Welcome To Our New Traders “Dummies Guide” On The Basics Of
Binary Options
Hi and welcome to the BinaryTrading.org’s New Binary Option Traders Guide. This page covers the basic but important facts about binary options you need to know before you begin trading. It is a good idea to bookmark this page as you will likely reference it in the future. Here is an outline of the things you will learn.
Hi and welcome to the BinaryTrading.org’s New Binary Option Traders Guide. This page covers the basic but important facts about binary options you need to know before you begin trading. It is a good idea to bookmark this page as you will likely reference it in the future. Here is an outline of the things you will learn.
- What is a Binary
Option?
- Types of Binary
Option Trades Available
- Basic Strategies
- Tools You May
Want
- List of “Things
To Know”
- Example Trades
- Getting Started
What
Are Binary Options Themselves
Binary
options are very simple option contract
with a fixed risk and fixed reward. These options are
called binary options because there is a “one or the other choice” and a one or
the other payout after the option expires. One or the other choices include up
or down, or touch and no/touch. In computer code binary means 1 or 0, or one or
the other.
The way a binary option works is from the traders perspective (yours) is that you choose whether or not a certain underlying asset (a stock, commodity, currency etc) is going to go up or down in a certain amount of time. You essentially bet money on this prediction. You are shown how much money up front you will earn if your prediction is correct. If your prediction is wrong, you lose your bet and the money risked. If you predict correctly you get your money risked back PLUS a return. These returns usually are between 70-85%.
The way a binary option works is from the traders perspective (yours) is that you choose whether or not a certain underlying asset (a stock, commodity, currency etc) is going to go up or down in a certain amount of time. You essentially bet money on this prediction. You are shown how much money up front you will earn if your prediction is correct. If your prediction is wrong, you lose your bet and the money risked. If you predict correctly you get your money risked back PLUS a return. These returns usually are between 70-85%.
A brief
example would be that you predict the price of gold to rise from it’s current
price of “$1612.75” one hour from now. The winning trade offers a return of
80%. You place a $100 trade on this idea.
One
hour from now the option contract expires (closes) and the contract is graded
as a “win” or a “loss”, or “in the money” / “out of the money”. Gold goes up to
$1613, you predicted correctly. You get your $100 back and a return of 80% – or
$80 for a total of $180. Even though gold only went up a tiny amount, you still
earn the 80% return. Magnitude of price movement is not a factor in the amount
of your return.
Key Ingredients Of A Binary Option Trade
All of the different binary option contracts have these three key ingredients that traders need to take note of. They are the expiry time, the strike price, and the payout offers.
All of the different binary option contracts have these three key ingredients that traders need to take note of. They are the expiry time, the strike price, and the payout offers.
- Expiry Time
- Strike Price
- Payout Offer
The expiry time is simply the length of time from the
moment you ‘buy’ the option contract until it closes. This can be as fast as 60
seconds or as long as a month. The majority of traders are trading the short
term binary options, anywhere from 60 seconds to 30 minutes.
The strike price is the price that you were able to enter
the trade at and this is the price that determines whether or not your trade is
a winner or a loser. In the brief example above, the strike price is $1612.75.
This is the price that gold needed to close at above in order to win this
trade.
The payout offer is the return that binary option broker
is offering to you. In the gold trade example above, the payout offer was 80%
for a win and 0% for a loss. Some trades do have a return percentage for
losses, typically up to 10% although this is broker and trade dependent. The
payout offer is known up front before risking any money.
Types Of Binary Options Available
There are multiple types of binary options available to trade. The simplest and by far most common trade is the Up/Down trade. You can learn about the different types of binary options available to trade here.
There are multiple types of binary options available to trade. The simplest and by far most common trade is the Up/Down trade. You can learn about the different types of binary options available to trade here.
Beginner Strategies
We have compiled a list of basic binary option strategies that will help you get started making higher probability trades.
We have compiled a list of basic binary option strategies that will help you get started making higher probability trades.
Tools You May Want To Use
I am
going to beef up this section as new tools arrive on the market to help you
make your trades. For now you can review some of the binary trading signal
services on this page.
