Binary options are short-term, limited-risk contracts. On Buffer, you can trade binary options on different assets (crypto, forex, & commodities) with different strike prices based on the possible probability of the outcome.
Binary options trading is a process, and the traders who are successful have their own plans and strategies. This process can be broken down into five key stages – it’s important to follow each one carefully if you’re going to become a successful binary options trader.
Binary options trading is a simple process of choosing a strike based on a yes or no question: will this market be above this price at this time? If you think yes, you buy. If you think no, you sell.
That’s the easy part. However, you need to go into your trading with the market knowledge and clear predictions – otherwise, how can you answer that simple question? Every trader has their own opinions and predictions based on their perceptions of what’s already happened, what’s coming up, and what they think this means for future market movements.
You can make strong estimations based on market forecasts and financial events.
One of the most interesting aspects of financial markets is their relevance to the wider world. The events that affect our everyday lives – politics, current affairs, international relations, business developments, technology releases, and much more – can also affect the markets.
To be a well-informed trader, you first need to be well-informed with a good overview of world events and what they mean for the economy.
This means staying up-to-date with the news, following world affairs, and learning how these can affect markets. Here are some ways to get started: