Trading Basics

Prior to trading in the binary options market, it is essential that traders have a thorough understanding of the trading basics in this arena. While binary options trades typically offer traders a fixed amount of return – or no return when an option expires out-of-the-money – there is still an amount of risk that traders must be aware of prior to placing their own money into such trades.
In addition to an awareness of how actual trades work, it is also necessary for traders to have a familiarity with the many different tools that are available to them from the binary options trading platform that they have chosen to use.

In educating themselves on binary options trading, here are some of the key aspects that traders must understand:

Most Important Terms – Glossary

There are some specific terms to binary options trading. If you are a beginner and not familiar with them, it’s hard to understand the more advanced articles. Please refer to our Glossary if you don’t understand the meaning of an expression used on our website.

Demo Account

Many of the online binary options trading platforms will allow traders to use a demo account prior to executing trades using real money. Traders may typically trade using real underlying assets – and in real time – yet without the risk of losing real funds.
In most cases, traders must first open an account with the online binary options platform prior to being offered the use of a demo account. In addition, many platforms will also require that traders make at least a minimum deposit into their account. Funds in the trader’s account will, however, be returned if the individual opts not to pursue trading binary options from that particular platform.


Trading Example

One of the best ways for individuals to learn anything is to see an example – and this is true for trading binary options as well. Studying trading examples can also help traders to develop trading strategies that may help them to attain more profit. In most cases, it is best for traders to study and become comfortable with basic trading examples before moving on to more advanced trading strategies.


Trading with Real Money

Before traders begin trading binary options with real money, it is advised that they first have an understanding of both the binary options market, as well as with the tools that are available for them to use.

Most binary options trading platforms allow traders to make real money deposits into their account using a variety of methods, including:

  • Debit and/or Credit Cards
  • Online Payment Processing Systems
  • Domestic and/or International Wire Transfers


Mobile Trading

In addition to offering a vast array of online tools that can execute trades from a PC, some of the binary options trading platforms are also starting to offer mobile trading capabilities. These smartphone apps can allow traders to manage their accounts, place trades, and monitor their positions from various types of mobile devices.


Trading on the Weekend

While most investment markets only allow trades to be executed during the week, binary options traders have an added advantage of being able to trade on the weekend as well. This is because there are several overseas exchanges that are open on Saturday and/or Sunday. The ability to trade on the weekend offers binary options traders additional profit potential.


Important Terms

Certainly, when participating in any type of activity, it is important to have an understanding of related important terms. Knowing what particular terms mean can provide traders in the binary options arena a good solid foundation for moving forward with their trading activities and with being much more comfortable in doing so. Knowledge of important terms can also help traders to develop and execute trading strategies that may produce a higher probability for profit.