Binary options is incredibly popular in the UK. The easy to understand trading option has many UK traders searching for more information on how to get started. With the right information and broker, binary options in the UK can be a profitable trading method. Before you start trading, it’s important to understand the basics.
How Do Binary Options Work?
Unlike other forms of trading, binary options doesn’t involve buying, selling or owning an asset. Traders predict whether the value of an asset will rise or fall by a certain time. They then choose the amount they wish to risk on their prediction and enter into the trade. Though you only have two options to choose from – call or put – you must still analyze the market to determine which direction prices are likely to go.
What Types Of Binary Options Are Available?
Binary options in the UK involves stocks, indices, commodities and currencies. The exact assets available vary based on the broker you choose. Once you choose an asset, you have to choose the type of trade you want to make. A call means you think the value will rise and a put means you believe the value will fall.
UK traders can choose between five types of trades including:
- High/Low – The most traditional type of trade. You choose whether a price will go high or low.
- One Touch/No Touch – You predict whether an asset will reach a pre-set value or not before a set expiration time.
- Boundary – You decide whether an asset will stay within or outside of a pre-set range before the expiration time.
- Short Term – These trades typically last less than a day, with some lasting only 60 seconds.
- Long Term – These trades last for a longer duration, usually lasting a week or more.
Are Binary Options Regulated In The UK?
Binary options are a legal financial trading option in the UK. As such, brokers must follow the rules set forth by CySEC (regulates binary options throughout the European Union) and FPC (UK binary options rules and regulations creator). Brokers in the UK are usually registered with the FCA, which regulates binary options within the UK.
How Are Funds Handled?
The exact deposit and withdrawal methods for UK traders vary based on the broker you choose. Most brokers in the UK offer at least Moneybookers, bank wire transfer and credit card options for depositing and withdrawing funds. Others may also offer additional options.
You should also be aware that traders are responsible for paying taxes on their earnings. The amount varies based on how you file and classify the earnings.
How Do You Choose A Broker?
Your trading experience in the UK is mainly based on the broker you choose. Research brokers carefully to find the right combination of features, bonuses and fees. By combining the right broker and detailed market analysis, you can quickly learn binary options and profit from this popular trading option.
Below is a bit more information to help you with trading binary Options in the UK