It can be exciting and fun to trade binary options, which is true especially when brokers give you bonus money to help in trading. So, just before you begin and want to make your mark being an online trader, let us take a quick look of the three things you need to be mindful about with regards to binary options.
Points to be Remembered before Trading
Number 1. Receiving Money Bonuses
Usually, a stern binary options broker gives you the option to receive bonus cash when doing it the first time. To give you an example, say for example that you have deposited 100 dollars in your trading account, the broker can match the amount you deposited leaving you with 200 dollars to trade with. Despite the fact that this seems to be a good deal, be sure that you’ve thoroughly read the rules on how the bonus money works. Many brokers have stipulation where you may need to do “x” figures of trades prior to withdrawing that money. Keep in mind that you do not need to take the bonus cash if you do not want it.
Number 2. Binary Options are Fixed Return Options
On any trades, you know always what your return will be in the event that you win it and if you lose, you know what the potential consequences are. Typically, brokers have fixed return rate of around 70 to 90 percent on all the winning trades. To give you an example, if you have traded 100 dollars and win with 70 percent return, you are going to get a total of 170 dollars with a profit of $70. If you lose otherwise, you’ll lose a hundred dollars.
Number 3. All Binary Options have an Expiry Time and Strike Price
A trader gets to choose an asset and chooses which direction it will go to whether call which means going up or put which means going down for a certain period of time. That time will be the strike price. When the trade is over, it’ll have expiry time. This is different time frames that range from 1 minute, 5 minute to 5 hour trades.
Reviewing stern options that you must not take trading lightly. You won’t become successful overnight when you begin. It seems to be an easy direction to put your money and then win instantly. Well not necessarily. Many brokers give you a demo account first to practice your skills in trading prior to using real money.