What’s A Binary Option?
A binary option lets traders invest in the financial markets by predicting if an asset price will rise or fall within a certain time period. The period of expiry can range from one minute to days, depending on your choice and broker.
Is Binary trading legal ?
Well, that depends on your national law. So check up on that prior to trading. In South Africa, yes it is. As far s we know Israel and France have banned it.
What’s The Expiry Level Of An Option?
Many assets have different expiry levels (reach a certain price expires this type of option). An expiry level can be “in the money” (profit) or “out of the money” (no profit).
Types Of Binary Options Are Available?
Main four types of binary options (varies with broker 24option has great variety):
- One touch
- 60-second options
How Can One Profit From Binary Option Trading?
You predict the correct direction of an asset’s movement, the option may close “in the money”. You earn 70 to 80%* profit on expiration of the trade if ITM.
Amount to be credited to account for a successful trade.”
What Is An Option Investment Amount?
So, clients makes a deposit their trading accounts, they will then allocate certain amounts from this available balance to trading their chosen assets.
What’s The Minimum Investment Amount?
Consequently this depends on your broker varies from $1 to $24 (subject to change without prior notice).
Can Multiple Options Be Purchased At The Same Time?
Yes, you can trade multiple options at the same time.
Can Options Be Closed Before They Expire?
You can close some options before they reach their expiry times. Use the sell feature, you will get a small percentage of investment back in most cases. In addition this also depends on your broker and platform.
General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.”
What’s The Option Expiry Time?
So, exact date and time that an option expires and is no longer tradable is the expiration time. Expiry time for each option is visible on the trading platform.
Do i need to download extra software?
Nope, only requirement is an internet connection and a computer, smartphone or mobile device. Trading software is provided online via the platform and is web based so it can be easily accessed. In addition you should get a charting tool online or software such as MT4 or Tradingview.
What Do I Need To Start Trading?
Firstly, you need to sign up with the best broker. Have a PC and internet connection. Then gain all the knowledge and information you can and practice on a demo or min investment account. A great source of knowledge is Investoo.
Please leave questions you may have in the comments and we shall answer at the soonest.