Because binary option trading is only gaining popularity in the recent past, not many people know the logic behind it or even what it means. You should note that this kind of trading can help you make steady cash or even help you make lots of bucks in a very short span. Anyone can get into this kind of trading but it is important that you understand the market, know how to go about it and even know how to look for a good binary options trading broker in order for you to improve the chances of making good money. Below are some of the commonly asked questions for binary options:
What are binary trading options?
These are like the stock market options because they expire after a certain period of time. The only difference is that the return is always a pre-determined amount. When someone is trading binary options, they choose up or down as well as the time frame. If you are correct with the underlying asset, then you make money. It is not even hard; take it as playing red or black in roulette.
Who regulates binary options trading brokers?
Cyprus Securities and Exchange Commission is the largest licensee and regulator of binary options brokers. Trader accounts in the regulated brokers are usually covered by up to twenty thousand euros. Because Cyprus Securities and Exchange Commission is an EU member, their licensing of binary options brokers makes those brokers licensed in EU member states.
Are they good for inexperienced traders?
The answer could be a ‘yes’ and ‘no’ here! The binary option websites or trading platforms are created for greenhorns with their user friendliness and intuitive design. The same platforms will also offer online trading and it is common for large depositors to be assigned their private broker to help them place trades on the system. However, binary option trading is quite different from the stock market long term investing. You should note that binary option trading expires rapidly and apart from predicting the correct direction (up or down), you must also pick the time frame of the assets movement.
Which broker should I use?
It depends on the kind of trading you plan on doing as well as where you live. Are you located in Canada or the United States? Some brokers won’t even accept you as a client. And if English is not your native language, you will need to find a broker whose site is done in your native language. Also, brokers will sometimes offer promotions and specials that may be worth taking advantage of. It is imperative that you continue reading the coverage of the regulated binary options trading brokers in order for you to see who is regulated.
What are the best trading times?
Trading times for the binary options will depend on the asset in question, but they are often connected to the trading hours of the different financial exchanges. For instance, binary options on the stocks in the US trade between 9:30am to 4:00pm EST, while those on gas or oil trade between 8.00am and 1.30pm CST.