Most of us have heard the expressions “binary option”, “financial metrics”, “trading strategies”, “broker”, “trader” and so on, but for most, that is where the introduction to stock trading in currencies, stocks and cryptocurrencies ends. Some people think it is too complicated, others think it is too time-consuming. The Pocket Option trading platform, one of the most popular binary options brokers, helps to solve these misconceptions. Traders Union experts will tell you about this trading platform.
What is a binary option
A binary option is an all-or-nothing financial instrument that gives either a profit or nothing under certain pre-agreed conditions. It means that in case of winning trader gets premium, and in case of failure (bad forecast) — loses the amount equal to the value of the option. Thus, for example, with the price of the option 20 dollars the premium can be up to hundreds of percents, while in case of wrong forecast the trader loses only the value of the option, i.e. 20 dollars.
So what is the attraction of such exchange games?
The matter is that, for example, in contrast to sports betting or gambling, the probability of positive result in operations with binary options is much higher — about 0.5. It is this high probability and the relatively high risk free nature of the transactions that makes binary options so popular.
Types of Binary Options
- Call/Put Options where you only need to correctly predict the price movement: up (Call) or down (Put).
- One Touch/No Touch Options: It is necessary to correctly predict the price (One Touch) or a price underperformance (No Touch) prior to the market close.
- In/Out-Options: prediction of the price corridor before the contracts are executed (In) or prediction of the price outside this corridor (Out).
Why Pocket Option
The popularity of the broker is confirmed by its user audience — about one hundred thousand traders in 95 countries, including the USA, the UK, Europe and India. There are several reasons for such popularity.
Many beginners are discouraged by too high a threshold to enter the exchange. One of the key advantages of Pocket Option is the small amount of PocketOption minimum deposit — only five dollars is enough to start trading, and for those who haven’t traded in this sphere, there is a virtual start account: you can try your forces for free.
Demo account and operations with virtual money are the most important elements of training, which attracts newcomers to Pocket Option. If you have any questions about Pocket Option, please read the full info here.
Opportunity to use the experience of others
Another interesting option is social trading, or the ability to copy other traders’ successful trades and project this experience onto your own trading strategy. You can do this within ten seconds of closing a trade.
According to traders union Pocket Option is not a boring trading platform at all. There are plenty of different tournaments, contests, promotions and special offers that make trading a gambling, fun and exciting process. In addition, such initiatives are a great opportunity to earn money in addition to the main trading.