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7 Binary Options
When it comes to trading, binary options or otherwise, charts are one of the most common and useful tools that traders use to predict future price movements based on historical patterns. This form of analysis is known as technical analysis, and due to its immense popularity, most trading platforms come built-in with various technical analysis tools. In this article, we will be giving you a brief primer on the basic types of chart patterns you will see when trading binary options (or any kind of trading, really); note that this is not an ‘in-depth’ article (refer to our other articles for that) but just a quick introduction.
The 3 Tenets of Technical Analysis
First, you have to understand the 3 main tenets of technical analysis, which are:
- Prices discount everything
- Prices move in trends
- History tends to repeat itself
The first tenet, prices discount everything, means that the price of an asset has taken all underlying factors that could affect its price into account. To put in another manner, technical analysis believes that all factors have been ‘priced-in’, meaning there is no need to analyze each factor separately and that the movement of the price is all that is needed to be analyzed.
The second tenet, prices move in trends, means that once a trend in a price movement has been established that the future price movement is more likely to be in the direction of the trend rather than against it.
The third tenet, history tends to repeat itself, means that price movements are repetitive in nature due to market psychology; meaning that players in the market are assumed to have the same reaction to certain events over time. This tenet is basically ‘using the past to predict the future’.
Technical vs. Fundamental Analysis
We will keep this part brief as this is not the focus of this article, but as a quick summary, fundamental analysis looks at fundamental economic factors such as the individual financial statements of securities (whereas in technical analysis, as mentioned above, does not look at fundamental factors). Further, technical analysis, being based on trends, is usually applied over much shorter time horizons, days, weeks or months whereas fundamental analysis looks at data over years.
The 2 Types of Patterns
Next, you need to know that regardless of the shape of the chart pattern, which we will elaborate on below, all chart patterns fall into 2 categories: continuation and reversal. A continuation pattern means that despite some minor price movements, the price movement will likely continue with the trend. Reversal patterns are the opposite, and it’s a pattern that indicates that previous trend is about to come to an end and reverse.
Basic Chart Patterns
Now that we’ve got that out of the way, let’s take a look at a few of the most common chart patterns that you will see when studying charts. They are: Head and Shoulders, Triangles, Pennants, and the basics on candlestick charts.
Head and Shoulders
No, this is not an anti-dandruff shampoo brand, but rather a common and highly reliable reversal pattern. Many traders who use technical analysis, or ‘chartists’ believe this pattern to be a good sign that an upward trend is about to reverse. As for how it got its name, check it out below:
Not shown in the chart above, is that prior to the first ‘shoulder’, there is a long upward trend; after the first ‘shoulder’ there is a price decrease, followed by a rebound to a higher point; the ‘head’ and then another decrease followed by a smaller rebound to the second ‘shoulder’ followed by another decline. Chartists interpret this pattern as a ‘battle’ between the bulls and the bears of the market and the two rebounds (the head and the right shoulder) show small market rallies of the bulls. Since the second rally of the bulls only reaches the level of the ‘shoulder’, this is an indication that the market’s momentum has swung in favor of the bears and that a continued downtrend is likely.
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There is also an inverse head and shoulders pattern, which indicates the reversal of a downtrend. In this case, it shows that the bears attempt to rally but eventually the bulls prevail and the price reverses its initial downtrend.
Triangles and Pennants
Candlestick Patterns and Charts
Candlestick charts are a charting tool that is very popular in binary options trading for the main reason being that it reflects a much shorter time horizon. As we explained in the examples above, some other technical analysis patterns can take weeks or months to materialize, making them more suitable for longer term types of trading such as stock trading. In binary options however, with such short expiry times, shorter term charting patterns may be more effective and candlestick charts are well suited for this purpose. Let’s look at the basic candlestick and candlestick chart.
Basically each candlestick represents a certain time period; in the above example it represents a single day. Depending on the chart, a red or black candlestick body means the closing price was lower than the open and if it’s white or green it means the closing price was higher than opening price. The tops and bottoms of the candlestick body show the opening and closing price, with the higher one or top. Meaning in a black candlestick with a lower closing price, the top of the candlestick body shows the opening price and the bottom of the candlestick body shows the closing price. In a white candlestick it is the opposite; opening price at the bottom of the candlestick body and closing price at the top.
This means that the length of the candlestick body shows us the strength of either the buying pressure or selling pressure on an asset.
A long candlestick body means that there is a large difference between the opening and closing prices and vice versa for a short candlestick body. Thus, a long white candlestick body indicates strong buying pressure while a long black candlestick body indicates strong selling pressure.
Above and below the candlestick bodies are the wicks or shadows, and the tips of the wicks represent the highest and lowest prices of the period. What about the length of the shadows?
Well, the length of each shadow shows how close most of the period’s trading was done near the opening and closing prices. Long shadows means that a lot of trading happened at prices far away from the opening and close while short shadows show that most of the trading happened very close to the opening and closing prices.
This can be broken down further into the relative length of the upper and lower shadows. A long upper shadow with a short lower shadow indicates that buyers were dominating during the trading session and drove prices higher but eventually sellers forced down the price creating a large gulf between the top of the shadow and the bottom of the shadow. A long lower shadow and short upper shadow mean sellers dominated initially but buyers eventually drove prices back up.
What about when the length of the upper and lower shadows is equal? When such a scenario occurs with the addition of a short candlestick body, which is what is known as a ‘spinning top’.
