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The binary option is a way to trade the fluctuation of prices of the open global market. It allows to obtain or a payoff of a fixed amount of money or asset or nothing. So, in simple terms, it is binary because you only have two possibilities: On a first approach, binary option can seems a very simple way to earn money, so that a lot of Forex traders start using it.
But really, it is not binaroperation plattforments simple to enrich with it, as strategies binaroperation plattforments money management must be very well known to avoid the risk of lose everything. One of the characteristics of the binary option trades is that it can be different in the different country: And in fact, in the US, traders deals with the so called exotic options, referring to the investment binaroperation plattforments outside the US.
Just like the Forex Trading, the Binary Option www. The high-low option allows the buyer to have a payoff binaroperation plattforments from the differences between the higher and lower prices reached by an asset during a period of time.
For example, imagine a trader knows that a certain kind of asset is known to rally binaroperation plattforments the close future: After bought, he had to fix an expiring time, that can be of few minutes, of days, weeks or months, depending on his choice. And he had to wager if the price at the expiry time will be above the starting price.
If this happen, the trader gain a good percentage of the starting value. If not, he loses his investment. Depending on the brokers, the investment can be fix or can range from a minimum to a maximum, binaroperation plattforments, in most case, is limitless.
The brokers also allows binary option outside the traders country. This is very common in the United States, where binary options have fixed risks and payout that, in some way, protect the traders. It is important, before starting, to realize that the risks can be binaroperation plattforments, especially for the novices, that in some case can also entry in trades not legally allowed by their country.
Today the brokers are agent working in some industry fields but this word is binaroperation plattforments especially in the market where the broker is one of the most important role, binaroperation plattforments intermediary from the market and the traders.
Brokers in fact binaroperation plattforments those that have and give information on the market conditions, or on the prices of the products. Today is unthinkable to work in the trade system without the support of a broker. In fact all the Forex Trading are usually done by the brokersthat are people or platform that act as intermediaries among the trader and his trade and the market.
Today there are a lot of on line platform that act as brokers: These platform have the quality to show time after time what happened on the market, so that the trader can track and monitor prices, statistics, purchases, gains, losses and so on.
Of course, all the licensed platforms are listed, so that investors can chose their own on-line binaroperation plattforments without meet with not authorized brokers. This is a very important point as the open market is a very interesting world, but is also a good way to dupe the binaroperation plattforments person or those that expose themselves to the market for the first time.
The best broker platform always advises all the investors not only of binaroperation plattforments possibilities of gain, but also about the risks of investing. The trading of currencies of different countries is called Foreign Exchange Market or, in the shorter form, Forex. So when we deals with Forex Trading binaroperation plattforments, we are dealing with the trading of different currency pairs for example Euro versus United States Dollar or versus United States Dollar versus Pound from different countries that are considered each against the other.
The Forex trading works completely on line, and this is probably its most important characteristic. International trades, investments, curreny conversions, are all negotiation of interest of the Forex trading. All these Trades in the Forein Exchange Market are based on the payment in different currencies and on the exchange from a currency to another one.
The exchange can be advantageous or not and this is one of the basic of the Forex trading. The first point that probably everybody more or less binaroperation plattforments, is that those binaroperation plattforments in the Forex Trading hope they can gain money through this channel.
This is true, but not always true. All those that approach the Forex should have always clear in mind that earn and losses are both probable, so binaroperation plattforments the same way a trader can earn money or can lose it.
Or, to be really precise, binaroperation plattforments those that are not very skilled, losses are the most probable results. So, how does it work the Forex Trading? How is it possible to earn money with the trading of currency pairs?
A trader buys one thousand pounds in a certain period that could be, for example, march He purchase them with the US Dollars, so binaroperation plattforments spend about one thousand and six hundred binaroperation plattforments we have supposed that the exchange pound versus dollar is 1: At the end of May of the same binaroperation plattforments, our trader realizes that the value pounds versus US dollars increases, so that the exchange is 1: For this, the trader can decide to sell his dollars or to close his trade so that he would have binaroperation plattforments one hundred dollar.
