You want to learn how to trade binary options using the Quotex trading platform? Keep on reading to to learn more about ways to trade binary options using the best trading strategies for Quotex!
If you don´t have a Quotex account already, ensure to click here to option your free demo account and get started with Quotex and binary options!
What exactly are “digital or binary options”?
Option is a derivative monetary tool that depends on any underlying asset, which includes a currency pair, stock, oil, and so on.
A digital option is a non-standard option that gives profit based on price movements of the asset within a specific time. Digital option is also known as Binary option.
An option contract known as a binary option is one in which the payoff is solely dependent on the answer to a yes-or-no question. A binary option often asks whether the cost of an asset will rise above or fall below a given threshold.
Based on the agreed conditions by the parties performing the transaction, digital options at a specific time decided by the parties offer a fixed income (the difference between the asset price and the trade income) or loss (the amount in the asset value).
Before the trade, the size of the profit or loss is known since the digital option is bought at a fixed price in advance.
The time limit is another attribute in this setup. Every option comes with its unique terms such as conclusion time or expiration time.
Irrespective of the amount of change in the primary asset’s price (changes either lower or higher), a fixed payment will be offered whenever an option is won. So, your risk is only contingent on the price the option is bought.
A primary asset is required to underlie the option when performing an options trade. It is this asset that you will predict.
Once you purchase a digital contract, you are predicting the movement of the asset.
A “thing” whose price is considered when a deal is completed is referred to as an underlying asset. Typically, the most sought-after items on the market serve as the underlying asset of digital options. They come in four varieties:
Currency pair (GBP/USD, USD/EUR, and so on)
Indices (SP 500. Dollar index, Dow, and so on)
Securities (World companies’ shares)
Precious metals and raw materials (Gold, Oil, and so on)
The term, universal primary asset does not exist. Your experience, intuitiveness, market information, and different technical analysis are used to choose an asset and the specific monetary instrument.
How to trade binary options using the Quotex trading Platform
1. For trading choose asset: currencies, crypto, commodities, and indices.
You choose from the various available assets. Available assets are in white. Choose an asset by clicking on it to trade it.
Multiple assets can be traded simultaneously. Click the + button on the left of the asset category. This will add the selected asset.
The % beside the asset will determine the profitability. The higher the %, the higher your profit margin if trade succeeds. So if you trade binary options using this asset, and you win a binary option, you will earn this amount as profit! If you lose the binary option you will lose your entire investment!
In a situation where a $10 trade having profitability of 80% is successful when closing, the amount in your balance will be $18. You will get an $8 profit from a $10 investment.
The expiration time of trade can affect the profitability of some assets as well as the entire day based on market conditions.
Every trade will close according to the profitability shown before it was opened.
2. Select an expiration time
The expiration time is the period at which the trade will close and the outcome will be estimated automatically.
Before completing a digital option trade, the time of executing the trade would be determined (1min, 2 hours, months, and so on).
3. Determine the amount you will invest
The lowest amount that can be traded is $1 while the highest amount is $1,000 or its equivalent based on the currency of your account. For a start, we suggest that you begin with a small amount to try out and get comfortable with the market. If you want to trade binary options professional, remember to stick to your money management, these are a set of rules determining how much to invest into a single position!
4. Evaluate the price movement displayed on the chart and decide on your predictions
Based on your predictions, select up (green) if you predict an upward movement or down (red) if you predict a downward movement.
5. Wait until the end of the trade to ascertain the accuracy of your prediction
If you trade a binary options successfully, your profit and investment will be added to your wallet while trades with inaccurate predictions will lead to the forfeiture of your investment.
Under trades, you can track the progress of your trade.
Frequently Asked Questions
What are the possible outcomes of executing trades?
There are three potential results of digital option trades.
1. In a situation where your prediction of determining the movement of a trade of a primary asset is accurate or successful, you will get a profit.
2. If at the end of your trade, your prediction was inaccurate, you will get a loss which will be limited by the size of the asset (this implies that you can lose your investment).
3. In a situation where the result of the trade is zero, (the primary asset price is the same, the conclusion of the option will be the same as the price it was purchased), you give back your investment. Therefore, the amount you risk is usually determined by the size of the asset worth). Not hard to expect that this situation won´t occur to often when you trade binary options for a longer period of time! But it will happen from time to time!
What determines the size of the profit?
Several factors determine the profit size, which is:
The asset liquidity that has been selected in the market (you will get more profit when your chosen asset is more popular in the market).
