What are binary options? How does Binary Options trading differ from trading in the Forex or stock market?
First of all those who used to trade currencies or shares can go on trading it in the form of binary options. This is because this kind of option does not have a new category of “Assets” that you can trade but is rather a new form of trading.
Let’s look at trading in the Forex market and find out how it differs from Binary Options trading.
During traditional trading, you may for example deposit $100 onto your trading account. After depositing you will be allowed to trade, for example, buy 1000 or 10 000 EUR. Due to the fact that in most cases brokers offer leverage, you are able to trade with more than your initial deposit. They give a large sum of funds so that you can earn a large profit. However if you start losing your money you will not be able to lose more than your deposited amount which is the one hundred dollars that you deposited onto your account initially.
After you open a trade the price will move one way or the other. If you forecast its movement correctly then you will see after a while that your potential profit equals, for example, 5$, 10$ or 15$ depending on the amount of money and period of time you are trading. Otherwise your profit will take on a negative value. You need to close your position to take profits that is to sell what you have bought (in our case this is euro). Afterwards your balance will change depending on the accuracy of your forecast.
Everything is apparently simple but a trader at a traditional exchange has several tricky questions:
To avoid losses and be able to make a profit traders have to use features such as Take Profit (which means “taking a profit”: triggers when price has been going in the required direction for a long time and reaches a specified level – for example, 20$) and Stop Loss (which means “limitation of losses”: if you lose money on one trade the loss will equal 5-10$ but not a whole deposit amount). Placing orders is an entire branch of trading science which requires vast knowledge.
Спасибо за регистрацию в компании CT Trade.
Через 2 минуты (возможно и раньше) Вы получите письмо, в котором Вам необходимо подтвердить свой e-mail. Если в течение этого времени Вы не получили письма с подтверждением, то возможно, оно попало в папку со спамом. Пожалуйста, проверьте содержимое этой папки.