Anyone interested in trading binary options usually comes in two ways to trade them. Either he is a newcomer to trading and the simple structure of the products has a certain appeal to him or the trader is already familiar with the profession and would like to try something new. The experienced trader may want to take advantage of the automatic risk mitigation of binary options and the novice is looking to earn an extra income from trading.
Whether you are a novice or an experienced trader, in both cases traders need to do basic trading note binary options. In the following we would like to give the two trader types an overview of the most important properties of binary options.
Binary options successfully traded? Traders should note this
- Opportunities and risks of binary options
Where are the opportunities and risks when trading binary options? First of all, every dealer should deal with this question. The chances of binary options are obvious. Due to the low use of capital, it is also possible for less wealthy customers to achieve a return of between 50 -85% on the stake per trade through their own active management.
In some cases, a return is even well over 100 % possible in a short time.
However, there are of course also certain risks. This consists in the loss of the capital invested per trade and even beyond in the case of careless trading. Depending on the personality type, there is also the risk of becoming addicted to games.
- How do binary options work?
The functionality of binary options should be known to the dealer. The payout structure is very important. Although this is the same for all brokers, this is not immediately clear, because some brokers speak of return, while others speak of payment. If binary options traders can get 80% return on their capital per trade or get paid 180% after the option expires, it's the same fact. Only that in the second case the stake is included.
In addition, the dealer should familiarize himself with terms from the option theory. "Out of the money", "In the money" or "On the money" are the most important, but their meaning is not difficult to see. "Out of the money" means that a binary option is out of profit after the time has elapsed. The opposite applies to the term "in the money", while "in the money" represents the situation when the binary option remains unchanged at the purchase price. Furthermore, a distinction must be made as to whether there is the option of closing binary options prematurely. For example, if a call option is already "in the money" and the trader does not expect the underlying price to rise further, he can sell it again before the time runs out. However, it loses some of its return and in most cases has to pay an additional order fee. In the case of the "out of the money" option, the trader has the chance to lose less than his entire stake per trade. Some brokers grant up to 15%.
- What should you pay attention to when choosing a broker?
Trading binary Options cannot work without a broker. Therefore, the question always arises, how do you choose a good binary options broker? Depending on your preference, the requirements for a broker can of course vary, but basic things a sensible broker should always bring with them and these are:
- Always, at least during trading hours, competent support
- A well-structured trading platform that works on all browsers
- No hidden conditions, misleading advertising and small print
- Regulation in one of the EU countries and protection of customer deposits through segregated accounts
- A wide range of further education offers
- A wide range of tradable underlyings
- Common option types
- The possibility to choose many terms
Depending on your own preferences things like minimum deposit, minimum wagering, or withdrawal terms may be important. The language change is often a criterion for choosing a broker.
The Broker OptionTime
We checked the Broker OptionTime for the above-mentioned things. In addition to the German website, the broker also offers support in German and on several channels. The live chat can be reached quickly and the support is very competent.
The trading platform is also very fluid and works on all web browsers. In addition, OptionTime offers additional tools for the analysis of the markets with the ProMaster function.
Through the summary of the entire content listed at the end of the page, the customer has direct access to the conditions and FAQs of the broker and is therefore protected from unknown small print. The regulation by the CySec authority, which is subject to the European MiFiD security guidelines, is also communicated openly.
Through the OptionTime Academy, the customer can obtain information in advance about the individual option types and their opportunities and risks. The OptionTime broker is also one of the few brokers that offers high yield returns. This can be up to 500% within the scope of the OneTouch option.
The selection of tradable underlyings is quite acceptable with around 180 values. All common and liquid assets are available, from stocks to commodities and foreign exchange. As far as the terms are concerned, most of them are specified by OptionTime, but the choice of terms is high and varies depending on the option type. An OptionBuilder, which some brokers already offer, in which the trader can determine almost all properties including the term, does not currently exist at OptionTime. But we are certain that this trend will also be implemented by the broker in the near future.