What things about binary options every trader should know? Probably many people don’t know what binary options mean, so for the start, we would like to provide the definition of this term. A binary option is “all or nothing” financial option which pays a certain amount of money to people who are right about something. The rules are simple, if you are right, you get the money and if you are wrong, you lose the money that you invested. So, we could say, that this method is the easiest why to earn money quickly, but still, it is pretty risky because there is a possibility of losing your money.
In order to earn money, all you need is to predict one thing correctly. There are few things that every trader should know. Having a positive mindset is one of them. This is a crucial thing when you are analyzing and making decisions about trading in binary options. The second thing is understanding the different types of binary options. There are three types of binary options: Up/Down, Touch/No touch and Range Options.
Up/Down binary option gives you an opportunity to choose a certain direction in which you believe a particular asset class will go. Touch/No Touch binary option is about minimal prices. In touch options, the strike price should touch the minimum before the contract expires and on the other hand, in no touch options, the minimum price should not be breached. Range options are used for making interesting trades because in this case, you predict a range in which an asset will expire. If you guess, you will make money otherwise, you will lose.
Insider Monkey has published an article related to this topic called 5 Things Every Trader Should Know About Binary Options. We have already written about some of them, but if you want the complete story about this, click on the link above and read the extended version of this very interesting Insider Monkey’s article.