Been trading for a few months now but still get confused about puts and calls. I understand the basic idea but not really sure when to use each one.
Saw some traders talking about buying puts when they think price will drop and calls when it goes up. Is it really that simple or am I missing something here?
Binary options basics:
• Put means price goes down
• Call means price goes up
Focus on predicting the price direction. Simple analysis is key.
Puts indicate that prices are expected to drop, while calls suggest prices will rise. It’s essential to keep these clear, especially when trading quickly. Verifying expectations before buying is a smart habit. Practicing on demo accounts can help reinforce this understanding.
Put means price goes down. Call means price goes up.
In my second month, I lost $300 because I confused them. I bought a call on gold thinking it was at its peak, but then it skyrocketed and my position lost value.
After this mistake, everything finally made sense.
Puts are for when you expect a price drop, while calls are for when you expect a rise. Think of it like predicting a game result. Always analyze the market carefully before making a move. Look at support and resistance levels or trend lines to back up your decisions. Many lose money by rushing without the right analysis, so take your time.
It’s straightforward. Put is for down and call is for up. I lost $150 once mixing them.