What do new binary options traders need to know?

Binary options for novice traders are a real chance for stable earnings. The main problem that inexperienced investors face is the lack of special knowledge and insufficient basic training. So where should newbies in binary options start trading and studying the market?

For a successful start, future traders must understand a number of the most important issues, such as:

1. What are binary options?
2. Where to start learning binary options trading;
3. How to use a chart correctly;
4. Why do you need indicators and strategies for binary options ?
5. How to choose a binary options broker .

The concept of “binary options”

Binary options are understood as a kind of contract between a broker and a client with predetermined parameters - expiration time and clearly fixed financial results, depending on the circumstances. In classic options, the trader receives a profit for the correct prediction, otherwise he loses the amount of the bet.

For example, you purchased a Put option with an expiration time of 15 minutes. If quotes begin to decline and, when closing a position, their level is below the strike price, the investor will not only return the invested funds, but will also automatically receive an income of up to 90% of the bet (the specific amount is set by the broker). If the price rises, the transaction will be unsuccessful and the bet will be debited from the account.

The convenience of binary options is that both the size of the profit and the amount of loss are known to the trader in advance, before entering the market. This greatly helps in developing a trading strategy and in regulating the level of risk.

First steps in binary options

Before opening his first trade on a real account, a beginner must master all the basic concepts and study the decision-making mechanism. All this is described in numerous textbooks for those who are beginning to master the new profession of a trader.

For example, one of the best VKontakte groups for beginner traders is the group “ Binary options for beginners ”. It contains a huge amount of useful information, ranging from explanations of basic terms to recommendations for creating your own trading strategies. No less important problems of investor psychology are also discussed, money management is popularly discussed, and the secrets of professional players in the binary options market are described.

Remember: all successful traders once started with the basics. Don't neglect quality training .

Quote charts

In order to place a bet, you need to analyze the current situation. Many binary options brokers have their own trading terminals, but their capabilities, to put it mildly, are not impressive, so the vast majority of traders prefer to additionally use the MetaTrader4 software product. It is very convenient thanks to flexible settings and a large number of useful options. Many indicators and trading strategy templates were developed specifically for it.

The platform is completely free for all categories of users, it allows you to switch between several accounts, including demo. Another plus is access to quote history.

Indicators and strategies for binary options

MT4 terminal has an extensive list of standard indicators for technical analysis. There are many user tools available for download on the Internet, which are used by loading them into the terminal according to the instructions.

Strategy templates are ready-made software solutions consisting of several indicators with settings already adapted for trading. They are advised to be guided by when developing your own system.

Choosing a binary options broker

For a successful start in the financial markets, the approach to choosing a broker must be balanced and responsible. To help traders, experts develop special ratings that help them choose a reliable company with suitable conditions. It would also be a good idea to read reviews from clients of the broker you are interested in.

Finally…

Binary options are the door to a special world where everyone can become successful and financially independent. If you are afraid of losing all the money on your deposit due to inexperience, start with a demo account on which trading is carried out using virtual currency. The functionality of the training and real accounts is absolutely identical, you will not only practice new skills, test some strategy, but also get used to the features of the trading terminal.

See also:

The best broker for beginner traders

Free online signals for binary options

Financial television

Live chart for binary options