Key
Things To Know About Binary Trading
So now
you understand the basics of trading binary options. Some key things you should
remember before you dive in are these:
- Your risk is
limited to your trade amount
- The minimum
trade is as little as $10
- You do pay for
losing trades – you lose your trade amount (or the majority of it)
- There is plenty
of risk involved. Never ever invest more with a broker than you can afford
to lose. It’s risky!
- You never take
any ownership of the underlying asset – you only “bet” on the direction of
it’s price movement
- To make money
over the long term you have to win the majority of your trades
- Up / Down are
only 1 type of binary option, there are many different kinds of trades available to make
with binaries
- Trading binary
options is designed to be easy to do.
Your
risk is limited to the amount you place on the trade. Your payoff is clearly
stated before making the trade. If you win a binary options trade you win a
fixed amount of cash. Since there are only two possibilities, that’s the origin
of the name “binary options.”
Screenshot
of a Binary Trading Interface – Choose Up Or Down, How Much To Risk and
“Apply”.
- Up or Down aka
‘Call or Put’
Do you
think the price of “x” is going up or down? In the screenshot above from Banc De Binary, we are looking at the
current price of gold. Gold is “x”. The green line is the price movement of the
gold over the course of time. The red section on the right hand side is the
last moment you can trade this binary option. After that point, the option is
closed for trading. It has not expired quite yet if you traded previously,
however your window of trading is over.
If you
think the price of “Gold” is going up you place a “call”.
If you
think the price of “Gold” is going down, you place a “put”.
Those
are your only two options. Hence “Binary”. If you pick the right choice of the
two you win the trade. If you pick wrong you lose the trade. There are two
choices only. ‘Up or Down’. And two outcomes, ‘Win or Lose’.
That
is the very basics of binary
trading for dummies. It is that simple, and it is designed to be
that easy. Your return is clearly stated before hitting the ‘apply’ button. You
will earn 72% on your investment if you finish the trade ‘in the money’.
“X” can
be any number of underlying assets. It can be a certain stock or it can be the
price of gold or oil. It can be a currency pair or it can be the price of
facebooks stock. You get to choose what underlying asset you want to trade.
There
is one more important factor left out of the simple illustration above and that
is the expiration time or maturity date of the option. This is the point in
time when the trade expires. This is the point when the actual price of the
underlying asset is determined and you find out if you finish the trade ‘in the
money’ with a win, or ‘out of the money’ with a loss.
If you
chose ‘up, or call’ and at the the price expired higher, you win. The
expiration times vary from as fast as
60 seconds to as long as hours, days and even weeks.
Example
Basic Binary Trade
The
easiest way to explain what a binary trade looks like is to provide an example.
Example Trade 1 – Trading Googles Stock With A High / Low Binary
Option
Screenshot
From Google Finance of Current Price Of Google
Perhaps
Google is doing well and you expect it to be trading above $672.10 by 3:30pm
est this afternoon. A binary trade means you place a bet on that theory.
Corresponding
Candlestick Chart From FreeStockCharts.com For Google’s Stock Price
Above
is the corresponding candlestick chart for Google, from FreeStockCharts.com.
You can use this to read price action and find trading opportunities.
Here is
the Corresponding Trade From TradeRush.com – Risk of $1000,
Return of $1700 If You Win – $100 Rebate If you Lose (10%)
And
here is the corresponding Binary trade offered by TradeRush.com – You risk
$1000.00 that Google’s stock will be trading at
or above $672.10 at 3:30pm later today. Your return on this trade is 70% if you
win and 10% if you lose.
When
3:30pm rolls around and Googles stock is trading at or above $672.1.00 as you
predicted, you’ll be paid $1700.00. This includes your $1000 you put up on the
trade up front and the 70% return ($700).
If
you’re wrong and the stock is trading at less than $672.10, you receive $100, a
10% rebate, losing $900 total (Your $1000 investment amount minus the $100
return = $900 loss).
In the
example above, $672.10 is called the “strike price.” Since you bet in a
positive direction, we would refer to this as a “call,” not a “put.” $700.00 is
the “payoff value.” The date and time are called the “expiration date,” or the
maturity date. The $100 is the losing return, or a 10% rebate offered sometimes
on trades. Not all binary option brokers offer rebates on trades that finish
out of the money.
