In a society of nuance, it is becoming increasingly difficult to find binary truths.
It is even more difficult to convert those static truths into financial opportunities.
Though, when exploring the world of options trading, one particular financial tool offers just that, a simple expectation of winning or losing.
In this simplicity, opportunity to gain thrives.
So, how can the average investor, or those new to the game, tap into this binary world of rewards?
Three words: Binary Options Trading.
Binary options trading allows individuals to earn rewards simply by speculating on price fluctuation; in essence staking claims on volatility.
In tying their reward to either the upward movement or devaluation of a given asset, retail traders are able to leverage that most basic of market understandings, the movement of price, towards their financial advantage.
So, how can you start trading on the simplicity of win or lose?
Let’s explore the necessary platforms, entering into the trade, and some simple tactics to jump start your entry into binary options trading.
Binary Options Trading Platforms
Before you can begin reaping the rewards of binary options trading, you first must find a platform that can facilitate the movement of this particular financial instrument.
There exist a number of platforms both dedicated to this instrument solely as well as those that simply facilitate the trades alongside other instruments.
Finding the right platform does require a bit of understanding of how trades are facilitated on that particular exchange.
For example, some platforms require that users must convert a stable asset such as stable coins or fiat currency into a platform specific token, such as SNX, before trades can be entered.
Others, such as Level01’s platform, allow users to utilize independent wallets and individual assets staked within the tradeline to enter trades, reducing the barrier for entry for retail traders.
That said, finding the right platform for you will require a look at your expectations and needs.
If this is your first time entering trading in any capacity, platforms like Level01 which offer AI assisted trades might be better suited towards your situation.
Alternatively, if you already have tokens from a platform it makes sense to use them in some way.
With the right platform chosen, it’s time to enter into a trade.
That said, when deciding on a platform, those that offer innovative approaches to trading are taking the route of P2P as it removes the need for brokers or middlemen.
Making Your First Binary Options Trade
Those that are familiar with options trading will find that the same terms are utilized with the binary counterpart.
Very much the same, calls denote a trade that will require the upward movement of value as to be considered successful. While puts will require the downward movement of value.
To round out the encountered lingo used within trading, you’ll see the strike utilized.
This simply denotes the agreed upon benchmark in which the movement will have to move below or above. Often, the strike is set at the current value of a given asset in that particular trade.
With the lingo out of the way, it’s time to enter your first trade.
Within the platform of your choice navigate to the options trading menu that houses the particular asset you’d like to speculate on. Within Level01, assets are divided into categories such as Digital Assets, Commodities, and Fiat Currencies to aid in navigation.
Once within the exchange, find a binary options trading match that suits your speculation, lock in the terms, including the expiration of the trade, and wait.
Once the trade has reached its expiry, the deadline in which speculation is no longer possible, winners will be paid according to the terms while those that speculated incorrectly will lose the invested amount.
Either you win or you lose.
Black and white but with a pay out.
Though, before you make any trade, it is important to recognize that, as with any investment opportunity, there is a risk; one that you must be aware of before trading. Though, with the right tools to mitigate that risk, such as AI, the reward to risk ratio can be tilted in your favor.
So, is there any strategies to ensure that you win more often than you lose?
Making the Right Trade
While there are a number of strategies that will purport to increase your win to loss ratio, the easiest and most effective method of winning trades is entering ones in which you are confident.
How do you become a confident trader?
Binary options trading while sometimes compared to betting is not gambling unless you treat each trade as such.
To give yourself an edge, research the recent trend in pricing for the asset, take a moment to study similar assets, and always keep an eye on the market as a whole.
If you find that a particular asset has been performing well over a significant stretch of time then make a call on a trade and wait to see that trend continue.
Alternatively if an asset is in freefall, a safe assumption would be a put in which that trend continues.
Unlike the bets that binary options trading are compared to, making the actual trades requires a bit of knowledge regarding the asset. So, turn towards trusted sources and do your research.
Sounds simple because it is.
Which is the beauty of binary options trading. Sometimes rewards don’t need to be complicated.
Ready to make your own trades on the first DeFi platform with AI-guided assistance for derivatives trading?
Looking for a platform that allows you to leverage AI to ensure fair trades and equal win opportunities?
Download the Level01 App today and start trading!