In most forms of investment, the investor actually buys an asset and monitor its value. If the investor sells the asset back to the market when its price has gone up, he has made a profit. If he sells it when the price has dropped, he has made a loss. There is the actual movement of the asset here, with its added responsibilities to the investor.
In Options trading, you are predicting the value of the asset for a predetermined time frame. There is not the psychological pressure of actually having the asset with you.
In Binary Options, there are only two investment possibilities you can predict
Call - where you predict the value of the asset will go up
Put - where you predict it will go down.
What are the assets that can be traded as binary options?
Stock indices, Forex (combinations of foreign currencies), Commodities like gold, silver, Stocks
Though they are considered to be the building block for asset pricing and financial derivatives, they are grossly misused and many fraudulent operators have made scams out of them.
They are variously known as All-or-nothing options, digital options (when working in foreign exchange or interest rate markets) and FROs or Fixed Return Options on the American Stock Exchange.
The trading of binary options is more unregulated than regulated.
Auto binary trading is when robots place the trade based on software developed from stocks algorithmic trading. Auto trading makes use of electronic platforms where the trading order is entered with an algorithm. The platforms execute the trading instructions with variables like price, timing etc. An order can also be initiated by the robot without human intervention. This sort of algorithmic or robot trading is used by investment bankers, mutual fund houses or any institutional traders while dividing their large trades into smaller ones to manage market risk. This auto trading is considered way superior and accurate than that done by you or me.
How do you get an auto binary trading working for you?
Auto binary options providers take a fee from a trader and sell him a robot which the trader downloads. This downloaded software will execute trades on behalf of the trader based on the requirements the trader keys in.
There are certain signals that are made available to the trader, informing him or her of the direction of the value of the asset that the trader has made binary options on. These are built into the software of the robots. These are also matched to the requirements and the trade is made for optimal trading success for the investor. Typically, they identify assets which fulfil the preset criteria indicating movement in a particular direction. Some signal providers are independent of the binary options provider (broker).
How to choose the best auto binary options robot
· It should be easy to use
· It should have proven results.
· Its win rate should be substantial
· Should provide high quality reporting and analysis side by side of its trading activity, to be utilized by the trader.
· Automatic trades should be possible
· Fully configurable
· Tested extensively before handing over to the client.
· They should be designed by experts in the industry
· Easy to monitor and functioning properly.
Source by Satvik Mittal