In Binary Options How Trading Techniques Work Actually

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!

Copying of trades in binary options. How it works?

Copying of binary options trades is an automatic receiving of signals by the trader from successful professionals and opening positions on them. It would seem that it is just enough to find a successful trader and to repeat his actions or take the least successful trader and open opposite positions. In practice, the strategy of social trading carries no less risk than the trust (PAMM) management. How copying of trades works, what are its pitfalls and how to minimize the risk, read on.

How copying of trades in binary options work

It may seem that the trades of successful traders is the simple way to profitable trading. The main thing — to choose the right trader. But in practice, this strategy is no less difficult to implement than technical analysis or advisors. Copying of trades is possible in two ways:

  • with the help of a special service (the most famous of them — Zulu Trade);
  • using the service that represents the company (if such service is provided).

Zulu Trade works as follows. The subscriber goes through free registration for the service, opens an account with a broker from the list, replenishes the deposit. The social trading market is represented by hundreds of traders. When creating your own portfolio, you can select open mode position, to limit the risks, etc. you can choose one or several traders.

The service offered by the broker, represents an opportunity to copy the trades from their analysts or traders. Trader, in case of connecting the subscriber, receives a commission for each transaction or a percentage of his profits. The brokerage company earns on the spread, the subscriber — on a good trade.

Brokers offering services of auto-copying of deals:

  • Verum Option. Has an automated system Profit Follow. Verum Option provides instant copying (transferring positions) from any trader. The advantage of auto-copying from Verum Option — the speed of the transaction to 1.5 MS, which is one of the fastest;
  • FinMax. Offers a “Social radar.” The service is free, allows you to select up to 4 providers;
  • Expert Option. Offers semi-automatic operation mode — the subscriber decides to open the proposed position or not.

Problems of copying of trades:

  • successful repetition of trades is possible only when it is absolutely identical. And it’s not only about the asset or expiry time but also on the amount of the bid and deposit;
  • repetition of transactions should be extended. Each manager has a valid loss percentage. Once you are in the wrong band, you can lose your deposit and trade interest, then a trader will continue to work;
  • slippage. One cannot guarantee the opening of trades of the trader and subscriber at the same time. Enough to be late for a second, that the subscription will not work. The reasons for the slippage — problems with broker or platform;
  • inaccurate quotes of the asset. Quotes from different liquidity providers may vary. And if a trader opens a position on quotations of New York stock exchange, and the broker of the subscriber uses the quotations on the liquidity of the London stock exchange, the results on the same signal can be different.

And that’s just the problem of the technical side, there is also the human factor, which prevents to copy trades.

The pitfalls of social trading

This tool could be called ideal for beginners and lazy ones, if it were not serious pitfalls:

  • ZuluTrade is often criticized for the fact that the platform has no control of successful traders. If we analyze the curves of the deposit more than half of managers, it appears that they use the trade without stops or martingale. That is, tactics that are considered high-risk;
  • fake recommendations on entry to ZuluTrade market is another problem, which has been criticized on the forums. Professional accounts should be referenced to MyFxBook with the right to receive investment password. In fact the strategy of managers appear either optional trades on demo accounts, or even drawn. And from the “drain” of the deposit earns broker;
  • lack of strategy from signals provider. Brokerage company often does not check the account manager, who may be a scammer. It is enough to open at random a position on demo account, and then there are those who subscribe and pay a fee.

How to choose a reliable signals provider

A few tips on how to obtain reliable recommendations for market entry:

  • to choose a trader from those who are working at several brokerage firms and has earned a reputation as a good manager;
  • to go to the supplier directly and ask backtest, investment password of MyFxBook etc.;
  • to focus on the profitability of the strategy, and on indicators maximum drawdown, the ratio of profitable to loss-making positions, risk management.

Summary. Social trading is a good tool in the hands of a professional who knows how to analyze the market. Novice traders are poorly versed in the problems of duplication of positions, because often make mistakes. Tips for beginners:

  • work exclusively with demo account. Auto backup is not a way of easy money, and one way of learning from more experienced colleagues. Analyze profitable strategy, try it to build something of your own;
  • take advantage not of auto-copying but trading signals. Grosl Trader tool gives up to 90% good trades. Every signal you can check by the technical tools;
  • search for just “Your” broker with a platform and a liquidity provider as the source signals. List of brokerage companies can be found here.

What are Binary Options and How Do They Work?

What is a binary option?

A binary option is a financial instrument based on a simple yes or no question where the payoff is a fixed amount or nothing at all.

This means binary options offer defined risk and clear outcomes on every trade.

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!

Each binary option trade starts with a question – will this market be above this price at this time? If the answer is yes, you can buy the option. If it’s no then you can sell the option.

The price of a binary is always between $0 and $100, and just like in other markets, there is a bid and ask price.

