We are living in a world wherein almost everyone has unlimited access to the internet or world wide web, allowing the “common man” the opportunity to become the master of her / his own financial destiny. In other words, if one wants to today anyone can trade on global financial markets using methods like Spot Options.
Before we look at what it’s like to trade on the world’s financial markets utilizing an online trading platform, let’s have a brief look at the history of online trading.
The history of online trading.
This is a fascinating story about how access to the internet has irrefutably changed the stock market trading industry. Before the advent of the world wide web, investors used to have to call brokers via a landline and ask them to buy or sell shares in companies. Now anyone can open an account with an online trading broker, fulfill the documentary requirements, pay the requisite deposit and then start trading online without any assistance or advice.
Consequently, many different trading instruments have been created, such as spot options and binary options, which make it easier for you to make money. Binary options trading started 2008. Before then, this form of money making instrument was exclusively available to institutional traders or very wealthy individuals. Now anyone can use it.
What are SPOT options?
A SPOT (Single Payment Options Trading) option is similar to a binary option in that there will only ever be two outcomes or two types of pay-outs. The difference between a SPOT option and a binary option is that with SPOT options, you are allowed to set the conditions that need to be met in order for you to receive a pay-out, as well as set the amount that you wish to receive if your specified conditions are met.
This type of option is most often found in the foreign exchange market and is probably best explained by way of an example.
If you believe that the USD/GBP will not drop below a certain level in 10 days, you would place a predetermined amount of money on the trade. If your prediction is accurate and the USD/GBP does not drop below your stated level, you are “in the money” and have made a successful trade. However, if the USD/GBP drops below your predicted level, you are “out of the money” and have not made a successful trade.
How to trade successfully.
What happens if you are a beginner trader? It is fairly obvious that you have not had the time to develop your intuition. There is a fine line between using intuition developed from years of experience and guessing which is the correct trade option to choose. It might seem obvious and easier to rely on your own intuition and guess which way to trade, and I hope you are correct, but that approach could cost you financially. What do you do? The logical answer, is to make sure you partner with an online binary options broker who has your best interests at heart. Your broker should freely give you tips and information to aid your search for success and guide you in the way of making the right trading decisions.
Stern Options, for example, is an online trading broker with a free-to-use education centre and a competent customer service team comprising the best financial minds in the industry. Stern’s team have given me the benefit of the breadth of their experience many times. It is not quite face-to-face, but Stern are always reachable by phone or email. It gives me all the confidence I need just knowing Stern’s team are there to consult whenever I need them. It is true you know, a picture can sometimes say a lot more than mere words can tell. Quite honestly, I never have any difficulty with what can sometimes be complex to understand analytical data, because Stern make everything logical and simple with charts and graphs. If I ever need them with my SPOT trading plans, they are available to speak with 24/7, and to help me decide the conditions and the amount to be met in order to achieve a successful outcome and pay-out.
Utilizing SPOT options trading as your primary trading instrument can sometimes be both high risk and complex. However, do not let this stop you from utilizing this instrument. If you sign up with Stern Options and make use of their research materials, like me, you will be well on your way towards being ‘’in the money’’.