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Binary Options Line Chart Trading Pattern Iq Option
Are Binary Options For You?
What Are Binary Options?
Binary Options, also known as Digital Options, is the trading of specific financial instruments within an allotted time span. The main differences from conventional trading are firstly the instrument is never actually held by the trader and secondly once the allotted time is up (meaning the trade has expired), the trader has either profited or lost but the trade is now closed.
To make things a little clearer, let's use Google shares as an example. Google shares, at the time of writing this article, are being traded at around 880.23. A Binary trade on Google would offer the trader a choice of whether Google shares would either go up or down. Within a Binary Options platform, the trader would see a graph representing the Google share price over a period of time, the current price and two buttons to the right of the graph. The buttons indicate the two choices of 'up' or 'down'.
In this example, the trader chooses 'up' together with an expiry trade time stamped at fifteen minutes from the execution of the trade. Fifteen minutes later, the trade closes. If the price is higher than 880.23, the trader has profited. If the price is lower the trader has lost.
Are Binary Options For You?
The first thing to bear in mind that, with all investments, there is an element of risk. Just as people make money trading, people can also lose money. The main differences between trading Binaries and conventional trading are as follows:
Options in a Binary platform can be traded a lot faster than conventional trades.
Prices in a Binary platform are ALWAYS the mid price, therefore there is no buy or sell price. This means that the moment an instrument moves in the direction of a traders pre-selected choice, the trader is instantly ahead on the trade.
Binary Option trades have immediate execution.
Executing an Options trade can be made for as little as $20.
The returns on a Binary Options trade are instant from the moment a trade has closed.
There is no broker commission on the actual execution of the trade.
The return is dependent upon the length of the expiry time.
As a trader, if all of the above appeals to you, then opening option trades in a Binary platform would be worth trying.
For traders who are used to trading foreign currencies (FOREX), opening Binary Options trades for currency pairs would be ideal. As mentioned above, Binary Option trades are only ever quoted at mid rates. For a seasoned online Forex Trader, this means that there is NO pip spread trading Forex in a Binary Broker platform.
Learn Before You Trade
For novice traders, prior to making any decision to invest in the market, it is recommended to read and learn about the markets, stocks and shares and how volatile trading can sometimes become. It is important to understand what makes the markets change direction, how news affects the global economy and the effect this has on all of the markets.
Yahoo finance offers price quotes on every instrument that is traded within a Binary Options platform. The most common instruments are Forex, Commodities, Stocks and Shares. Until a potential trader has an understanding of these instruments, it is not recommended to start trading.
Additionally, read economic calendars. These are calendars which details forthcoming events such as company announcements, major market changes and can give a great insight into which direction a stock, Forex pair or commodity will move, which is great for Binary Option trading. Binary Options Trading Advice is an all in one resource for potential and existing Traders, including an economic calendar.
For people wishing to make a trade within a binary options platform, there are many to choose from. However, Magnum Options allows new users to open a Demo account and test drive the platform before making any real money deposits into a trading account.
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