The trade time (there is a significant difference in the asset liquidity in the morning and asset liquidity in the afternoon).
The brokerage company fees
Market changes such as changes in a financial asset, economic events, and so on.
How can the profit from trade be estimated?
It is not necessary to estimate the profit from your trade yourself.
The digital options feature is a fixed amount of profit for every transaction, which is usually estimated as the percentage of the option value and not associated with the level of change in the value. Let’s assume the price changes to the forecasted price by just a position, 90% of the option value will be yours. You will get a similar amount if the price goes to 100 positions in a similar direction
The following steps are required to estimate your profit:
Select an underlying asset for your option
Determine the price at which the option was purchased.
Define the trading time. After these steps have been completed, the accurate percentage of the profit to expect will be revealed by the platform in a situation where your predictions are accurate.
The trading profit can be as high as 98% of your investment. This is the reason why binary options trading is getting more and more popular these days!
Once the digital option is purchased, the yield becomes fixed. So you are required to wait for a nasty shock in the shape of a reduced percentage after the trade.
After the end of the trade, your profit will be added to your balance automatically.
What is the basic idea behind trading digital options?
The truth is, digital options trading is an easy form of financial instrument. To generate profit when trading digital options, you are not required to forecast the worth of the asset in the market or where it would reach.
The concept of trading is only depreciated to solving one task. Once the contract is executed, the asset’s price will either increase or decrease.
The section of options implies that it isn’t important to you, that an asset’s price will rise to about a hundred points or just one, from the instance the trade is closed. The only task you are required to do is to determine its movement, either up or down.
You will receive a fixed income if your prediction is accurate.
How does the company make money to pay customers for successful trades?
The company also makes money alongside customers. So, it is more fascinated by successful trades than unsuccessful trades because the company also earns a percentage of the payments made from successful trades implemented by customers.
Furthermore, the joint trades carried out by clients will be summed up to become the entire trading volume of the platform, which would be transferred to an exchange or brokers. This is then added to the liquidity pool providers that when combined, will boost the market’s liquidity.
Quotex Trading Strategy
How can I quickly learn how to profit from the digital options market?
To make money trading digital options requires you to accurately predict the direction of the asset in the market (either up or down). So, to generate a stable income,
Create a trading strategy that will offer a maximum percentage of accuracy and stick to it.
Diversify your risk
When creating a trading strategy, alongside looking for options for diversification, market tracking, researching statistical and analytical information that can be gotten from different sources (report opinions, internet resources, expert analysis, and so on) will be helpful.
Tip: Download my free binary options price action strategy pdf by clicking here and following the instructions! Inside you will learn all needed tools and methods to determine market movements and trade binary options for constant profits, as well as a lot of tips and tricks how to succeed with binary options trading!
What is a trading platform and why do we need one?
A trading platform is a software application that enables clients to carry out trades through various financial instruments. It also offers different information like the quotation value, company activities, real-time market positions, and so on.
A broker that specializes in trading binary options is QUOTEX. The business was founded in 2019. Clients can trade binary options including assets like stock indices, cryptocurrencies, commodities, and currencies and make a profit of up to 90% of the option’s value. A unique trading platform created by QUOTEX has 29 technical indicators supported, is completely customizable, and accepts investments starting at USD 10. The Quotex broker’s team offers assistance around-the-clock. Clients’ personal and financial information is safeguarded with two-factor authentication.
Quotex is an online platform for trading and the most impressive feature of the Quotex platform is how quickly and precisely it executes trades.
You receive the following benefits with the Quotex application:
Free Demonstration Account: This account will allow you to familiarize yourself with the platform and hone your trading abilities. It is exactly like a genuine trading account and has a $10,000 demo trading balance.
With 158 customer reviews and a 4.1 star consumer rating, Quotex clearly has happy consumers in the majority. Amongst currency trading websites, Quotex is ranked sixth.
Quotex User Reviews :
“For binary trading, Quotex is the Best platform”
“I have been using this platform for over two years. Great, everything runs without a hitch. Deposits and withdrawals are quick and simple. Additionally, this platform has the greatest user experience and is trustworthy and entirely secure. Customer service is also excellent. Everyone should move to this platform for binary trading, in my opinion.”
Ensure to read my detailed Quotex review to learn more about this broker and how to use it to your advantage! To learn more about how to trade binary options, make sure to browse this website including my binary options strategy pdf, as well as take a look at my Youtube Channel to watch me trade binary options using my different strategies and brokers!