Though it may seem complicated, binary options are just an easier way to conduct business rather than the traditional currencies and options. Just like a traditional trading platform, a binary options platform also comes with a strike price, a premium and expiration. However there is a slight difference since in case of binary options the trader can choose the premium amount of the option and the timeframes of expiry are much shorter than the traditional ones. While traditional options generally have an expiry range of one week to a few years, the expiration range of the binary options trading platform varies from a minute to a number of days. This is the sole factor which is responsible for conducting a profitable trade. Before going into further details we should take a quick glance at the working of the binary options.
How Does Binary Options Work?
In a binary option trade the broker is required to pay a part of the premium at the risk of meeting the conditions of the contract. One will receive a fixed amount of profit which is predetermined regardless of whether the contract conditions are met or of the movement of the market beyond the strike price. Therefore whether it moves by 1 pip or 10,000 pips one will receive the same profit at the time of the expiry of the contract. This is precise why binary options are also referred to as ‘all or nothing options’. Binary options 101 are enabling everyone to enter the market and start trading and the simplicity of it appeals to people of all ages. This kind of strategy will be allowing one to realize profit margins of 70%- 85% and the risk is restricted to the amount of money being invested in a particular trade. Moreover a few companies even give back a certain percentage (usually 10%-15%) to you in case the business works against you. Therefore it enables one to estimate the amount he is going to gain with a few risks of course.
A simple example will make the matter more clear. For example one decides to trade EUR/USD assuming that there will be a rise in price. The present price of the pair is 1.5000 and one thinks that in another hour the EUR/USD would go up that level. On looking at the trading platform one finds that the payout of the broker is 75% on a 2 hour option contract along with a target strike of 1.5000. After a careful consideration he decides to purchase a ‘’up’ or ‘call’ option and thereby risk a premium of $100. Therefore the risk one takes is limited to the premium which is being paid on the option. There is no way of losing more than the stake and so the risk in a binary options platform trade is absolutely restricted. The payout is usually determined by the amount of capital which is at risk at each transaction conducted, the rate of commission of your broker, the exact kind of option trade and on if you are in or out of resources at the time of the closure of the transaction. For instance if you bet $100 that particular EUR/USD would close when it gets above 1.3000 in course of an hour, while your broker is offering you a payout rate of 78%. Supposing that your calculation is exact and your trade goes correctly then you would be receiving a payout of $178.
Binary Options Platforms Review
However before embarking on a binary option trade it is vital that you should check a list of the best binary options platform and brokers which one can easily find on the internet. Every broker comes with their own individual rate of payout. But mostly it varies somewhere between 70%-75%. However there are some brokers who will offer you a payout rate as low as 65%. Binary option platform review available on the internet will surely help you understand the bonus, deposit and payout percentage being offered by the binary option platform providers and a comprehensive review of the broker will clearly explain all the benefits and trading opportunities which you could avail.
Based on online review, there are 2 different versions of binary options platform: the web based versions and the mobile versions. Few brokers like spotoption, tech financial ltd, tradologic among others have been using the binary options platform white label from which their partners can benefit. Owning a white label with trading platforms like opteck or the likes will enable one to rebrand a great web service along with one’s personal initiatives for marketing, income percentage and name. Working together with the platform one would be able to establish a suitable model of business which would help you meet your needs and also help you shape a complete plan of business. This plan can be tailored to suit your personal proficiency and desires which would be depending on the traffic volume which can be generated. A personal operation manager would guide you through all the steps and make sure that your proceeding contents are all right and help you to bring the cooperation to an operational level within a short span of time.
It is imperative that you go through all the binary options review before you start trading. Make sure to read a review from different sources such as review from a broker or a review from successful individuals who quit their day jobs. If you don’t want to handle all the stress of watching the stocks going up and down then you should make sure to read both online review and review surely use binary options software which would offer you free binary auto trading and also enable you to execute the program quickly. This tool is most suitable for beginners and can also be used by experienced traders. This software which is compatible with all different brokers and trading platforms run from the server even without the need to connect to the Internet.
First timers should start with opening Binary Options Demo Account with any of the established brokers. This would allow them to start trading binary options in a virtual environment so as to learn the tricks and gain confidence before embarking on the live and real markets. So if you want to make some quick money with little or no risk involved then you should immediately search the net and find the best broker and get started with a demo account.