Binary Options Trading Explained – Tutorial #1

Binary Options Trading Explained – Tutorial #1



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In this binary options tutorial I explain the basic fundamentals of binary options trading. If you are interested in trading the financial markets then I highly recommend watching our binary options tutorials.
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What are Binary Options?

They are a type of Option in which the payoff is a fixed amount of profit or nothing at all.

Financial Options are derivatives. Derivatives being an instrument derived from an underlying asset.

With other financial derivatives or securities, payoff is determined by the difference of the opening and closing price.

When we profit from a binary option, a profit is a pre-agreed amount between an individual and the broker or it’s a loss.

Sometimes binary options are referred to as “all-or-nothing options” or “digital options”.

How are Binary Options Traded?

Via an online Binary Options Broker

Brokers offer a variety of binary options:

• Forex – Currencies – GBP/AUD, AUD/USD, USD/JPY etc
• Stocks – Shares – BMW, Barclays etc
• Indices – Stock Indexes – Dow Jones, ASX etc
• Commodities – Precious Metals Softs – Gold, Oil, Wheat etc

What does the word Binary mean?

by definition it involves two things being:

• Call Options – We place a CALL if we believe an underlying asset will appreciate or increase
• Put Options – We place a PUT if we believe an underlying asset will depreciate or decrease

Call Options – Also known as Buy or Up options
Put Options – Also known as Sell or Down Options

Binary options are offered against a fixed expiry time such as 30 minutes.

Example: If you thought the Australian Dollar against the US Dollar was going to increase in price in the next 30 minutes you would place a CALL option and after 30 minutes if the price is higher than the start of the 30 minutes you would profit a pre-agreed amount with your broker.

When to trade Binary Options?

Because there are so many binary options offered by various global markets difference binary options can be traded at different times in the day as different financial markets have different trading hours.

• Forex markets are open 24 hours, 5 days a week (Mon – Fri)
• Stocks on the NYSE can be traded from 9.30am to 4pm local time (Mon – Fri)
• Stocks on the Tokyo Exchange can be traded 9am to 3pm local time (Mon – Fri)
• Stock on the ASX can be traded 10am to 4pm local time (Mon – Fri)

Who can trade Binary Options?

Anyone but you do need to be 18 and over.

• 18
+• A computer with an internet connection
• Time to commit to learning and trading
• Capital

You do not necessarily need a lot of start-up capital or an expensive computer system.

Why trade Binary Options?

• Low start-up costs
• Basic computer with internet connection
• Around 0 for an initial deposit
• Free online training material
• Simplicity
• As easy as clicking PUT or CALL
• Most brokers offer very user friendly trading platforms and very easy to understand

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FREE EBOOK: Beginner Binary Options Course
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MORE LEARNING VIDEOS
— Beginners Binary Options Course (100)
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— Intermediate Binary Options Course (200)
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— Advanced Binary Options Course (300)
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