In 2008, binary options trading was open to the general public after the Options Clearing Committee (OCC) recommended that they should become an asset that could be traded in the exchanges . Prior to this, trading in binary options was regarded as over-the-counter (OTC) transactions and it was mainly banks and big investors who traded in these options. In a short space of time, binary options trading has grown immensely and today you can trade these options online from the comfort of your own home and even from your mobile phone.
What Are Binary Options?
Binary options are also referred to as digital options, all-or-nothing options, or fixed return options. As the name sounds, these options when traded will either have a fixed payout if the option ends in-the-money or there will be no payout and a loss of the investment if the trade ends out-of-the-money. That is, all or nothing. You can trade binary options today online in a wide variety of assets including stocks, indices, Forex and commodities. In order to do this, you will need to sign up with a binary options broker so that you can make use of their trading interface and trading tools. iOption is an elite binary options broker that will provide you with all the features and services you will require to enter the binary options trading arena.
How do you Trade Binary Options?
One of the greatest advantages of binary options trading is that you can trade without any experience as well as without any understanding of the markets. Also, before you even make an investment, you know exactly what you stand to win or lose. The risks are low when you trade binary options and the rewards are high. So in order to start trading binary options, you will need to sign up with a binary options broker and make your first deposit.
Once you have a trading account, you can then start to trade. Trading involves three steps:
Step One – Select the asset you wish to trade in.
Step Two – Make your prediction. This is the basis of binary options trading – here you need to predict the direction the price of the underlying asset will move within the specified time period. That is, will it increase or decrease. If you think that the price of the asset will increase, you will make a call option but if you think it will decrease, you will make a put option.
Step Three – Make your investment. You can decide how much you would like to invest in your trade and most binary options brokers have a minimum trade amount of $5.
Once the time period has expired (this can be 60 seconds, one hour, one week, a month etc.), your prediction will either be correct and you will win the trade and the predetermined payout, or if your prediction is wrong, you will lose your initial investment.
How do You Trade Binary Options with iOption?
Joining iOption binary broker is easy to do and it is free of charge. You simply need to fill in the registration form online, send authentication documentation and within minutes your trading account will be ready to use. Once you have a trading account and have made an initial deposit, you can go to the homepage of the website where you can select the asset you want to trade in, and start working your magic.
Binary options trading continues to grow daily and iOption is continually updating their services and features to ensure that they remain a leading binary options broker in the industry today. They are the perfect partner for you as a trader, so make the call and open an account with them today.