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07 January, 2014: To be successful in binary options trading, you must first select the right underlying product to trade and place a call or put option. You predict based on market trends. Place a call option and forecast the price for the underlying asset is trending upwards. Place a put option in the anticipation that the underlying asset will fall in price. Determine how much money you will invest, and wait for the necessary amount of time. Sounds simple? 

“It can be if you do your homework,” report trading specialists. 

5 Steps to Tackle for Binary Options Trading 

In spite of the seemingly simple trade, binaries can be risky. You need to make careful preparations and have the appropriate knowledge. You can gain rapidly or lose everything you have invested in mere minutes. With a professional broker you can have an edge in reducing the potential losses. 

1. Select your trading platform. If you are a beginner or a professional investor in binaries, it is very important to find the best trading platform. You can benefit from the experience of the broker and then he or she can guide you through the trends. There are broker houses that are completely free when you work with binaries. They gain their money if you lose. In other words, you invest a certain amount on a prediction, chose the expiry time, watch and wait. 

You gain back your investment plus a percentage if you are right. If you predict wrong, the brokerage house keeps the amount you invested. 

2. Determine your underlying asset or the assets you choose to base your trades. You can use shares, indices, currency pairs or commodities. 

3. Research, study and use the information from your broker to increase your chances of a successful trade. 

4. Ensure the integrity of your brokerage house is high. With the right partners, you can definitely come out on top. 

2 Types of Binaries 

Two popular types of binary options are cash or nothing, and asset or nothing. Trading in cash or nothing options, the investor is paid a set amount of money when the underlying is “in the money” when the expiry time hits. The asset-or-nothing choice pays the investor the worth of the commodity or asset if you correctly predicted a rise or fall in price at the expiry point. Either way, if you predict correctly you “win” back your investment plus the trading platform’s contract percentage. 

Try a no-touch binary option. This gives investors the opportunity to predict when an asset’s price stays above or below a predetermined level throughout the contract. When the asset hits the specified pricing level at the expiry time, nothing is earned. If asset has not reached the pricing level at expiry, the investor wins. 

Boundary or range options work by setting two levels. One is above the current market price and one prediction is below. The payout is made if neither of the levels is “touched” before the expiry time. 

Cash or nothing binary options pay out an agreed upon price as long as the underlying asset is either above or below the strike price at expiration. The payout price is paid when the price is just a few cents away from the predicted up or down, or right on the money. 

Research and determine what type of binary option trading is best for your situation. You can be “in the money” quickly if you choose wisely. 

To get more details plus benefit from a free The Binary Options Experts team consultation, head on over to: www.binaryoptionsexperts.com . Discover how to earn extra cash from their affiliate program at: www.binaryoptionsexperts.com/affiliate where experts are available to help. 

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