As we mentioned above, a long and short shadow means that there was some sort of reversal during the trading period; if the shadows are of equal length, which is an indication of market indecision. The short body means that there was not much price movement between the opening and closing, and the equal length of the shadows show that both buyers and sellers exerted roughly equal pressure during the session. Spinning tops are however a good indicator of a reversal of a trend; if it was preceded by long white shadows, indicating strong buying pressure or long black shadows, indicating strong selling pressure, a spinning top will show that since the pressures are becoming equal, the trend is potentially reversing.
When the candlestick body is really, really, small, so much so that the candlestick looks more like a cross, this is called a ‘doji’. The length of the shadows can vary; both candlesticks below are dojis.
Dojis are again a sign of market indecision; while prices can move to various highs and lows during the session, eventually the close and open are relatively equal. The final result of the ‘battle’ between the bulls and bears is a draw.
What do dojis imply in the context of a trend? Again, similar to spinning tops, dojis are a sign that a previous trend (whether positive or negative) is about to end as buying and selling pressures equalize.
Let’s close off the article with the final candlestick pattern: the hammer and the hanging man. Both of these patterns look exactly the same and can have either black or white candlestick bodies; they are both also reversal patterns. What differentiates the two however is the trend that precedes them; the hammer forms after a downtrend while the hanging man forms after an uptrend.
The hammer indicates the reversal of a downward trend as the long bottom shadow indicates that the sellers really pushed the prices low but at the end of the day it finished strong. Similarly in the hanging man, which is a reversal of an upward trend, the low long shadow after the upward trend indicates that selling pressure is starting to materialize despite the fact that that prices still finished strong. Both the hammer and the hanging man are not ‘strong’ patterns and require further bullish or bearish confirmation; as we see in the chart above this confirmation is provided by a long white candlestick in the case of the hammer and the long black candlestick in the case of the hanging man.
Technical analysis is a whole field of study in and of itself and could fill out entire textbooks with information. This article is just an introduction to the basics of technical analysis, and more specifically, the portions of technical analysis that are most applicable to binary options trading, which focuses on much shorter time horizons.
How to Succeed with Binary Options Trading 2020
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What is a Binary Option and How Do You Make Money?
A binary option is a fast and extremely simple financial instrument which allows investors to speculate on whether the price of an asset will go up or down in the future, for example the stock price of Google, the price of Bitcoin, the USD/GBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day across any global market.
Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you invest $100 you will receive a credit of $170 – $195 on a successful trade. This makes risk management and trading decisions much more simple. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “binary” option. The risk and reward is known in advance and this structured payoff is one of the attractions.
Exchange traded binaries are also now available, meaning traders are not trading against the broker.
To get started trading you first need a regulated broker account (or licensed). Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders.
If you are completely new to binary options you can open a demo account with most brokers, to try out their platform and see what it’s like to trade before you deposit real money.
Introduction Video – How to Trade Binary Options
These videos will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic you can educate yourself to be an expert and perfect your skills.
The most common type of binary option is the simple “Up/Down” trade. There are however, different types of option. The one common factor, is that the outcome will have a “binary” result (Yes or No). Here are some of the types available:
- Up/Down or High/Low – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry.
- In/Out, Range or Boundary – This option sets a “high” figure and “low” figure. Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’).
- Touch/No Touch – These have set levels, higher or lower than the current price. The trader has to predict whether the actual price will ‘touch’ those levels at any point between the time of the trade an expiry.
Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterwards.
- Ladder – These options behave like a normal Up/Down trade, but rather than using the current strike price, the ladder will have preset price levels (‘laddered’ progressively up or down).These can often be some way from the current strike price.As these options generally need a significant price move, payouts will often go beyond 100% – but both sides of the trade may not be available.
How to Trade – Step by Step Guide
Below is a step by step guide to placing a binary trade:
- Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you.
- Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Cryptocurrency, Forex or Indices. The price of oil, or the Apple stock price, for example.
- Select the expiry time – Options can expire anywhere between 30 seconds up to a year.
- Set the size of the trade – Remember 100% of the investment is at risk so consider the trade amount carefully.
- Click Call / Put or Buy / Sell – Will the asset value rise or fall? Some broker label buttons differently.
- Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade.
Choose a Broker
Options fraud has been a significant problem in the past. Fraudulent and unlicensed operators exploited binary options as a new exotic derivative. These firms are thankfully disappearing as regulators have finally begun to act, but traders still need to look for regulated brokers.
Note! Don’t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site. Here are some shortcuts to pages that can help you determine which broker is right for you:
- Compare all brokers – if you want to compare the features and offers of all recommended brokers.
- Bonuses and Offers – if you want to make sure you get extra money to trade with, or other promotions and offers.
- Low minimum deposit brokers – if you want to trade for real without having to deposit large sums of money.
- Demo Accounts – if you want to try a trading platform “for real” without depositing money at all.
- Halal Brokers – if you are one of the growing number of Muslim traders.
The number and diversity of assets you can trade varies from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EUR/USD, USD/JPY and GBP/USD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered.
Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple. These lists are growing all the time as demand dictates.
The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. This information is also available within our reviews, including currency pairs.
The expiry time is the point at which a trade is closed and settled. The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time.
Expiries are generally grouped into three categories:
- Short Term / Turbo – These are normally classed as any expiry under 5 minutes
- Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes.
- Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months.
While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include:
- Financial Conduct Authority (FCA) – UK regulator
- Cyprus Securities and Exchange Commission (CySec) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID
- Commodity Futures Trading Commission (CFTC) – US regulator
- Australian Securities and Investments Commission (ASIC)
There are also regulators operating in Malta and the Isle of Man. Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation.
Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers.
Recently, ESMA (European Securities and Markets Authority) moved to ban the sale and marketing of binary options in the EU. The ban however, only applies to brokers regulated in the EU. This leaves traders two choices to keep trading: Firstly, they can trade with an unregulated firm – this is extremely high risk and not advisable. Some unregulated firms are responsible and honest, but many are not.
The second choice is to use a firm regulated by bodies outside of the EU. ASIC in Australia are a strong regulator – but they will not be implementing a ban. This means ASIC regulated firms can still accept EU traders. See our broker lists for regulated or trusted brokers in your region.
There is also a third option. Traders who register as ‘professional’ are exempt from the new ban. The ban is only designed to protect ‘retail’ investors. A professional trader can continue trading at EU regulated brokers such as IQ Option. To be classed as professional, an account holder must meet two of these three criteria:
- Open 10 or more trades per quarter, of €150 or more.
- Have assets of €500,000 or more
- Have worked for two years in a financial firm and have experience of financial products.
Strategies and Guides
We have a lot of detailed guides and strategy articles for both general education and specialized trading techniques. Below are a few to get you started if you want to learn the basic before you start trading. From Martingale to Rainbow, you can find plenty more on the strategy page.
Signals and Other Services
For further reading on signals and reviews of different services go to the signals page.
If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options:
Education for beginners:
Types of Trades
How to Set Up a Trade
The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, settlement, and expiration date. All trades have dates at which they expire.
When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types.
There are three types of trades. Each of these has different variations. These are:
Let us take them one after the other.
Also called the Up/Down binary trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes.
Please note: some brokers classify Up/Down as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a Rise/Fall type on some trading platforms.
The In/Out type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price range/tunnel until expiration (In) or if the price will breakout of the price range in either direction (Out).
The best way to use the tunnel binaries is to use the pivot points of the asset. If you are familiar with pivot points in forex, then you should be able to trade this type.
This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss.
A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration.
There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels.
Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set.
Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version on the traditional websites.
Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are.
What Does Binary Options Mean?
“Binary options” means, put very simply, a trade where the outcome is a ‘binary’ Yes/No answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses. So, in short, they are a form of fixed return financial options.
How Does a Stock Trade Work?
Steps to trade a stock via a binary option;
- Select the stock or equity.
- Identify the desired expiry time (The time the option will end).
- Enter the size of the trade or investment
- Decide if the value will rise or fall and place a put or call
The steps above will be the same at every single broker. More layers of complexity can be added, but when trading equities the simple Up/Down trade type remains the most popular.
Put and Call Options
Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade.
Different trading platforms label their trading buttons different, some even switch between Buy/Sell and Call/Put. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in.
Are Binary Options a Scam?
As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest.
The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing.
These simple checks can help anyone avoid the scams:
- Marketing promising huge returns. This is clear warning sign. Binaries are a high risk / high reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy.
- Know the broker. Some operators will ‘funnel’ new customer to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier.
- Cold Calls. Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue.
- Terms and Conditions. When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades have been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading. Some brokers also offer the option of cancelling a bonus if it does not fit the needs of the trader.
- Do not let anyone trade for you. Avoid allowing any “account manager” to trade for you. There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits, and take greater risks . Traders should not let anyone trade on their behalf.
Which Are The Best Trading Strategies?
Binary trading strategies are unique to each trade. We have a strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts, indicators and price action research. Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change.
There is no single “best” strategy. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them.
Are Binary Options Gambling?
This will depend entirely on the habits of the trader. With no strategy or research, then any short term investment is going to win or lose based only on luck. Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune.
Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the trader.
Advantages of Binary Trading
The main benefit of binaries is the clarity of risk and reward and the structure of the trade.
Minimal Financial Risk
If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: these markets carry a lot of risk and it is very easy to be blown off the market. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum.
The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments.
A binary trade outcome is based on just one parameter: direction. The trader is essentially betting on whether a financial asset will end up in a particular direction. In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets.
Greater Control of Trades
Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. This is not the case with other markets. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss.
The payouts per trade are usually higher in binaries than with other forms of trading. Some brokers offer payouts of up to 80% on a trade. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout (which never occurs in most cases).
In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital. For instance, trading gold, a commodity with an intra-day volatility of up to 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. However, binary options has much lower entry requirements, as some brokers allow people to start trading with as low as $10.
Disadvantages of Binary Trading
Reduced Trading Odds for Sure-Banker Trades
The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high. While it is true that some trades offer as much as 85% payouts per trade, such high payouts are possible only when a trade is made with the expiry date set at some distance away from the date of the trade. Of course in such situations, the trades are more unpredictable.
Lack of Good Trading Tools
Some brokers do not offer truly helpful trading tools such as charts and features for technical analysis to their clients. Experienced traders can get around this by sourcing for these tools elsewhere; inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders.
Limitations on Risk Management
Unlike in forex where traders can get accounts that allow them to trade mini- and micro-lots on small account sizes, many binary option brokers set a trading floor; minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries. As an illustration, a forex broker may allow you to open an account with $200 and trade micro-lots, which allows a trader to expose only acceptable amounts of his capital to the market. However, you will be hard put finding many binary brokers that will allow you to trade below $50, even with a $200 account. In this situation, four losing trades will blow the account.
Cost of Losing Trades
Unlike in other markets where the risk/reward ratio can be controlled and set to give an edge to winning trades, the odds of binary options tilt the risk-reward ratio in favour of losing trades.
