Verum Option Company invites you to get acquainted with the binary options and learn about them everything you need to begin trading. You will learn about what options are, what are their main differences, what assets you can trade and what trading strategies to use. We are confident that with us your start in the options market will be successful!
What are Binary Options?
Binary Options – What Is It?
Binary option is a financial instrument very simple to trade: you have only to guess the price of the chosen asset will rise or decrease after a certain period of time. Binary option is a contract on a market asset – currency, gold, oil, etc. The trader does not buy the asset itself, but takes only option for him, which is much more profitable. In this case you do not need to have special knowledge and experience: if your forecast is justified – you will get your fixed income.
What are the Advantages of the Binary Options?
- 1First, this tool is really very simple, in fact there are only two options: either the forecast on the growth of the price, or – on decrease. It is not necessary to take into account a variety of market factors and sophisticated analysis in options trading. Even a novice trader can do it.
- 2Secondly, since the trader knows the profit margins and possible losses before the transaction, it greatly reduces the risks and makes trading more predictable.
- 3Thirdly, options trading can be equally successful on both "bull" and "bear" markets. There is no matter more expensive or cheaper asset – the right prognosis can bring you profit.
- 4Fourth, options are probably the fastest way to increase your capital. Transactions with options may last even one minute, and you can manage to earn income during this time.
In options trading, you can implement the most popular trading strategies, such as:
When the price moves in one and the same direction for some time (for example, decrease), then definitely comes a reversal moment– and the price will start to move in the opposite direction (for example, grow). It is likely that the quotations will follow the changed trend for some time, so you can buy an option and wait for the profit after such turn.maximize
When the market is very volatile (it experienced strong price fluctuation), you can use this strategy to reduce your risks, or to increase profits in case of your success. Essence of the strategy is to open two transactions in the opposite direction: one transaction at first, and when the current asset price will be significantly different from the initial price – to open a second one. If the price suddenly will change it direction, your losses will be smaller, since the second transaction was opened by you just in the opposite direction. And if the option will close just between the opening price of the first and second options, you will get double profit, because both transactions will be in the money.maximize
Professional Traders Tips
Options Trading does not require any substantive knowledge of the market, but it will be very useful if you have notion what the financial market is and what its patterns are. For example, if you are going to trade binary options on gold, learn the factors that affect the value of the metal, observe upon the release of important economic news, that cause high volatility on the gold market, etc. Then your chances for profit will be significantly increased.
Trading on financial markets assumes both profits and possible losses. It is best to use not one but several trading strategies and to trade binary options on a variety of assets (for example, for different currency pairs) to reduce the risk. It's called "diversification."
You should analyze market data in order to correctly predict the direction of the price and if you want to become a successful trader. You can do it by yourself, but also you can use news and analytical materials as an aid.
Types of Assets
Our company offers you more than 200 different assets that can be divided into several categories.
Share – is a security that entitles its holder the right to have a share of the company assets and its profit. If the shares issuing company is actively developing and its revenues are growing, than the price of its securities on the market increases, and traders who have bought these shares earlier get a good profit. On the other hand, if the company is not very successful than its shares may fall off, and traders can receive a loss. Binary option trading on stocks is less risky: you do not need to buy shares themselves (but only just options for them) and ensure that they raise or fall in price. You will be aware in advance regarding the size of the profit or loss – just predict price direction and open the option.maximize
Currency trading takes place on the international Forex market. Today it is the most liquid financial market in the world: its daily turnover is several trillion dollars. The most popular currencies in the Forex are the US dollar, British pound, Swiss franc, Japanese yen, Australian dollar, Canadian dollar.maximize
Forex currencies are traded in pairs, for example, the euro and the pound, the yen and the dollar. Exchange rate – is the amount of one currency that you need to spend to buy a unit of another currency in the pair. Currency quotations are influenced by many factors of economic, political and social nature, that is why Forex prices fluctuate so often, and on these fluctuations traders are earning their money. Unlike conventional Forex options trading is much simpler. For example, if you have predicted rise of the dollar against the franc, it does not matter how much the price of the dollar has increased (by 1 point or 10 points), you will still make a profit.
