Binary Option Trading Checklist Before You Start Trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Binary Options Trading

Binary options trading is a method of earning money that became available for everyone through the help of information technologies, particularly the Internet.

What are binary options and how do you make money on them?

First of all, you need to understand that a binary option is a type of exchange contract that is used to make a profit on the price movements of assets (currencies, stocks, products) in global financial markets.

Income from binary options depends not only on the price of a financial asset but also on a correct forecast, made by the market’s participant. If you want your contract to make some profit, you will need to determine the direction of movement of the price of the selected asset until the completion of the transaction. That is, you choose the time interval after which the price of the selected asset will be higher or lower than the current one. If you make a correct forecast, you earn about 85% (the rate depends on the broker) from the investment; otherwise you lose all the investment in the option. This tool is very convenient for hedging the risks of using other types of trade in the financial markets, for example, the Forex market.

Basic terms in the trading of binary options

Asset – currency pairs, indices, products, shares or other securities, on which it is possible to conclude contracts for purchase or sell (PUT or CALL).

PUT option – the deal for purchase of the option to decrease the value of the selected asset, which is issued if you expect a price reduction.

CALL option – deal for the purchase of the option to increase the value of the selected asset, which is issued if you expect the growth of the price.

One touch or OneTouch – deal for the purchase of the option where the price reaches a certain level (One Touch) or does not achieve it (No Touch) before the expiry.

Expiration – the time of the expiration date of the option, where the result is fixed on the contract.

In/Out-options – deal for the purchase of the option, in which the corridor is predicted; the price will move until the expiration (In option) in this corridor or output the price within the corridor (Out option).

Timeframe – is the time interval on the price chart.

Trading of binary options an affordable way of earning through the Internet

Many experts say that today’s binary options are the most profitable way of earning. They explain that if you want to receive a large and predetermined profit before you begin to trade, you need to define correctly the estimated direction of movement of an asset.

The uniqueness of this type of income is that you can get your profit fairly quickly. There is no need for long wait times as in anticipation of the charging of interest on a bank deposit. You can choose the time after which the system will check the forecast on the price movement of the asset.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

First of all, you need to understand that binary options are not something magical that can quickly make millions without risk. It is possible to earn a large amount, and quite quickly, but it is fairly complicated and has certain risks. To obtain earnings without losses, it is necessary to learn how to predict market movements and correctly calculate the direction of change of the value of the asset.

Believe us, it is not as easy as it may seem.

What is the difference between trading binary options and trading in the Forex market?

Binary options and Forex trading surely have a significant difference. This consists mainly of the fact that in order to make profit on the Forex market, you have to ensure that quotes go in the direction of your prediction ofora significant number of points, and then you have to close the deal (full truth about Forex)! But with binary options trading, everything is different – the number of points is not important. Just one item that passes by the price in the direction of forecast will be enough for you to receive the full profit! The time of completion of the option (expiration) is known in advance, whereas in the Forex market, you set the time, so there is a risk of an unplanned significant loss. But this lossis excluded with binary options: you can’t lose more bets.

Why do you need a broker?

Before you start trading activities, you must open your trading account. You need a binary options broker for this.

A broker is a legal entity – a company that provides you with access to the financial market, where you, as a trader, carry out all the operations alone. It would be better to call the company brokerage services. This is quite a big difference. Brokers can be divided into two categories: brokers that execute transactions on behalf of the client and at the expense of the client and brokers that operate on their own, but at the expense of client. The second category is often some large financial corporation in which clients are investors and receive a percentage of the total profits of the company. But the first category is the companies whose services we use in the trading of binary options.

Platform for binary options trading

The platform is a trading terminal through which you can trade binary options anywhere and at any time. The right choice for a trading platform opens up all of the features and presets for comfortable trading. A good platform is characterized by the following:

  • Quotes of the asset are presented in a large window, which helps to analyze the quotes;
  • You can choose between linear and candle charts of quotes;
  • It is desirable that the platform has been integrated with technical indicators through which you can create your own trading strategies;
  • Profitability of options should be not lower than 85%;
  • The price chart can be replayed in the trade analytics history to review the strategies, with zoom in, zoom out, etc.

Trade in binary options on Android and Apple

Traders have the opportunity to engage in optional trade without being tied to the computer. There have been mobile versions of the trading terminals in the market for a long time; through these you can carry out the trading of binary options anywhere via an Internet connection. The main difference between mobile trading and a regular trading platform is that with the mobile option, the trading platform tool will always be in your pocket!

