Binary trading is a financial option where the payoff is either some fixed monetary amount or nothing at all. There are two main types of binary trading: cash or nothing binary option and asset or nothing binary option. In cash or nothing binary option, you get some fixed amount of cash if the money expires while asset or nothing binary option usually pays the value of the underlying security. Binary trading has proven to be a profitable investment globally and a lot of investors all over the world have shown interest in binary investment. As a result of binary trading in New Zealand, its economic growth is expected to rise between 2016 and 2017 making more investors have interests to invest in this trading option. However, if you consider getting into binary trading, it’s important to get educated on pros and cons of the industry to make the right choices. Among the areas that you should gather much information is how to identify a viable broker because the broker can help you make profits or losses.
What you need to know before you start Binary Trading
There are numerous websites which mislead people by offering wrong information about binary options as well as binary brokers. Therefore, you need to start off with a reliable website which will help you gather the right information as you start trading. Our website offers accurate information about financial news that may affect trading results, brokers and binary options platforms to help you when making binary option decision and trading. Choosing the right binary broker is the first step to succeed in binary trading investment.
Are binary options legal in New Zealand?
Binary options are legal in New Zealand although the government has defined the status of binary options. These options not only benefits the government but also traders and brokers as well. New Zealand’s legal framework on binary options is strict leaving no room for misinterpretations whatsoever. Customers know their rights, Brokers are aware of their duties and official bodies are aware of all new trends in financial markets. This makes everyone involved in binary options conversant with what they are supposed to do and what is expected of them to successfully trade.
How to select a broker
It is recommended for any trader to take his or her time to investigate all the brokers he or she is interested in. You can use users reviews to determine the right broker for you because what other traders’ comments and reviews can help you determine whether a broker is reliable or not. When looking for a broker, it is advisable to look from a reliable platform online e.g. FBO brokers list. Since there are different payment options, the broker you are considering should have a payment method that favors you. Make sure that the payment option should have quick and reliable withdrawals.
Finally, before you make a deposit, go through the assets the broker offers to see if he or she has preferred assets. You can get a list of brokers using customers’ reviews and since you have specific factors to consider, you can then narrow down your choices.
There is a wide variety of assets to be traded in binary trading. Each broker has different types of assets to trade with and hence this is one of the reasons why choosing your broker is very important. Stocks, commodities, currency pairs, and indices are among assets which are used in trading. One advantage of binary trading is that traders are not limited to only trading with assets found within their location! Instead, traders can trade with any assets across the world with the only difference of trade being local time.
These are the most popular assets used in trading and most traders prefer to trade with strong popular currency pairs: GBP/USD, EUR/GBP, USD/EUR etc. Currency pair trading involves traders investing their money on exchange rates of specific currency pairs.
Oil, gold, coffee, silver, corn, sugar etc. are the most popular commodities in binary trading. Commodity trading is known as one of the easiest forms of binary trading assets because they have a steady pattern and grow as a result of politics, weather, demographics and production quotas among other factors.
Although indices value is not prone to extreme changes, traders still get involved in indices trading. Dow Jones, NASDAQ, Russell 2000 and Wilshire 5000 are among the most traded indices in binary trading. Since there are small fluctuations between indices, it is not easy to predict their outcomes making them hard to trade with.
To effectively trade with stocks, you need to get as much information as possible about the company. Their many stock companies to invest in binary options globally among them Audi, Google, Microsoft etc. most professional traders prefer trading with stocks because are predictable and have a higher winning rate after they’ve invested.