It is known as such because returns can either be a pre-determined fixed amount of any underlying asset or nothing at all. It is subject to the selection made by a trader when investing. In quite a few instances, the entire investment is lost with no refunds.
However, there are a few platforms which return between 5-15 percent of an investment. People who are new to this form of trading or not acquainted with trading in the binary markets should seek the services of an expert trader. One can always seek the advice of family members or friends who have experience of trading in this market.
Having experience in trading is necessary when dealing in binary trade options. It is recommended to carry out research and study the various factors that influence this style of trading so as to minimize the possibility of losses. Any one new to the markets should first get his fundamentals in place and study factors such as market trends, strategies etc.
The very first step required to be undertaken when trading in this market is to open an account. As most if not all binary options trading is done online, there are numerous online brokers who offer a variety of binary trade options. Once the account is set up the trader has to select the asset he will trade on. There are a wide variety of assets available on a binary platform. All that is required is to know how to trade by choosing the option that he is interested in trading in. This is where a broking agent can be of use as he can offer a wide variety of options to select from.
When trading you need to be well aware of the market conditions and settle on the value of the asset as per current trading figures. In fact this is an ideal method to select if any commodity has a high asset value. It will be advantageous to select a commodity with a high value as it can bring in the profits if at the time of expiration it is in the money. When an asset has a lower value then it is preferable to opt for a put option at the time of…