When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. Where binaries are traded on an exchange, this is mitigated however.
Spot Forex vs Binary Trading
These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools. One is more TIME centric and the other is more PRICE centric. They both work in time/price but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake. The successful binary trader has a more balanced view of time/price, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose. Below are some examples of how this works.
Above is a trade made on the EUR/USD buying in an under 10 minute window of price and time. As a binary trader this focus will naturally make you better than the below example, where a spot forex trader who focuses on price while ignoring the time element ends up in trouble. This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall.
The very advantage of spot trading is its very same failure – the expansion of profits exponentially from 1 point in price. This is to say that if you enter a position that you believe will increase in value and the price does not increase yet accelerates to the downside, the normal tendency for most spot traders is to wait it out or worse add to the losing positions as they figure it will come back. The acceleration in time to the opposite desired direction causes most spot traders to be trapped in unfavourable positions, all because they do not plan time into their reasoning, and this leads to a complete lack of trading discipline.
The nature of binary options force one to have a more complete mindset of trading off both Y = Price Range and X = Time Range as limits are applied. They will simply make you a better overall trader from the start. Conversely on the flip side, they by their nature require a greater win rate as each bet means a 70-90% gain vs a 100% loss. So your win rate needs to be on average 54%-58% to break even. This imbalance causes many traders to overtrade or revenge trade which is just as bad as holding/adding to losing positions as a spot forex trader. To successfully trade you need to practice money management and emotional control.
In conclusion, when starting out as a trader, binaries might offer a better foundation to learn trading. The simple reasoning is that the focus on TIME/PRICE combined is like looking both ways when crossing the street. The average spot forex trader only looks at price, which means he is only looking in one direction before crossing the street. Learning to trade taking both time and price into consideration should aid in making one a much overall trader.
Best Binary Options Education 2020
Without a proper binary options education, you might as well move on and try something else. Binary trading is simple to trade, but difficult to win.
Yes, picking the option of your choice on whether it goes up or down couldn’t get easier. Knowing which direction to choose is the trickiest part here. With our pages full of binary options course material and tons of other binary options trading content on this site, you should become a much stronger trader when you are finished. Welcome to the best binary options education site and make sure you take a free online binary option trading course.
Trading Tip – Find the best broker that works for you and your money.
If you want to find out more about us, the Binary Options University website and why it was created, read our About Us page.
Below you will find the start of our binary options curriculum. Through Binary Options University you will find beginner’s tips, tutorials, step-to-step guides and much more.
Ring Ring Ring. You’re late for your binary options class. We’ve all been there before. The cool thing is your actually not late at all. This information is available to you 24/7. Meaning, you can use your PC or laptop at home or even check us out on your new iPad. Either way, time to get to class and get the best binary options education you can find.
HOW TO: Get a Binary Options Education?
Binary Options 101 – The beginner’s guide to the basics of binary options trading.
Check out the list of binary options courses below. If you are new to binary options trading, we strongly suggest you go through all of these guides – starting with binary options 101.
Touch no touch binary options – Calls and Puts, Touch & No Touch Options, 60-second options etc.
Binary Options Payouts – How to secure the best payouts in binary trading
Binary Trading Strategies – How to become a successful trader and the tools to get you there
Best Binary Options Brokers– This guide will help you pick one or more of the best binary brokers online today.
Now that you’ve looked through our binary options courses, it’s time to practice trading risk-free on a real binary options platform. Check out our binary options demo account section on how demo accounts work, and which binary options demo accounts are free and best for beginners. Once you feel like you’ve had a bit of practice, it’s time to open a real binary trading account. Real money takes trading to the next level and we want to make sure you are trading with the best binary options platform online. We know that you’ve checked out our broker guide already.
Each of these brokers have proven to support their traders and provide the best trading experience. Customer support is also a big factor. If you haven’t checked out our reviews of each broker, please make sure you do that as well.
Top 4 Binary Options Brokers
IQ Option review – By far the strongest binary broker online offering all kinds of assets, from binary options to CFDs in forex, stocks and crypto.
NADEX review– The best binary options platform for U.S. traders with excellent customer service and great payouts.
Binary.com review – One of the most reliable binary options brokers available online offering binary options and forex trading.
OlympTrade app – Great way to trade on the go with your mobile phone on the bus or in the train.
The best CFD Broker who no longer accept binary options trading is 24option. You can read more about their trading platform and their Cysec License in the 24option review. Most other brokers that we have review has been moved to the binary option blacklist.
If you already have a trading account, make sure to keep coming back and checking this site for we will keep adding fresh content.
Binary Options Courses
We assure to keep your educated by offering articles and courses about binary trading and binary options robots. We have over the years kept a close eye on the binary options robot trend, which seemingly have vanished from the surface of the internet. It was a FAD that died in 2020 and today you only see weak copies and companies trying to relive the 2020 trend. The touch no touch binary options have also seen a decrease in popularity as the high yield options turned out to be too risky in the long run. It is great to get 500% return but if it doesn’t happen at least one in five times our binary option courses and analysis proves that it is not a good instrument and thus you should make sure to keep your binary options education up to date.
Class Dismissed. Put Your Education to Work and Trade with one of the Best Binary Options Education Sites.
***Binary options are prohibited in the European Economic Area. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This material is not investment advice. ***
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Binary Options India – Beginners Guide to Options Trading in 2020
Over the last 5 years, Binary Options have only grown more and more as a popular form of investment in the whole world, including India. Due to the fact that it is an easier form of online trading to get into and because you often need less capital or qualifications compared to Forex trading for example, many beginners have made their way from beginner to expert traders.
