For those who don't know, binary options is a financial option to which the trader is relying on asset to either go low or high. As an example, if you buy a higher option in binary trading and it happens that the rate rises, you are going to get a return. If you've bought a lower option, you would get nothing and then lose your investment.

 

To be able to get started, the first thing that you must know is the basic terminologies used. Let's say for instance that you would like to trade on currencies. When you are ready to start placing your trade, you'll have striking price. This is the time to which your trade begins and locks in a rate at that point. Now, before striking, you will be presented with 2 options. First is the call or meaning, you think that the asset will go higher than striking price. The other option is called put, which simply means that you're asset at time of expiry will go below striking point.

 

Going into Stern Options trade, the trader knows already the fixed amount of ROI if he or she wins the trade. There are a number of brokers who will get a percentage of anywhere between 60 to 90 percent for winning the trades. The popularity of binary option keep growing by the day due to the fact that it is pretty simple choice of whether the market will go down or up at the end of a timeframe with any particular asset. These said assets can be anything from commodities, stocks, FOREX and indices.

 

Wherever there's great reward, expect that the risks will be greater as well. When trading, keep in mind to never invest greater than 5 percent of your initial investment. So for instance, you have deposited 1000 dollars in your account to begin with trading, it'll be wiser to invest no more than 50 dollars when trading.

 

Simply put, it is best to always do research to which stern binary options broker you like to hire. As binary options is constantly gaining popularity among people, see to it that you look for brokers who are Commodity Futures Trading Commission (CFTC) regulated. As a matter of fact, this means that when the time comes for you to be paid on all your winning trades, you will really get paid. You got to know that there are other brokers out there who are scams, so you've got to be vigilant.