It`s without no doubt that the world of investment and finance is in constant evolution. Despite the market principles remaining steadfast, the financial domain steadily responds to changes and has a proven track record as an early adopter of technology.
One of the critical change that has opened up this sector is the proliferation of the internet, more importantly, the use of mobile phones to trade online.
Though not new across the globe, trading online is relatively new in Indonesia. And like any other online business, trading online is slowly and steadily spreading its wings among the savvy Indonesians, especially the Generation Y and millennials.
Besides technological advancement, a major contributor to the increasing popularity of trading online in Indonesia is the endless opportunities of this venture.
Until the recent past, trading options were severely limited due to physical barriers. But with the increased use of technology, there`re no restrictions to the trading options.
If you`re still relatively new to trading online in Indonesia, we shall help you get started. Here are three major possible ways to get you started:
1) Binary Options
Aptly named binary options, this form of trading can go in two ways. You can either be right or wrong.
In its simplest form, binary options is a trading investment that works like more of a prediction that can either be right or wrong, but nowhere between.
Unlike other forms of trading, Binary Options entail placing a bet on whether the value of a commodity, i.e., oil, will increase or decrease in value over a certain period, as opposed to buying the commodities.
Why Would I Invest in Binary Options?
For a start, Binary options offer the clarity of returns. Unlike other trades, Binary Options will allow you to know what returns are waiting for you before investing.
Secondly, Binary Options will not involve any of your commodity.
The major highlight, however, lies on Binary Options simplicity. Yes, simplicity is what makes this trading option attractive since you`ll only need to worry about two variables, the direction of the price movement and time.
Many at times, people often equate Binary Options to gambling, due to its simplicity, but that is far from the truth.
Before Binary options came on the limelight and one the trading streamline in 2008, they were used by initially used insurers to quantify insurance risks, especially against catastrophic risks.
However, it`s not a surprise that people tend to equate binary options to gambling as many are often carried away by the simplicity of this trading option. And when people lose their money, they justify their losses by claiming Binary Options is gambling.
It`s essential, therefore, before you get into this trade, you should do proper research and have a proper understanding of how the trade works.
While you can teach yourself, and easier way is to sign up with a broker, who`ll guide you on the entire process.
If you`re in Indonesia, there`re some regulated brokers you can try, and Olymp Trade is one of the popular options.
Besides certification, Olymp Trade offers learning resources for new entrants, and most importantly, unlimited free demo account that should get you honing your Binary Options trading skills.
If you`re looking to learn more about Olymp Trade, read the Olymp Trade review of BinOptionen, a leading binary options portal for Indonesian traders..
Forex is currently the world`s most traded market. With a daily volume of more than $5.3 trillion, Forex, also known as FX is the biggest and most exciting financial market in the world.
Forex is built on buying and selling of currencies in the hopes of making profits on the difference in the value of the currencies in the global economic landscape.
FX is entirely based on speculation and is affected by factors such as geopolitics, and economic, and this is what makes FX an exciting market to trade in.
What makes the FX a popular trading market is that it`s not limited by the physical barriers and runs 24/7 through a network of corporations as well as individuals, meaning there`re always opportunities to trade and make profits.
However, unlike Binary Options, which has the risk and profit potential fixed at the outset, FX is more variable, meaning it can go either way depending on how you trade.
A second difference between the two is the effect and magnitude of price volatility. With the Binary Options, any move, regardless of how slight it is, will always result in a full payout or risk. On the other hand, with FX, you`ll need to pick which direction the price move, and you far it may go-both for or against you.
The third difference between FX and Binary trading lies in the time frame for trading. With Binary Options, you have to trade within the allocated time frame, while with FX, your trade can last from anywhere between 1 sec to months.
3) Crypto Currencies
Cryptocurrencies are digital assets or digital currencies, operating independent of governments or banks, but can still be exchanged or traded like the physical currencies.
So how do you trade on cryptocurrencies?
There`re three major ways of trading on crypto:
- Trading a CFD
- Buying the underlying from a cryptocurrency broker
- Buying a publicly listed security related to your preferred cryptocurrency
Of the three, I prefer buying from a licensed cryptocurrency broker. Here, you`ll have to buy the underlying, and you become the direct holder of the digital asset.
Upon purchase, your preferred digital currency is sent to your e-wallet with the exchange. From there, you can transfer the digital asset to any e-wallet address using your private key that verifies your ownership if the currency.
For those looking to start trading in cryptocurrencies, you should start by picking a firm with a reputation that provides exchange and wallet.
Another pointer for beginners is that they should begin with the prominent coins. Currently, in 2019, we`re referring to coins like Bitcoins and Etherum.
We hope that this brief breakdown on the online trading options will provide you an insight into what market you might get started to trade in.
However, it`s essential that you remember the key to becoming a successful trader is understanding what platform suits you and your short-term and long-term goals.
Finally, it`s crucial that you choose the right broker that will allow you to pursue your adventure.
If you`re in Indonesia, Olymp Trade is a reputable broker that will cater to all your online trading needs.
Olymp Trade is a one-stop destination for all your trading requirement as they offer all the above options on their platform.
What`s even more interesting about Olymp Trade is their free demo account that allows you to try on the trading options before immersing yourself into the game.