1.Select an underlying asset to trade. In the following example a currency pair EUR/JPY which is the Euro against the Japanese Yen has been selected.
2.Choose an Expiry time – This is the exact time that the trade will expire. The price of the asset at expiry will then be compared against the strike price. Expiry Times can range from 60 seconds to as long as two months.
3.Decide how much you wish to stake on the trade.
4.Choose a “Call” or “Put” option. Choose a call option if you predict the price of your asset will expire above the strike price or choose a put option if you predict the price of your asset will expire below the strike price.
5.Finally execute the trade by pressing the call or put button to lock in the trade at the exact strike price desired.
Here are the details of the above trade –
1 – You have identified EUR/JPY currency pair as a trading opportunity.
2 – You choose a 15 minute expiry time.
3 – You decided to stake $50 on the trade
4 – The strike price was 132.444.
5 – You choose a ? option – Call or Put? Hey if we knew the answer to that we’d be retired on a desert island!
As you can see the binary option trading process is really straightforward. However, it should be noted that although the trading process is easy, the reality of accurately predicting whether a trade will expire in-the-money or not is the bit that requires research, experience and time. At an average of 80% profit per trade you only need to win 58% of all your trades to break even. As you become more experienced and gradually increase your win percentage rate you will be well on the way to making big profits.