5 tips for investing with binary options

Settled since 2013, investing in binary options has been profitable for many investors. Check out some tips for investing with binary options and achieving success!

In the world, social distance restrictions have lasted for months and several people have lost their jobs in this period, others have had their budget reduced, leading many to look for new ways to earn money.

In this context, applications and investment companies in binary options started to fall in people’s sympathy for the accessible and easy to invest options.

Several applications offer intuitive interfaces, such as the investment platform IQ option, which reached users’ cell phones offering a way to invest with fixed profits even for those who do not have experience and knowledge of the financial market.

What are binary options and how do they work?

Binary options are investment options that have been regulated internationally since 2013, which differ from traditional investments, such as on the Stock Exchange. In this format, investment is not invested in the purchase of shares, but invested in assets.

The investment basically works on the projection of an increase or decrease in the value of the asset over the duration of the operation. If the investor “bet” on the increase in the value of the asset and at the end of the period shows an appreciation, the profit can be up to 90% of the amount invested.

Trades are made through online investment platforms, on websites or applications such as the IQ Option, which can be done by automated systems, with interfaces accessible even for those who do not have prior knowledge of the financial market.

However, the practice is not regularized in USA. To invest, the user must open an international account to carry out operations and receive their profits.

Investment formats by binary options

The investment formats are summarized in five options: Money or nothing, assets or nothing, one touch, no touch and 60 seconds. The “cash or nothing” format consists of betting on the increase or decrease in value, regardless of the final value. The “assets or nothing” format is the opposite of the money or nothing option, regardless of the value the asset has reached.

In the “one touch” and “no touch” formats, the period of the operation is what determines the gains. In “one touch” the asset must reach a specific value during the period, while in the “no touch” format the asset cannot reach the limit value.

The 60-second format consists of quick operations, which require greater experience and knowledge from the investor. In this format, the operation can be closed quickly after the asset reaches the desired value.

Tips for investing in binary options

  1. Use trusted platforms
    Investment platforms, or brokers, are the medium where you will make your investments. Look for a reliable Binary Option broker, like the IQ Option app, to carry out your investment operations. Check that the company is registered and look for recommendations from users.
  2. Think of a strategy
    In types of investment like this it is always necessary to keep in mind that there is no exact formula for the failure or success of operations. There are some strategies that work according to the time of day or assets.

Before investing, study this type of business and start with lower values ​​until you understand the logic behind the operations.

  1. Use the information available
    In order to invest in several options, it is necessary to know how to analyze the available information, such as graphs, in addition to using the indicators. Thus, the investor seeks the best way to invest by checking the fluctuation of the financial market, avoiding bad investments.

It is also important to always keep an eye on the world’s financial news, especially events that can cause changes in the market. Thus, you will have more security when investing over the internet.

  1. Invest only what you can
    In this type of investment it is very important that you manage the available resources well. Do not risk most of your budget, lest you lose everything at the end of the day.

Separate the money into several operations, to have a better chance of getting it right with less impact if lost.

  1. Be in control and know when to stop
    There are days when the market will not have a definite upward or downward trend, with assets changing their value quickly. On days like this, experienced investors indicate: if you lose 3 trades in a row, stop the day’s investments. This is a rule that many follow and swear to work.