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Binary Option Day Trading An Opportunity To Make Money Quickly
If you have been involved in the financial markets for a while, you would have heard about the term day trading. It applies to binary options trading as well. The concept of binary option day trading is very simple. It refers to you opening a binary options contract or a position and closing it the same day before the market closes.
In the binary options market, all contracts have definite expiry times and dates. Whereas traditional binary option contracts have a fixed expiry, some platforms may offer variable expiry times. Once you buy a binary options contract based on the predetermined expiry time, you cannot close an active trade as it is done in the case of other financial markets. Therefore, you need to choose an expiry time that falls within the same day of trading.
Your choice of the trading platform will determine the expiry time/date that is available for a binary options contract. Binary options brokers who make use of the SpotOption white-label platform such as iOption, TradeRush, Dragon Options, etc., offer you default intraday expiries on their classical call/put options. Some of these binary options brokers also enable you to choose expiry times within a trading day through OptionBuilder type of trades. There are also the 60 second and high yield touch instruments offered by some of the brokers on their platforms which enable you to execute binary option day trading by setting your own intraday expiry times.
If you make use of the Tech Financials white-label platforms offered by brokers such as OptionFair, Anyoption, etc., you can utilize the intraday expiries for executing high/low contracts or high-yield boundary option contracts. In case you open accounts with brokers who offer more customized platforms, for example BetonMarkets, you will be able to execute intraday contracts for the high/low or rise/fall trading instruments they offer. Sometimes, intraday contracts may be available only for certain specific asset classes. Therefore, if you want to do day trading of binary options, you must have a clear understanding of the platform that you are using in order to properly time your trades. Generally, most trading platforms offer binary options on stocks, indices, currencies and stocks to you for day trading.
Online binary options trading that was started in 2008 has quickly become one of the most popular investment vehicles for beginners and experienced traders because of its simplicity and the possibility of earning high returns irrespective of the size of the investment. The return on investment can be as high as 90 percent of the amount invested in a contract. Binary option day trading is, therefore, considered to be the fastest way of creating wealth by the investment world.
However, to become a successful day trader, you must equip yourself with knowledge about the investment market and certain concepts. For instance, you cannot successfully trade if you do not have a thorough understanding as to how binary markets work and what kind of trading instruments and risk management tools are available to you to manage your profits and losses.
If you have chosen one of the best binary options brokers available in the market today, you will get the required support to successfully conduct day trading. This is an important aspect because as you practice binary options trading to gain experience, the broker will provide you with the right tools to minimize your risks and thereby maximize your earnings. However, you must ensure that the broker you are working with is licensed to operate in the binary options market so that you will not fall prey to one of those binary options scams that are out there to fleece investors.
Advantages of Binary Option Day Trading
The biggest advantage, of course, is that you are just required to make a simple decision as to whether the price of an underlying asset will finish up or down by the preset expiry period that falls within the trading day itself. Further, it presents even beginners with an opportunity to earn up to 90% profits per trade.
Day trading of binary options is increasingly becoming popular because of the low level of risk involved. You can know prior to placing a trade as to how much profits you can get or how much you will lose if your prediction is incorrect. Most brokers return a certain percentage of the investment back to you for losing trades. They also offer you tools using which you can cut down your losses to a great extent. Some brokers even allow you to open accounts for as much as $25.
Assets on stocks, commodities, currency pairs and indices from around the world are made available for trading by brokers. However, you need to have an understanding of the market and do a correct analysis to make right decisions at the right time.
You can execute multiple trades during day trading. You will make enough profits to wipe out all your losses if one contract expires in-the-money. You have an opportunity to earn profits every hour.
If you are planning to do binary options day trading, the two important aspects that you need to examine are volatility and liquidity. Volatility can made use of to increase profits if you know how to handle it properly. Liquidity represents the right time and right price for an asset.
Binary option day trading offers quick returns to you as the contracts expire on hourly basis or by the end of the trading day. You don’t have to wait for a long period of time to get the profits. This is one of the main reasons as to why more and more investors are opting for this trading instrument.
It is a fact that day trading of binary options can help you earn huge amounts of money, but you can also incur heavy losses if you are not careful and take informed decisions instead of relying on luck. You should never be in a hurry to make investment s. You must develop a thorough understanding of the market before starting to make investments in binary options. You must also make use of a demo account and work with experts in the field to gain the knowledge required to successfully trade binary options.
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