You
could also have bet in the opposite direction, that the stock’s price would be
trading at or below a certain lower value, which would have been a “put.” In
that situation, you would need google to finish below the strike price.
Usually, this would be a few pips below what the strike price would be if it
was a call. This price is set by the individual broker along with the returns
offered. It is up to the trader to take the trade or not.
Example 2 – Tutorial on Trading The Price Of Gold With A ‘Touch
Trade’
If you want to profit from the
swings in the gold market, there are hardly any better ways to do so than with
a binary option. With a one
touch trade, the only thing that has to happen to win is that the asset
hits the 1 touch price.
If you want to profit from the
swings in the gold market, there are hardly any better ways to do so than with
a binary option. With a one
touch trade, the only thing that has to happen to win is that the asset
hits the 1 touch price.
You bet
$100 that the price of gold will touch $1617.40 by 3pm EST today.
The
payout for this trade is 70% if you finish in the money. If you win, you will
get a payout of $170 which includes your $100 risked up front plus the $70
return (70% of $100 = $70). Since a 70% return is a bit low on the payout side,
the broker offers a 15% rebate on losses. If you lose, you get $15 back and
only lose $85 instead of the full $100. You can see how this can offset the
lower than average return for wins.
You
place the trade and need the price of gold to reach the target price, or
trigger price of $1617.40 before 3pm today.
Luckily
for you, there was a some negative news regarding the dollar’s value that drove
fears of inflation. The price of gold
and oil went up accordingly. When the news broke, the gold price
spiked up and hit your target price. Triggering your trade to close in the
money. You were paid $170 which includes your $100 bet up front plus the $70
return on your investment. You can trade one touch options at sites like marketsworld.com, not all brokers offer
them even though they are the 2nd most popular form of binary trading.
A General Trading Example
Trade
commodities like gold and oil with easy to buy binary options.
- Choose your
underlying asset. IE gold, currency pair, stock etc.
- Decide how long
until you want the option to expire. As little as 60 seconds up to a days
or week. Common expiry times are 15-30 minutes.
- Choose the
amount you wish to risk. As little as $5, as much as thousands.
- Decide which way
you think the price is going to move (up or down).
- Click “Up or
Down” and hit the “Apply” Button – just before hitting “Apply” you will
see the exact payout if you win or lose.
- At expiry you
have either won or lost and get the fixed payout offered prior to hitting
the ‘apply’ button.
- You can not lose
more than your risked amount and you can not make more than your fixed
return, regardless of how far the price moves.
Binaries
are one or the other choice with a one or the other payout or loss. Winning
returns average 70-85% at the respectable brokers for most trades. If you lose,
you get between 0-15%. Some brokers kick back some percentages on losses,
that’s why their winning returns are sometimes a bit lower compared to the
other brokers.
Things To Remember Before You Begin Making Option Trades- Risk is known up
front and fixed. You can not lose more than you put into any trade.
- You are not and
can not get burned by leverage like you can with forex trading.
- You do not need
to set ‘stop losses’. The return is the same whether you win or lose by 1
pip or 100 pips.
- Payouts are
clearly stated and known exactly up front before risking any money on the
trade.
- Most of the
brokers we list have early closure feature. This lets you close your
option at a price they are offering any time up until the final closing
minutes. You can lock in profit or minimize loss with early exit
- Executing the
trade is easy. Choose your asset to trade, how much to risk, choose ‘up or
down’ and click the ‘trade now’ button.
- Returns are
70-85% on average at
the trading brokers listed here.
- No hidden costs
– Your risk and full return are clearly listed.
- You do not have
to be a financial “expert” to win.
- You never take
any actual ownership of the underlying asset. You are just predicting what
happens to the price of the asset.
- Your trade comes
down to a ‘one or the other’ choice (hence binary)
- The trading is
simple by design
Getting Started
If you
know what a binary option is but would like to learn how to
get started trading binaries then jump back over
to our page focused on the things you need to know to start trading. This page
is more a basic overview of what is going on when talking about binary options.
