Different brokers have different minimum investment amounts. The lowest are around 30 Some brokers offer a rebate system where you will be rebated a percentage of your investment if you lose the trade The broker companies do have an edge over binary option traders. Traders lose more money than they win over the cumulative total trades. This doesnt mean that you will though. You can receive cash or asset payments for winning a trade, depending on the type of pay out that is set for the trade The high binary odds means that you will undoubtedly lose some trades They also mean that you will win some Making money from binary options is more about being profitable in the long term than the short term A binary options trade doesnt have to be a complete guess. There are plenty of systems and methods out there which will teach you how to read the markets There are 4 different main types of trade, which require different skills. See our article on types of binary option trades Binary is a mathematical term, which means two outcomes. Lots of the most fundamental objects in life run under a binary system. The light switch that you hit when you enter a room can be switched on or off, as can your television and computer. The fact that the on/ off switch has two possible outcomes - on and off, makes it a binary object.The power of binary doesnt stop there with the on/off switches. Binary actually runs your computer application and programmes as well. In fact a binary system is delivering this website to your computer screen right now. When you build up millions and millions of binary switches, known as transistors together, you suddenly have a multitude of potential outcomes and not just two. This is how your computer can run complex programmes on binary and not just turn on and off.Binary option trading uses the fundamental rule of two options in a trade. When you make a binary options trade you choose between two potential outcomes. If your prediction proves to be the right one, you take some profits from the trade, if it is wrong you lose your investment.The two outcomes that you can choose from in a binary options trade, relate to the potential change in the value of an asset over a set period of time. This asset can be a commodity such as oil, gas, steel, gold, a group of these assets together, known as indices, or a currency exchange rate such as USD/EUR. When you make a trade you will either win, thanks to making the correct prediction about the asset price movements, or lose due to choosing the wrong binary option.Wins usually result in a profit of between 70 and 300 while losses mean that you lose the amount that you invested only. The percentage profit that you could take from a binary options trade is clearly stated before you make the trade. The winners pot depends on the broker that you make the trade through, the volatility of the price on the asset that you trade and the type of binary option you trade. You will understand these concepts better as you read this article. The amount that you lose is only ever the money that you invested in the trade.If you want to make a trade, you first need to find a broker. The broker is the company that will host the trade. For online binary trading your broker will be one of the binary trading websites found on the Internet. To find some potential candidates you simply need to make a search for binary options broker through a search engine and take a look at the brokers on offer or just visit our homepage and pick a broker from our top 5 table. Each broker will be slightly different. So read the conditions of trading through their website carefully. Look out for key parameters, like the amount of profit they provide for a win, how much commission they take on trades and whether they provide a rebate for a loss.First of all you will select the time period for the trade. This can be anything from 30 seconds to an hour, or longer. The time limit that you choose impacts upon the amount of risk that you are taking with a trade. It is generally easier for beginners to formulate their predictions over short periods than long ones. If you do trade over longer periods, you will need to study the asset price movement history in depth. An experienced trader may well find that their analysis of longer-term trades actually improves their odds of victory. Professional traders build their careers on being able to interpret masses of asset price history data.When you have selected the time period for the trade you will be presented with two possible outcomes. These outcomes can differ depending on which type of binary option you are trading on. For the purposes of this explanation we will use the simplest and most popular type of trade - high, low trades. Lets say that you chose 30 seconds for the duration of the trade. Having chosen this time period you will now be presented with your binary options, either that the value of the asset will have risen by the time the 30 seconds is up or fallen. The amount that you stand to win were you to choose either of the two options is indicated on-screen.This is the crucial part of the trade, when you will make your decision and choose which of the binary options to wager on. After selecting your choice by clicking on the option that you want to back, you will click on the trade button. By clicking on this button you initiate the trade. The computer logs the asset price instantly, at the moment when you hit the trade button. This figure is known as your strike price. The time period for your trade begins and you will see the remaining time indicated on your screen. Now all you can do is wait for events to unfold in the hope that your prediction proves to be correct.Take a look at this image below. This is a typical example of what you will see on screen. Based on the explanation above try to work out what all the different pieces of information on-screen might represent. Pay particular note to out of the money and in the money Now, head over to our glossary page to see if you were correct...UK binary options regulation will (next year) become the responsibility of the UK Financial Conduct Authority (FCA).