Is trading binary options easier than other forms of trading? The simple answer is probably yes.
The concept of binary option trading is simple: The trader has two choices to correctly predict the value of an asset. The trader will predict that the value of a traded asset will either go up or down, from your initial entry point at the time of expiry. If the trader has predicted correctly then they have won the trade and are considered to be “In The Money” (ITM). The trader wins and earns a profit from the trade.
Predicting that the asset will go up in value is termed a “call” trade. Predicting that the value will go down is termed a “put” trade. This is the simple aspect of trading binary options and understanding the concept is easy sgx nifty futures.
The most difficult aspect in binary options trading is being able to analyze the price action to correctly in order to predict the value at expiry; and being able to accomplish accurate predictions for trades on a consistent basis.
For the trader, there are various tools that are utilized in trying to assess and analyze market conditions that will enhance the ability to make accurate predictions.
In order to improve success, the trader will utilize fundamental and technical analysis.
Fundamental analysis consists of research on economic, environmental, geopolitical and/or news events that will impact market movement. As part of fundamental analysis, the trader, must determine how events will affect a particular currency pairing being traded on the foreign exchange market or how a commodity will be impacted. Through fundamental analysis, the trader will also be able to assess what asset (Forex currency pairings, commodities, etc.) would be most advantageous to trade for the day.
Technical analysis consists of the trader determining market momentum, trends and volatility. By having a trading system with indicators and signal alerts, the trader is able to make a much more accurate assessment of the market being traded and can dramatically improve the opportunity for profit from the trade.