Trading
Binary Options For Dummies
Anyone
can trade binary options. Even a dummy can win any given binary trade, too. It
is one or the other choice, it is hard to get it that wrong all of the time.
However,
to be a long term winner you have to develop a method and strategy that works
for you. You have to consistently profit by winning more trades than you lose.
Since there is risk involved, that means that you need to create a method to
succeed. You can do that by studying
up on our tips and strategies to win and practicing with
a no risk trading account. We also recommend
learning the basics
of candlestick chart reading in order to judge
price action.
If you
are ready to take the next steps and learn more about binary trading then jump
back to our Binary Trading Guide list of lessons. To
continue reading through the lessons and tutorials. You certainly want to learn
to read a candlestick chart as well as find the right broker to trade with.
- Get a Free Demo Trading Account – Risk
Free at Marketsworld (details within link).
- Today’s Best Binary Brokers
- Binary Option Trading Strategies 101
- 60 Second Binary Option Trading
Related Articles:
- Trading
Stocks With Binary Options
- What is Binary Options Pairs Trading?
- Assets
Trading With Binary Options
- Binary Trading Guide – How To Trade Binary Options
- Binary
Options Beginner’s Guide
- 7 Types of Binary Options Trades: A Comprehensive Guide
Binary Options Brokers Reviews
TOP
RECOMMENDED BROKERS
REVIEW
|
MIN DEPOSIT
|
AVG RETURNS
|
VISIT BROKER
|
 |
$10
|
90%
|
|
 |
$20
|
90%
|
|
 |
$250
|
85%
|
|
 |
$50
|
95%
|
|
 |
$10
|
85%
|
|
 |
$250
|
95%
|
In this section of the site we’ll be looking at the most trusted
binary options brokers in the market. We have undertaken in depth research in
order to bring you our recommended brokers reviews. We are always pleased to
get feedback on the various brokers, so please share your experiences with us.
There’s no doubt that binary options trading is an increasingly
popular trading vehicle. This upsurge in trader numbers can largely be
attributed to the fact that binaries are perhaps the simplest of all financial
instruments. For the first time in the history of financial trading, a beginner
trader can easily understand how to trade this financial instrument without
having to undergo complex trading education as is the case with spot forex
traders or CFD traders.
Naturally to cater for this exploding demand, there has been an
increase in the number of binary options brokers offering their services to
retail traders. As a result of this heavy competition many beginner traders
often turn to binary options brokers reviews to help them select the right
broker for them. These reviews will detail the services and background of the
brokers. But in order to truly benefit from our reviews, it is important to
understand how we compile them. To give our readers a helping hand, we have
created this guide to explain what each section of a binary options review
mean.
Breakdown of a Binary Options Review
A binary options broker’s review is typically divided into
several main sections:
- Broker’s
Background
- Regulatory
Oversight
- Trading Platform
- Trade Types
- Account Types
- Deposits & Withdrawals
- Customer Support
Broker’s Background
Usually appearing as the review introduction, this section will
normally include a little about the history of the broker, the year it was
established and information on who owns the company. The location of the
broker’s headquarter is also included in this section. This information can
reveal critical information about the broker.
For example, the year when the broker was established will
indicate if this is a new broker or one which has been around for a while. A
broker that has been around for a while is normally more trustworthy than a
newly established broker. In addition, it is also a good way to spot a
legitimate broker from a scam broker. Legitimate binary options brokers tend to
reveal more about their corporate background whereas scam brokers tend to be
evasive and will try to provide as little information about themselves as they
can get away with.
Regulatory Oversight
For most binary options brokers, this section is one of the most
important of their review. This is because a broker is that is regulated is
more likely to be trusted than an unregulated one. When evaluating the broker’s
regulatory status, it is also important to note which regulatory body the
broker is regulated with. Not all regulatory agencies are created equal.
For example, a license from the Cyprus Securities Exchange Commission (CySEC)
carries more weight than a license obtained from the British Virgin Islands
Financial Services Commission. This is because some regulatory agencies have
more resources dedicated to ensuring that the brokers under their jurisdictions
comply with all the regulatory requirements.
Trading Platform
In the binary options trading industry, you are likely to come
across two main types of trading platforms, proprietary trading platforms and
white labelled trading platforms.
White labels/Generic
White labelled trading platforms are generic trading platforms
supplied by third party online trading solutions providers. This is the main
reason why many of the trading platforms adopted by binary options brokers look
so similar. Apart from some minor differences in the colour and design of the
user interface, the platforms are essentially the same. For white labelled
trading platforms, the leader is the SpotOption trading platform which is
adopted by more than 80% of the brokers in the industry. Most brokers tend to
use white labelled trading platforms as it helps them to save on development
and support costs
Proprietary
The second type of trading platform that you will come across
more occasionally is the proprietary trading platform. These platforms are
developed in house to meet the specific needs of the brokers. As there are
additional development costs involved, most brokers tend to shy away from
having their own proprietary platforms.
What we can
gather from this section of the review is that if the broker is willing to
expend resources to develop its own platform, then you can infer that this
broker is likely to be more professional and dedicated to its long term
business objective. In other words, a broker with a proprietary trading
platform is less likely to be a scam broker
Trade Types
The section on the trade types will reveal how many types of
options contracts the broker‘s trading platform is able to support. Different
types of trading platforms will support different types of options contracts.
Most trading platforms will be able to support at least 4 to 5 different types
of options contracts. Currently, the trading platform that can support the most
number of option contracts is the SpotOption powered trading platform.
Depending on the configurations which the broker has requested from SpotOption,
you may be able to choose up to 8 different types of option contracts namely:
- Classic Call/Put
Binaries
- Derivatives
Options
- FX/CFD
- Ladder options
- Long Term
Binaries
- One Touch
options
- Pairs
- Short Term
Binaries
Account Types
Binary options brokers generally tend to offer their clients a
choice of several types of trading accounts. These trading accounts differ in
the minimum deposit requirements, the benefits that they offer and sometimes
the percentage returns. The lower level trading accounts usually require a
smaller amount of minimum initial deposit. However, they will have limited
access to other benefits such as trading education, a dedicated account manager
and lower bonuses as well. Free withdrawals are usually limited to once a
month. Any subsequent withdrawals made during the same calendar month will
usually incur a service fee.
For higher end trading accounts like the premium or VIP trading
account, they usually get extra benefits such as unlimited free withdrawals as
well as expedited withdrawals. The percentage returns on these accounts are
usually higher by an additional 4% to 5%. The major drawbacks of these trading
accounts are the fact that you are subjected to a higher minimum deposit
requirement.
Deposits & Withdrawals
To make their clients trading experience as pleasant as
possible, most binary options brokers offer a selection of fund transfer
methods. These methods typically fall into 3 main categories:
- Credit/Debit
cards
- eWallets
- Bank Wire
transfer
The most convenient and secured method of transferring funds
will be by credit/debit cards. This is due to the fact credit payment providers
require vendors to adopt a high level of security. It is also convenient due to
the fact that your credit card is usually linked directly to your bank account.
This means funds can be transferred almost immediately from your bank account
to your credit card. This same goes for withdrawals made through credit cards.
Depending on the eWallet used, eWallets are usually the fastest
and cheapest way to transfer funds online. However, it should be noted that
some eWallets are not available for traders in certain countries to the local
regulatory requirements.
Bank wire
transfers are the most expensive way of transferring funds to and from your
trading account. It also takes the longest for the broker to receive the funds
as they are processed through the banks first. This option is typically used
only when the above mentioned methods are not available to traders.
Apart from evaluating the various methods provided by the
broker, it is also important to note the conditions if any are attached to the
deposit and withdrawal of funds. For example, some brokers may require that you
withdraw a minimum amount. Hence be sure to read all the terms and conditions
before agreeing to any of them.
Customer Support
The third most important aspect of a broker’s review after its
regulatory status and trading platform is the customer support service. The
binary options market trades on a 24 hours basis 7 days a week. What this means
is that problems can crop up at any time and not just during office hours. With
this in mind, you have to take note of the operation hours of the customer
support service. You want to be able to get assistance whenever you need it and
not just during office hours.
