Trading binary options is one of the ways to make money online – you know that already. You often come across an opinion saying that it’s an appropriate means to earn money for novices in the area of investing. Then novices often do not know what binary options trading is about, in terms of how the whole system works, etc.
The trader (you) chooses whether the price of gold, stocks, or other assets will move up or down. If the prediction is correct, the trader is awarded in the form of up to 200% profit of the traded amount. This movement can be predicted fairly accurately and therefore it’s possible to trade binary options to earn money.
Once you know what binary options are, it’s good to try and experience everything first-hand. But you don’t have to invest a penny, everything can be tested completely for free, within seconds. Such practice is called Binary Option Demo Account. On the demo account, you can trade exactly as you would on a regular investment platform (i.e. with IQ option.)
Try trading right now
You can find a test platform below. This is, more or less, what entering a trade with the broker looks like. (This platform is fictional and only suitable for demonstration on how trading classic binary options work – it is not a real demo account)
- First you must choose which direction the price will move. (Call or Put)
- Then choose the amount you want to invest on the particular trade.
- Wait to see how our trade ends.
Touch and no touch option
Binary options can be traded a little differently than what we have explained above, and as you might have tried on our “simulator” test.
One touch (or sometimes called simply Touch) options are different from classical high-low binary options, but certainly everyone will understand. This time it’s not about the price ending at some, or under a certain price.
All we need is the price to move closer and at least, for a moment, to be equal to the target price – then our trade is successful and we make a profit. We don’t care if the price expires somewhere far away. But if the price doesn’t reach the particular level before the expiration time, our option ends up in a loss.