What are Binary Options

Why choose Binary Options?

Binary Options are very easy to trade, but like any type of investment, binary options trading requires strategy if one is to win and make gains.  You should know how each strategy works and what your possible profits can be.  There are two main types of strategies in binary options:

Reverse Strategy with Binary Options:

This is the considered the easiest and safest strategy with binary options trading.  This is based on market behavior, where traders look out for particular signs and use them as their time to make a purchase or hold on.  Experienced traders know the regular events that happen in the market, and using trader reverse psychology, they wait until these events have taken place and prices stabilize before making a prediction.  There are two possible outcomes using the reverse strategy.  You will gain by a huge margin or lose by a few points. The average amount that a trader can lose is 15 points which is considered to be on the low end.

Non Directional Strategy with Binary Options:

This is also called a range bet.  A trader will make a move depending on the current market situation.  If the market is unstable, there are certain expectations that will take place.  Traders determine how the market condition will affect the future value of the asset.  If the market looks like the value will increase they will buy a contract for it right then and there.  If the market looks like it will go down, they will hold back until it stabilizes.

When doing binary options trading, you need to have an understanding of the market and how it works.  To use either one of these strategies, it requires a deep understanding of the market.  Reverse strategy requires quick interpretation where Non Directional strategy is more speculative and it could be considered too complex for a new trader.

Learn more about binary options trading with 24option.com