trading you are just concerned about two things – will it go up or will it go down.
It really is that simple and it’s easy for anyone to get started. First of all, you need to find a binary options trading platform to get set up on – for example Omega options offer this type of platform and there are lots of others out there as well.
After you have an account set up on the platform then you can think about the type of asset you want to trade with – for example you might stock to the traditional stock markets and use listed shares as your assets, or you might want to trade on something like gold.
Once you have decided on the type of asset you are going to trade against you simply need to pick whether you think that asset is going to increase in value or whether you think that asset will decrease in value, in a set amount of time.
If you think that the asset is going to increase, or go up, in value then you can take out a call option and if you think that the asset is going to decrease, or go down, then you can take out a put option. Call basically means you want the asset to rise and put means you want the asset to go down.
Once you have made that decision you can place the binary options trade and then you simply wait for the time on the option to expire. The expiry time is also something that you can decide on to some extent – there are lots of different binary options available depending on the trading platform that you are using, but their expiry times can range anywhere between 60 seconds and 1 month. This is great because if you think that the asset is going to perhaps go down initially and then rise in the long term you could bet using two different time periods and win on both of them.