Stellar Finance developed its trading arsenal in a bid to provide wider opportunities for traders to carry successful trades. Among these tools is the ‘Classic Binary Options’. How does it work and what are the essential information you absolutely need to know before and while using this tools?
What is Classic Binary Options?
Classic Binary Options was among the very first tools to be used in the binary options industry. Sometimes appraised and sometimes decried, this tool still finds its adepts in the options community due to its accuracy and simplicity.
At Stellar Finance , we understood the importance of having a variety of tools to ensure that each and every trader is comfortable in his or her journey with us. Classic Binary Options tool is also known as the High/Low Options and is widely used by beginners. We often see beginners starting their journey with this tool and then move forward to other more complicated tools.
Here are the elements you need to consider :
Trading classic, like any other trading tool, requires certain prerequisites to be mastered. However, don’t stop at the simplicity of this tool as you should also have a sound knowledge of factors which will affect your trade . Once traders are able to understand the market and how to use Classic Binary Options tool, they have an enormous opportunity of making successful trade positions.
Here are the main points to consider while trading with Classic Binary Options.
Choosing the assets
Trading classic allows traders to trade on four different asset categories including commodities, currencies, stocks and indices. Moving on to the payout amount, trading classic is usually accompanied by a payout which can go up to 85% depending on market fluctuations
Opt for the perfect expiry time
Besides choosing the adequate assets, traders should also opt for an expiry time which normally ranges from 15 minutes to 15 hours, depending on the type of asset. Certain assets might have a shorter expiry time, ranging from 30 minutes to 1 hour only; while other assets might have a fixed expiry time which cannot be changed. Here, traders should note that the longer the expiry time, the higher the reward will be since there are much more risks associated with the assets’ fluctuations and strike price.
How much to invest?
The next step is to eventually select your investment amount. The minimum amount required to trade using Classic Binary Options is $25 and it can go up to 3000.
Call or Put – You choose
Once you completed all the above steps, you need to choose a direction; that is, whether your trade will be above or below the strike price. As such, if you believe that the value of your asset’s price will be above your predicted strike price, then you should place a Call Option. Likewise, if you believe your asset’s price will be below the strike price, then you should place a Put Option.
What’s next after placing your trades?
If the prediction was correct, your trade position would be In- the-Money and hence result in the payment of the predetermined payout amount which will automatically be deposited in your trading account.
Competitive edge of Classic Binary Options?
What contributed in the Classic to be hugely popular among traders? Here are some of the factors
- High Payout: This tool offers high payout percentages which can reach up to 85% which is among the highest provided in the industry.
- Simplicity at its best: This tool is ideal for beginners who want to explore the world of trading since it is one of the simplest tool to use in binary options trading. It also allows you to open different trade positions simultaneously.
- Investment amount is relatively low: As we mentioned, the minimum amount required to place a trade with the Classic Binary Options is $25. This makes trading even more accessible to beginners.
- 4 types of assets: The classic tool allows traders to choose an asset within the 4 different arrays which include commodities, indices, stocks and currencies.
- Improving trading skills of both beginners and experts: Classic binary options is adequate for traders who are just about to begin their trading endeavors as it provides the foundations of trading. On the other side, it also helps experienced traders to perfectionate their trading abilities.
Our advices to trade with Classic Binary Options Tool
Even if Classic tool is among the oldest tools used to trade binary options, traders should know the following to make the best out of it.
- Start with small amounts initially until you are well versed with the tool and make more profits.
- Get to know the trading tool and its different add ons which can help you to make more accurate predictions.
- Make your own research regarding the fluctuations of assets’ market value and events affecting them.
- Know the different terms and strategies associated to options trading. You can visit our Academy for more learning resources.
- If you are not sure about the outcome of your trade, choose smaller expiry times. The payout amount will be relatively less but so will be the risk associated.