Binary Options Trading Tutorial
How to trade binary options?
Trading binary options is simple, easy and intuitive. You can start in a matter of minutes by following the elaborate steps below.
Watching the World of Global Trading video is highly recommended to gain the basic understanding of how markets work.
Open a trading account
You can start trading binary options in as little as five minutes by simply opening an account and entering your basic information into OptionBit’s secure trading system. You can start trading with a real account or use the demo account to get your feet wet.
Choose Your Asset
Once you have registered your account you can start trading. Whether you are trading a real money account or a demo account- trading process is the same (with the difference of real money profits!). Choose your desired trading market by clicking ‘stocks’, ‘commodities’, ‘currencies’ or ‘indices’. Once there- choose your specific asset; in the beginning it is best to stay in the realm of markets you are familiar with. For example, if you are a Forex trader, you can trade binary options on currency pairs from around the world. Or if you’re more familiar with commodities, you can trade oil and gas on the commodities market.
Choose the option’s direction
Once you’ve chosen the asset you would like to trade, you must choose the direction- will the price of the asset go up, or will it go down. In order for you to do so you must conduct technical and fundamental analysis in order for you to know which direction your chosen asset will take. We recommend you read our professional eBook right after registering an account, for you to know more about the required analysis types.
Choose your Option’s expiry time
After choosing your trading asset, you need to choose your option’s expiry time. The expiration time for binary options can be as long as one month or as short as five minutes. Typically binary option contracts are not shorter than one hour, however OptionBit allows traders to buy options up to 60 seconds before the time of expiration.
Buy Your Option
After choosing the asset, the direction and the expiry time- you need to choose which sort of option you would like to trade. OptionBit offers three sorts of options- digital options, touch options and range options.
With Digital trading you will need to predict if the price of the underlying asset will increase (above) or decrease (below) by the time of expiration. If you believe that the price of the asset will increase select Call, if you believe it will decrease select Put.
With Touch options, deciding upon the direction is not enough- the price of the chosen asset must touch a predetermined strike price before the time of expiration.
When trading Range options, you must determine if the price of the underlying asset will stay in or go out of a predetermined range before the time of expiration.
Set the amount
Now that you’ve set up your trade, all you need to do is determine how much money you would like to invest in this option. You can start trading binary options with as little as $10 or as much as $5,000 on any one option. However, the most successful binary option traders purchase multiple options which they trade simultaneously. Once you’ve registered, you can easily make a deposit into your secure trading account using several convenient payment methods.
Wait for the Option to Expire and Collect Your Return
Now all you have to do is to wait for the option to expire. You can keep track of how your options are performing under the “My Trades” tab. When your trade ends up in-the-money you will receive a return of 75% – 81% on top of your initial investment.
OptionBit offers its traders a unique and professional trading course provided to you by our market analysts. You can watch the course’s introduction right here.