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Binary Options In Nigeria
It is a widely known fact that binary options trading has long been a favorite choice for traders who do not have large sums of money to set aside for continuous investment trading. It has now risen to a high status of being one of the most popular types of online investment, especially with traders in Nigeria and Africa in general.
Here, we will lay out the most important information about binary options trading in Nigeria, along with all the details about binary options brokers, the process of choosing the right one, binary options trading basics, binary signals, robots, what to look out for and much more.
The Importance Of Knowledge in Binary Options Trading
Thanks to the simplicity of most binary options platforms and an extensive array of trading features and tools, this type of online trading is a great choice for active participation in the global financial markets.
Binary options traders in Nigeria, prospective and current ones, have a common goal in sight and that is to ultimately profit from binary options trading but in order to achieve such a level of success, simply improvisation is not going to make it happen. Online trading, in fact, does involve a need for education, extensive experience, and several other factors. It is obvious, however, that every trader needs to start somewhere so our guide is a great starting point in your quest for binary options trading knowledge. Nigerian traders will be able to get a lot of information from our guides and reviews.
In the next few chapters of our ultimate guide to binary options trading in Nigeria, we will be sharing with you a lot more details on what to know and how to maximize your profit potential while you, at the same time, are able to minimize the inherent risks involved by being informed and educated.
Obviously, we will be starting with the most basic things in order to get you familiar with all the specific details that, time and time again, prove to be crucial for Nigerian traders when they are just beginning their journey into the fascinating world of binary options trading. We believe this will be an invaluable source for all traders in Nigeria, and not only those who are just starting out but more experienced traders as well.
Binary Options Trading Basics
The basic premise of binary options trading is fairly non-complicated. There are two straightforward options to choose from: up or down, depending on your choice. What binary options trading is based on is the fact that the price of the underlying asset you chose will fluctuate within a certain time frame, and it will either rise or fall. Your ‘job’ as a trader is to successfully predict which direction will the price take in a time frame that is predetermined. This way you are able also to know what you can possibly profit or lose, depending on the outcome of a particular trade.
The outcome amounts are fixed, whether you win or lose, and you are aware of them even before you decide to place a certain trade as the calculations on the possible profits or losses are not complex and are very straightforward.
So, obviously, the main mission for binary options traders in Nigeria is to successfully predict the direction in which the asset price will be moving in a certain time period – will it go up or will it go down, in reference to the strike price. This type of prediction is not just a guessing game, as this would result in complete failure, but there are different analysis, methods, and strategies which include tips and tricks on how to be able to analyze the markets and spot price trends and much more.
Binary Options Trading Nigeria
When it all started back in 2008, binary options trading successfully and rather quickly expanded to encompass many different countries around the world, which included the proliferation of various trading platforms which are now available in Nigeria also. Nigerian binary options traders and those who wish to become one, are now able to enjoy binary trading with a huge selection of underlying assets to choose from.
The assets available are typically grouped into four different categories: commodities, stocks, indices, and currencies. There are also several trade options and expiry times that needs to be set up in order to place the desired trade. Each broker that is on the list of available brokers for Nigeria has their own custom list of available underlying assets and helpful trading features.
When it comes to various different trading options, traders from Nigeria have the possibility of choosing High/Low, 60 Seconds, Ladder, Pairs and One Touch among others. Expiry times are also very varied as there is a selection of long term and short term expiry times, including 60 sec, 2 min, 5 min, 15 min, 30 min up to 24 hours, one week, one month and more.
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When we talk about binary options trading in Nigeria we cannot fail to mention also the inherent risks involved in participating in online financial trading. All the trades are executed on the basis of the market trend that is actually at the time of the trade placement. The great thing about binary options trading is the fact that all potential risks, that is losses, are known in advance before you place the trade. This way there are no surprises when dealing with binary options trading.
Obviously, just like anywhere else in the world, binary options are available in Nigeria completely online, and all you need to have is working internet connectivity and a device from where you can log in to your trading account and place trades.
What Are Binary Options Features?
It is pretty obvious that in order to make successful trades, there are multiple key elements that need to be aligned and functional in order for profit potential to be boosted. Trading tools and features that one chooses to customize are definitely one of those elements that can be crucial for a trader’s journey.
