What You Need To Learn About Binary Options Robots

» Posted by on Nov 13, 2015 in Finance, Trading | Comments Off on What You Need To Learn About Binary Options Robots

Before delving into the subject about the binary options robots, you should first learn more about what binary options are. In the world of trading and investment, binary options are a straightforward contract that comes with a fixed reward and fixed risk. Those who are into investing their money are familiar with binary options. The reason why this type of investment is called as such is because there are only two choices offered. There is one and another payout that comes out after the expiration of the option. Each of the two choices includes choices such as the no/touch, touch or the up or down. When it comes to the computer language, it is made of 0s and 1s or one of the other.

pictures binary robotIn the world of binary options, you as a trader get to choose whether a particular underlying asset such as currency, stock or commodity to name a few, is going to go down or up at a particular time. You will be predicting on which side to go and you will be using the money you have invested in this trade upon the prediction you have chosen. Up front, you will be shown how much money you will gain if you win based on the prediction you have chosen. If you lose with your prediction, you will the bet and your money will be placed at risk. If your prediction won, you will acquire your money back with returns. The returns are usually from 70 to 85 percent.

Take for example with predicting  gold’s price. Assuming that the current price of gold is at USD$1612, and you predict that the price will go up in an hour. The offer of the winning trade return is at 80 percent and you place a bet on this trade of $100 with this prediction. An hour has passed and the option contract has closed. Your contract will be graded with either a loss or a win. It can also be “out of the money” or “in the money”. If the price of gold goes up, you have predicted it right. You will get the USD$100 back plus a return of 80 percent, thus a total of USD$180. The magnitude of the movement of the price is not considered a factor with the amount of the return that you will receive.

In a trade with binary options, there are 3 key ingredients to it. Even if the contracts are different, they share the same keys that every trader should always keep in mind. These are the payout offers, strike price and the expiry time. The expiry time is self-explanatory – it means the length of time from the moment you started the option contract up to the time it closes. It can be as short as sixty seconds or could last up to thirty days. Most of the traders are betting  short-term, which is between sixty seconds to thirty minutes. Payout offer is pertaining to the return that the broker will be offering to the trader. Referring to the gold trade example, the 80 percent was the payout offer and 0 percent when it was a loss. There are other trades that come with a return percentage for a loss, which is usually up to ten percent, yet this depends on the trade and the broker. You will know what the payout offer is before you risk your money.

dollar-1009324_640This is how trading with binary options basically works. By the time you have fully mastered the basics of binary options, you will learn more about brokers and software used in trading, since most of the trade usually takes place online.

Now comes the second part – learning more about binary options robots. This is an algorithm-based software that will allow you to set it up easily and even manage it the way you like it. This is particularly recommended for beginners with binary options, but it doesn’t mean advanced traders cannot use it. This software is compatible with traders and brokers of all levels. It even comes with bonus features that are not seen in other trading software.

There are a lot of binary options robots available, which also means that only the best should be in your list when you are out looking for one. The best way to judge a binary options robot is to look at its user reviews. You will know better by how the users were satisfied with the results of working with the software. Many users find it easy to use the software rather than doing the trade by themselves, as this will make them more profitable when it comes to trading binary options. Everything is automated and you can leave the software running its own trade, but it won’t automatically do by itself without your own input on how the trade goes. Once you have made your own program on how the robot is going to work, it will decide according to your preferences. You can also make adjustments in particular if you wish to do so.