Furthermore, you want to ensure that you are able to reach the
customer support service through several different methods and not just through
methods that rely on the internet. Bear in mind that if for whatever reason you
lose your internet connectivity, you still want to be able to get in touch with
your broker. This is where you can really see the different between a good
broker and a bad broker.
A good broker
will try its best to ensure that it is able to resolve any problem that you may
encounter as quickly as possible. A bad broker on the other hand is one that
tries to make itself as scarce as possible whenever there are issues. If a
broker does not provide live chat and telephone support, then you should be
wary of the broker in question.
Binary Options Broker Scams
So far what we have discussed will help you differentiate
between a good broker and a bad broker. But what about scam brokers? How can
you tell if a broker is a legitimate broker or a scam broker? Well, there are a
few telltale signs which you can look out for which can be an indication that
the broker in question is mostly likely a scam broker. Binary options broker
scams may be perpetuated by different parties but their techniques are all
similar. For example, they tend to make promises which they can never keep. If
a broker guarantees that you will make a profit by investing with them, then
the broker is almost definitely a scam broker. This is because in financial
trading, nobody can predict the results.
Another scam
which some brokers use is by withholding your money because you fail to satisfy
the bonus withdrawal conditions. While it is your responsibility to read all
the terms and conditions, it is still unethical for the broker to withhold your
money because of the failure to fulfil the bonus withdrawal conditions. This is
the main reason why regulatory agency such as CySEC has banned binary options
brokers from offering trading bonuses with conditions attached.
Finally, watch out for brokers that do not provide any
information as to their corporate background or location. Such behaviours are
not typical of a legitimate broker that wants to establish a long term business
relationship with its clients. You have to remember that the broker at the
other end of the internet connection is just a faceless entity. So if you would
not randomly give your money to a stranger that you meet on the street, why
should you do the same for a broker that is so secretive about its owner/s and
location?
Conclusion
Being able to make a trade successfully is only part of the
journey to being a successful binary options trader. You also have to ensure
that you are getting the best terms and product from your broker. It is
important that you evaluate a broker carefully before committing yourself. The
best way of going about this and without having to risk your money is by
studying the reviews of the broker in question.
In addition, by checking out the reviews of the binary options
brokers that you are interested in, you will be able to save money, time and
effort in your search for the best binary options brokers. Hence, we strongly
encourage you to conduct your due diligence and read the reviews that we have
compiled so you can make a better informed decision when selecting your binary
options broker.
Related Articles:
- Binary Trading Brokers
List
- Binary
Options Brokers Fees and Commissions Explained
- Do You Need Market
Reviews?
- Japanese Binary
Options Brokers – Legal
- Australian Binary Options
Brokers
- UK
Binary Options Brokers – Legal & Legit?
Binary Trading Guide – How To Trade
Binary Options
This
page explains binary trading
from start to finish. Learn everything you need to know about trading binary options
for profit. How to trade binary options explained, links to tutorials, example
trades, strategies, tips and resources. Binary options provide a new form of
trading for many investors and provide a relatively easy and convenient
platform to do so. Although setting up your first binary options trading
account may sound daunting, the following steps will help to lay out the
process.
TRADING GUIDES: PART 1
TRADING GUIDES: PART 2
TRADING GUIDES: PART 3
TRADING GUIDES: PART 4
The
above links provide all the information you need to understand the basics of
trading binary options. As you are more comfortable with the idea of trading
binaries, you will naturally be more inclined to execute more advanced trades.
For now, let’s stick to the basics of binary trading.
What
Are Binary Options?
Binary
options are trades that have two choices and two outcomes. They are different
from typical trading. Very different.
Trading
Currency Pairs is a Very Popular Binary Option Trade
Binary
options are “all-or-nothing” in design. You either win or lose. There is no
middle ground. Binary means 1 or 2. One or the other.
What
this means for the trader is that instead of the option payout fluctuating with
the asset price, the payout is a set sum that is either earned or lost
depending on whether the price of the asset falls below or rises above the
strike price. The goal of binary options trader
is to correctly bet whether the asset price will end higher or lower than the
strike price. If you pick correctly you win the trade.
In a nutshell, binary options are ways to trade price movements
of many assets with a “One or the Other Choice”.
