In today forex faq, we have a question from one of our fellow traders asking me the below question.
Can anyone really make money from trading binary option? By the way, can you elaborate what is actually binary option and how to trade it?
First of all, I will like to tell you that making money from binary option is definitely possible and will be easier. This is because there are only 2 outcomes for each trade which is UP or DOWN.
You will not have to worry about the price moving down to trigger your stop loss and then move back up. In binary option, as long as the price is one pip in your direction, you will make money.
However the money made from binary option will be limited as it does not have the leverage factor like forex trading. Therefore I will recommend all of you to try out binary option as a mean to make extra income for yourself.
As for how binary option works, I will do some explanation here in this post.
When trading binary option, you are actually predicting the outcome of the market for the next 1 hour. If you think that the price is going to move higher in the next hour, you will enter a CALL option. If you think that the price is going to move lower in the next hour, you will enter a PUT option.
As long as the price is one pip in your favor at the end of the hour, you will make a profit from it.
To find out more about binary option, you can read my blog below.
As for the strategy to use in binary option, you can read my blog about the strategy below.
I hope that I have answered your question about binary option, you can also download a free guide about binary option from the broker that I am using, TradeSmarter.