Trading with binary options has become increasingly popular as an ever greater number of traders take up this highly profitable method of trading. The main attraction of trading with binary options rests with the potential for high payouts over a short time period. In addition the simple 'all or nothing nature of binary trading makes it one of the most accessible forms of trading on offer. Account opening with a broker is easy and you don't need a large deposit in order to get started.
When opening an account with a broker there are a number of things that you need to consider if you want to ensure that you give yourself the highest chance of trading success. Selecting the best binary options broker is not easy and there are a number of points that you should consider before opening an account.
Below are the key areas that you will need to ask of your broker before open your account and start trading.
The Binary Brokers Trading Platform
The trading platform offered by a binary broker is one of the most important points for consideration when it comes to selecting the besting binary broker for your trading.
Options trading platforms tend to be web based and so you need to ensure that they are both responsive and reliable.
In addition, the functionality provided by the platform can prove an important factor in the success of your trading. You need to look for a broker that offers accurate live prices and a simple to navigate menu that will allow you to trade accurately and efficiently. Also consider if you have a requirement for mobile trading. This is a feature which is increasingly being offered by brokers and will allow you to both track and open new positions while on the move.
The Available Options Types
All brokers will offer their clients the standard 'Call' and 'Put' options. These are sometimes referred to as 'classic' or higher/lower options. With these expiries you are able to profit if you call the market either high (Call) or lower (Put) than the strike price at which you enter the market.
However increasingly new expiries are being offered by some brokers. These will allow you to profit from a range of different market outcomes.
Touch options, where you predict if an asset will hit a level prior to its expiry and Boundary options are increasingly being provided by brokers for their trading clients. These offer a new dimension to trading and allow for many more strategies to be traded on your account.
If you think that you may make use of them then be sure to check that broker you are interested in offers them.
The Returns Offered
Brokers payout an agreed sum on the successful expiry of an 'in the money' option. However the level of profit that you will receive will depend upon the pricing offered by the broker. Typically you can expect to earn a return of between 60-90% on for a successful expiry.
Higher payouts are not always as advantageous as they first seem however. Some of the brokers who offer a lower return will also 'rebate' you part of the option cost if the option expiries 'out of the money.' In some cases this can be as much as 15% of the purchase cost. For new traders or inexperienced traders this can help them to limit their losses. Ok so you won't win as much for a profitable expiry, but you will also help to cushion the blow when you lose.
The Range Of Assets Available To Trade
The range of assets available to trade with binary brokers is vast. You can trade the major global Stock Indices, Forex pairs, Stocks and commodities all from within one account.
While most brokers will offer a wide range of assets to trade you will however find that their ranges differ. You can find the range of assets offered by a broker listed in their 'Asset Index' on their website. If you are planning to trade a specific index or stock you will need to check to see that they offer this before opening your account.
Option Expiry Times
The standard expires offered are usually one hour or the end of the day. However increasingly brokers are offering lower time frame option expiries that you can take advantage of.
Some brokers offer the ability to trade fifteen minute or thirty minute expires while with some weekly expiries for selected assets.
While for many traders this range of expiry times may seem excessive, it can pay to think about the strategies you intend to trade and whether or not the ability to trade a wider range of expiry times will contribute to the level of profits that you make from your binary trading.
When opening an account with a broker there are a number of things that you need to consider if you want to ensure that you give yourself the highest chance of trading success. Selecting the best binary options broker is not easy and there are a number of points that you should consider before opening an account.
Below are the key areas that you will need to ask of your broker before open your account and start trading.
The Binary Brokers Trading Platform
The trading platform offered by a binary broker is one of the most important points for consideration when it comes to selecting the besting binary broker for your trading.
Options trading platforms tend to be web based and so you need to ensure that they are both responsive and reliable.
In addition, the functionality provided by the platform can prove an important factor in the success of your trading. You need to look for a broker that offers accurate live prices and a simple to navigate menu that will allow you to trade accurately and efficiently. Also consider if you have a requirement for mobile trading. This is a feature which is increasingly being offered by brokers and will allow you to both track and open new positions while on the move.
The Available Options Types
All brokers will offer their clients the standard 'Call' and 'Put' options. These are sometimes referred to as 'classic' or higher/lower options. With these expiries you are able to profit if you call the market either high (Call) or lower (Put) than the strike price at which you enter the market.
However increasingly new expiries are being offered by some brokers. These will allow you to profit from a range of different market outcomes.
Touch options, where you predict if an asset will hit a level prior to its expiry and Boundary options are increasingly being provided by brokers for their trading clients. These offer a new dimension to trading and allow for many more strategies to be traded on your account.
If you think that you may make use of them then be sure to check that broker you are interested in offers them.
The Returns Offered
Brokers payout an agreed sum on the successful expiry of an 'in the money' option. However the level of profit that you will receive will depend upon the pricing offered by the broker. Typically you can expect to earn a return of between 60-90% on for a successful expiry.
Higher payouts are not always as advantageous as they first seem however. Some of the brokers who offer a lower return will also 'rebate' you part of the option cost if the option expiries 'out of the money.' In some cases this can be as much as 15% of the purchase cost. For new traders or inexperienced traders this can help them to limit their losses. Ok so you won't win as much for a profitable expiry, but you will also help to cushion the blow when you lose.
The Range Of Assets Available To Trade
The range of assets available to trade with binary brokers is vast. You can trade the major global Stock Indices, Forex pairs, Stocks and commodities all from within one account.
While most brokers will offer a wide range of assets to trade you will however find that their ranges differ. You can find the range of assets offered by a broker listed in their 'Asset Index' on their website. If you are planning to trade a specific index or stock you will need to check to see that they offer this before opening your account.
Option Expiry Times
The standard expires offered are usually one hour or the end of the day. However increasingly brokers are offering lower time frame option expiries that you can take advantage of.
Some brokers offer the ability to trade fifteen minute or thirty minute expires while with some weekly expiries for selected assets.
While for many traders this range of expiry times may seem excessive, it can pay to think about the strategies you intend to trade and whether or not the ability to trade a wider range of expiry times will contribute to the level of profits that you make from your binary trading.
You can find out more information on how to find the best binary options broker for your trading and more information on the opportunities provided by binary options trading by visiting us now at http://www.binary-brokers.com.
Article Source: http://EzineArticles.com/?expert=Vernon_L_Lees 
No comments:
Post a Comment