Binary options trading is however a typical “easy to learn, hard to master” kind of thing, so if you are new to this world, we suggest that you do these three things:
- Go through this article and discover the basics of options trading.
- Then head over to the Tutorial section where we explain the basic concept on how you can be a profitable trader in the long run.
- Once you have the basics, check out our free Trading Academy where we show you some very successful “over the shoulder” strategies that we still use to make profits – and that you can start copying immediately, too.
Are you ready? So let’s get started.
Do you know already how options trading works and are you just looking for the best broker? Click here and read our review about our #1 broker choice.
What Are Binary Options?
Binary options are by far one of the simplest forms of online investment, a way of betting on the outcome of an event of an asset. You stake an investment on your prediction on whether the price of an asset will go up or down within a certain time period.
If an investor is successful with his prediction, he receives a fixed profit return between 80-100%.
Here is a quick video explanation:
The assets traded are generally the same as the traditional stock market, the only difference is that Binary Options Traders do not actually buy and sell shares. They invest only in the perspective valuation or devaluation of an asset – so basically, if the price of the asset will go up or down.
If the outcome of the asset is different than predicted, the investor loses the amount invested. Investing in Binary Options without an investment strategy is foolish. This is important to remember that because of how easy and simple it is to invest, it can easily become a form of gambling.
This is why we have created this guide and this is why we suggest you to go through our tutorial and the free Trading Academy before you invest any money so we can help you to become a smart trader, not a risky gambler who just randomly place bets.
Let’s see a trading example
Let us look at a simple Binary Options Trade, step by step so you can understand what we are talking about here.
Example: (Made up numbers)
- You have been watching the market and decided that you want to make a trade. You have decided to make a prediction on the price of Gold.
- Currently, the Gold index is trading at $1000. After using your analytical tools and education (which you will gain in our academy), you have predicted that in the next 1 hour, Gold will be trading at a value higher than $1000.
- You then invest $100 in a “Call option”, which is basically a bet that expects a higher price than the current $1000.
- After locking in your Call option you then wait 1 hour.
If after that 1 hour, Gold is trading at anything above $1000, you will earn up to 80-100%, depending on the broker, of your investment back on top of your original investment. So basically, in case of a successful trade, you almost doubled your money.
If you were wrong however, you lose your investment. Now we hope that you see already why binary options trading is often called a “high risk, high profit” investment and it is true.
However we want to stress out again that a smart trader follows specific strategies and rules and not just blindly place bets which enables them eventually to be profitable in the long run.
A few things to note:
- Brokers usually offer expiration periods that range from minutes all the way up to months.
- The profit value depends on your broker, average payouts are 80-90% depending on your broker and your account level with them. In rare cases, you can get even 100% profit rate on your investment.
- Remember the amount that the index increases by is irrelevant as you do not own the stock, you are simply betting on the outcome.
So even if the price of Gold went up just by $1, you still get your 80-100% profit.
I hope you guys have learned how simple it is to make your first trade.
Did you know? Most trustworthy brokers are offering a free, unlimited demo account, so you can try online trading in just 2 minutes, without any risk.
Are Binary Options Safe?
Binary options are a form of legal investment, with millions of investors and strictly regulated broker firms operating across the globe.
So from a legal perspective, if you choose a popular, internationally regulated broker– which you can find under our “Broker” section – your money should be safe.
Due to the simplicity of it however, it is very important that investors use tools and analysis, along with a strong education to make their predictions.
The industry gets a bad name because so many beginner traders are simply betting their investment money away, with no education at all. Then they go on to moan about how options trading is a scam.
Binary options trading is an amazing opportunity to make good profit and income. However, it takes time and patience to educate yourself, this is not a get rich quick scheme! You may lose money with some trades and it may take several weeks to get to a position you are earning good money – and you have to accept this fact.
Do not get disheartened by losses, as long as you are learning and applying a strategy, you will learn from every mistake and if you are using a good strategy, the wins quickly outweigh the losses.
Fraudulent Brokers and Scams: Signals, Robots, Autotrading
Another reason the Binary Options trading market gets a bad name is due to the large amount of fraudulent brokers and scam tools like most robots and signal services. Check our full list of binary option scams here.
If you are a beginner or even an advanced-expert trader, we highly suggest you to choose regulated brokers only and stay away from one-click tools that offer easy money overnight.
We have simplified your choice by testing most of the available brokers out there, so check out our “Brokers” menu for our top suggestions. If you chose one of these brokers, we can almost guarantee that you will get amazing customer service, great trading experience and last but not least: investment protection up to €20.000 in most cases.
Binary Options Trading In India
India has gone through massive economic growth in previous years, because of this binary options trading has grown exponentially in popularity. Many residents see online trading as a great way to earn an income part-time, with many even quitting their jobs to trade full time. With advancements in smartphones and brokers bringing platforms to the population of growing smartphone users, this kind of trading becoming more and more accessible.
Indian assets are becoming more available across a wide range of brokers, so we believe that the online trading industry has entered India, and it is here to stay.
Here are a few quick guides to some of the unique factors you need to look at as an Indian trader.
Regulation and Licensing – Is binary options trading allowed/legal in India?
The legality of Binary Options Trading in India is complex and is debated often, but let us be clear here: It is not illegal in India to trade on the Binary Options market.
The reason there is so much confusion and hearsay around the topic is the fact that it isn’t regulated in India just yet by the Reserve Bank of India. The difference between the brokers who are regulated and the brokers who are not regulated is vast.
