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LBinary is a professional dedicated broker that stands out with its financial acumen and exceptional customer service. Searching for an investment type that is not complex or too risky?! Then you need to begin trading binary options. The reason that binary options are advantageous for traders is because a binary option trade contains a relatively high return on investment, while maintaining minimal risk. Before making a trade it is important to have a basic understanding of the financial market and how to trade binary options.
As a trader you set the parameters of the trade. First you will have to choose which underlying asset to invest in. After you have selected the asset, you need to decide on which direction the asset will move. Then you will have to determine the amount that you want to invest in that particular asset as well as an expiry time for when the option will end. If the asset moves in the appropriate direction that you predicted, then you are “In the Money” (profitable). The entire decision making process is up to you, allowing for you to ascertain your own financial status.
Binary option brokers offer a wide variety of different types of assets. Any asset can be classified as a stock, commodity, index or foreign exchange currency (forex or FX). The market is completely open for you to choose from when trading the financial instrument. You have the power to select whatever asset you are most knowledgeable about, giving you the greatest opportunity to make successful trades.
For a new trader, binary options are a wonderful learning tool, because the minimal amount that is permitted to trade is $25. When conducting a binary option trade, the asset, its direction and expiry time are all selected before the trade is submitted. The amount invested must also be inputted. When all the parameters are set, the binary option platform will tell the trader exactly what the financial outcome of the trade will be. This is a major advantage as an investor because you will know exactly what your payout will be at the time of the asset expires.
The sky is the limit! Here are examples of how a binary option trade closes.
- ”In the Money” means that the asset that was invested in moved in the direction that the trader presumed that it would land in at the time of expiry. It doesn’t matter how far the asset moved within the market, as long as the direction was predicted accurately. When a trade lands “In the Money” the trade is considered a success and the investment will reap a financial reward.
- “At the Money” means that the asset that was invested in didn”t move from the initial purchase price. When a trade lands “At the Money” the trade is considered a tie, and a full refund of the investment is given back to the trader.
- “Out of the Money” means that the asset that was invested in moved in the opposite direction that the trader assumed that it would fall in when the expiry time elapsed. When a trade lands “Out of the Money” the trade is considered an unsuccessful investment, resulting in financial loss. With LBinary you can get insured trades upon request. An insured trade will allow traders to maintain some of the initial money that was invested, resulting in payback on a trade that would have been a loss.
LBinary supported methods
Although there are a few types of trading method the standard binary option trade is an up Up Down trade. 60 Second Trading is an Up Down trade; it is just preset with a 60 second time expiry. The reason that 60 Second Trading is so popular is that traders are able to make multiple trades on the same asset in a short period of time. This lets investors ride a wave and capitalize on an asset that is moving in the market. Option Builder is an advanced form of Up Down trades, and only recommended for experienced traders. The rewards are higher, but so are the risks. One Touch trading permits traders to make trades over the weekend. One Touch trading is the most difficult method of binary option trading but holds payouts as high as 720% return on investment.
Binary options are suitable for traders of all levels whether it’s for beginners entering the market or professional traders looking to make side trades. Binary option trading is completely personal, you choose the asset, direction, price and time. Invest in assets that you’re comfortable with. Make up to 80% profit on traditional Up Down trades at LBinary.
To begin trading, register at LBinary and you will receive a free e-Book, video tutorials, and you will be assigned a personal account manager to help you begin building your own binary option trading portfolio. To receive the special bonus for our users make sure you contact the customer service representatives online and mention you are a reader of the Binary Options Academy.