In general, the mobile platform is just a comfortable way of having the standard platform of the broker in the palm of your hand.

Money management in the trading of binary options

The money management involves optimal and accurate strategic financial management to provide the largest possible profit. It is a science that teaches effective management of the deposit for profitable trading in the long term.

Successful trades are ensured by the adherence to one main recommendation; it is not necessary to conclude transactions that exceed five percent of your deposit.

How can you trade in binary options?

When getting started with binary options trading, you need to analyze and study the theory. For a reasonable trade, you shouldn’t move away from a simple set of rules:

1) Find complete information about binary options. Don’t think that these earnings are easy for lazy people to obtain. You should learn the theory and then you can try everything on demo practice.

2) Don’t throw all your money into trading. This is unwise. Start with «cents» and practicing on a demo account. Play it safe and take your time.

3) Choose your broker carefully. You should read reviews first and find out all of the trading conditions and what kind of services you can get from the selected company.

4) Never give your money to brokers to use on their own. The brokers are not even allowed to advise traders about anything; nor are they allowed to personally open deals from customer accounts. If you get a doubtful proposal, take your deposits and walk away without turning back.

5) When you have saved up a little money on your account, try to withdraw it. This will give you a chance to become calm and to check the honesty of the company.

6) Always remember: the deposit can be lost. Get used to this fact. If you can’t get used to it, put your money in your bank account. It will be much safer.

What is binary options trading? Is it a scam or for real?

Your activity in the financial markets won’t enable you to get rich in an instant. To earn money, you will have to work hard for a long time.

Based on the fact that binary options in the stock market are used equally with other types of trade, they fall under the legal control of the regulators of different countries. Among them, the most famous regulatory company is CySEC. There are also other companies such as FCA, NFA, FSA, ESMA, CFTC, ASIC, SIBA.

The reliability of binary options is also confirmed by the large and relevant governmental financial organizations of the countries with the most developed economies.

As far as we know, the binary options market is not regulated in the CIS. At the moment, the legislation doesn’t define the organs and mechanisms of regulation for binary options by the government of Russia and the former countries of the Soviet Union. That is why a nonstate organ currently performs the regulatory functions for the options market of the CIS – FMRRC (Center for the Regulation of Financial Markets).

How can you start trading in binary options?

1) You should explore the types of options.

2) You should estimate the current situation on the market relative to your chosen asset.

3) Find out methods for determining the contract price.

4) Find out all of the advantages with binary options compared to traditional ways of earning money. You can also read about the benefits here.

5) Make an accurate calculation of the operating expenses.

Is it possible to make money from scratch?

Yes, it is! If you want to do this, you need «to keep your finger on the pulse» and follow the news about the shares held by various brokers. Very often, traders are provided with a special promotion that allows you to try your hand at binary options trading on a real account and with real money – in other words, you are given the chance to try first without actual investing.

How much can you earn with binary options?

The value of possible earnings with binary options – the question is rhetorical and, although it is not a completely accurate answer, we will try to give you some advice that can help you earn quite a lot!

Honestly, the question is not quite correct. You can earn as much as you want! You should probably ask a different question – what do you need to do to earn a lot?

How do you trade in binary options?

There are a few success stories related to binary options; when you study this, you will be able to understand more about trading in binary options:

Best Binary Options Software

Jay Hawk
Contributor, Benzinga

Are you a binary options trader looking for the best software platform for your trading strategy? Interested in hands-on research about binary options, binary trading software and the brokers who offer binary options trading?

Remember, not all binary options brokerages are created equal, so be sure to carefully consider your needs and the security the broker provides before you start trading or investing in binary options.

Table of contents [ Hide ]

Overview: Binary Options

Binary, or digital, options come in several varieties and are often the simplest financial derivatives to trade. Binary options can yield a fixed amount of cash or the price of an asset as a payout if the buyer’s market view turns out to be correct.

Binaries offer buyers limited downside risk or premium cost in return for a limited reward or payout. On the other hand, binary sellers have limited downside risk equal to the payout and limited upside risk equal to the premium received.

Binary options allow traders to speculate on a wide range of underlying assets, some of which include:

Similar to regular options, binaries which take a bullish or bearish view on the underlying market can be referred to as call or put binaries, respectively. These simple digital options are sometimes also referred to as up/down, high/low and above/below binaries.

Furthermore, one-touch, barrier or trigger binary options pay out when their barrier level trades in the market prior to expiration, while a no-touch binary gets canceled if its barrier level trades.