For now, it seems the best option for Indians to trade online is to choose an offshore broker with strong a regulation accreditation. Look for regulations such as FinaCom (International Financial Commission), or if you are looking at European brokers, look for CySEC, FCA or MiFID licensing.
All of these accreditation means that you are protected up to 20,000 euros per trade if the broker does something unlawful.
Customer Support and Hindi language
We will go into much more detail later in this guide about customer support in general. As an Indian trader, not only do you need to make sure that the customer support of your broker is excellent, you also need to make sure that you will not face a language barrier problem during exchanges.
The perfect broker for you will not only offer excellent customer support, they will also be able to converse quickly and efficiently in your native language. Obviously, every trading broker speaks English, but fortunately, Hindi language within the customer support is getting more and more popular among leading brokers.
Taxation in India – do you have to pay income tax after trading?
Generally, any income from trading will be considered a non-speculative business income in India, so yes, you have to pay taxes after your binary option profits.
If you are earning and making profits from trading, then you are expected to follow the tax rules of your country and declare it. Declaration is your decision, but we highly recommend following your government’s procedures to avoid any future issues, especially when you become a very profitable trader who is making a nice income.
Your profits will be added to your yearly income, and depending on your tax bracket, you will pay tax accordingly.
You can, however, claim this as business income, so you are allowed to offset it against any expenses your business incurs. You can offset against advisers, the cost of software, internet bills, etc. You can also offset non-speculative losses against your non-salary income.
Important Terminology in Options Trading
If you have ever watched films, or seen an actual market floor, you may have gotten overwhelmed by the terminology and jargon flying around. We are aiming to simplify that, that way you enter the world of investment confidently.
To start basic trading, you don’t really need to know what each of the below words mean, but if you want to understand strategies and use tools (which we highly recommend), it is important to your long term goals that you know what all this terminology means, even if it’s difficult to understand what they exactly cover.
But do not worry, over time, this terminology will become part of your everyday vocabulary.
- Asset – this is the underlying stock, commodity, currency pair or index, on which the trading activity is based
- Expiration time – the date and time when the option is about to expire. This is the time when you your option is closed and you either made a profit or not.
- High or Call option: by choosing a Call option, you speculate that the asset’s price will rise.
- Low or Put option: by choosing a Put option, you speculate that the asset’s price will fall.
- In-the-money – this term is used in order to describe the situation when you have predicted the movement of the asset price correctly and the binary option is profitable.
- Out-of-the-money – this term describes the situation when you have wrongfully predicted the asset’s price movement, rendering the binary option a loser.
What are the available option types?
Now we have glossed over the basics, let us look into Binary Options in more detail.
The term “Binary” is used because there are only two results, either the price will go up or the price will go down. You win or lose based on these results.
There are several varieties of Binary Options.
Put or Call options
The simplest binary option form is called the Put or Call option.
The PUT option is a prediction that the price of the given asset will DECLINE over the period stated.
The CALL option is a prediction that the price of the given asset will RISE over the period stated.
These are the simplest form of binary options, and for the first stage of your trader career, we suggest sticking to these options.
When you advance to a better level of knowledge and experience wise you can experiment with different types, such as the following:
There are two types of touch options.
The one-touch option gives investors an advantage when they are confident that the asset will move according to their prediction.
They will set a one-touch option at a “trigger point”, during a period of time.
During this period of time, if the price of their asset reaches this trigger at least once, the investor will receive a payout, regardless of where the asset finishes.
Let us give an example.
The Gold exchange price is $ 1000, you decide that within the next week, Gold will reach $1250 at least once.
During that next week, the price of Gold reaches $1340, before dropping back to $980.
You receive your payout upon the trigger point being met so you are paid out.
This option is the opposite of One Touch Option. The no-touch option predicts that the value of the asset you are aiming for will not reach a certain value limit. Like One Touch Option, you or your broker set a certain price for the target asset and predict the price of the asset will not touch the price you or your broker set in a certain time period.
Double Touch Option
Double One Touch option
By taking the concept of the one-touch option, the double touch option has two trigger point values. Your option will benefit if the value of your assets touches one of the triggers that you set, regardless of which point.
For example, if the current price of gold is $ 1200, and you or your broker set the trigger’s top point at $ 1250 and the trigger’s bottom point at $ 1150, your option will be profitable if the gold price rises to $ 1250 or drops to $ 1150. Conversely, if the price of gold does not touch one of the trigger points within a certain time period, it will be out-of-the-money.
Double No Touch option
As the name suggests, the double no-touch option has the opposite direction from double one touch. You still have two trigger values but this option must be in-the-money form. It is predicted that the asset will not touch one of the two trigger points you have set for a certain period of time.
If one of the trigger points is touched by the price of your option transaction it becomes out-of-the-money and you lose your investment in assets. Therefore, traders usually prefer to invest in markets with a tight range that usually appears after the climax of selling or buying (strong price spikes).
Paired options are one of the more exotic forms of binary options. This option is only given by a very few brokers and is usually based on the performance of an asset which is related to other assets.
Here, the trader selects the asset pair from the list that has been given and bet on which asset will surpass the other within a certain time. Assets are paired by class and sector (the categories must be the same).
Although some of these options sound very interesting, we highly recommend that you stick with the basic call and put options.
For two reasons:
- Regulated brokers usually don’t offer exotic option types.
- Due to their nature, they make trading very risky. It’s a big challenge already to hit the right direction of the price movement, why would you take extra risks?
What Assets Are Used In Binary Trading?