The binary options we offer are always built the same way. Each trade is easy to understand.

If you think about it, binary options reflect the way we think about things in our daily life. Things either happen or they don’t. With a binary option, payouts reflect that and are always all or nothing at expiration. You’ll find we like to keep trading simple.

You can also close a position early to lock in profits or limit losses.

As an active trader, we know you are busy scanning markets each day. You are dealing with complexity all the time. The last thing you need is to be slowed down with more complications and hard to understand details with a brokerage.

When you trade, we know you want to focus on the market and your position, not on a series of unnecessarily complicated products.

So we built an innovative full service exchange to trade binary options that lets you do just that.

How do binary options work?

There are three concepts to learning more about how binary options work; the underlying market, strike price and time to expiration.

Become familiar with those three concepts and you’ll understand the basics of binary options.

Let’s walk through the three parts of each binary option trade:

With binary options the amount you pay is the maximum you can lose. Because of that we say your risk is capped.

Maybe you don’t want to wait until expiration. You can place an order to close your position to limit loss or lock in profit early.

Along with offering clear outcomes and defined risk, we also designed our binary options to work in a way that offers unique leverage that enables opportunities to profit even from small market movements.

1 The first step is to pick the assets or event you want to trade. Each one is based on an underlying market and your trade is based on that underlying markets price movement.

2 Then you want to find a strike price that works for you. The strike is the price level you think the market will be above or below at expiration.

3 When opening a trade you will select an expiration day and time. The expiration is the moment of truth traders live for. This is when trading is over and the value of your binary option is determined.

How risky are binary options?

You always know your binary option risk reward ratio before you enter into a new trade. Your trade is fully paid for up front, which means you will never lose more than you pay. You always know exactly what you have at risk.

Trading also offers the opportunity to profit. Just like you know what you have at risk, you will enter each trade knowing your maximum potential reward.

We’re serious about helping you understand and limit your risk. Our goal is to let you define and understand it clearly and upfront on every trade.

It’s why we’ve worked to design and offer an innovative way to define and cap risk while also providing an affordable way to trade.

You can start with one contract at a time for less than $100, and decide your maximum risk and reward up front when you set up the trade.

Here’s how that works:

If you buy a binary option contract for $30, hoping to have it end at $100, your profit target is $70. This is $100 less your $30 investment. A loss would never be more than $30 no matter how much the market moves.

We think that hard to understand margin requirements, complicated fees and confusing payout structures can make trading riskier than it needs to be.

You can make those things part of your past by trading binary options with us.

How are binary options regulated in the US?

Binary options are legal and available to trade in the US only on a Commodity Futures Trading Commission (CFTC) regulated United States exchange.

We are a full service exchange located in the heart of Chicago’s financial district and we are regulated by the CFTC.

As the leading United States based binary options and spreads exchange, we are proud to say we are designated by the CFTC as a Designated Contract Market and Derivatives Clearing Organization.

What this means for you is we are a well-regulated and leading binary options exchange.

Our role as the leading US based binary options exchange is to match buyers and sellers in a fair, accurate and secure way.

That way you can trade multiple global markets with us from one account knowing your trades are fair and your money is safe.

Binary options trading example.

Let’s walk through a trade on the EUR/USD currency pair.

Here is how the outcomes work at expiration:

  1. If the market is at or below 1.1600 at 3AM ET the seller will get the $100 payout.
  2. But if the market is one tick or more above 1.1600, you get the full payout as the buyer.

If you don’t want to wait until expiration, you can close your position at the current market price. Your profit or loss in that case is the difference between your entry and exit prices.

Each binary option reflects a question. In this case, the question is, will EUR/USD be above 1.16?

We show that as EUR/USD > 1.1600

In this example, the option has 4 hours til expiration and it’s 11pm.

If you think EUR/USD is going to be above $1.16 at 3AM, then you would then buy the binary.

How Auto Trading Can Simplify Your Binary Options Activity

For people who haven’t been on the binary options trading market for years, as well as for those who are first time users, we have some news – the trading experience with binaries has started to change every single day recently. By evolving new techniques, features and innovations, global binary options and financial services providers do their best in order to satisfy the trading audience, which demands better and better trading conditions. As a result of this process of “demand and supply”, many new modern modifications have been included in the standard trading activity with binaries. Among them, auto trading, or robot trading, seems to be on top of the best binary options trading strategies list.

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What Exactly Is Auto Trading or Robot Trading with Binary Options?

