Lesson 1. Binary Options.
Welcome to the binary options training course. In fact, this is a trading course that took almost a year to develop. In it, I compiled my experience as a trader and adapted material from other proven trading schools.
The binary options training course is designed to gently guide the beginner from a naive hobbyist to a master focused on making money on every price move. The school provides a technical and psychological foundation whose understanding and practice will allow you, at the very least, not to lose money and, at the most, learn to earn it.
This training course is designed for a minimum of 2-3 months. Without practice, actually trading small amounts, rethinking trades, and working with charts, all of this knowledge won’t do you much good. If you want to get the effect of the course – gradually start applying the lessons to real trading within the Binomo platform to consolidate the theory.
Furthermore, the school is a living organism. Over the years, articles have been updated, supplemented, rewritten, and polished, and will continue to be so.
| Lesson 1.
What are the binary options?
Most people who see binary options ads barely wonder what an “option” is and why it is, by the way, “binary”. And most importantly – why do ordinary citizens need this strange phrase? Why is so much attention paid to it today?
As usual in the financial world, this is a story about money and its role in our lives. A true poem of hopes and disappointments, of success stories and emotionally shocking tragedies. William Shakespeare would have been glad.
Binary options have been through it all: the interest rise, the wacky crash, and the renaissance. Its reputation has gone from “rescuing the middle class” to a stock derivative. They have always attracted attention, from regulators and players to classic investors. Its possibilities leave many speechless. One thing that has been invariable is that large sums of money are made here.
Binary options are known precisely as “All or Nothing” options, they appeared in 2008. At a time when the global financial crisis was raging, new financial instruments began to appear that gave power to speculators. While regular so-called vanilla options have a very complex structure, binary options are their very simplified version. So here we go.
How does the binary option work?
Essentially, when buying a binary option, you are trading in a “win or fail” pattern. Either the option is “in the money,” meaning that for a period of time (called expiration), its price is higher or lower than the original price, or it is not, in which case the option is lost.
Schematically, the work of the options can be visualized like this:
As a result, traders have a very fun method of making money based on, in effect, two buttons. In recent years, online trading has generally followed the path of maximum simplification.
How does it all work?
Don’t be misled by the name “option”, which smacks of the stock market and all kinds of financial things. On Wikipedia you can read about options: “It is a contract between the buyer of an underlying asset and its seller to buy or sell it at a predetermined price in the future.” That’s all very well, but only for publicly traded binary options. And guess what? You don’t care. Because the binary options presented on the Internet have nothing to do with the bags.
Both de facto and de jure, it is simply a financial gamble. You decide that in 15 minutes the dollar/euro exchange rate will be higher or lower than it is now, or that Google shares will fall. If you are correct, you will receive 80% of the income in a short time, say, 15 minutes. Compare this to betting on the outcome of a match or on the horse that comes first. It is worth remembering how much banks pay per year for a deposit to see why the binary options scheme has become so popular.
Binary options are linked to a wide range of prices, also known as assets. These are currency pairs on Forex, stocks on stock exchanges, a variety of stock indices and much more. All a binary option does is allow you to make money by predicting the prices of these assets.
Have you correctly predicted that Apple shares will drop in half an hour? Congratulations! With an 85% payout, you will receive back $85 of the $100 you have risked. In total, you will arrive from 100 to 185 dollars in half an hour.
It’s that simple, isn’t it? And it would be – but, as you realize, in half an hour the stock can also go up, changing your mind about the fall. Then your $100 would go to waste.
So how can you predict the evolution of a stock or a currency? Is it real at all? Yes. The millions of people in the stock and over-the-counter markets do just that. As in any market, there are always winners and losers, but what makes trading great is that everyone has a chance. Charts don’t care about a person’s age, gender, or social status. There are successful 16 and 80 year old traders of any gender, physique and religion.
Now, binary options are in constant evolution, both publicly traded and over-the-counter. There are many new instruments: 0-100, One-Touch, Frontier, varieties of turbo options and everything you want.
The latter are especially popular.
How to make money with binary options?
Let’s see how the average trader can make money with binary options.
The trader has opened an account and looks with interested eyes at a chart of, for example, bitcoin. Before that, he had read in the news that bitcoin is in great demand, so its prices keep going up.
Why not then make a prediction about the rise of cryptocurrencies and make money with it? No sooner said than done. The broker has such an asset as Crypto IDX (this is the dollar exchange rate for the entire cryptocurrency index, a deal can be opened for bitcoin too, but Binomo currently pays the most for the index), the price of which is Let’s say 641.
Using our school’s technical analysis, we make a prediction that the price will be higher in one hour.
Time passes, the price rises, and the trader gets 80-90% of the staked amount, having received a positive experience. Even if in an hour the price has changed by some miserable point, the option would still be on the upside, which means the trader is still on the upside. Why be surprised at the growing popularity of binary options, with all the possibilities?
Lesson 1. Binary Options.