Trading features which include an available and realistic demo account, various different tools and options, mobile apps, analysis tools and trading limits, are all very efficient and easy ways to work towards creating better trading results that you will feel good about and which will drive you to invest more of your time into educating yourself on this industry.
Demo account is one of those features which is very much appreciated by the traders and is simultaneously very beneficial, especially for those traders who perhaps lack the extensive experience that some others might have. By using the demo account, traders from Nigeria can get accustomed to the trading platforms they are working on and gain valuable experience and knowledge in a risk-free environment. Risk-free implies that traders do not have to deposit any money in order to use the demo account, and the account itself has virtual funds you are given.
Traders who prefer to trade on the go and not have to worry about being close to their home computer in order to trade can choose to use the ever-so-popular mobile applications that allow for higher level of freedom. Nigerians have the great opportunity to take advantage of this as most of the available binary options brokers for Africa and Nigeria in particular, have trading apps which can be downloaded to smartphones or tablets.
Choosing The Right Binary Options Broker in Nigeria
Although it doesn’t seem like a daunting task at first, the truth is that choosing the right binary options broker is not an easy thing to do. Although this should definitely be one of the most important initial steps when beginning to do binary options trading, there is a distinct possibility that there will be some brokers who you might think are great, but are in fact scam. Seeing if a binary broker offers a demo account could be a good first step to figuring out if the broker is the right fit for your needs.
Obviously, there are many more criteria which you can set up to see if a particular broker is valid, among which are definitely the binary options broker reviews which are a great thing to read. Also, checking out if there are complaints about the broker you are considering or what exactly does their trading platform offer are all valid ways of figuring out the correct choice for you. Brokers such as IQoption could be very interesting for Nigerian traders as all the available reviews point to the fact that this broker is transparent and available for Nigeria. Here you can read the IQoption review.
Considering that not all brokers have the same trading features or characteristics, it is also expected that they differ in other aspects too. This is directly connected to the differences in the minimum deposit, but the standard for a minimum deposit in the binary options industry is $250 and this is also true for most brokers available to Nigerian traders. However, we do encourage you to check out this information for each specific broker you are considering in case there is a discrepancy, which is always a possibility.
Reading terms and conditions in a thorough manner is another very important aspect of hunting for a binary options broker. There you will find all the small print information that you might have skipped during your research on the general pages of the broker’s website. Make sure you read the all the segments that refer to possible bonuses, check if they have a responsible and available customer support and all the details regarding your deposits and withdrawals, so you don’t run into any surprises later.
The Important Characteristics of Brokers in Nigeria
There are several characteristics important to look at and review when you are trying to find a binary options broker in Nigeria. Like we mentioned in the paragraph above, this is definitely not an easy task as there are so many variables involved, especially if you yourself are not as experienced in finding the small differences that can prove to be big differences in the end.
Here are some of our more detailed tips on what to look out for when you are trying to find a broker that will be able to deliver on all of those expectations you might have. We do have to highlight that it is important to be realistic when it comes to this as brokers are not going to be able to make you rich in one week nor will they be able to guarantee that you will profit from each and every trade. In that respect, keep your expectations realistic and avoid scam brokers.
As any other trader, Nigerian traders can choose for themselves if they prefer to trade with a broker who is regulated or with one who is not. This is a completely arbitrary decision and depends solely on the wishes and preferences of the binary options traders in Nigeria. Regulation as such is not mandatory and brokers can choose if they wish to obtain a regulatory license or perhaps they do not think this is crucial for their work with clients.
It is important to note that, while regulatory bodies do make sure that all the processes and contracts which are in motion are being followed up according to a higher legal framework, a regulation license in itself does not guarantee that a broker will be the right choice for your specific needs. Also, not having a regulated status does not automatically mean that the particular broker is involved in fraudulent activities or that they are scamming clients. Like we mentioned, regulated status in Nigeria, is a choice that is entirely up to the broker and does not define their worth.
Considering all this, we recommend that traders carefully read the reviews we have on brokers in Nigeria and decide for themselves what the binary broker can offer them and if that is something they would be satisfied with. We have reviews on many brokers that will be helpful to traders in Nigeria such as IQoption, Marketsworld, Binary.com and Ayrex.
