How to start trading
Binary options are simple, modern and exciting tools, which allow traders to make money on financial market without any specific knowledge or education. Binary trading can be defined as prediction of the price change of underlying assets, such as currency pairs, shares of major corporations, gold, coffee etc. One of the top advantages of binary options trading is that it gives traders the opportunity to generate high profits with low capital investment and control the risks, as the payout and possible loss is known in advance. Binary trading process can be broken down into several steps:
1. A trader is choosing a type of binary investment. It can be a short time trading (30 seconds, 60 seconds), day trading (15 minutes, 1 hour, etc.) or long term trading (up to several weeks). Some traders opt for features, allowing them to copy trades of their fellow traders (social trading).
2. A trader is choosing an asset to trade: currency pairs, commodities, indices or stocks. Some traders stick to a few assets, others are looking for investment opportunities within all asset classes.
3. A trader is choosing an expiry time. It can be anything from 30 seconds to several weeks! 30-second and 60-second options (turbo trading) are very popular amongst binary traders. They are risky, exciting, and a lot of fun.
4. A trader is choosing an investment amount. Minimum trading amount on Freestyle Options platform is $5 only. We make binary trading affordable and encourage our traders to minimize risks.
5. A trader is making a prediction of the asset price movement. He is pressing Call button (predicting that the price will rise by expiry) or Put button (predicting that the price will fall by expiry). If the prediction is correct, a trader receives 75-90% profit on top of the invested amount.
1. Binary Options Education
Newcomers often overlook this important aspect, as binary trading is generally perceived as an easy to learn activity. Some traders unreasonably believe that after a few days of demo trading they know everything they need to know and start opening multiple positions, investing high amounts. Viewing binary options trading as “easy money” is a wrong approach that can make a trader to drain his account in a short period of time. Education, proper risk management techniques, sticking to verified trading strategies and treating binary options trading is a business, rather than a casino are very important rules of binary trading. Plan your trades and trade your plan!
2. Trading Signals, Robots and Social trading
It is much easier to make predictions, when you are relying on professional advice. Signal and robot providers employ professional analysts who study price charts, looking for various investment opportunities, and generate trading alerts. Social trading allows beginner traders to follow other traders who have years of experience, and use their expertise to place profitable trades.
If you are uncertain about what signal or robot provider to trust, look for credible reviews online and talk to your Freestyle Options account manager for recommendations.
3. Binary Options Trading Psychology
Surprisingly, not many traders realize that psychology is involved in the trading process and it plays a very important role in the outcome of their trading activity. It affects risk management approach, trading strategies, the amounts traders invest in every trade and how they handle their winning or losing trades. Being too pessimistic or on the contrary too optimistic can lead a trader to a dangerous path. A trader who can master the psychological aspects of trading and overcome his negative emotions such as fear, greed, lack of confidence, is on a right track. The rest is just a matter of education and using proper tools before the profits start rolling in.
4. Binary Trading on a Demo account (Freestyle Test-Drive charts)
Freestyle Test Drive charts is a great tool that allows traders to gain experience and make themselves familiar with Freestyle Options trading platform without spending a single dollar. Moreover all profit generated during Test-drive can be credited to a live trading account in a form of prize money! Trading on Test-drive charts will give you an opportunity to test your trading skills and build up your confidence level.
Step 1. Open an Account
Open your trading account by filling in registration form. After your successful registration, you will be automatically logged in to your trading account, where you will find essential information, such as personal details, cashier and trading history tab.
Step 2. Establish a contact with your account manager
As a binary broker, we have the obligation to know who our customers are, so please expect to be asked to provide your identity verification documents. Please note that we respect privacy of our clients and do not spam their accounts or make unauthorized phone calls. Please inform your account manager about you preferred way of communication.
Step 3. Make a deposit
In order to start trading you need to make a deposit. In the Cashier section of your account you will find payment methods available in your country of residence. Prior to making a deposit, make yourself familiar with the benefits of each of our Account types.
Step 4. Start trading
Congratulations! Your account has been verified and funded. Now you are ready to start trading binary options.