How to Make Money with Binary Options
Making money with a successful trade involves a number of simple steps.
Choose the asset
Most trading platforms will have a range of available assets. A trader will generally select an asset type with which he is familiar, whether it is a stock, market index, commodity or currency pair. For each asset, the current price will be displayed, along with the expiration time of the option and the percentage payout for a correct prediction.
Predict the Price Movement
The trader will select a Call option if he thinks the price will rise by the time the option expires or a Put option if he expects the price to fall. Alternatively, he may trade variations, known as touch options, which are explained in the section about basics of trading. All he needs to do is enter the amount to be traded and confirm the trade.
Wait for the option to expire
If the prediction is correct at the time of expiry, the trader will receive a return that is equal to his initial stake plus the stated payout. If he is wrong, he will receive a small percentage of his original stake. It is important to remember that some platforms are really all-or nothing. In those cases, the whole of the original stake will be lost.
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