Types of Binary Options
Binary options fall into two types:
CALL options and PUT options. You open CALL option when you believe that expiry price of the underlying asset will be higher than at the time of the purchase. PUT option is what you place when you think that the expiry price of the option will be lower than the original purchase price.
For example, you have found out that Gold is on decline and your predictions suggest that it will continue to fall until the option is closed, you would purchase a PUT option, which would maximize your chances to win if Gold falls below the purchase price as the option expires. However, if you have found out that Oil, for example, is skyrocketing and expected to continue in this fashion for the next hours, placing a CALL option will be an appropriate investment decision giving you a good return on your investment if expiry price justifies your predictions. To sum everything up remember that you should stick to the following basics in order to maximize your chances to succeed.
1. Carefully choose the asset to invest in.
2. Choose only those assets whose market sentiment is stable devoid of volatility and fluctuations.
So there you have the basics to trading in binary options.
Remember that choosing appropriate time for purchasing an option is crucial to your success. Use time as a tool. In addition, remember that our website is abundant with resources that can help you to learn more about what laws drive the markets worldwide and get the knowledge required to reduce the possibility of losing to minimal functioning.