Whether you’re new to trading or are a seasoned veteran, investing in the financial markets is, traditionally, a complicated affair. The wealth of news, financial reports and the rumor mill are daunting to navigate, and are often enough to discourage new traders.
With binary trading, however, the process of investing in the financial markets has been thoroughly simplified. And binary trading represents a new and innovative form of online investing that even the most inexperienced trader can comprehend.
The core proposition
At its very core, binary trading boils down to a trader predicting whether the price of any given asset will rise or fall. It’s really that simple.
Unlike spread betting, binary trading does not allow you to lose more than your original stake, as the market fluctuates. In addition, unlike with spread betting, the profit that you stand to make on each investment is not dependent on the degree of movement on the position that’s invested in; for example, if you predict that the asset’s value will increase, any increase, no matter how small, will see you receive a full payout on that successful prediction.
Finding the right platform
When it comes to finding the right trading platform for binary trading, a little research goes a long way and is especially important for beginners. It pays to find a simple platform that makes binary trading as straightforward as possible.
OneTwoTrade is such a platform, whose simple and intuitive interface takes all of the guesswork out of the binary trading equation, leaving you with just four simple considerations to make before investing in a position.
1. The asset. OneTwoTrade allows you to purchase SMARToptions for some of the world’s most popular assets and commodities.
2. The direction. This simply refers to whether you think the value of your commodity will go up or down during your specified trading period.
3. The expiry time. An essential phase in the acquirement of your SMARToption, the expiry time dictates the time frame during which your investment takes place. This expiry time can range from anything from 30 minutes upwards; with OneTwoTrade also offering a 60-second option.
4. The investment. Investments can start at as little as £10, increasing to the £1,500 mark. In return for this investment, you stand to make over 70 per cent in profits if your prediction is correct.
The risks involved
As with any form of financial investment, binary trading does carry an inherent risk. There are no guarantees that you will see rewards and you do stand to lose your initial investment if your prediction on a certain position is unsuccessful.
With binary trading, however, you do have a great deal of control over your investments. There is no need to worry that you could lose more than your initial stake if the market fluctuates unexpectedly, making it an increasingly attractive option relative to spread betting.
Delve a little deeper
While binary trading may seem straightforward and accessible to novices, every savvy investor knows that the greatest returns can only be achieved through spending time doing your research on the positions that you are investing in
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The internet is awash with financial news and sites like Reuters are a great place to go for in-depth information and analysis on stocks. And for those of you who are a little short on time, OneTwoTrade’s Twitter stream is packed with useful information and tips, to help get you started.