Visual_of_USA_Flag_stars_and_stripes_FJM88NLAmerican traders are quickly embracing the relatively new trading option – binary options. Despite only being legalized in 2008, binary options in the USA has grown rapidly. Part of the reason is how easy it is to understand the process and because you never need to buy or sell any asset. However, it’s important to understand the differences of this trading option.

How Do Binary Options Work?

Other forms of trading involve buying, trading or selling an asset. Binary options is different. Traders place a bet on whether an asset’s value will rise or fall within a set period of time. You don’t have to predict any exact values. Instead, you only need to predict an asset’s movement. Currently, this method of trading is available for all types of assets, including currencies, stocks and commodities.

How To Execute Binary Options Trades?

First, partner with a licensed broker that supports binary options. If you’re trading within the United States, check that the broker is registered with the CFTC. However, you can also sign up with brokers who are registered through other financial trading agencies. As long as the broker is properly licensed and registered through a reputable organization, you’re safe to use them.

Next, choose an asset. Check with each broker before opening an account to ensure they have the assets you want to trade. Some may focus on specific assets while others may offer more varied options.

Brokers in the United States are required to show you the percentage you stand to gain before you commit to a bid. You may then decide how much to bid and the direction you believe the price will go. All licensed and registered brokers in the US will provide full details before you trade.

What Is A Trader’s Financial Obligations?

When trading in the USA, you are responsible for paying fees and taxes. The exact fees will depend on your broker, but US brokers typically cap their fees to prevent traders from losing money on per trade fees. You must report any binary options earnings to the IRS and pay applicable taxes as you would with any other earned income.

Before trading, you must also invest a base amount into your account. This ensures the money is available for you to trade. United States brokers accept e-checks, wire transfers and paper checks. You can also withdrawal by direct deposit and wire transfer (for a small fee).

What Types Of Binary Options Trades Are Available?

USA binary options traders have three options to choose from – call/put, one touch and boundary. In the call/put trade, you predict whether and asset’s value will rise or fall by a set expiration time. One touch bases bets on whether assets reach or exceed predetermined values. Finally, boundary trades let you bet on whether an asset will remain within or fall outside of a preset range of values.

Binary options is ideal of traders of all skill levels. It does require regular analysis of US economics, politics and company news.

Here is more helpful information to understanding

Binary Options USA –

– Are Binary Options Legal in the USA

– Best binary Option brokers for USA Traders

– Income Tax for USA Traders

– Deposit and Withdrawal Methods for USA Binary Options Traders