Very often, newcomers to trading search the Internet for an answer to the question of what binary auctions are, but do not find it, since binary auctions do not exist. By binary auctions we always mean binary options .
Most likely, such a phrase as binary auctions is due to the fact that some novice traders have never heard anything about options, and therefore confuse them with auctions. But binary options and binary auctions are completely different “tools,” although they are related to buying and selling.
What are binary auctions
If we talk about auctions in general, then this is the process of selling any product for which any number of buyers can compete. Moreover, each of them can “beat” the price of the other, and as a result, the price of the product can increase from $1 to absolutely any amount, despite the fact that the product itself would not change in price.
For an example of an auction, you can take three traders who want to buy an asset such as gold, and each of them is willing to pay an increasing amount of money to get the given precious metal. As a result, the price could increase from $1 per lot to $100, $1,000, $10,000, and so on, while in binary options trading each of the traders could buy gold in exactly the same quantity, but for only $1 and without any competition.
Note: it is worth understanding that the gold in the example was conditional and we were not talking about a real metal, just as in binary options trading, traders buy any other asset only conditionally.
Therefore, it is wrong to compare binary auctions (if they existed) with binary options, since they are different concepts.
How do binary auctions work?
As mentioned above, there are no binary auctions, but binary options do exist. Binary options are a financial instrument that allows you to make money on the difference in the prices of trading assets, and it does not matter whether the price changes by 1 pip, 1 point or 100 points, the trader will still make a profit if he correctly determines the direction of the price.
The technical process of trading binary options (binary auctions) occurs by clicking on one of the buttons in the trading terminal. These are the Call (above) and Put (below) buttons:
It is also necessary to indicate the expiration time of the binary option and the transaction amount. Almost every binary options broker offers expirations from 1 minute to 1 day, and the minimum trade amount is most often $1.
Ways to make money on binary auctions
There is only one way to make money on binary options - buying Call or Put options, but there are a lot of methods for trading binary options .
The most popular and effective trading methods include:
- Trading using indicators for binary options ;
- Trading strategies for binary options ;
- Trading using technical analysis ;
- Trading using fundamental analysis .
Even beginners most often know about indicators and strategies, since this is one of the easiest ways to receive signals after analysis.
Technical analysis is also known to many, as it includes:
- Graphical analysis of binary options ;
- Price Action Binary Options ;
- Candlestick analysis of binary options ;
- Volumetric analysis ;
- Trading by levels;
- Trading with the trend .
But few people are familiar with fundamental analysis, since it requires extensive knowledge and experience not only in trading, but also in economics. The simplest type of fundamental analysis includes news trading using an economic calendar :
Beginners in trading binary options (binary auctions) should, of course, focus their attention on studying technical analysis or indicators and strategies, since these methods are the easiest to master.
Also, do not forget that studying and trading in the first stages should only take place on a demo account, which allows you not to risk your own funds.
The best binary auction brokers
Trading in binary options (binary auctions) is always carried out through brokers who provide trading on financial markets. The choice of a broker should be taken quite seriously, since a lot in trading depends on it, including future profits.
When choosing a binary options broker, you should pay attention to the trading conditions and trading platform . Trading terms include:
- Methods for depositing and withdrawing funds ;
- Minimum investment amount;
- Number of trading assets;
- Expiration range;
- Types of options.
All this will affect trading in the future, since the easier it is to deposit and withdraw funds, the more convenient it is for the trader. It is also important that you can start trading with $1 or $5 dollars, and the number of assets is extensive, so that you can trade not only currency pairs, but also cryptocurrencies or stocks.
If we talk about the trading platform of a binary options broker, then it should be as convenient and easy to use as possible, so that a transaction can be made immediately after analysis. Also, the platform must operate uninterruptedly 24/7, regardless of the fact that trading is not carried out on weekends.
In addition to the criteria described above, you should also pay attention to the broker’s customer support, which, if anything happens, will always be able to give a prompt answer to the question posed or solve the problem that has arisen.
Examples of the best brokers that meet all the conditions described above include FiNMAX , PocketOption and Binarium .
Conclusion
Binary auctions, as has already become clear, are binary options that have little in common with classic auctions. Binary options themselves are a financial instrument and allow you to trade various assets on financial markets, earning up to 90% in one transaction.
To make binary options trading comfortable, it is important to choose a suitable broker and also practice trading on a demo account. If you decide to switch to a real account, then trading must be carried out using the rules of money management and risk management , so that it is always possible to make new transactions even after a series of losses.
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