Generally, trading binary options includes predicting the upward or downward direction of an underlying asset. This type of trading basically leads to two possible outcomes — win or lose. For a trader, it is crucial to understand the basics of trading binary options prior to beginning trading itself.

Binary trading differs completely from conventional options. The list of those differences includes risks, fees and payouts. Regardless, whether you are planning to speculate or hedge, binary options represent a very impressive alternative for assets predictions. The target of this article is to explain the trading process of binary options in simple steps and assist to all traders in taking the right decisions.

So, get ready for some lecturing. All types of contracts have got three main characteristics that traders should properly understand and learn. Expiry time: represents a period between the purchase of the option contract and the moment when it closes already. That time period can have different values from 1 minute up to 1 month. Generally, majority of traders aim for the short-term options, which can last 60 seconds and up to 30 minutes.

Strike price: represents the price, which enables call or put option to be executed. Payout offer: represents a return, generally expressed in percentage, which is offered by the broker to traders. The max amount that you can potentially lose is actually limited to the invested amount.

As an experienced trader, you will be able to distinguish, know and understand those percentages before bid placement. The increase of public interest in this binary options trading has resulted in appearance of new options.

Turbo options have the highest expiration time period of 5 minutes. Economic calendar includes all news that concern chosen assets. Every news may affect the price significantly. Indicators like Bollinger lines, where i can change to binary optionStochastic, MACD are necessary to analyze the trends and understand further price movement. There exist tens of different strategies for binary trading.

Among the most widespread strategies the following ones can be pointed out: Ishimoku Cloud, Where i can change to binary option hedge, where i can change to binary optionSlaughter, Ninja, Puria, where i can change to binary option iq option where i can change to binary option, Trend Channel, etc. Strategies are worked out for particular expiration time. There exist turbo ones for minutes or ordinary oriented on longer time. In fact, where i can change to binary optionevery strategy should be tested on different assets and personal experience only may tell which strategies are the best ones.

Our platform offers perfect conditions for strategies testing. Every user obtains a demo account after registration.

The main advantage of a demo account lies in getting virtual money. When those funds are spent, an account can be refilled again. Refilling is unlimited.

No real money is necessary for an account refilling. Thus, traders are free to pick up different assets and test different strategies in order to find the most effective ones. In fact, those assets cannot be compared because they imply different trading principles, different strategies and different profits as well.

Shares are understood as more professional instrument. Their price mostly depends on fundamental factors including news therefore traders are recommended selecting maximal expiration time periods. Referring to currencies, where i can change to binary optionthe influential factors are more numerous and the situation changes every second.

Our platform offers more than 40 different currency pairs for trading but users cannot pick up all assets because each type demands profound analysis therefore professionals recommend selecting one or two assets and use them for trading. The more you understand the situation, iq option where i can change to binary option , the more profits you obtain.

Traders are recommended to trade pairs with medium volatility. The more popular assets are among traders the more complicated their prices movements are predicted.

Different currency pairs depend on some assets or other factors and such peculiarity must be taken into account by traders. Thus, traders are expected to take all those factors into account and then pick up a currency pair understood as the most preferable one.

The total portfolio contains information about all you deals. Such option is recommended being used for correlated currency pairs. Binary options are understood as an instrument that demands the highest level of professionalism. Our platform offers extended functionality for those who downloaded apps for their PCs, laptops or smartphones.

Video tutorials are suggested for free. Moreover, you may participate in IQ option tournaments that welcome traders from all over the world and imply attractive prize pools. Some tournaments are offered for free while others demand fee that is just several dollars.

Our platform offers some information for users including the recent news concerning a trading pair, technical analysis, iq option where i can change to binary option , predictions, etc. Based on those data analyzing the price movements becomes much simpler.

Using apps, traders may follow to 9 charts simultaneously where different periods of time can be selected. Most assets are closed on weekends because financial organizations work from Monday till Friday all over the world but some assets are still available for trading.

Those are Over-The-Counter pairs suggested by a broker. Price movement is controlled by a broker as well therefore assets are understood as the most risky. The truth is, that any form of financial trading involves risk. Money can be made or lost regardless of the financial instrument you're trading. As more traders realize this fact, they're turning to options trading as a way to make money. Online options brokers are now attracting millions of traders from all over the globe. But what's making binary options so popular?

Below are six reasons. I think knowing these reasons, you'll find that it's worth trying and starting your binary options adventure at IQ Option. Most financial markets will only make you money when the markets are trending. For example, if you're trading stocks , you can only make money if the price goes up or falls relative to the strike price. In addition, the price change must be significant enough for you to make a good profit.

With binary options on IQ Option you can profit regardless of market direction. Binary options on IQ Option are much different. All you need to do is predict whether the price will be higher or lower after a certain amount of time. Since options have a fixed return, a small change such as 0. This comes in handy when markets are ranging. That is, the asset's prices are experiencing small price movements.

One of the reasons why options brokers are increasingly becoming popular is the low deposits they require to get started. Assets such as stocks and cryptocurrencies bought in exchanges require a huge investment. In addition, you don't know whether the Bitcoin value will increase in the near future. Another reason why binary options on IQ Option are so popular is that you know the potential profit even before you open your trading position.

This is calculated as a percentage of the amount you invest in a trade. The return depends on the assets you're trading and volatility.

This means that returns on a particular asset will change during the day. Knowing this, you can easily choose to trade during sessions where your trading platform offers the highest returns. This ensures that even if your trades end up losing, you can easily recover these losses through several winning trades. The profit you might earn when trading other financial instruments largely depends on the asset's price movement.

If the price moves further in the direction you predicted, the higher your profit and vice versa. In addition to knowing how much you can earn through profitable options trades, you also know how much you stand to lose even before you enter the position. The maximum amount you can lose on an options trade is your trade investment.

Some brokers such as IQ Option also allow you to exit trades before they expire. If the trade was turning a profit, IQ Option will give you a portion of what you were to earn. If it was losing, a portion of your trade investment will be deducted. This is called profit after sale. Loses are limited with binary options on IQ Option.

When trading financial instruments such as forex and commodities, you stand to lose more than your trade investment. At this point, your broker will use your account balance to keep the trade open.

That's why it's always advisable to use stop losses when trading such markets. Some traders will argue that options trading is hard. But this isn't the case. Options traders will use the same charts, tools and trading strategies used by traders in other markets.

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Any doubts or suggestion can be done by email at 97josephkibira gmail. The purpose of this Artificial Intelligence project is to predict the result of the chosen binary option in the future. The data was gathered from the site IQ option API with the functions already mentioned in the code iq. To use the code manteined in this repository, put your own username and password in iq. Any alterations or improvements done in the code can be comunicated by email or in the issues tab.

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As an experienced trader, you will be able to distinguish, know and understand those percentages before bid placement. Traders in other markets must also do the same. Strike price: represents the price, which enables call or put option to be executed. Follow us on social media! The interesting thing is that traders who have experience in other markets such as forex often find options trading quite easy. The increase of public interest in this binary options trading has resulted in appearance of new options. Skip to content.

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