Binary trade is all about trading the available type of assets during a short time. Simply put, you can make out from the name of this type of trade itself. The word “Binary” means “Two”, where you have only two options to choose from when trading an option: either you choose “CALL”, meaning you expect your chosen asset to go up in value, or you choose “PUT”, meaning its value is expected to go down by the option’s expiry time.
The Basics of Binary Trade
It works like this, when you are a trader in the binary options market, the broker then gives you options to trade several types of assets including stocks, currencies, commodities, indices and others. Additionally, you can trade either manually or automatically through automated software such as the Golden Goose Method.
Additionally, you can operate through a signals package. A good signals package helps you by providing accurate trade alerts. Each day, you may receive several alerts.
Types of Available trades
In every binary options market, you can choose to trade one or more types. The main types are as follows:
- Commodity binary options
- Index binary options
- Stockbinary options
- Forex, or currency binary options
You can trade any one or more types of binary trades at a given time, depending on your choice and the broker you work with. Remember, there are several types of brokers for each type. For example, your Forex broker will only assist you with Forex trades, not with commodity or indices. However, most binary options brokers do support all four asset categories, unlike Forex brokers, who only support Forex trading.
Commodity Binary Options
In commodity trading, you can trade various types of metals and energy derivatives such as oil, silver, platinum or gold. All you have to do is to predict the price direction of the commodity you are trading.
Index Binary Options
You can try more unique ways to trade indices in the binary options market. The indices binary options offer you a wide selection of equity based indices. You don’t need to track each index down as these instruments maintain a price check on the equity markets such as AX200, FTSE 100 etc.
Stock Binary Options
You trade stock options by controlling the balance between your profits and losses in a rising or falling market. Stock trade offers you a simple yet exciting mode for trading individual stocks. When trading stocks, you may choose between several sub-categories as well, which includes pharmaceutical shares, technology, banking, retail and others.
Forex Binary Options
Forex trade is perhaps the most popular of all types of binary trade options. As a Forex trader, you have the advantage of earning high profit even during a volatile market. Forex trades have a predetermined payout rate that gives new traders an exciting platform to trade with. Whatever type you trade in the market, you will enjoy the fast paced trading environment of binary
options trading. Still, patience is a virtue, even in a time limited environment like a binary market.