The industry in online binary options trading is fast catching up with online forex trading in terms of popularity. The reason for this is that unlike foreign exchange trading, binary option trading does not need the knowledge that trading in the forex market needs, so the prospect of gradually giving up a nine-to-five job and making money is a very appealing prospect for many people, including hundreds of housewives.
So how do you trade binary options online? Well firstly you need a broker who has a binary options trading platform and has a choice of the types of accounts you can open, from initial deposits of $250 to $10,000, and also has a simple trading platform to use. In reality most trading platforms look similar, just like the one shown below.
As you can see from the screen shots above and below, the binary options platforms are easy to understand and use.
Firstly, you choose the asset you want to trade from the drop down menu (1). In this screen we have chosen the EUR/USD currency pair. The screen also shows you the time to expiry of this particular currency pair (2). In this case the option is closed and the trader is waiting for it to expire. Also indicated on the screen is the percentage fixed profit and pay-out if you are correct in your prediction (3).
The next screen shot shows where the expiry date and the expiry time of the EUR/USD option are located (4). Now all you have to do is click on either the ‘up’ button, if you think that the price of the asset will be higher than the current price 1.31603 (6) at expiry, or, if you think it will be lower click on the ‘down’ button (5). The historical price of the EUR/USD currency pair is shown on the chart (7). Now you must choose how much money to ‘bet’/’predict’. Most binary trading platforms have units of $25 or $50. So for example you want to trade 2 units on a platform where each unit is $50, you would use $100 of the money you have in your account. Type the amount $100 in the amount box (8) and the platform will show you the potential pay-out underneath the amount you have decided to invest.