Getting Started with Binary Options

The Best Guide to Binary Betting and Trading

The first step is understanding what binary means. In recent history, the word binary has been tied to the world of computer coding, it illustrates a base 2 counting system consisting of only 0’s and 1’s. Simply put, it is a counting system with just two choices or something having two parts, like 0’s and 1’s.

Now, what are Binary Options?

In Binary Options there are also only two choices, but here it’s between the rises and falls in the market. In traditional market trading the idea is to buy an asset at a certain price and then sell it at another. In Binary Options, traders are not purchasing anything. The bet is ONLY on the rises and falls of values and index’s.

The Language of Trading in Binary Options

Knowing the traditional market language is essential but there are two terms you’ll be obsessed with when playing in Binary Options and they are known as “Calls” and “Puts.” These are the only two (binary) positions you can have when placing a trade.

For example, if you were to place a “Call” option on the British Pound Sterling (GBP) you would be expecting a “Rise” in value of the GBP, conversely, placing a “Put” option on the Australian Dollar (AUD), you would be expecting the AUD to “Fall” in value. It really is that simple, but getting it right, well that’s not as easy as it may seem. Know what you’re betting on!

What Segments of the Market are Open for Binary Options Traders?

There are plenty of places to play for the Binary Options Trader. But before enumerating your options, it should be noted that the options will be limited by whomever it is you finally choose to use as your broker. That being said, the usual places for Binary Options Traders to lay down a bet are, Fortex (currency markets), Stocks (publicly traded companies), Commodities (consumable goods) and Indices (the markets themselves).

What do I need to know?

The quick answer is, know AS MUCH AS YOU CAN about the segment of the market you decide to play. If you’re a new investor, look for one segment of one market and focus in by knowing all you can know about it. For example, if Commodities is your thing, and renewable energy turns you on, then get to know everything there is to know about renewable energy and the struggle between the old guard of Oil and Gas and the new kids on the block. Do that by subscribing to Energy Blogs and reading the financial papers.

See how conflict around the world affects energy prices. You’ll also need to know where to place your trades, ask around and find out which brokers have the best reputations and what they offer. You’ll want to make this part of your daily conversation. The longer your in the pool the better swimmer you become. Same is true here.