Trading binary options can be an exciting and profitable way to make money online, and Deriv is a popular platform for those looking to start trading. Binary options trading allows you to predict whether the price of an asset will go up or down within a certain time frame. If your prediction is correct, you can earn a fixed return on your investment.
This guide will walk you through how to trade binary options at Deriv, including how to open an account, make a deposit, select an asset to trade, and place a trade. By the end of this guide, you will have a clear understanding of how to start trading binary options on this platform.
What Is Binary Options Trading?
Binary options trading is a type of financial trading in which the trader predicts whether the price of an asset, such as a currency, stock, commodity, or index, will rise or fall within a specific time period, usually within a few minutes or hours. The trader buys a binary option contract, which gives them the right to buy or sell the underlying asset at a fixed price and time.
If the trader’s prediction is correct, they will earn a fixed return on their investment, typically between 70-90%. If the prediction is incorrect, the trader will lose their entire investment. Binary options trading is considered a form of speculative trading. It is generally associated with a high level of risk, as the outcome depends on the movement of the underlying asset.
How To Trade Binary Options With Deriv?
Binary options trading is a popular form of financial trading that allows individuals to make money by predicting the movement of financial assets such as currencies, stocks, commodities, and indices. The basic principle behind binary options trading is that you are predicting whether the price of an asset will rise or fall within a specific time period, usually within a few minutes or a year.
You first need to open an account with a binary options broker to trade binary options. Once you have opened your account, you will need to deposit to have funds to trade with. The deposit amount will depend on the boker but typically ranges from $5 to $5000.
Here we have picked the Deriv platform to educate you on the process. You can also trade with other regulated brokers. Binoption have an extensive broker’s list that are licensed and regulated.
Once you have funds in your account, you can begin to trade. The first step in trading binary options is to select an asset to trade. This can be a currency pair, stock, commodity, or index. The most popular assets traded in binary options include currency pairs such as the EUR/USD, stocks such as Apple and Google, commodities such as gold and oil, and indices such as the S&P 500 and the NASDAQ.
Once you have selected an asset to trade, you will need to decide whether you think the asset’s price will rise or fall within the specified time period. This is known as making a prediction. If you think the price will rise, you will select a “call” option. If you think the price will fall, you will select a “put” option.
The next step is to select the amount you want to invest in the trade. This is known as the “investment amount” or “trade amount”. The investment amount will vary depending on the broker but typically ranges from $5 to $1,000.
Once you have made your prediction, selected your asset, and invested the amount, you can place your trade. After the trade period has expired, the asset’s price will be compared to the strike price. If your prediction was correct, you would earn a fixed return on your investment, typically between 70-90%. If your prediction was incorrect, you would lose your entire investment.
It’s important to remember that binary options trading is considered a form of speculative trading and is generally associated with a high level of risk, as the outcome depends on the movement of the underlying asset. It’s always good to have a good understanding of the market and the asset you’re trading, as well as to have a trading plan, set your risk management, and have good discipline.
What Is Double Up?
Double Up is a trading feature offered by some binary options brokers that allow a trader to replicate an open trade with the same investment amount and expiration time but with the current market price. This feature can be used when a trade is in profit, and the trader believes that the asset’s price will continue to move in the same direction.
By using the Double Up feature, the trader can increase their potential profits and losses, as the trade is essentially being multiplied. It’s important to note that while Double Up can be a useful feature, it can also be risky if not used responsibly, as it increases potential losses and profits. Some brokers might have different names for this feature, like Rollover or Extend, but the concept is the same, to double the investment in the same trade. It’s always good to use this feature cautiously after evaluating the market conditions and understanding the risks.
Is Deriv Downloadable?
Deriv Broker is a web-based platform, which means that there is no need to download any software before you can start trading. All you need to do is sign up for an account and add funds. Once you have completed these steps, you will have access to the trading platform and be able to start trading binary options. The platform is user-friendly and easy to navigate, allowing you to quickly and easily find the assets you want to trade and place your trades.
Additionally, some binary options brokers offer a mobile app that you can download from the app store or google play to trade on the go. This feature allows you to access the platform from anywhere and at any time and can be a convenient option for those who prefer to trade on the go.
In conclusion, trading binary options at Deriv is a simple and user-friendly. To start trading, you must first sign up for an account and add funds. Once you have done so, you will have access to the trading platform and be able to start trading binary options.