Decisive parameters to negotiate

When negotiating binary options we must always keep in mind that these are not more than a forecast or conjecture about the future result of the value of a certain asset. That is, we are making a prediction about the value of a certain asset and depending on the result of that prediction we can obtain a profit or a loss, which represents our fixed return.
However, this does not imply a blind prediction or blind investment since all the web pages dedicated to the negotiation of binary options and other websites specialized in stock exchange and financial markets offer us a large amount of information that allows us to access all the data necessary so that our prediction about binary options is as correct as possible. Therefore we must master certain parameters that allow us to choose the best binary options based on the behaviors expected in the underlying assets.

Option expiration date

The expiration of the option is usually short or very short term, as may be the case of a few hours, a day, two days, or a week. We must take into account this parameter since it is only at the end of it when we are going to evaluate the position of that binary option and therefore to settle the possible profit or loss generated. If we anticipate that this option will have value within two days, it would not make sense to acquire a binary option with a one-day maturity. It is common that in many binary options the investor himself establishes the maturity term of this underlying, which gives us an additional advantage when it comes to making these investments. Obviously, the fixed term influences the percentage of the benefit that we will obtain from said negotiation.

Percentage of return on investment

The percentage of return is known prior to the purchase of the binary option so we will know at all times how much money we will earn if we

succeed in the movement of that option. This parameter must be taken into account when investing as we can enter into excessive risks for reduced benefits, which would be an act of inefficiency. We must correctly manage the risk-benefit ratio in binary options trading and keep in mind that there are brokers that offer returns for out-of-the-money binary options.

Knowledge of the underlying asset to which the binary option refers

It is obvious that it makes no sense to invest in an underlying asset whose behavior we know nothing about, since we would be making a blind investment. We have numerous sources of information to know the behavior of the underlying assets. This information is what will allow us to evaluate the future behavior of that underlying and therefore be able to buy those binary options that allow us to obtain benefits with said behavior. Therefore, the study of the underlying asset is an essential part of the investment of binary options.