What is Binary Options Trading?
Binary Options trading is all about predicting if an asset’s movement would go higher or lower at a given time. It’s often called a yes or no investment. A ‘yes’ is buying the asset if you think that it would go up, and ‘no’ if it goes down. Predicting movements may not be a suitable strategy for most investors. It would be the appropriate procedure that only those who have extra funds and desire to participate in binary trading can choose.
Per trade in binary option would not require more than $100. You are not purchasing the underlying asset but you’re only placing a bet on how the value will move. Deals would always close within $0 to $100 either successful or not. You win the deal if you guess the movement right, and you lose if it’s the other way around. Vulnerability to risk is limited because either win or lose, one single deal would not go over $100. You can exchange different agreements to increase potential income, but also open yourself to higher possible drawbacks.
Binary Options Traded Assets
Assets tradable with binary options will depend on the broker you selected. And like any other industry, binary trading also have scams. So when choosing a broker, it is vital to trade by a company that is regulated by a popular and trusted financial regulator.
The following are the assets that are tradable worldwide:
• Economic crisis (job news or the federal funds’ value)
• Commodities (corn, soybeans, natural gas, crude oil, and precious metal)
• Forex or currency pairs
• Individual stocks
• Stock indexes
For citizens residing in the Philippines that are planning on venturing in the binary options industry, read Binary Options Trading Strategy to learn more about binary trading, how it works and its features.