Once a broker has been selected and the basics mastered, the next step will be to start actively trading binary options. Each trade requires only a few simple steps, but do not forget to analyse market conditions prior to entering into each trade. Market analysis will tell you much about what to expect in regard to the upcoming price movement and for that reason should never be disregarded.
Step One: Choose Your Asset
Select from stocks, commodities, indices, or currencies. Be sure to always select assets that are offering highly predictable price movement. This determination can be made easily by referred to current market news and reports. Within most platforms, traders will find a hundred or more underlying assets to choose from.
Step Two: Choose Your Instrument
There are several trade types to choose from within each platform. Some are designed to provide profits from active price movement, while others should only be used when asset prices are range-bound. Choose the instrument according the price behaviour of your chosen asset. The standard binary options Put/Call (Up/Down, Over/Under, High/Low) is a fine choice for new traders, as are Sixty Seconds trades.
Step Three: Choose Your Expiry Time
Each platform is going to offer a variety of expiry times, possibly ranging from as short as one minute to as long as a year. Keep in mind that the outcome of the trade will not be known until expiry is reached, so opt for shorter expiry times when you’d prefer not to have your funds locked into a position for a long period of time. The chosen expiry time should always be in-line with the anticipated price movement.
Step Four: Enter the Investment Amount
Minimums do apply, but these are usually extremely reasonable. Aside from these, traders are allowed to make their own decisions in relation to how much money they would like to commit to each trade. Within some binary options platforms, $1 to $5 trades are available. The highest minimums are typically linked to high yield One Touch trades. Initially, new traders might do well to stick with smaller investment amounts, but this decision is entirely up to you.
Step Five: Confirm the Trade
Once the intent to purchase is selected, there will be a few seconds to confirm that the selections are as intended. If so, proceed with the purchase. If not, click “cancel” and return to the platform to make the necessary changes. Open trades can be cancelled if a mistake has been made, but any abuse (excessive use when the trade is not going as you would like) of this feature could cause the broker to close your account.
There are several different instruments to choose from, but the basic process of trading is going to remain the same. Each trade should take no longer than a few seconds to complete once analysis is complete. This allows for fast trade execution when market conditions are optimal. Binary options brokers work hard to provide simple platforms that make trade execution a quick and hassle-free process.