On the Internet, anyone can find something to do and become a specialist in any industry earning. Among the most popular professions, freelancers can be noted - those who work for hire; copywriters - people writing custom articles; information businessmen whose niche is the sale of electronic goods and doing business on the World Wide Web, and traders - players on online currency exchanges. The latter occupy a separate niche, and such earnings attract many, because it is one of the most profitable and quite capable of becoming the main source of income. Now there are a huge number of ways to get rich on the securities market, ranging from stock trading to ordinary speculation on the difference in exchange rates. However, in recent years, binary options trading has become increasingly popular. No matter how strange this phrase may sound, it is this way of trading that can bring the greatest income in the shortest possible time. So, binary options - what is it?
What are binary options?
Generally speaking, an option is a special voucher that assumes some expiration time, after which it is determined whether it is profitable or not. It sounds pretty tricky, but in fact, everything is much simpler. In our understanding, a binary option is a bet on a positive or negative outcome of an event. For traders, this is an increase or decrease in the exchange rate of two currencies or a pair of securities. The trader’s profit depends on whether the outcome of the option is predicted or not. Some people compare such earnings with roulette, because if you cast aside any forecasts, then it is: either black or red. Although it is precisely the ability to predict the behavior of currency pairs that the options differ from the casino. Nevertheless, the foreign exchange market is so unstable and the fluctuations there are so insignificant that even the most experienced traders are afraid to give forecasts of the behavior of the pairs. Despite the fact that there are indicators for binary options, it still cannot provide an absolute result.
How to make money on binary options
Many are trying to learn how to make money in this market. In fact, everything is quite simple. The general scheme is as follows: making a deposit in a broker (a site that is a trading platform), choosing a currency pair, depositing the amount of the option and choosing its movement (up or down), waiting for the expiration time. Quite a few people try binary options as earnings. Reviews confirm this: opinions are from the most flattering to the negative. Nevertheless, contrary to any critics, you can make money on binary options. Of course, this will require considerable knowledge and luck.
Trading floors
Earnings are carried out on special broker sites. These projects provide an opportunity for traders to trade online immediately after making a deposit. Binary options brokers provide various conditions for partners: the minimum deposit amount, the percentage of the transaction and many other opportunities. By the way, there are a number of proven trading platforms with positive reviews.
Some offer to install a trading terminal on their device, others make it possible to trade directly on the site. Now you can answer the question: "Binary options - what is it?" This is a voucher that makes it possible to choose one outcome, and if you select it correctly, you will make a profit.
Options yield
Binary options are rightly considered the most profitable type of online trading. One deal lasting a minute can bring the average monthly salary of a Russian. Profitability in case of winning ranges from 50 to 80 percent. Such differences depend on the popularity of the trading pair and market position. If, for example, there is a pronounced trend, the yield will fall, since no broker will work at a loss. For this reason, there is fierce competition between the sites: who will offer to sell binary options at the best price? Reviews about brokers also play an important role.
Analysis and Strategies
As mentioned above, the difference between this type of earnings and roulette is that you can analyze binary options. Strategies are also being developed in large quantities. Why is it generally believed that foreign exchange markets are predictable? As it was found out, in a relatively stable economic situation, fluctuations of the currency pair have a wave-like character and frequency, depending on market sentiment. It is the ability to correctly guess when the trend will change will help to be successful in trading options.
There are two types of analysis: technical and fundamental. They will be described below. Based on technical analysis, various
trading strategies are built
. But it should be understood that each strategy can be applied only in "their" market situations. In the arsenal of a real trader there are always several strategies that give him the opportunity to always be in the black.
Technical analysis
After a novice trader has chosen binary options as a market tool (what it is, you already learned above), the first thing you have to face is a technical analysis, which consists in the ability to work with signals.
In fact, these are ready-made solutions that should give the trader an idea of which direction the option will go. But they have a number of significant drawbacks: firstly, the time of their expiration is not indicated, and secondly, they do not indicate how many points the value of the pair will change. But, unfortunately, these are completely insignificant problems of these signals. A much bigger disadvantage is that in most cases they turn out to be wrong. Many people understand how to use them correctly and focus on binary options. Strategies are just for this. In general, technical analysis is an assessment of chart behavior and the study of signals, economic news and other factors, based on which the type of strategy that will be used during a certain trading time is selected.
Fundamental analysis
This type of analysis is used to directly develop economic strategies. In fact, all the situations occurring in the market are already a number of ready-made solutions. Their correct understanding and ability to combine will be the key to success. To carry out fundamental analysis, you must have good knowledge. Of course, it includes technical elements, but the determining factor is the ability to correctly predict which situation will follow the current one on the market. Despite all the seriousness, its implementation will not take much time from an experienced trader, and the result will be significantly higher than with technical analysis.
Conclusion
In this article, we answered the question: “Binary options, what is it?” Some will say that there are too many conventions, while others, on the contrary, will object that everything is quite simple. Nevertheless, trading binary options is indeed a rather complicated form of earnings, often depending on luck and luck. Sometimes even the most experienced traders do not risk using this market as the main one for their trading.