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Binary options are useful and handy financial trading instruments. They allow traders to take advantage of the price movement of various assets such as stocks, commodities, cryptocurrencies and others with just a computer connected to the internet.

Although binary options are popular, many people seem not to know much about them. This article will provide answers to the most frequently asked questions on binary options.

What are Binary Options?

Binary options are a straightforward form of derivatives and can be traded on any market. As a binary options trader, your job is to predict the future direction of an asset’s price and then to place orders following your expectations.

● If you predict an asset will increase in price, you place Call orders

● If you predict an asset will decrease in price, you place Put orders

If your prediction is correct, you will receive a payout from 65% to 90% of your investment amount. However, if you are wrong, you will lose the whole one.

Binary options bring you many benefits such as:

● Allow you to trade various assets

● Easy to use if you are educated enough in binary options trading

● Require a low capital

● Can bring quick profits if you have a good level of knowledge what you are doing

That’s why binary options are preferred!

Are Binary Options Legal?

Yes. Most companies offering binary options trading services are regulated by reputable financial institutions. So, you can be assured of binary options trading because it’s protected by international laws.

Do I Have to be 18 Years Old to be Able to Trade Binary Options?

Yes. To trade binary options, you must be 18 years old. This is one of the basic rules set by regulating organizations. You will have to provide binary options brokers with personal documents to confirm your identity, age, and home address before withdrawing money.

If you are not old enough but still want to trade binary options, you can trade on someone else’s account. However, we do not recommend this.

How to Start Trading Binary Options?

To start trading binary options, you will have to open a trading account at a binary options broker. We recommend Finmax as it is one of the most prestigious binary options brokers today.

Follow these steps:

Step 1: Enter Finmax’s official website

Step 2: Press the sign-up button at the top right corner of the page

 

Finmax open account

 

Step 3: Fill in your personal information and press REGISTER

 

Finmax trading

 

Step 4: Confirm your email

Step 5: Choose your preferred type of account, deposit amount and funding method, then press SUBMIT

 

Finmax demo

 

Finmax offers a welcome bonus of up to 100% of your deposit amount. If you don’t want to receive it, click on CANCEL BONUS.

After completing these 5 steps, you will be forwarded to Finmax’s trading platform where you can trade Binary Options.

1. Select the asset you want to trade

2. Choose your preferred investment amount and the expiry time of your binary option contract

3. Select your expected direction of the asset

 

Finmax chart

 

It is just as simple as that!

Can I Trade Binary Options Even Though I Don’t Know Much About Financial Markets?

Sure, you can, but you will need to learn and practice a bit. You can do so directly at Finmax. This broker offers you a comprehensive education on binary options trading and a demo account with $ 1,000 of virtual money to practice trading. Feel free to test trading strategies as much as you want as you won’t risk a single penny!

Finmax also provides you with many different forms of learning such as webinars, videos, and analysis. In addition, you are supported by Finmax’s experts who have many years of experience in the financial trading field.

How Much Should I Start Investing in Binary Options?

If you are a new trader, we recommend you to invest only $250 in binary options. This is the minimum deposit required by Finmax. By starting out small, you will be able to gain real trading experiences at a low cost.

The minimum investment amount at Finmax is as low as $5 so you can have plenty of chances to profit from the market with your deposit amount.

How Much Can I Earn With Binary Options?

The profit you can earn from binary options trading depends entirely on you. If you have good trading and risk management skills, you can earn unlimited money with binary options.

Trading skills are not something naturally available; they must be trained. Therefore, you have to study and practice to become a successful binary options trader.

I Want a Specific Number. How Much Money do Successful Binary Options Traders Earn Each Month?

There is no fixed number for the monthly income of successful binary options traders because the amount they earn depends on their capital and trading style.

On average, binary options professionals make an ROI of 1% to 6% per month. That means, with a capital of $10,000, the monthly profit may vary between $100 and $600.

Traders with risky trading methods can earn more. However, the higher the profit, the greater the risk.

What is the Best Binary Options Trading Strategy?

The best binary options trading strategy doesn’t exist. Each strategy has its own advantages and disadvantages, so don’t try to find a Holy Grails strategy.

To succeed in binary options trading, you will have to flexibly apply the knowledge learned. Learn to combine tools and take a comprehensive look at market developments.

Conclusion

Above are the most commonly asked questions on binary options trading.

One of the misconceptions of beginner traders is that binary options trading is a way to get rich quick. In fact, it can help you get rich, but slowly, not quickly. You will have to treat it as a business and practice hard to become successful.

So, if you decide this to be your career, trade with consistency and never give up.

TRADE ON FINMAX

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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