In the first two lessons we have provided a practical summary of what binary options are and the types that can most frequently be found on the broker platforms specializing in this type of tool. Now let’s see how to trade binary options in practice together.
First you need to open an account on a broker site that offers a free demo account like this. In another article article we will explain how to choose an options broker based on your needs and the features offered. In this article we focus on how to trade binary options depending on the broker you choose based on your personal valuations.
Once you have chosen the broker and opened the account through his site, what you need to do is to familiarize yourself with the platform for binary options trading offered by the same site.
The platform for binary options is usually only usable by browser but you could find different types. However, this is a minor factor since the trading platforms are always functional depending on whether you use the software version rather than the browser version.
How to use the Binary Options Trading Platforms
Now let’s see how platforms work to trade binary options. The first thing to do is to choose an asset to invest in. The broker explains which types of binary options are available for each asset. Obviously the type CALL/PUT will always be the most available, so if you prefer to predict the simple rise/fall at the expiry of a certain price, this will be the most common option.
- The first variable you have to choose will be the type of binary option, e.g. CALL/PUT (also called HIGH/LOW)
- The second variable will be the subcategory (e.g., Short term will have sub-categories as binary options at 5 minutes, 2 minutes or 60 seconds)
- The third variable will be (as we said earlier) the selection of an asset from a portfolio that you will create
- The fourth variable will be the amount you want to trade. We point out that usually the orders that can be carried out are subject to a minimum amount
Go to lesson 4 – What can be traded with binary options