Binary Options

What Are Binary Options?

Binary Options are also referred to as ‘digital options', ‘fixed return options and ‘all-or-nothing options'. A binary option is a prediction of which direction the price of the underlying asset (a stock, commodity, index or currency) will move by a specified expiration time. With binary options, an investor doesn't purchase the asset – he is merely predicting the direction that the underlying asset moves.

How Do You Trade Binary Options In Zimbabwe?

A binary options trade involves three steps: Choose Asset & Expiration Time First, you choose an asset and trade expiration time, this is the time you want the trade to end. It could be any time period between a minute and a week – usually, it is within the day. Some brokers even offer 5-second trades for some assets, what this means is that in 5 seconds you either win or lose a trade.

What Are the Advantages of Trading Binary Options In Zimbabwe?

High Return on Investment Potential Due to the higher risk nature of binary options, typically the returns on your investment are also higher. Average returns are typically between 70-94% depending on the broker and the underlying asset. This compares to a FOREX trader who would typically realize returns of approximately 10%.

What Is The Best Time To Trade Binary Options In Zimbabwe?

This depends on the underlying asset you want to trade. If you are trading binary options using forex pairs then the best time to trade is when there is an overlap of the London & New York sessions. This is around 9 am to 12 pm Zimbabwean time. Profiting when trading binary options in Zimbabwe depends on volatility and the volatility will be at its highest during this time in the forex market.

What are the Risks of Trading Binary Options In Zimbabwe?

There is a risk of overtrading Binary options trades usually last for a short period of time and because of this, you may be tempted to overtrade and thus hurt your profits. Rushing to trade live funds Binary options trading seems to be very simple because there are only two possible outcomes. This may mislead newbies to rush to trade live funds without getting proper knowledge first.