Welcome To The Binary Options Trader
TheBinaryOptionsTrader.com the independent website resource dedicated to binary options trading. Here we aim to provide you with useful and unbiased information to help you get the most out of what is one of the most popular and fastest growing forms of online financial trading.
Whether you are brand new to trading with binary options or are already a seasoned financial trader, here you will find a wide range of resources that you can use to get the most from your trading.
What Are Binary Options?
Although they are a relatively new form of financial investment, Binary Options have become increasingly popular as a method of trading. This is due to the both to the high profits that can be made and the unique and beneficial trading advantages which they provide.
They are designed to be simple to use and their fast paced nature with contracts only last minutes or hours rather than weeks, makes for an exciting and profitable way in which to trade.
As a result, binary trading continues to grow in popularity as demand among both private and institutional traders soars. Many people who have previously not considered trading on the financial markets are turning to the simple method of trading provided by binary options contracts.
It provides an easily understandable way in which to get started with and participate in the world of financial trading.
Trading Binary OptionsWhen trading with binary options you are in fact actually dealing in a digital contract with your broker rather than actually investing in the asset as you would in Stock investing.
The contract you place allows you to speculate on the expected future price movement of the asset. Essentially you are trying to determine if the asset will move up or down in price by the point of expiry which is set on the contract. You have variables to consider-
- The direction that you think that the price of the asset will move - either 'higher' or 'lower' known respectively as a 'Call' or 'Put'. The trader has to choose whether they think the price will end above or below the price of the asset from the point the contract is purchased.
- The time over which you think this move will occur. Contracts can typically be purchased to expire on an hourly, end of day or end of week basis. When buying a contract you need to factor in where the price will be at the point of expiry.
If at the time the contract reaches its expiry time and you have 'called' the market correctly the contract is said to have expired 'in the money'. This means that you will earn the profit on the contract. This is known as the 'pay-out. These can range from 70%-90% for standard contracts placed with a typical broker.
Alternatively if the contract obligations are not met then the contract is said to expire 'out of the money'. In this scenario the contract will expire worthless and you can walk away with no further liability.
The third state that a digital option contract can end in is what is known as 'at the money'. This is where the price of the asset is the same as when the contract was purchased. In this scenario the trader is credited back the original contract price but does not receive the profit. This is because the contract obligations have not been met.
Digital binary contracts are placed online through the use of a binary options broker. Brokers provided web based platforms which you can access through your trading account by any Internet browser. The platforms are easy to navigate and are intuitive enough for first time traders to use. For those who need some additional help, brokers will provide video walkthroughs of all of the key features of the platform and also the chance to place demo trades.
Many now also offer the facility to use dedicated mobile applications. This will allow you to place new contracts and manage your account functions via your mobile device such as your tablet or smartphone.
Find Out More
Binary Options trading is a great way to trade on a wide variety of financial assets. Once you have learnt the basics and formed a basic strategy you will soon be able to make high profits from trading the financial markets using binary contracts, even if you have never traded before.
You will find more information on this site as well as some suggested strategies and recommended binary options brokers to use to get you started.