Binary options was introduced in 2008 when the US Securities and Exchange Commission accepted it as a legal trading option and allowed binary trading to be offered as a financial instrument. This is fairly new platform with not many people knowing about how it functions. Secured Options helps first-time investors understand binary options trading:
• Traders have to choose an asset and predict if the price of that asset is likely to increase or fall at the end of a set period.
• The time and instance within which an option has to be chosen are called expiry period. The transaction becomes void at the end of the expiry period.
• Traders who expect the price to rise will choose the call option while those with a put option predict the prices to fall.
• You can also make your trade before the expiry time ends; this is called early closure. Brokers allow an early closure but not before reducing the rate of return.
• If your prediction is above (or lower as the case maybe) the strike price, you are said to win the wager and promised a fixed return on investment. But if the option isn’t higher (or lower) than the strike price, traders lose the wager and win nothing.
• While this seems very easy, binary options need time and patience. Traders have to understand the market and assess the impact of news stories on the traded asset.
• Choose a broker who cares to educate brokers and investors interested in binary options. The Secured options platform offers plenty of educational material and user-friendly tools to help newcomers understand binary options.
Looking for a binary options trading platform? Contact Securedoptions…