What are Binary Options?
Tutorial on how to trade binary options at abcOptions
In binary options the trader has one simple decision to make:
Will the value of an asset (stock, currency, commodity) go up or down over a given period of time?
We are going to explain the different options on our trading platform, showing the exact operations (these examples come directly from our trading platform).
By accessing the traderoom you will see the following screen :
There are several key elements that we will explain step by step through the different screens.
Here you can choose the type of option you wish to trade. We begin in this manual explaining the UP/DOWN option (digital option), one of the most commonly used in the binary trading options.
On the left screen, select the asset you want to trade. A complete list of available assets can be found on our website.
In this example, the exchange rate Euro / U.S. Dollar.
We are going to see the different elements in the previous example to explain them:
“Will EUR/USD go up or go down?”
The basic question in binary options trading is: What will happen to the value of an asset over a period of time?
The green button with the up arrow represents the “Call Option”. The investor will choose a “Call Option” for an asset if he thinks the value of this asset will go up.
The red button with the down arrow represents the “Put Option”. The investor will choose an “Put Option” for an asset if he thinks the value of this asset will go down.
This is the price of 1 euro in U.S. dollars at the time of the operation (in this case, at the time this tutorial was done). The price determines the initial value of the option and the choice you must make is simple: will the rate EUR/USD be higher or lower than 1.24828 at the time of expiry? It may be higher or lower.
This is the time of expiration. The question you should be asking is whether you believe that the value of EUR/USD will be higher or lower than 1.24828 at 16:50 hours.
180% of the left and right shows performance in the event that the trader has made the right investment. If at 16:50 hours (see previous expiration time) the value of the EUR/USD is 1.24828 or higher, each investor will have a “Call Option” and this asset will receive 180% of your initial investment. So a € 100 option will be worth 180 Euros. Investors with a ‘Put Option’ lose 100% of their investment in this example.
This bar shows the current status of movements in financial markets. In this situation, 60% of the investors believe that the value of the EUR/USD will go up, and 40% of the traders believe that the value will go down. This may be indicative of the sensation experienced in the financial market.
All you have to do is select the amount you want to trade, and you can start investing:
As you can see here, if the trader chooses a Call Option with € 100, this corresponds to a direct benefit of 80 euros!
For more information about the services offered by our platform, please contact us or register directly by clicking the button below!