Terms & Conditions
Perhaps one of the most important things in any online trading endeavor is the safety with which you can execute your trades and the safety of your trading environment which includes being familiar with all possible scenarios.This is the main reason to make sure that the broker you are choosing for your binary options trading in Nigeria is one you can count on to be transparent and straightforward.
This directly ties to the ability to spot scam brokers as there are so many of them on the market. If you are not careful being able to differentiate between solid brokers and those who routinely practice fraudulent behavior, you can easily fall into their trap.
To start off on the right ‘foot’, the first thing every trader who is interested in trading binary options in Nigeria needs to do is carefully read the terms and conditions of the broker they are considering.
Most of the time, this important page on any brokers website is a vital piece of information that easily gets overlooked as most traders simply skip reading the Terms and Conditions and just click Accept. This is not a good course of action as you are potentially opening yourself to future actions and obligations you are not even aware of.
Terms and conditions are designed to provide a very detailed set of information on everything a trader needs to know that refers to trading conditions and the use of any bonuses, processes, and instruments that might be applicable to a specific situation. This part of the documents also informs Nigerian traders of their rights and how they can protect themselves in the case of any problems.
In case in which traders do not understand something they have read in terms and conditions or have additional questions regarding the content of the document, they are encouraged to contact the customer support team of a chosen broker to clear up all misunderstandings and doubts. Most binary options brokers have customer support service that is available 24/7 via various means of contact so you are able to sort all issues without delay.
Education Center and Customer Support
Apart from terms and conditions mentioned above, traders in Nigeria have a great opportunity to discuss all of their questions and possible issues with the customer support team of their broker of choice. This is a very important feature that any respectable broker needs to have as it is central to having transparent and straightforward trading experience.
While most brokers also feature a FAQ section where most of the very frequent questions are already answered for your convenience, customer support offers a human insight into dealing with a developed issue and also the ability to ask additional questions that cannot be found in the FAQ section which might be pertinent to each individual case.
The most common ways of reaching the help you need from customer support team are by email, direct phone number, webform usually found on the website of the broker, fax and Live Chat. The last option is simultaneously the most used one as it offers traders an instant access to help they need.
Depending on the setting provided by the binary options brokers in Nigeria, the customer support can also be provided in multiple different languages and not just English, which is great news for all traders who do not speak English very well or are more comfortable with articulating their issues and questions in their native language.
Education center on the other hand if focused more on providing great resources for traders who wish to expand their binary options knowledge or assess their current knowledge level. There is usually a variety of educational materials available on the websites of brokers in Nigeria and also a variety of formats in which those materials can be delivered.
Typically, education center includes information on various topics that might be of interest to registered binary options traders in Nigeria such as the economic calendar, charts and graphs, ebooks and videos, guide articles along with many beneficial trading strategies.
Ways to Recognize Scam Brokers in Binary Options Trading in Nigeria
Considering the fact that binary options trading falls into the online part of the financial industry, the security of the trading platform, trades and transactions is and should be the ultimate goal for every broker, including the Nigerian binary options brokers.
Because of the sheer multitude of various binary brokers that are present in the online trading industry, it is very important to be able to differentiate between scam brokers and those who are conducting their business in a transparent and straightforward way. There are several ways traders from Nigeria can go about learning to spot scam brokers and we bring you the most important ones:
Familiarize Yourself With the Details of a Trading Platform
When going over all the available broker reviews, try and find as much information and details as possible about the security measures used to secure the trading platforms on which the traders are conducting their trades from.
Most available brokers for Nigerian binary options traders apply very high-security standards to make sure their platforms are impenetrable to outside threats. The technology typically used is the SSL encryption which safeguards all the personal and financial details of binary traders so they are not susceptible to attempt of online hacking and intrusion.
SSL encryption represents the highest level of security available to brokers so that the traders who have chosen to register and deposit with a particular broker who uses this system are safe and relaxed knowing their private information cannot be violated.
The Verification of Traders Identity
Many brokers who high on the list of solid, worth-to-do-business-with brokers have a policy which reflects their commitment to the safety and transparent relationship with their clients. The particular policy we are talking about is called the Know Your Customer policy or short KYC.
What this means is that they have put up a requirement for themselves to know the who their clients actually are, that is, the trades need to positively prove their identity in various ways in order to start the process of withdrawing their potential profit. Sometimes, even, this verification process is necessary as soon as you open a trading account with a broker of your choice.
