Binary Options – European or American style and Binary Time Frames

A binary option is a fast and extremely simple financial instrument which allows investors to speculate on whether the price of an asset will go up or down in the future, for example, the stock price of Google, the price of Bitcoin, the USD/GBP exchange rate, or the price of gold. The time span can be as little as 30 seconds, making it possible to trade hundreds of times per day across any global market. When you trade you have to choose: Binary Options – European or American style and Binary Time Frames!

The majority of binary options trades are known as European style. These types of options cannot be changed once you have started your trade and the outcome is based completely on the value of your asset at the expiry time.

In contrast, the US binary options version, which is also known as the one-touch option, simply has to reach your target price within the time period agreed when instigating the trade. These can carry less risk but this is likely to mean a lower rate of return.

Binary Time Frames

Most binary options work on short-term timeframes; this is simply because it can be very difficult to predict what will happen to a specific asset in the long term; there are too many economic and even political factors that can affect the price of any asset. Most trades will come into force within a minute or two of the trade being completed.

The majority of binary options will trade within a range of between thirty seconds and the remainder of the day, although it is possible to trade for longer.

For beginners is not easy to win when you trade binary options! The easy way to learn how to trade binary options is to Practice with Binary Options No Deposit Bonuses The Types Of Binary Options!

Binary Options – European or American style and Binary Time Frames