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Binary option trading is a type of trading that is called all-or-nothing in which you either win or lose. It is different from all other conventional trading technique because the investor knows before trading, the amount of profit to be made or the amount of loss to be incurred. Here, you can not lose more than you invested and return on investment is usually high. This has made binary options trading very attractive to new traders who want a huge return on investment and it is also very easy to learn and trade.
What you need to trade Binary Options
1. Internet access
2. Computer system (laptop or desktop)
3. Trading platform
Steps to trading Binary Options
1. Get a trading platform that is reliable and that offers huge returns on investment. One way to this is usually the conventional way. Do your research on Google by typing the name of the broker you are interested in to get all the information you need. Remember that there is no extremity to information searching when it comes to entrusting your money to a broker. Find out all the information that are relevant, the minimum amount of deposit, return on investment, bonus on deposit and special bonuses that make the business competitive.
2. Open an account with the broker of your choice. Registration is usually very simple and straight forward. Most times you do not need more than your name, country and address and some other easy information.
3. Deposit money into your account. Some brokers give out a bonus for depositing money into your account, find out about this and decide what is best for you.
4. Go to the trading center. Here you will see all the stocks that are available for trading their expiry date. Most times stock expire in one hour, so your trade expire in an hour and you can cash in on your profit at the end of that period.
5. Pick out a stock you want trade in and check out all the charts that relates to that stock including the latest news that can affect the movement of the stock.
6. If you think the stock will rise choose the “call” button and if you think the stock will fall at the end of the period, choose the “put” button and enter the amount you will like to trade with in stock calculator. The calculator will automatically calculate your return at the end of the period and the graph of stock movement will be shown so you can adjust as the minutes count.
7. If your forecast was correct at the end of the period you will gain the percentage of the money you invested (80%, 70%, and 65%) and lose the amount you invested if you are wrong.
Binary option is very easy to trade, all you have to do the research on which direction the stock is going to move and if it will be higher or lower to the original position at the expiry period.