As you become more knowledgeable, you will probably begin to prefer to trade certain assets. This is a beginner’s guide so we will not go into this in too much detail here. Range of assets can be an important judging factor when reaching a more experienced level, but for beginner traders it’s not necessarily the #1 aspect you should look after.
However, I am sure you have all seen on the news, stories about stock prices from big companies like Microsoft or Toyota. Stories about massive increased or gradual decreases in the value of stock. These are the main types of Assets you will encounter in the Binary Trading World.
On the stock index, you have to predict the value of the top shares of a stock market whether it will increase or decrease in a certain period of time.
You can trade on any stock index, be it Dow Jones, FTSE 100, Hang Seng, DAX, and NASDAQ. The advantage of playing a stock index is that the procedure is easier than buying shares through a broker, in binary options you don’t have to pay any fees or commissions.
You also do not need any fancy accreditation, or to work in the horrible environment that is the stock market.
Let the stock market traders get up early and go to work for 18 hours a day in their hot suits, whilst you get up at noon and make trades whilst sat in bed!
Currency pairs and Forex
Trading with currency and foreign exchange options is very closely related to paired options, because you can only define a price of a currency relative to another one.
Popular currency pairs are EUR/USD, USD/JPY, USD/GBP, USD/CHF, USD/CAD, AUD/USD, NZD/USD, etc
In addition, the binary options offer exchange for bitcoin with other currencies, such as bitcoin with US dollars.
Cryptocurrency and Bitcoin
This brings us onto Cryptocurrency. A currency that deserves its own paragraph due to the complexity of it.
Crypto is one of the most exciting and explosive markets we have seen since the .com era. Overnight rises of up to 1500% are not just happening, they are happening often.
A very dangerous commodity with the potential to earn a fortune or destroy. You rarely can apply normal investor strategy or analysis to Crypto, so be wary of dipping your toe into this world.
If you are interested in trading with Bitcoin, Ethereum, etc. check out our guide about Cryptocurrency Trading.
In commodity trading goods allow you to trade without having to buy these commodities physically, which of course must be very expensive. Typically, commodities traded through binary options trading are the value of gold, silver, copper and crude oil.
Previously, the sale and purchase of shares was generally only carried out by high-ranking business people who at least had a bachelor’s degree in economics or equivalent. For beginners, buying and selling shares is quite risky to do.
With binary options, even you beginners can trade up to thousands of shares without having to buy real shares from a company where you invest.
How To Start Trading Binary Options?
Even for beginners, getting into this world is very easy. With the right knowledge and guidance, you should be up and running in no time. Make sure you keep up to date with news and reviews here in order to get the most up to date information on trust-worthy brokers.
4 Steps to start trading with binary options:
- First, look for the best broker – check out for our recommendations in the “Brokers” menu.
- When you have found your broker make sure you register a Demo Account. Use this demo account to test how good the platform is for you, test the comfort and smoothness of the platform out.
- When you are comfortable with a platform depositing funds into your account. Check out our article if you need help with it.
- Sign up for our FREE Trading Academy and learn what strategies we use to be profitable while trading.
How To Choose the best Binary Options Broker?
Choosing a binary option broker is crucial for your long term investment goals. This is your hard-earned investment money here, choosing the wrong broker means you could lose the value of your investment.
We understand this, so we are going to give you a quick guide to use when investigating potential Brokers. We use a more in-depth analysis when writing our broker reviews, but the below information will give you a very good idea about what to look for.
First Impressions/General Information
When looking for a broker, first impressions are often a great indicator of whether to continue looking into a broker.
There should be clear transparent information about the company’s objectives and past achievements as well as statistics and general information about the company.
Look for trust signals such as physical company locations, details on leading members of staff, up to date news of current positions.
If learning material is publicly available and access to a demo account is free, take your time to see the quality. Compare the content of existing learning material with other material provided by competitors.
Regulations and Safety
A regulatory body, such as CySEC or the Financial Commission are 100% crucial when picking a Broker. Look for similar accreditations like the one from Olymp Trade below:
If no one is regulating a broker, they are free to do what they want, this is how most people have been scammed in the past.
The purpose of regulation consists of things such as consumer protection and strict adherence to the financial market model, as well as convincing and promoting fair competition among companies with fair rules so that consumers can exercise their rights fairly.
For binary options brokers to be regulated, they must meet the requirements and operate in accordance with the regulations set by the regulator. Among these requirements are security protocols and procedures to fight money laundering and fraud.
If a broker is regulated by FinaCom or CySEC, your trades are protected up to a value of 20,000 Euros.
Because of these regulation, we have to stress out:
Never give fake data. You will lose your money and will have no right to contest.
Please Read That Again.
Free Demo account
Every broker who is worth their salt will have some form of a demo account available to its users.
When looking for a Broker, we would not recommend going with a broker who does not have this kind of feature available.
Demo accounts allow you to test-run a platform, checking that it works for you, runs smoothly and remains stable for long periods of time and makes sure you like the style and tools available.
Use demo accounts wisely to check how well your strategies are doing, test new strategies, learn how to use different metric measurements, indicators, and chart types.
Platforms that work well no matter what your account level is, usually work out better for users in the long run.
Most good brokers will allow you to keep a demo account alongside your regular account, allowing you to test and practice without investing your capital every time.
Wide selection of Deposit and Withdrawal Options
Make sure you thoroughly read through all the terms, conditions and stipulations around a Broker’s deposit and withdrawal system.
Make sure you find out the policy for withdrawals and the time scales. Some brokers only allow withdrawals to the same method you used to deposit.