It is true that a lot of traders are annoyed by this very crucial step, but it is important to realize that this exists so the broker can protect your safety and the safety of your hard earned funds. This way there is no possibility for someone other than yourself, to claim your profits and withdraw them to their own account. This is a worthwhile procedure which helps you feel safe and protected.
Although the process is somewhat different among brokers, as there are so many of them so it is to be expected, the general list of documents and details that traders need to provide are the following:
- Bank statement or an alternative proof of residence
- Driver’s license or other some other document issued by your government
- ID card and/or passport
- Recent utility bill
A Binary Broker With Poor Terms & Conditions
As we already mentioned above, the process of going through the broker’s terms and conditions can be tedious work but is an important one nonetheless.
After you have gone through the information listed on the website, make notes on whether or not the terms and conditions content is easily understandable or poorly explained. There might even be cases where the section itself is very hard to find on the platform or website of your binary options broker.
It is always better to err on the side of caution when you encounter hard to understand content as it might conceal other issues. This is, obviously, not always so, in which case, the prudent thing is to contact customer support team and to voice your concerns regarding the issues you believe might pose a problem in the future.
Customer Support is Nonexistent or Hard to Reach
A binary options broker in Nigeria with which you might consider depositing with should have an excellent customer support system in place. This is something traders should not overlook or negotiate about. You always want to have the opportunity to get high-quality information on any issue you are facing, or even of you just want additional details on something you are interested in.
Scam brokers will, most often than not, note that they have a customer support system but when you go to contact them they are usually not available or there is a huge delay in the answers you are being given. This is a sure sign that this particular broker is not the one you want to register with even if you do not plan on investing large sums of money.
The right kind of customer support will always be responsive, highly educated and professional. They need to be able to deliver the needed information in a user-friendly manner and be eager to help you with any additional requests or problems you might have. Obviously, even great brokers can sometimes have technical issues and you will have to wait a bit longer to get your response but they will also have other means of notifying you of this.
IQoption, for example, according to the review we did, has an outstanding customer support which is consisted of highly trained and educated professionals who will deliver the necessary information in an efficient yet friendly manner.
Guarantee of Profit and Cold Calling
If you run into brokers who are actually promising extremely high profits and are also in the habit of actually contacting their clients to push them to make deposits or trades, be aware that the broker in question is most likely a scam broker.
This is a complete breach of traders privacy as no one should be pressured into depositing or accepting services you have not agreed to beforehand. All binary options traders, including those in Africa in general, and specifically Nigeria, should be aware that this is a possibility and should exercise extreme caution when dealing with this type of broker.
Unrealistic Offers and Promises
Most traders you will encounter will have offers for various bonuses. The conditions and terms for those bonuses need to be clearly stipulated and easily understood.
If this is not the case and you find yourself very confused or even think that the conditions are intentionally poorly written, contact customer support and see if they can sort it out and explain why this is so. If their answer is not satisfactory or if they avoiding to address the issue, you can be almost positive that the broker you are dealing with is a scam broker.
Unrealistic offers are also one of the tell-tale signs that this is a binary options broker who you should be avoiding. Promises of 100% winning rates or any other over-the-top amounts that clearly cannot be true means that this is not a good broker and you should not register with them.
Inability to Withdraw Your Funds
This is perhaps one of the most troublesome of all problems binary options traders run into. It is important to highlight, that all brokers can sometimes experience technical issues due to which you withdrawal can be slightly delayed. However, if this is the case, the broker in question will notify their clients of this and will assure them that their profits will be transferred as soon as it is possible.
But, if you run into withdrawal issues where the broker refuses to process your funds without a valid reason, or they simply ignore your repeated requests, this is most definitely a red flag. Also, make sure that all the terms and conditions for starting your withdrawal process have been satisfied on your end before you conclude that a broker is simply not willing to give you your profits.
Sometimes traders are not even aware that they have sent insufficient proof of identity or they have not met the required bonus conditions prior to asking for a withdrawal. In this case, the broker should provide you with the necessary information on how to remedy this after which you should be able to get your funds without issues.
