What do traders dream about? Find a financial instrument that would not require tedious calculations, special adaptation of trading strategies, reconciliation of a huge number of technical indicators. But even if such work is done, the result is not necessarily positive. Why? There are objective reasons, for example, instability in the eurozone, like the euro itself or the cheapening of gold. If we talk about agricultural products or oil, here, too, not all is well.
Of course, you can deal with the shares of large companies, but here the risk is even greater, since there may be a decline in production due to a lack of purchasing power or the need for redistribution of production capacities, which will lead to unreasonable costs. As a result, bankruptcy may occur at all. Is there a tool that is not affected by these problems? According to the Market Leader magazine, it is there and these are binary options. Thanks to them, you can earn money on all the assets listed above, but do not buy or sell them.
The essence of working with binary options is that an asset contract is acquired and then it is indicated in which direction the price will go. In this case, the trader sets a certain period during which his forecast must be justified. If it is confirmed, earnings are accrued. If not, only the amount for which the contract is purchased is lost. In binary options, price values are fixed strictly, so the trader knows in advance what his gains or losses will be.
One of the leaders in the binary options trading is OptionFair. According to her representative, binary options are very simple and effective. For example, you can purchase a contract for an asset at a price that was specified in advance for a certain period. If this period comes to an end and the market price changes, the asset is still bought or sold at the price specified in the contract. An interesting fact is that the buyer can refuse the transaction and this is only possible when trading options. But in most cases, transactions are made.
The advantage of binary options is the lack of specialized knowledge in order to use them. After all, here it is only necessary to indicate the price movement for the asset that is selected, that is, it will rise or fall. At OptionFair, binary options transactions can be made with various instruments, in particular, raw materials, agricultural products, precious metals, indices, company shares, and currency pairs.
There are several types of binary options:
- increase or decrease;
- one touch or no touch;
- border + highly profitable border.
The second and third types can be profitable, the size of which is 350%. What exactly needs to be done after the type of binary option is selected? For the first type, choose “lower” if it is assumed that the price at the time of expiration will be lower than the current level or select “higher” if the opposite is assumed. For the second type of options you need to make a choice of “touch” or “without touch”. In the first case, it is assumed that before the option expires at any time, the price becomes equal to the target value. In the second case, she does not reach it.
For the third type, the following choices are made: “in range” or “out of range”. That is, at the time of expiration, the price may be within the range or outside it. Moreover, the deal is always concluded for a certain time. At OptionFair, you can set a very small gap – one minute. Well, then it all depends on the preferences of the trader and time can be increased. The broker improved binary options and introduced a unique solution, namely that transactions can be closed ahead of schedule or extended. A trader can do this if he believes that the transaction will be completed “out of money”.
You can trade binary options in any way. The most common is stationary using the OPTIONFAIR multilingual platform. It can also be done using mobile devices.