Binary Options: How to Execute Trades – Infographic
CHOOSE YOUR ASSET
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Check out the asset index your broker provides you with and decide if you would like to trade Stock, Indices, Currencies (Forex), or Commodities.
Lets say you placed a $1,000 “Put” on Facebook Stock because you believe the stock will be devalued mainly due to Facebook’s inability to monetize fast enough:
Select FB on the Asset Index and choose Below or Put
EXECUTE THE TRADE
1. You must look at the time to invest and the contract expiry time.
2. Enter the amount you wish to invest.
3. You will automatically see the projected ROI if you speculate correctly.
For example, on a Facebook Stock Put position of $1,000 the most you stand to profit is 75% or $1,750.
When you execute the trades you must be focused and decisive. Too much analytics and calculations will leave you with not enough positions to actually generate money from your trades.
Trading Tip from the Pros: If you plan to invest heavily always ask for the trading room manager to give you an special offer for your deposit.
MONITOR YOUR TRADE
Look at the resistance line and follow the financial news. If you see a reversal pattern or a bear trap formation on your candlestick charts you need to fall back on your exit strategy.
Make sure to have an exit strategy in place and don’t be afraid to use it if you see a negative pattern developing.
Speculating correctly doesn’t necessarily mean you make gains or profit. If you accepted bonuses or an “educational allowance” it means you have volume requirements to fulfill.
Some binary options brokers require you trade up to 20 times the deposit amount. Others may add a minimum deposit requirement on top of that.
To understand more about how bonuses work in binary options click Here. Assuming you fulfill your trading requirement, your gains are reflected in your account balance and can be withdrawn (cashed out).
Losing a trade doesn’t necessarily mean you won’t eventually profit. Make sure not to risk all your money on one trade and you stand a good chance of bouncing back. Furthermore, it’s always good executing traders using more than one broker.
If you are looking for recommended brokers, simply look at our reviews section and select a broker based on your preference.
Having a solid strategy and sticking to it, as well as learning how to manage your risk, are both key to you being able to make money trading binary options online.