Trading with Binary Robots
When starting to trade with binary options, some traders may come to the realization that they do not have sufficient time to spend on manually tracking and selecting their potentially profitable trades in which case they will opt to use a binary options robot. There are several of these binary options software available for traders in Nigeria such as Binary Options Robot which is perhaps the one of the most popular and reputable binary options software among traders. Read our review on this innovative auto trading software.
Nigerian traders can completely customize their trading platform with Binary Options Robot and make sure that they are placing trades that fall into the carefully selected criteria. The great thing about this software is that it offers an Auto Trade Approval option which places control over the trades completely into the hand of the trader him/herself. Once you get a notification that a potentially lucrative trade has been found, you can opt to accept and place the trade or you can decline it. This notification comes in the form of a pop-up window which delivers the details of the trade. This type of software is inextricably connected to binary options signals which we will discuss in the next section.
Binary Options Signals in Nigeria
Binary options signals are information being sent to the traders which notify them of a possibly profitable trade found by scanning the data on the global markets. In the foundations of these binary signals are complex computer algorithms which are able to scan the market, pull any relevant information and then analyze to figure out which of trades are potentially worth investing in. In the scenario where all this data crunching process is done manually, it takes a lot of time, knowledge and experience to do so.
Perhaps the most important thing about binary options signals is that they need to be delivered on time so that the traders can use them. If there is a time delay or the signals are being sent after the trades have already passed, which can be the case with trades with very short expiry times, then those signals cannot be effectively used for the trading process.
For binary options traders in Nigeria there are several different options of binary signal providers to choose from which includes: Signal Samurai, Binary Copier, Traders Buddy and Binary Signals Trader. Those are all very solid choices for anyone who is interested in trading binary options on the global markets but does not have the available time or willingness to manually track down all the necessary information that is crucial in assessing the validity of a particular trade.
Binary Options In Nigeria – Are They Legal?
When it comes to the legal side of binary options trading in Africa in general, and Nigeria specifically, they are completely legal. All Nigerian traders who are interested in trading binary options with brokers which are available for this area can do so without worrying about legal consequences as it is a perfectly legal way of trading assets.
There are various binary brokers which are available for you to register with them such as IQoption, Marketsworld, Binary.com, Ayrex, and others. The mentioned brokers have been gaining a lot of popularity among traders from all over the world and there is certainly a reason for that.
As already stated, the regulatory license of binary options brokers is not mandatory in Nigeria so there is no legal reason for traders not to choose brokers who are not regulated. This is a completely individual choice, both for the brokers and the traders, but it is important to note that regulation does not equal to legality, as binary options are completely legal to trade in Nigeria.
Binary Options Trading – Key Elements
There are certain requirements that need to be satisfied in order for the trader to maximize their profit potential and consequently minimize the risks associated with it. This no easy task as there are quite a few things that traders need to know.
Nigerian traders are highly urged to leave their emotional aside at the door when dealing with binary options. This is true for any type of financial investment as it only makes thing more difficult for the trader if he or she is not able to remain cool headed and rational when investing their funds into the online trading. Make a trading plan or even a broader financial investment strategy and stick to it. Do not let your emotions take the best of you as there is nothing emotional about trading. One needs to invest their effort, time and commitment into it but emotions will only complicate everything and create problems.
Do not fall into the trap of investing all of your funds on one trade, however certain you might feel about it. This is simply not a smart move as it is recommended that you always make sure to split your funds into multiple trades and always leave funds for backup if you ever need it.
Do not rush into trading. This is a slow and delicate process which requires patience and stability. Invest time into education and reading the detailed broker reviews. This will give you the knowledge and insight into what is the best strategy for you as every trader is specific and the needs of every trader varies as much as their personalities do.
Contact the binary options broker customer support for any questions and doubts you are having, regardless of how small you think they are. They will be able to provide you with the relevant information you are seeking while also making sure that they are available for any additional questions that might rise up.
Top Five Successful Strategies For Trading Binary Options
If you are trading without a strategy or a tactic to help you with binary options, you might as well
The article was written by Connor Harrison from Binary Brokers (BBZ). BBZ makes an effort to educate their traders so that they can understand recommendations regarding binary options, international legislation, risk management and other issues related to trading.
Trading in binary options is one of the popular trends in the financial markets today. Both experienced and novice traders are rushing to include them in their investment portfolios. Just like any other trading platform or business, you must have a strategy to use in order to consistently be making money.
