The trading of binary options (binäre optionen) is quickly becoming one of the easiest ways for small-scale traders to actively engage in the financial markets on a daily basis in Switzerland. If you are a Swiss resident interested in making more money trading, this is something you may want to consider adding to your financial repertoire. Before you jump in full throttle, it’s important that you understand what binäre optionen are, how you should properly use them, and what risks are involved if this is something that you decide is best for you and your personal financial goals.
The first step is to look at what binäre optionen are. These are an all or nothing type of trade, where both the risk and the reward are made known before the trade is executed. In most cases, the risk is all of what money you front for the trade, and the risk is about 75 to 80 percent of what you risked. The most popular version of these trades are called the call and the put. The call option is used when you believe the price of an asset will go up, and the put option is used when you believe the price will go down. If the price moves in the direction that you guessed, then you are rewarded with the full profit. If you’re wrong, you typically lose the money that you risked.
A lot of people look at this and believe that it will be really easy to trade this way. This is far from the truth. Trading of any sort is tough, and that goes for binäre optionen. Having a strong trading strategie is going to be the best way to ensure that you are making good trades. This goes for the trades that you research and make yourself, or for the use of any sort of signalisiert dienst (signals service) that you might use.
Trading strategy breaks down into a few different categories. You need to manage your entry and exit point of each trade. Each binäre optionen broker will have a various number of expiries available for you to trade, ranging from 30 seconds in length to up to a year. The right expiry is really dependent on the type of analysis that you use. The average trade length stands at about 15 minutes, meaning that most traders emphasize the shorter term trades. Choosing the right expiry is an important part of your strategy, and it is one that will develop more as you gain experience trading.
The second aspect of this is the tools that you use. This includes your charts and graphs, the numbers that you crunch on your own, and any signals services that you choose to employ. A signals service can be a very powerful tool. These come in a variety of different forms, but can be described in two main categories. The first is an alert that is emailed to you, texted, or pops up on your computer or smartphone. This alert will tell you what to trade, when, what direction, and what factors will trigger that trade.
A trading robot is the other alternative. This is a great tool for busy people as it automates your trading. You simply deposit your money, adjust the settings, and then the robot executes trades for you. Many full service trading products like this have a cost associated with them.
The Right Broker for Switzerland Traders
In Switzerland, binary options brokers are regulated by the Swiss Financial Market Supervisory Authority (FINMA). If you are going to trade binäre optionen, you want to make sure that they are governed by this body. It will help you to avoid falling victim to a scam or a disreputable trading practice. When you start your search for the right broker, this is the first thing that you should be looking for. From there, move forward to finding the right assets and great rates of return.
The right broker will have all of the assets that you would ever consider trading on it. When you’re trading in Switzerland, this is a bit harder because a lot of brokers focus on U.S. stocks and give those based out of Europe or other regions only a secondary consideration. That’s fine in most cases as most binary options traders do not pay a lot of attention to stocks, but rather focus more on Forex pairs. The euro/U.S. dollar pair remains the most popular asset on pretty much every major brokerage site. Many brokers do offer the Swiss franc as a choice, but not all. If this is something that you definitely want to trade, make sure your broker offers it before you deposit any money into your account.
Next, make sure that you are getting a competitive rate of return. The average broker offers about 76 to 78 percent in returns on a 15 minute trade. If you can get more than this, the you should pursue it. Even a few points diffence per trade can mean the difference of thousands of euros or francs per year, depending on your currency of choice.
A strong customer service department should also be a consideration. If you’re new to trading, this will be a huge help to you. Contact them before you start making real trades and ask to use their demo trading software so that you can experience what the site is like in real time before you up the risk with real money.
The Swiss economy relies heavily on the financial sector. Many estimates place this sector at about 10 percent of the country’s total gross domestic product. The binary options business is fairly new, but it is already starting to make its mark on the economy as a whole. Trading binary options in Switzerland is catching on quickly thanks to this, and they are perhaps the most accessible form of trading to the average person just because of the small amounts of money needed to get started and the low cost. If you want to be a successful trader, this is a market worth considering. Make sure you have the right experience and the right tools to give yourself every advantage possible.