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What are binary options? They are a financial instrument that allows you to trade by means of placing wagers on a variety of asset classes. The most common asset classes that are involved in this are: indices, commodities, stocks and currencies. The 'binary' in the title of the trading mechanism simply refers to the two options that are available to the user namely; the call option and the put option. The former refers to when the forecasts of a given asset says that the value of the asset will go up in the duration within which the option was bought to the time that the option expires. The latter on the other hand alludes to the opposite. That is, that the value of the said asset will go down within the period that the option was made to the time that it expires. When it comes down to the actual trading; binary option trading involves three main steps, these are: Choice of the asset - the binary option websites normally offer a long list of assets for you to trade on. The assets on offer range from the ones that are well known and advertised all over the media and the internet to those that are less recognized. As a beginner, going with the well known assets is advised. This is not because they guarantee you success in your trading or anything of the sort; but instead because they are easier to understand and monitor their movements due to their popularity and all. Expiration period - you have to be aware of the fact that in binary options trading there are two expiration periods that are considered; these are hourly expiration and daily expiration. Depending on the platform that you are using; the broker can use either one of the two expiration durations. Choosing the amount of investments - binary options usually give up to seventy five percent of the profit if the option expires while with the money, which is considered as a very large sum when compared with the returns that are usually received by those who trade on forex markets. One should note though that as much as this may sound like a quick way to get loads of money; there is a high possibility of loss involved in it too. Starting with small amounts and steadily increasing them as you go along is a good way to make sure that you avoid making losses that could have easily been avoided. For more tips on how to start up your binary options trade visit a binary any option complete review online website. The author is a binary options expert that provides any option complete review online articles.
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