Commodities include oil, precious metals, grains, coffee, etc. Of course, traders who trade these tools do not buy gold bars or bags of grain, they just acquire futures – contracts in which the quantity of goods and terms of its delivery are written. Typically, traders do not constantly hold futures on hand, they resell them to get the benefit. The most famous commodity exchanges are considered to be London, Chicago, Tokyo.maximize
The index is a measure based on the cost of a particular group of securities, which is called the "index basket". The best-known indices are the American Dow Jones, S&P 500, NASDAQ, the European Euro Stoxx 50, DAX, the Brazilian BOVESPA and others. For example, Dow Jones – is the index of all industrial companies in the US and the Euro Stoxx 50 covers the shares of 50 companies out of 12 eurozone countries.maximize
Types of options
Binary options are the options that can be opened on any one of more than 200 market assets that Verum Option Company offers to you. To make money with them is easier than ever before: select the asset, predict its price movement in certain timeframe and open a trade.
You do not have to constantly monitor the progress of your transaction – as soon as you open the option, the Verum Option platform will execute it at the right time. Your option will be automatically closed at the moment of its expiration date, and you will be notified about the results of your transactions by e-mail, that you specified during registration in Verum Option.
If you want to constantly be aware about all of your open trades, you can always view your current positions directly in the platform or in your personal account.
The best choice for beginners.
Such type of the option trading is the fastest way to the raise your money. In just one minute you can get a solid profit – even famous investors cannot boast at such speed!
60 seconds options are the best to use when the market in a steady trend, then if you know the price direction, you can quickly open the option one by one, thereby increasing your income. If you like making quick decisions, then these options are the perfect choice for you!
Usually, traders associate binary options with fast earnings, mainly because the binary option transactions length does not exceed a few minutes. However, the market is constantly changing and offering more new tools – Long Term options for example.
Long Term is the long-term binary option for those traders who know how to wait, to analyze the market and to make long-range forecasts. These options are popular among the professional traders, who have a good grasp of the market trends and nuances.
For example, if you can guess how the price of the shares of a certain company will perform at the end of quarter, or what the exchange rate will be in a month, then the Long Term option becomes an excellent way for you to make profit.
The best choice for the experienced traders.
Pair Option is a very interesting trading tool that will appeal to the real trading masters, who have good knowledge of financial market and are not afraid to take risks.
Option "Pairs" is an option that opens on two assets, such as oil and gold, Microsoft and Facebook stocks, etc. The essence of such option trading is to predict the behavior of selected assets relatively to each other (which one will raise, and which will fall).
Verum Option is one of the few companies that offer the opportunity to trade pair option. So if you have a good knowledge about the market and looking for something new in trading – "Pairs" will be an excellent tool of your profitable trading!
The best choice for the professional traders.
Do want to earn as much as possible and increase potential revenue from your trading? Use the One Touch options.
The essence of this option is the fact that the price of the chosen asset should touch a specific price level at least once prior to the expiration time. It does not matter whether price goes higher or it goes lower than target level, until price touches this level – you will make a profit! Please note that the expiration date of this option is Friday, 17:00 GMT.
You can open these binary options on more than one hundred assets, and the rate of return depends on how the target level that you specify differs from the current market price of the asset.
Optimally suited for those who know how to take risks and like to have high profits.
Especially for lovers to conquer the financial peaks, we offer an unusual type of the options – «Ladder», or ladder option.
The peculiarity of this type of options is that the trader must not only determine the direction of asset price, but also to establish five levels (steps) that the price should consistently pass in determined time.
Each step of this peculiar ladder corresponds to the percentage of profit: the more steps will pass the price — the higher will be the income.
Trading with such type of options is profitable, because even if the price goes over only the first step, still, you will get some profit. And if you see that the market is beginning to reverse, and the price may go in the opposite direction, you can easily close the deal ahead of time and sell your option.
Optimally suited for traders who like unconventional approach to trade.
It is the Japanese version of a ladder option. You are free to choose how much profit you want to get, because every step of the asset price – it’s an additional return for your option.
J Ladder allows you to establish an acceptable risk level: if you are willing to take risks and confident in your forecast – wait until your option will pass all five steps. If you want to protect your investment – sell the option at any time.
Optimally suited for independent traders.
It is very simple to trade options with our company! If you use a web-version of the platform, you need to sign up in the Verum Option, fund your account for the amount of $50 and start trading.
If you want to trade options on your smartphone, you only need to download the Verum Option platform from the App Store or Google Play, then deposit money to your account without leaving the platform – and start earning!