#binary options tutorials

Binary call option - binary options trading explained - tutorial #1

hi guys this is Chris Martin from binary options net au and in this video I am going over the basics of binary options this particular tutorials could binary options explained it's a introductory tutorial if you're just learning about binary options or you want to know a bit more about binary options before trading this is going to be a very good first off video as a foundation to learn more about binary options so let's get to the tutorial so firstly what are binary options they are type of option in which the payoff is a fixed amount of profit or nothing at all financial options are derivatives derivatives derivatives being an instrument derived from an underlying asset with other financial derivatives or securities a payoff is determined by the difference of the opening and closing price when we profit from a binary option a profit is a pre agreed amount between an individual the trader and the broker or it's a loss sometimes binary options are referred to as all-or-nothing options or digital options so how are binary options traded binary options are traded via and online binary options broker there is a variety of different brokers out there which I'll explain in the next lesson so each broker offers a variety of actual our binary options so we'll go through all the different types of options there's forex which are currencies typically Forex pairs they are more commonly known as for example you'll have Forex pairs such as the British Pound and the Australian dollar the strain doll and the US the US dollar and the yen and it's quite a number of those there's also stocks or shares things like BMW Barclays etc there's also actual indices or stock indexes this can be things like the Dow Jones this drain the ASX Australian Stock Exchange actual indexes you can actually trade those as well then there's commodities which are precious metals and softs things like gold oil wheat etc so the reason of highlighted the forex category is that this is the most popular type of option also has the highest liquidity and it's traded pretty much around the clock pretty much every single country lost more liquidity and and you can constantly trade it from Monday to Friday there's always an opportunity to trade Forex where as stocks indices and quantities are limited in in the actual time you can actually trade them so what does the word binary mean by definition it valves two things being a call option so if we place a call if we believe an underlying asset will appreciate or increase a put option we place a put if we believe an underlying asset will depreciate or decrease call options are also 9 call options are also known as buy or up options put options are also known as sell or down options so you'll see some brokers or actually have the terminology or the button that you press it might say buy or up or sell or down which corresponds to being a call or a put option Bionic options are are offered against a fixed expiry time such as 30 minutes so you'll find there's various expiry times as sixty Seconds all the way up to end of year expires end of math expires the most common ones are 30 minutes 15 minutes and an hour and also the short time ranges from 60 seconds all the way up to 300 seconds so let's go through an example so if you thought the Australian dollar was going against the US dollar if you thought the Australian dollar against the US dollar was going to increase in price in the next 30 minutes you would place a call option and after 30 minutes if the price is higher than the start of the 30 minutes you would profit a pre-agreed amount with your broker so if the pre-agreed amount was 75% of your in trade investment then and if your investment was $100 you would actually profit one hundred and seventy five dollars your original hundred is returned to you and then you also receive an additional 75 on top and vice versa if you lose the trade you would lose the $100 so when to trade binary options this is actually a very important thing to know and probably one of the most asked questions I find for more you guys out there what you ask when is the actual best time to trade binary options a lot of people don't have all day to trade and actually this is why binary options is quite good is that you can get in and out of the market make a few trades and then that's all you need to profit for that day because there are so many binary options offered by various global markets difference between Bionic options can be traded at different times in a day as different financial markets have different trading hours so for example the Sydney time zone for the forex market is from 8 a.m. to 4 p.m. and for Tokyo it's 10 a.m. to 6 p.m. London 7 p.m. to 3 p.m. and New York it's 12 a.m. to 8 a.m. so those times all in drain isn't standard time but the point is that you actually have coverage especially in the forex market to always be trading a particular Binary Option but they might not all be available at all the times and you'll see this actually times there with certain markets overlap as well for example the Sydney in Tokyo one overlaps from 10:00 a.m. to 4:00 p.m. so therefore you've got more liquidity in the market at those times and that's generally when is a better time to trade when there's more liquidity or more people in the market you're going to get those trends happening so moving on from when to trade binary options so the forex markets are open 24 hours five days a week Monday to Friday stocks on the New York Stock Exchange for example can be traded from 9:00 a.m. to 4:00 p.m. local time in New York so that's Monday to Friday our stocks on the Tokyo exchange can be traded from 9 a.m. to 3 p.m. and stocks on the ASX can be traded from 10 a.m. to 4 p.m. so you see there Florrick's markets are open 24 hours five days a week but stocks indices and commodities actually have more limited times when you can actually trade them so who can actually trade binary options anyone can trade binary options but you have to be at least 18 years old all you need is a computer with an internet connection time to commit to learning and trading so what you're doing now is actually great it's the first step you've actually getting an understanding of what binary options are learn all the ins and outs of binary options and trading in general and that's going to lead you to have more success in your trading and obviously you're going to need some capital to actually start with one thing that people think they need but I actually don't you don't necessarily need a lot of startup capital to trade binary option you can actually start from as little as $200 as as opposed to Forex where you actually need quite a lot more to actually get into the inter trading and you don't need an expensive computer system you actually just need a basic computer with a good internet connection so why trade binary options so these are these are the reasons why we trade binary options it's low startup costs all we need is a basic computer with the internet connection around a 200 to 250 initial deposit to get you started there's tons of free online training material including my website binary options net dot au and also my youtube channel I have over literally over thousands of youtube videos teaching everyone how to trade binary options more successfully and simplicity it's as easy as clicking put ball call to execute a trade most brokers offer a very user-friendly trading platform and it's very easy to understand so I'd like to thank you for watching this first video on on binary options explained I've hope you actually able to get through the whole video and understand that the very basics of binary options in my next video I'm going to actually be explaining the best brokers to trade binary options up also if you've actually a bit more advanced and actually have these understandings can actually click to one of my playlists where I have the best binary option brokers and if you're after the signals you don't say click to there and get the best binary options signal services and if this is the first time you've been watching one of my videos please subscribe to my channel this is the best way to bookmark my sites every time I upload a new video you're going to be the first to know and can get straight into it so until next time may all your trades be profitable