How to Take a Basic Trade
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The basic binary options trade requires only a few steps for execution within a trading platform. This trade type requires a few decisions to be made, with the key decision being whether or not you feel that the price of a specific asset is going to move higher or lower in the near future. The... Read more
The basic binary options trade requires only a few steps for execution within a trading platform. This trade type requires a few decisions to be made, with the key decision being whether or not you feel that the price of a specific asset is going to move higher or lower in the near future. The process of using this type of trade is very straightforward, but as with all things, it pays to learn more before actually investing your hard earned money. Certain selections will need to be made prior to actually trading. Since we are discussing the basic trade type (Put/Call), we can assume that the instrument chosen will be that one. The next selection will be that of an asset group and underlying asset. There will be Stocks, Currencies, Indices, and Commodities to choose from. Within each of these groups will be underlying assets, and it will be one of these that must be chosen for the trade. Expiry times are an integral part of each and every trade. This is the time that the position will remain live. For example, a 5-minute expiry means that once the trade goes live, it will close in exactly 5-minutes from that time. When the position closes, the price of the asset at that very moment will be compared with your prediction to see if you have earned the offered fixed profit amount. The standard trade type is typically referred to as Put/Call, but within some platforms, you may see it being referred to as Up/Down, High/Low, or some other similar title. Do not let the title confuse you. All of these are essentially the same. The only goal is to determine whether or not the price of your chosen underlying asset will be higher or lower than the entry price when the position closes. Predict correctly, and you've earned money. So, up to this point we know that you will need to select an underlying asset, expiry time, and prediction of price movement. This only leaves the decision of an investment amount. Most binary options brokers do have per-trade minimums in place, but aside from these, you can invest as much as or as little as you wish. New traders are advised to start out with smaller investment amounts. This just makes sense, as doing so will protect against large losses. It will certainly help if you become with the layout of the platform provided by your chosen broker before trying to trade. Most brokers now provide well-designed platforms that are loaded with trade variety, while remaining user-friendly. Additionally, many now provide instructions and videos that tell how to execute trades and how to use each provided instrument. These are provided for free, so do not hesitate to use them. Now you know how to enter into a trade, but is there anything else you should know? Yes. You need to know that analysis is a must. If you do not study current and past market conditions, then your prediction of future movement is nothing more than a guess. Yes, you can come out of top when guessing at price movement, but steady profits will only come from truly being able to study the markets and accurately forecast future movements. Trading binaries is much simpler than any other form of trading known to man. That being said, there is still the need to learn how to trade correctly. The more you know, the more you will benefit from the use of this financial instrument. The basic trade type can be mastered in very little time, but do be sure to also learn how to use the various other instruments provided by your binary options broker so as to maximize your earnings potential. Read More - Here is a quick link to our HOW TO Section.
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How to Take a Basic Trade

The basic binary options trade requires only a few steps for execution within a trading platform. This trade type requires a few decisions to be made, with the key decision being whether or not you feel that the price of a specific asset is going to move higher or lower in the near future. The process of using this type of trade is very straightforward, but as with all things, it pays to learn more before actually investing your hard earned money.

Certain selections will need to be made prior to actually trading. Since we are discussing the basic trade type (Put/Call), we can assume that the instrument chosen will be that one. The next selection will be that of an asset group and underlying asset. There will be Stocks, Currencies, Indices, and Commodities to choose from. Within each of these groups will be underlying assets, and it will be one of these that must be chosen for the trade.

Expiry times are an integral part of each and every trade. This is the time that the position will remain live. For example, a 5-minute expiry means that once the trade goes live, it will close in exactly 5-minutes from that time. When the position closes, the price of the asset at that very moment will be compared with your prediction to see if you have earned the offered fixed profit amount.

The standard trade type is typically referred to as Put/Call, but within some platforms, you may see it being referred to as Up/Down, High/Low, or some other similar title. Do not let the title confuse you. All of these are essentially the same. The only goal is to determine whether or not the price of your chosen underlying asset will be higher or lower than the entry price when the position closes. Predict correctly, and you’ve earned money.

So, up to this point we know that you will need to select an underlying asset, expiry time, and prediction of price movement. This only leaves the decision of an investment amount. Most binary options brokers do have per-trade minimums in place, but aside from these, you can invest as much as or as little as you wish. New traders are advised to start out with smaller investment amounts. This just makes sense, as doing so will protect against large losses.

It will certainly help if you become with the layout of the platform provided by your chosen broker before trying to trade. Most brokers now provide well-designed platforms that are loaded with trade variety, while remaining user-friendly. Additionally, many now provide instructions and videos that tell how to execute trades and how to use each provided instrument. These are provided for free, so do not hesitate to use them.

Now you know how to enter into a trade, but is there anything else you should know? Yes. You need to know that analysis is a must. If you do not study current and past market conditions, then your prediction of future movement is nothing more than a guess. Yes, you can come out of top when guessing at price movement, but steady profits will only come from truly being able to study the markets and accurately forecast future movements.

Trading binaries is much simpler than any other form of trading known to man. That being said, there is still the need to learn how to trade correctly. The more you know, the more you will benefit from the use of this financial instrument. The basic trade type can be mastered in very little time, but do be sure to also learn how to use the various other instruments provided by your binary options broker so as to maximize your earnings potential.

Read More – Here is a quick link to our HOW TO Section.

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