Trading binary options in Australia is a strong method of taking control of your financial future. Not only do they have the potential to help you make more money and increase your quality of life, but they can allow you to spend more time doing the things that you enjoy doing.
But before you ever get to that point, it’s important to know the basics about what you are doing. Otherwise, there is a lot of risk involved and it is fairly easy to lose money trading. Let’s spend a few minutes looking at the basics of trading binary options, and see what you can do to get started on the path toward a better financial future.
Know Your Tools
In some parts of the world, there are restrictions on binary options brokers. In Australia, there are several different binary options brokers that are legal to trade through as they are regulated by respected governing bodies. Sticking with a regulated broker is the smartest choice. Just like you wouldn’t buy stocks through a broker that didn’t fall under the jurisdiction of the Australian Securities and Investments Commission, it is always a good idea to stick with what is regulated, if only to protect yourself.
Having a strong broker is your first tool. You want a site that will not only be easy to use and on the up and up when it comes to legalities, you also want someone on your side who has a strong customer service department when it’s time to withdraw your earnings or who is there if you have any questions.
It’s also important that you have a firm understanding of the other items that you will need as far as success is concerned. You need to be able to use and read price charts in real time, and you should also have the ability to use technical analysis tools with these charts. This might cost something if you are looking for a high quality charting package, but if a small fee can be converted into larger profits, then it is easily worth the few dollars you will spend. This will help you to develop strong trading strategies as you gain experience.
Some Australian traders find that newer tools, like a signals service or a binary options trading robot are helpful in terms of increasing profits. This is a personal decision, really. Basically, these tools allow you to get an expert’s opinion on what assets to trade and when. It’s like having a pro trader managing your account, telling you what moves to make and when. These can costs money, so if you are going to pursue a service like this, make sure that its benefits are bigger than the cost. Just like the cost of a top quality charting package can be justified because it helps increase your bottom line, a signals service of any sort should go through the same test. But because a service tends to cost a lot more than a simple software program does, this is something that you should spend some time thinking about before you actively pursue it.
Know Your Broker
Once you’ve selected the right binary options broker to use and you’ve made sure that they are regulated in Australia, then it is time to get acquainted with the website that you will be spending your trading time at. Know what trading features they have available and how to use them. Pretty much all brokers offer call and put binary options, but some offer exotic trades and high yield trades like the boundary trade or the one touch trade. These won’t be used as often, but knowing how to use them will inevitably create more profitable situations for you.
If your broker has an advertised demo trading account, use it. If you don’t see one mentioned, then get in touch with the customer service department. If there’s one on the trading platform, they will show you how to access it. They might let you only keep a demo account for a few days, but that is plenty of time to familiarize yourself with the site so that you lower your chances of making silly and needless mistakes. Demo trading is a powerful tool. Basically, it allows you to try out the broker’s software platform in real time, but without risking any of your own money. If you are new to trading or just new to your broker, this is one of the best ways to quickly get a feel for what it’s like to actually execute trades.
Know What to Trade
Every trader has a few assets that they prefer to trade over others. Most Australian binary options traders tend to focus on Forex pairs, like the USD/AUD or the EUR/AUD. This makes sense as many binary traders have experience in the currency market. However, you don’t need to stick to just currency pairs. If you have experience in another marketplace, or if you have a certain type of asset that you have a little bit of knowledge of already, go for it. Many binary brokers focus on U.S. based companies, but there are also a good deal of European stocks and indices, as well as those based in Australia, Japan, China, and other countries. You can also trade commodities like gold, oil, silver, and more.
Part of selecting a good broker is knowing what that broker offers. Before you make your initial deposit anywhere, be sure to look over an asset list so that you can see if your broker of choice will have the assets you want to focus on available for you.
Next is making sure that they have the timeframes you want to trade. The 15 minute binary option is the most popular one, on average, but you will find that you might want to trade 30 or 60 second options at times. At others, you might want to take a more long term approach and look at month long options in order to hedge your positions. Before you execute your first trade, be sure that you know what to trade and how to trade it.