You
choose whether the price is going up or going down. Place your trade in the
direction you seek and hit the ‘trade’ button. They pay out a fixed return.
They also have a fixed risk. You can not lose more than whatever amount you put
up for the particular trade.
You
decide is the price going higher or lower? Make your trade accordingly. If you
choose correctly you win and finish in the money. If you are wrong you finish
the trade out of the money. The returns are large. The winning return is
typically between 70-90%. Losing return is typically between 0-15%.
How Do
I Start Trading?
Binary trading is easy by
design. You can read our binary
trading for dummies guide which is really designed to walk new
traders through the entire process of trading from start to finish. You will
learn what is important to know before placing your first trade and will have
the same type of setup as any active trader.
After
you have successfully chosen your broker and set up
your trading account, you will need to put funds into the account to begin trading.
Most brokers offer customers an easy online method to deposit funds using major
credit cards. Often, you are also permitted to deposit funds through wire
transfer or electronic payment.
If you
have questions as you begin using your account, almost all platforms offer a
frequently asked questions page and email customer support. Some offer a live
chat feature where you can instantly ask questions to qualified
representatives.
If the
world of binary options has caught your interest, start researching brokers
until you find one that you feel comfortable with. In no time you will become
familiar with all that binary option trading has to offer.
Where
Do I Trade Binary Options?
Binary
options can be easily traded online from anywhere you have access to the
internet. Many different platforms offer investors the opportunity to trade
online; in order to trade with one of these brokers, you must first
set up an online trading account.
REVIEW
|
MIN DEPOSIT
|
AVG RETURNS
|
VISIT BROKER
|
|
$10
|
90%
|
|
|
$20
|
90%
|
|
|
$250
|
85%
|
|
|
$50
|
95%
|
|
|
$10
|
85%
|
|
|
$250
|
95%
|
How Do
I Set Up a Binary Options Trading Account?
First,
make sure to do your research. There are many brokers offering the ability to
trade binary options online, however not all are equally reliable. Check to see
where the broker is located and what type of returns it offers to its
customers. Enquire about what percentage cut the broker takes when a trade is
either won or lost. Additionally, make sure to get a feel for the layout of the
website and check to see that they have positive reviews from other past users.
Finally, pay special attention to security features to ensure your money will
be safe.
Most
trading platforms make setting up an account relatively easy. Typically, you
will be asked for basic personal information including your name, country of
residence and birth date. If you are unsure about the process of registering,
many sites offer demo accounts or simply demo videos designed to walk you
through the process of creating your account and initiating your first trades.
How Do
I Make Money Binary Trading?
The
short answer is, to make money trading binary options you have to make the
right decision out of two possible outcomes. You have to win your trades. Over
the longer term, you have to win the majority of your trades. Anyone can win a
single binary option trade. Just like anyone can win a single hand of poker.
However, to win the majority of your trades over the long haul and make money
consistently you must develop a method that works for you.
To make
money you need to develop a winning method, technique or strategy that you
repeat. To find this winning technique takes patience, courage, analysis and an
understanding of what you want out of your trading activity. You could do
things like learn binary
strategies, such as reading price action or pivot points. Or you could
invest in a reliable binary signals service that will signal you whenever a
profitable trade is identified by their system. You can make money trading
binary options but it is not without risk or simple to do. If it were, everyone
would be doing it and that is not the case.
To get
started, the first thing we recommend is to go ahead and choose one of the
brokers listed here and follow the steps to getting a demo
binary trading account to practice with. As you are going over
the lessons, tutorials and examples you can practice trading at no risk. It
really is the best way to learn how to trade binary options.
More
Ways To Trade Binaries
While
we describe binary trading as an ‘up or down’ choice, there are other types of
binary options available to trade. All types of binary options share in the
fact that there are two choices for the trader to make and two possible
outcomes for the trade to finish. Instead of choosing things like ‘up or down’,
the trader may choose things like ‘touch or no touch’ or in or out of a set
range. You can learn more about the various types of binaries out there and even
build your own trade setups at some brokers that offer option builder
functions.
Binary
Trading School
Ready
for more? We have our own Trading
School, which goes into more in-depth articles and tutorials for all
levels: Beginner, Intermediate and Expert.
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