Create a Binary Options Account
To begin trading binary options, you must create an account with a binary option broker.
There are several brokers including OptionBit, EZTrader and AnyOption , and you can read numerous reviews of binary option brokers at BinaryOption.com. Complex arrangements between exchanges and brokerages are not necessary for trading binary options, so setting up an account is usually as simple as registering and depositing funds.


Choose an Underlying Asset
When trading binary options, it is best to stick to markets with which you are familiar. If you have experience in trading Oil, then trade binary options on an oil asset; if you have been following Gold in the news, then trade a Gold option. Remember that binary options are merely a tool that you can use to manage your investment and make high returns in a short period of time.


Choose Your Time of Expiration and Conducting Your Analysis
When you have chosen your market and asset, decide whether you want to purchase a binary option that expires the next month, the next day, or the next hour. Then decide what direction you think the price of the asset will move by the time of expiration. If you think price of the asset will be lower at the time of expiration, purchase a put option. If you think it will be higher, buy a call option.


Examine the Binary Option Return Make Your Investment
Pick the option that is most appropriate based on your analysis so far. If, for instance, you think that the price of Gold will be less in 24 hours, buy a put option on Gold that expires in one day. Typically, if an the trader’s prediction was correct and the option expires in-the-money traders will receive a high return between between 75% – 85% of their initial investment. . If you find the terms acceptable, you can purchase the option for as little as $10 or as much as $5,000. More advanced traders also trade multiple options in order to strategically be in-the-money.