Real binary options
Online investing is a relatively new area of investment, but nevertheless it has already gained popularity all over the world.
Potential investors are attracted by the technical and financial accessibility of trading, as well as by the convenience of having a laptop or other convenient gadget for downloading a trading application, access to the internet, and a minimum amount for the initial investment.
What's more, even if you have never been involved in the investment world before, you now have a unique opportunity to learn directly from the trading terminal. There are video lessons as well as a free practice test account for your safe practice.
There are many assets to invest in. Below we take a look at investing in real binary options in Nigeria as well as binary options trading through online platforms.
Real binary options
A binary option is a transaction in which you forecast the condition of an asset's price rising or falling for a certain period of time.
The first real binary options appeared long before mankind invented the Internet. It is believed that the progenitors of modern real options were contracts for the purchase of tulip bulbs in Holland in the distant 17th century. A unique period in history known to all as tulip mania, known for the great excitement surrounding the purchase of rare varieties of tulips. Tulip vendors issued documents to buyers, according to which they could buy flowers at a predetermined place, time and price. This type of trade attracted people who did not have a lot of money and did not know anything about the market.
The frenzy wore off, and such contracts won their supporters. Such contacts were used, for example, to buy the right to buy grain at a specified price within a specified period. Later, such contracts also began to be used to buy metals, securities and so on.
The first time at a financial exchange, an option contract was concluded in 1820 in London. In 1973, the Chicago Board of Options was established, which began to regulate option transactions. Common rules for trading were established. The emergence of the Chicago Board of Trade in the history of binary options led to standardisation of the trading mechanism of this financial instrument, which simplified the operations with these contracts and significantly increased their efficiency.
With the development of internet technology and online trading, binary options trading became possible on online trading platforms.
Real binary options have a rather complex structure and require professional skills, while binary options, which we can trade online, are a very simple, clear and accessible way to earn money.
The difference between live options and those that we have access to on a trading platform is that, when trading online, we do not purchase an actual right in the underlying asset. At the same time, it is possible to invest small capital to start trading, while investing in real binary options requires a good amount of investment capital.
Real binary options are buying securities, deliverable futures, cryptocurrencies and other assets you can own. In binary options you don't buy anything you just bet on the price going up or down. In doing so, you can trade any asset. The tool itself requires a minimum amount of money to get started, so anyone can use it.
How do I start trading binary options in Nigeria?
In order to start trading binary options in Nigeria you will have to choose a brokerage firm, which will provide you access to the trading platform.
When choosing a brokerage firm, pay attention to the following: Availability of a licence to conduct brokerage activities; Feedback from experienced investors and stock market experts about the broker; The functionality of the online trading platform that this broker will offer you for making transactions; The commissions paid to the broker.
Pay particular attention to assessing the usability and functionality of the trading platform.
An online trading platform is software developed by a brokerage company.
The trading application offers the user free training as well as a number of tools to help analyse the market and stock trends. It is a fully digital product that is a powerful alternative to the classic investment process and once you try it, you will not want to go back to the classic method of investing offline.
All you need to access the platform is an internet connection. However, many of the platforms also have a mobile option, which means you can carry out all the necessary operations from your mobile phone by downloading the appropriate app. This way, you will have all the investment-related information in your pocket, including asset prices, updated charts, investment terms and conditions, etc.
The digital investment platform will give you access to detailed charts and graphs, which will clearly help you see price fluctuations and identify patterns in these fluctuations. With the help of the platform you will quickly learn how to make rather complex investment transactions and analyse the stock market.
Once you have chosen a brokerage firm and the platform is right for you, a simple registration on the platform, open an account and you are ready to trade binary options.
How do I sign up for a binary options trading platform?
Signing up is relatively easy. Whichever Nigerian trading platform you choose, the procedure is almost the same: you will be asked for a username, a valid email address and a complex password.
Confirm your registration in the usual way either by clicking on the registration confirmation link which the system will automatically send to the email address provided or by sending a confirmation code via text message if you have replaced your email with a mobile number.
After confirming your registration, you can log in to the platform and start trading.
Open a test account
Once you have logged in to the platform, open an account. The system will offer you two account options, a demo account and a live account. The demo account is a test account, which is for training purposes only. On the demo account you will see a certain amount of money this is fictional money which you will not be able to cash out. Use this money for training operations and to analyse your own actions.
A demo account is a good way to test the system, practice and test your skills without risking any real money.
Activate a live account
A live account means real trades and real money. To activate this account, you must deposit a certain amount of money provided on the platform. The minimum starting amount on most online investment platforms is low at a few dollars. Funding of the account is possible online, using a bank card or payment systems.
As a rule, withdrawals are made using the same methods as deposits.
Myths and reality of binary options trading
Binary options get their name from the nature of the option contract, often also referred to as "all or nothing". What does it mean? By buying an option you anticipate the direction of the underlying asset, making a kind of downside or upside bet. If your forecast is correct, you will make a good profit. Many trading platforms promise up to 90% of the amount invested. But if your forecast is incorrect, you will lose the entire amount invested.
This polarity of the possible outcome of a trade also gives rise to polar reviews of binary options trading. Some people say that trading binary options is a chance to make a fortune in a couple of days by investing a minimum amount, while others say trading binary options is a pure scam.
So where is the truth?
Firstly, it is worth remembering that there is no way to make a huge profit right away without investing time and money. Trading online is not acting at random, but a whole science of online investing, with its own patterns and rules. Yes, it is technically very easy to register on a platform, open and fund an account and even open a trade. But successful trading is all about theoretical knowledge, experience and clear market analysis. Without these components your trading is unlikely to be successful.
Secondly, trading without some preparation and knowledge, which leads to losses, generates negative feedback and accusations of scams from brokerage companies.
Trading options is not a game of chance, as many people think. The essence of binary options is perceived by many as a roulette game: make a bet and you either win or lose. But in fact, experienced traders do not act at random, but carefully analyze the market condition, using methods of technical and, less frequently, fundamental analysis.
In fact, option contracts are a very good financial tool, which allows earning a good profit. But you have to remember that trading binary options is carried out within certain rules, which have to be followed. This type of trading requires continuous analysis of the market behaviour in general and specific assets in particular.
You will not make millions of dollars by trading binary options like in a casino. It's not a matter of luck, only the dry laws of the investment market. Investing is a process, which involves the risk of losing money. Generally, whichever asset you choose to trade, you have to remember to proceed cautiously and gradually.
Become familiar with the theoretical material: there is now a lot of it freely available on the Internet and on the platform itself. Please watch all of the training videos carefully. Make sure you practice trading with a demo account. When you fund a real account and start investing real money, make sure you invest the amount of money you do not regret the loss of, so that you do not end up being financially ruined. Start small and gradually build up momentum.
Persistence, gradualness, education and practice on demo accounts will do the trick just start! We wish you many successful trades!