Of course, if he binaroperation plattforments not a good trader, he can do binaroperation plattforments wrong play, and sell his currencies in a moment in which the exchange is disadvantageous, because the exchange is, binaroperation plattforments example, 1: In this case he would have lose one hundred dollar. To trade with currency pairs or with stocks, a broker or a market maker is needed. To be sure to ask to a real Forex broker and not to an impostor, the trader binaroperation plattforments check the lists of qualified broker available on line.
Of course, today, all the trading procedures are made on line, with few clicks, without meet people, without offices and without appointments. This means that everything is faster, but at the same time, this can be more dangerous for the inexperienced traders. To avoid risks, several on line brokers make available on line customer support that explain the basic of the on line trading.
When start trading in the Forex, what is important is that all the terms used are really clear in the meaning. It can be very easy for a novice to make mistakes due to the misunderstanding of the used terms. During the trades is very probable that the purchases are done in terms binaroperation plattforments lots or, for small quantities, in terms of mini lot or micro lot. As it binaroperation plattforments easy to understand, mini and micro lots are parts of the lot, and in particular, they represent the tenth part and the thousandth part of the lot.
Another term very often used in the Forex trading is the Pipsthat is the Percentage in Points. It is a small measure, very useful binaroperation plattforments the change of the currency binaroperation plattforments, In fact, the relationship among the different pairs is always complex and needs of the multiples and submultiples of the units.
So the use of the Pips allows to work with the decimal numbers. In the Forex language there are both terms connected to the quantity of the currencies or binaroperation plattforments and terms connected to the actions. For example very common terms, also entered in the everyday languages are the bid and the ask. The bid is the offer that is made by the investor or the trader, or better, it binaroperation plattforments the price at which you or the broker for you want to but a currency pair, or an asset.
On the contrary, the ask is the price at which you or again the broker for you want to sell. Of course to have a transaction, usually the buyer and the seller have to make an agreement that can be more or less convenient for the buyer or for the seller depending on several conditions. In the best cases, the agreement find a price that is in the middle of the one asked and the one bidden. Another very used term is the spread. The spread is the quantity of pips see above between binaroperation plattforments ask and bid price, that is the difference between these binaroperation plattforments parametres.
Binaroperation plattforments all these terms are connected binaroperation plattforments it is very important to understand what they mean to understand what the spread is.
If a broker buys a currency for and sell it for the spread is the difference between binaroperation plattforments These terms have been binaroperation plattforments to better undestand the binaroperation plattforments of the difference between dib and ask, but in the reality, the spread goes on the decimal terms, so true values could be for examples In forex the leverage is strictly connected to the gain and the losses, as it magnifies them.
Often this involves the risk binaroperation plattforments borrowing costs will be higher than the income from the asset. This will cause, obviously, a reduction in profits. Risk may be attributed to a loss in value of collateral assets. Brokers may require the addition of funds when the value of securities hold declines. More,iIf cash flows and profits are sufficient to maintain the ongoing borrowing costs, loans may be called.
This may happen when there is little market binaroperation plattforments and sales by others are depressing prices. It means that binaroperation plattforments things get bad, leverage goes up, multiplying losses as binaroperation plattforments continue to go down. This can lead to rapid ruin, even if the underlying asset value decline is mild or temporary. The risk can be lowered by negotiating the terms of leverage, or by maintaining unused room for additional binaroperation plattforments, and by leveraging only liquid binaroperation plattforments.
Binary options Definition The binary option is a way to trade the fluctuation of prices of binaroperation plattforments open global market.
In this trading community blog we talk about online trading what is forex trading? Forex trading Definition The trading of currencies of different countries is called Foreign Exchange Market or, in the shorter form, Forex.