To consider whether auto trading is suitable for you, you should first become aware of its nature and application. Note that auto trading or robot trading is a common approach to trading in general, but in the field of binaries, it has gained popularity very quickly. What we can say about auto trading in short is that this is a method of trading that simplifies your entire activity on the market. This approach literally excludes your personal actions – and respectively reactions, when a change has hit the market and shaken it up – instead of the trader. You must have guessed by now, then, that auto trading with binary options is actually a robotic method. It is presented as software that allows you to have a break from binaries, but still to potentially gain profits from them. Be aware that auto trading software types are numerous. This is not a certain strategy for trading that is focused on one single and particular platform or website. There are many financial services providers (and developer teams) that offer their own auto trading or robot trading binary options software products. The one you should choose should correspond to your personal needs and level in trading in general. Make sure you select the best one!

How Does Auto Trading Software Work?

The auto trading robot software replaces you from the market with binary options and trades instead of you, while you are gone, at work, at a holiday and etc. To perform this task in the best way, the software must be highly intellectual and most developers that have been susscessful in developing such platforms simply use the algorithm approach. This is the way that the binary options auto trading technique works in few words. Check out in a few steps how you can use auto trading software, too:

  • Find a decent and reliable auto trading software platform.
  • Read the software specifications to know whether it has something non-standard or extra ordinary in its application in binary options field.
  • Become aware of the terms and conditions for using the auto trading binary options software you have chosen. Attention – some of these platforms are paid, so make up your mind as to whether you are willing to pay for such a convenience.
  • Download the software (mostly in .exe file) and install it on your device. Keep in mind that mobile binary options trading is possible and you can install the tool on your mobile device as well.
  • You can also look for a web-based auto trading or robot trading tool. It appears as an extension to your browser – Google Chrome, Mozilla Firefox and etc. Both – web-based and installation-requiring auto trading software types work similarly once you generate them on your PC or mobile device.
  • Turn on the auto trading tool, so it can detect the necessary buttons for trading directly on the broker you are a member of.
  • When the software “realises” that a chance for binary options trading is beneficial, it will click instead of you to make a trade – in the same way as you would do it manually on your device.
  • Some auto trading tools create advantageous strategies for the customers. And at some point you might be asked several questions, so the tool can “figure it out” whether to apply this system.

To Use Auto Trading System with Binary Options, Or Not to Use?

Yes, indeed, this is the question… A beginner in trading with binaries is in most cases highly motivated to use it. And if you are such a beginner, it is definitely recommended for you to give it a try. The fact that you are not so into the trading tricks and little secrets for more profits yet, puts you in the list of weak traders. In order to advance and reach the rest, using an auto trading tool could be very helpful. Meanwhile, by reviewing the actions of the software you can eventually become capable in building your own future binary options trading strategies. As to the downside of auto trading, it was considered a fraud a few years ago. There are still a few concerns with some of the platforms, however the reputable and long term providers that have survived the test of time are usually the best option. See our list of biggest benefits of using auto trading tools now and consider it for yourself:

  • Increases your potential to win and to take advantage of all the good binary options trading opportunities – including when you are off the market and too busy to trade.
  • Risk control and management that a person is rarely capable to achieve.
  • Possibility to exclude the emotional part of the trading experience, which appears to be the weak side in your money-making activity.
  • Flexibility and freedom to adjust your personal schedule with your trading goals.
  • Discharges you from the duty to read dozens of market analyses in order to form your binary options strategy.

Our Specially Tailored Tips on Finding Reliable Auto Trading Binary Options Software or Web-based Tool

If you have already made up your mind, then it`s time for you to find your auto trading software. The good news is that the web is full of them, but the bad news is that you might get a little bit confused due to this large choice. To avoid emotional mistakes, while selecting a trustworthy tool to rely on, we can offer you some helpful tips. Read them and start your search of binary options trading software immediately:

  • Know what you are looking for: including whether you prefer a paid, or free tool, as well as if you are keen on web-based extensions and tools, or the old, but gold programs for installation.
  • Filter your search in the web according to the previously mentioned features (and add some more of them, if you have them). See the first results and make a list of them.
  • Continue with research of the listed binary options trading tools. You can ask a friend, who is more familiar in the field, or try to find some additional information about the particular auto trading software – forums, feedback from real clients, reviews, blogs for trading communities and etc.
  • Try few of the options, so you can eventually choose the best one. Be aware that without testing you will not be able to make a proper comparison. Eventually, you may come upon on a bad trading tool and you will be disappointed by this technique in general. Don’t be discouraged, because it offers a great number of worthwhile benefits.

It`s all about speed and fast reaction about the market changes in binary options trading. If you are not able to provide these qualities for your personal activity, you may not be able to generate profits. The auto trading opportunity – whether as installed software on your device, or an extension in your favourite browser – can increase your speed and become your method of a good final outcome. It`s like having a partner, who`s going to substitute for you when you are not in the mood for trading. And you don’t even have to educate him in anything. Auto trading software does what you do and may make it even greater and more profitable! So, please consider it.

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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