Make sure you check what the method is also, will you use international bank transfers? Or an electronic wallet such as Skrill or Paypal.
The general consensus we have found for users in India is that Skrill is currently the best way of transferring and withdrawing money. You can read our full Skrill review here.
Please note: Due to policies to prevent money laundering and fraud, you may be asked to send and confirm documents at the time of initial withdrawal, which can be time-consuming during the initial withdrawal process.
Additional Features: VIP account, indicators, tournaments
Now you should have narrowed your choices down to Brokers that have good money policies and are highly regulated and safe.
The next step would be to choose the platform you like the best. Many platforms are very similar in the Binary Options market, so if you find one with a particular feature that you like, that other brokers don’t have then this may influence your decision.
These features could include:
- Learning material: What topics and strategies can be learned from the material the broker provides for free to its members.
- Tournaments: Almost all of the good brokers have some kind of trading tournaments where you can win nice prize pools by competing other traders.
- Analysis and projection tools: Some platforms provide analysis and predictions for multiple assets. This feature provides a better understanding of scenarios and therefore increases the chances of success even further, increasing investor return on investment (ROI)
- Main Graph Quality: The main graph shows investors the most information regarding a potential investment. Although it looks simple, this is very important, when faced with investment, the ability to clearly visualize the situation helps in identifying trends. Most existing strategies are based on the interpretation of scenarios based on graphics and special tools, this feature should be maximized in its use.
- VIP Account Manager: This is a very specific type of customer service. Many brokers offer their VIP Accounts, Private account managers. These account managers act as dedicated customer service agents to individual traders, allowing for much quicker customer service queries.
- Personal consultant: Personal consultants can give you valuable tips about investing to maximize your level of profit. This feature is again usually available for users with high deposit volumes and VIP Accounts.
Hopefully, if you use the above guidelines, you will be able to choose a broker that will help you prosper and grow as a trader.
We cannot highly recommend to check out our #1 broker recommendation, as this is the one we use the most ourselves to trade, you will be in good hands.
Our recommended brokers score highly in every one of the above factors, they have very high regulation status, have won countless awards, and also have one of the most feature-rich and innovative platforms we have seen out of any currently available brokers.
How Do You Make Money With Options Trading?
You have found out about the potential to make good money with Options trading and you want to know-how. This is probably the main reason you are reading this article.
As we mentioned earlier, options trading looks very simple for the first sight, but it’s somewhat more complex than you might think. Because of this, we have dedicated a whole “Tutorial” section, the article you are currently reading is just the first part of it that is covering all the basics you have to know.
If you already know how to register a new broker account you can skip that article and jump straight to the “How to make money with online trading in theory” article.
Things To Remember!
- Risk is constant throughout all trades, but you will never lose more than you put into a trade.
- There is no need for stop losses in Binary Options Trading, you win or lose.
- Returns are on average 70%-90% per trade, sometimes even 100%
- Make use of Demo Accounts, Free Education and our Free Trading Academy, to give yourself the best possible start.
- Make sure your brokers are REGULATED
And most importantly: Using a good strategy and discipline is the key. Read our next article about how you can make money with online trading (link above), check out our FREE Trading Academy and start your online trading journey now!
Binary Options FAQ
How Much Money Should I Invest?
As with all investments, only ever invest what you can afford to lose. Obviously the more you invest the more profit you will make per trade. With $10 it is going to take you a long time to see sizable profits. But you can still learn a lot from trading at this level.
Investing around $100 is a good entry point for the average user, you can make some decent If you have the capital investing $1000 or more will provide the best benefits, you will gain VIP Status with most brokers, and gain access to all areas of the brokers’ platforms. You will gain more education and specialized tools, as well as dedicated broker support and account managers.
At the end of the day, you have to decide how much you want to invest, no amount is the wrong amount.
If Binary Options Are Profitable, Why isn’t everyone doing it?
80% of people who sign up for Binary Options brokers end up gambling their investment money with little thought or education.
Even though Binary Options can be very profitable, you aren’t going to see massive returns off $10, you won’t make thousands of such a small deposit, this can put off potential investors that are scared to deposit larger sums and just want to get rich quick.
How Much Profit Can I Make?
This depends on deposit size, trading activity, payout, commitment to self-education. It is impossible to tell how much profit you are going to make, however, we use strategies that work with around 75-80% accuracy when we trade. If you are interested in those strategies, sign up to the free academy where we will be revealing our methods.
Can I Try Binary Options For Free?
Yes, all of our recommended brokers have free demos you can try.
We encourage you to do so and spend a good amount of time on the demo before opening a real account with your hard-earned money. It does not matter how good the broker is if you don’t like or understand the platform they use.
Try your usual strategies, try new strategies, fiddle with all the possible settings. After doing that over several brokers, choose the one that felt right to you.
How Do I Withdraw My Winnings?
Please read our section on withdrawals in the article.
When Is The Best Time To trade binary options?
A crucial advanced part of your education will be the utilization of economic calendars.
Economic calendars list the times and days, when each country releases the latest data they have to the public. Certain brokers have better economic calendars then others.
Good brokers have “Data Release Days” with many of them offering bonuses for traders trading on that day.
This can be an absolutely brilliant way of increasing your profits on a day where you will have access to all the newest information.
Open a Free $10.000 Demo Account at our #1 Broker, Olymp Trade:
Der beste Broker fur binare Optionen fur 2020!
Ideal fur Anfanger!
2 Platz in der Rangliste! Zuverlassiger Broker!