Other popular types of binary options are inside/outside range binaries. The inside range binary pays off if the market stays inside the specified range, while the outside range binary pays off if the market ends up outside the specified range. Range binaries can also be structured with trigger points.

As their name implies, binaries generally have two possible outcomes through expiration or cancellation. The outcome obtained depends on the underlying asset’s price at expiration or sometimes prior to expiration in the case of one-touch or no-touch binaries that can pay out when a pre-specified barrier level trades in the market.

In the simplest case, if an at-expiration binary option is in the money at expiration, then they provide a fixed payout to the holder. Alternatively, if they are out of the money at expiration, they typically return nothing.

What to Look for in a Great Binary Options Platform

The right trading software can make a substantial difference in your profitability as you deal with options, and binaries are no exception. In general, a great binary options trading platform will have the following features:

  • Supports fast and efficient execution in the types of binary options you want to trade.
  • You can compute the fair value of all the options you are interested in based on implied volatility.
  • You can compute the Greek risk management parameters of individual options and of your portfolio of options based on a particular underlying asset.
  • Displays individual option profit and loss profiles in a graphical format.
  • Shows price charts of the assets you want to trade and computes a variety of technical indicators, including historical volatility.
  • Lists the price, open interest and implied volatility for each option series or chain.

Most binary options brokers have a web-based platform so you can view a series of assets on and select tenors, strikes, triggers and types of binary options to trade in a specified amount. These platforms usually lack any significant analytical or risk management capability.

Furthermore, some brokers that do offer binary options, such as Binary.com, will let you use the exceptionally popular third-party MetaTrader 4 or 5 (MT4/5) software from MetaQuotes. This gives you the notable benefit of having all of the technical analysis, news feed, backtesting and programming capabilities and allows you to enter binary options trades with a supportive broker.

Red Flags to Consider Before You Open an Account

Although binary options are a bona fide and limited risk derivative financial product and are suitable for individual traders, the retail binary options market has, unfortunately, had its share of issues due to unregulated and disreputable brokers. This has led to restrictions on the availability of binary options in some jurisdictions, so traders should beware of scams which involve poorly regulated brokers.

As you select a binary options broker, watch out for some of these red flags that can signal a possible problem with a broker:

  • Claims or promises of high rewards
  • Many client complaints or bad reviews
  • Warnings about trade manipulation or irregularities
  • Clients have issues getting their funds back from the broker
  • Weak or unavailable customer support
  • Reports of dissatisfied customers

Our Top Picks

Benzinga has looked over the field of binary options brokers and selected a few reputable broker choices for traders who either plan on specializing in binary options or who want to execute binary options as well as other assets through an online broker.

Binary Options Trading

In the year 2020 binary options are one of the most popular trading instruments, because of its simplicity and lucrativeness. However, before investing in binary options, it’s important to gain a full understanding of how it works to avoid making mistakes and losing your hard-earned cash.

So, what are binary options? As the word suggests they are also called all-or-nothing options, are based on a simple ‘yes’ or ‘no’ proposition; that is, predicting whether the price of a given financial instrument will go up or down by the time of expiration.

When you forecast that price of the asset will go up, it is called a “Call” option. On the other hand, if you forecast that price of the asset will go down, it’s called a “Put” option.

For example, if you believe price of gold will go down to below $1,300 at 2.45 p.m today, you can place a sell order, and reap the profits if the trade works in your favor. As simple as that! There are an extensive range of binary contracts available for binary options trading, including indices such as Nasdaq, currency pairs such as EUR/USD, commodities such as gold, and stocks such as Google.

How is Binary Options Trading Going?

So, what is binary options trading? As earlier explained, binary options trading involves predicting whether the price of a particular asset will rise or fall within a certain time period.

Importantly, as a trader, you should understand how binary options trading works, the different time frames, and the right strategies to use. If you gain an in-depth understanding of how to trade binary options, you’ll become profitable and have a rewarding career as a trader.

Here are some steps you can follow to start trading binary options.

  1. Have a clear understanding on what is binary options trading.
  2. Choose a broker that suits your requirements. You may want to choose more than one broker, as you’ll have the luxury of comparing and making the most suitable choice for serious transactions.
  3. Register a trading account with the broker. It is usually very simple and takes few minutes.
  4. Make a deposit with the broker. Different brokers offer different initial deposit amounts. To better familiarize yourself with the broker’s offerings, you can start by making only the minimum deposit amount.
  5. Select the asset in which you want to trade.
  6. Based on your analysis, predict the future direction of the selected asset. This will be in shape of “Call” or “Put” options.
  7. Select the time frame for the trade.
  8. If at expiry the price of the asset has moved as per your predictions, you will bank the profits. The payout percentage of your broker will determine how much you have won. Some brokers offer lucrative payouts of more than 90%.

