Trading has become an option for many individuals in order for them to earn money while they sit at home and stare at their computers. In the year 2008, binary options trading has been legalized in the United States of America (USA). At this moment, it is now considered as one of the fastest means by which individuals can trade and earn money.
Nevertheless, it should be noted that there are also drawbacks and risks when doing binary options trading. This trading system does give asset ownership to the trader since it is merely predicting how the current asset will move. With that in regard, people should learn how to make money trading binary options properly for them to gain profit or have a long-term investment.
The Binary Options Trading Process
This is a basic step-by-step guide that can be followed by beginners. However, before starting, interested traders should first understand the different types of binaries and choose which one works best for them.
Step One: Choosing a Broker
As traders, people need to have a broker wherein they will create an account and fund it. This is where all the transactions will happen. In choosing one, people should make sure that they are dealing with a reputable broker. People can do so by checking reviews and scam lists. They should also make sure that the broker can meet their needs.
Step Two: Funding the Account and Pre-Trading Practice
Once a broker account is created, people should fund their account with the amount of money that they have no problems of losing. They should remember that trading is a risk they have to take. Hence, funding it with all their money will not be a good move. They can fund their accounts using their credit cards or via wire transfer.
After they are done funding the account, it is advisable that they practice trading first. As such, they will be able to learn the ins and outs without risking their money. The good thing is that most brokers have no-risk demo or tutorial trading options wherein first-timers can practice using play money.
Step Three: Choosing the Assets or Markets for Trading
The good thing about binary options trading is that people will be able to choose from a wide range of assets. In fact, they can even choose some of the most popular and stable stocks like Google. Depending on the broker, people can choose from EUR-to-USD, USD-to-JPY, GBP-to-USD, and the likes. They can even trade assets like gold, silver, and oil. What is better is that people can do everything on one platform and no longer have to open multiple broker accounts.
Step Four: Setting Up the Expiration Time
Expiration time in trading binaries is referred to the period at which the trading is already closed or settled. Most of the time, people should choose from the options given by the broker. Others, however, allow the traders to set their own expiry times.
Step Five: Trading
After following the steps above, people can now start trading and earning money.