Brokers

While trading demands knowledge and understanding of the market and how it operates, it is equally important to select the right binary options broker for trading .

Numerous brokers are available out there, and you must choose the best binary options brokers that sufficiently cater for your interests and trading style. You should carefully analyze the different features offered by brokers before making a decision on the one you trust with your funds.

For example, if you are based in the U.S., you should choose binary options U.S. brokers because they are allowed to offer their services in the country. The U.S. brokers are usually considered to be more authentic since the laws of binary options trading in the country tend to be stricter, as compared to other parts of the world.

In addition, you can find other legitimate brokers allowing traders from other parts of the world. Therefore, you should ascertain whether your preferred broker permits traders from your country of residence to ensure you are adequately protected by the laws, in case anything happens.

There is no denying that binary options trading offers attractive opportunities to make some quick money. And, the lucrativeness of binary options has led to eruption of binary options trading scams, aiming to rip traders off their hard-earned earnings.

For example, if you wrongly select a broker, you could end up with burned hands. Therefore, you should be careful and avoid setting aside caution, even if the deal seems too good.

By understanding how a scam works, you can be able to avoid them. Here are some typical tell-tale signs of fraudulent activities.

  • A fake company opens a brokerage service on a website that looks very real and authentic. However, after close examination, it points to scam activities. For example, the contents placed on the site, including awards, certificates and testimonials, are false.
  • A website creates trading signal software that promises 100% accuracy, even guaranteeing absolute profits. Where on earth is that possible?
  • After depositing funds and starting to trade, you end up making a loss transaction. A scam broker can contact you trying to convince you that investing more money will increase your chances of making good profits.
  • Reviews and testimonials of other traders point to the broker’s fraudulent dealings.

Trading Platforms

The features of the binary options platform you will use for trading are important. Most binary options brokers offer well-known or customized software for trading. Before opting to initiate trading in the binary options market, you should completely understand the trading terminal offered by your broker.

For example, you can simply miss out on something just because you are not familiar with where the information is placed, and how to access it from the platform.

Most binary options platform providers ensure their platforms are equipped with all the required tools and resources for successful trading. The providers are quite aware of the different requirements of traders and have developed platforms that match their tastes and preferences.

Worth noting, most brokers offer trading platforms that are web-based, and can be operated without the need of downloading. Additionally, some brokers offer mobile trading platforms, allowing you trade on the go, from anywhere, anytime.

Here are some other important considerations you should ascertain before choosing a binary options platform for trading .

  • Does the binary options platform provider guarantee the security of the platform from unauthorized access?
  • What is the number of financial assets available on the platform?
  • What are the types of binary options offered on the platform?
  • Does the platform come with additional features, such as social trading, market analysis, or trading signals?
  • Is it easy to contact the provider’s support department in case of any issues with the platform?

Binary Options Demo Account

Binary options demo accounts are important for assisting traders equip themselves with skills for profitable trading, especially if you’ve just registered with a broker or you are a new entrant in the world of binary options.

The demo trading accounts are usually provided for free, and are loaded with virtual money to assist you sharpen your trading skills risk-free, and at your own pace.

A binary options trading demo account will enable you to get acquainted with the real trading environment, without the fear of losing your hard-earned money. When used correctly, a practice account can be an effective tool that can turn you into a profitable trader for the long-term.

During actual trading, traders can lose money from making inappropriate and irrational decisions. For example, you can enter a trade and immediately start getting confused when you see the market going contrary to your expectations. However, with a demo trading account, you can develop important strategies to assist you overcome such situations, and trade profitably.

In trading binary options, making losses are sometimes inevitable. And, to be a winner, you need to understand how to overcome your losses.

Therefore, if you have sufficiently practiced trading on a demo account, you will always be very confident when live trading.

Conclusion

Trading provides a great way of successfully making good money. And, because of its simplicity and lucrativeness, the market has gained tremendous popularity in the last few years.

Importantly, before starting to trade, you should understand how the binary options market operates; otherwise, you may end up losing your hard-earned money.

If you are able to be disciplined and follow correct trading strategies, you can reap bountiful returns from the market.

Beyond any shadow of doubt, binary option trading is likely to be the name of the game for the future of financial markets.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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Binary Options Trading, Strategies and Robots
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