If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling. Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment. You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning.
Bet or Trade?
Strategies are generally categorized into two groups. These categories are;
- Betting model based strategies – In these strategies, it is assumed that the investor will employ betting strategies, whether they are familiar with financial markets or not. These strategies use several tactics that are designed to increase the probability of winning. Strategies based on the news are the best example in this category.
- Market behavior strategies – In these strategies, the investor relies almost wholly on technical and statistical data that are readily available or that which they have researched and worked on. While these strategies are a bit harder to understand and master, they are the most reliable ones since they are objective. There are techniques developed to help you understand some of the data, such as charts and which will make it easier for a new trader.
The popular strategies to go for are:
I – Fundamental Analysis Strategy
This strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option. The other factors that you should check out include the employee and the business partners’ satisfaction. In short, this strategy tries to look at the overall picture of the business they want to invest in their stock and at times the overall industry.
II – Technical Analysis Strategy
This is a quite popular strategy in options trading. It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset. It’s quite useful in options trading because as a trader, you don’t have to delve into the company’s financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average among others.
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III – Basic Options Strategy
This strategy is quite popular among options traders. It is designed and employed by a trader to safeguard him/herself from incurring total losses on their investments. You will pick an underlying asset or currency that you are interested in and then if the market movement of the strike price is heading towards a good direction, say upwards, you place a call option. At the same time, you will place a put option on the same asset.
Let’s use an example:
The GBP/USD currency option is going at 1:4000. You place the call option of $100 which will expire in 30 minutes. The payout is 70% and 15% if you lose. In the first 15 minutes the asset is at 1:4015 which is good so far. At this specific time, you buy a put option for the same asset at 1:4015 expiring in 15 minutes at $100. The payouts are the same as those of the call option.
At the end of the 30 minutes there will be two outcomes;
- Your 30 minutes call option wins and the 15 minutes put option losses. You will have earned $185 from the 70% call winnings and the 15% consolation refund from the put option (the opposite can happen, put option wins and call option losses).
- Both the call and the put options end up in the money. You will get $340 ($170+$170). Since it’s almost impossible to lose on both options, the general risk of loss in this strategy is only $15 in order to win $140.
IV – Algorithmic and signals
There are apps which are sold and which are very good at trading or analyzing the market data. You might find it appropriate to invest in such an app. This app is installed in your computer and gathers data that you want and then analyzes it to come up with the best possible outcomes. Technical and fundamental analysis data are used here.
The computer will then pick a trade for you to trade in. You could even go ahead and design the app to be actually trading for you. You will however need to be regularly updating the raw data that the app picks its analyzing details from.
V – Co-integration Trading Strategy
There could be two stocks in the market that have a high correlation relationship. This could be because they are in the same industry and are traded in the same market, hence affected by many factors the same way. Given the high correlation between such a pair of stocks, you will find that whenever there is a gap between them it will close soon after. The gap can be caused by the weakening of one stock temporarily. The main task here is to identify the gap.
After identifying the gap, you should buy the call option for the stock that is weak or a put option for the asset if the stock higher in price is bound to come down. Eventually, the two assets will come to the correlation path and that should be the ‘point of exit’.
Strategies, just like investment options, are many and you could end up with one which gives you consistent winnings. If you are a new trader, research well and identify the one strategy that best suits your trading portfolio and pattern. If you are a bit more experienced, you can create your own strategy or combine two existing ones to form a hybrid.
Binary Options Trading Guide
On this page, we will go through the basics of binary options trading. When trading with a binary option robot, you do not necessarily need to know anything about binary options investing, but it is useful to be aware of the mechanism by which option robot operates. Plus, if you are interested in binary options trading so much that you do not want to use the robot, you can do everything yourself. In addition, remember that the robot does not work with the best binary options brokers, so if you want to take advantage of every good money making opportunity, it is also good to know at least a little bit about binary options and option signals.
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TABLE OF CONTENT
How to Make Money with Binary Option Robot
Top Binary Option Robots in Russia
Claim your free binary option robot, get started with three easy steps:
- Name of Robot
- Min. Investment
- Min. Deposit
1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time.
2. The Binary Option Robot Will Predict the Price Movement
Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall.
3. Decide on how much you want to Invest
Then you need to decide how much you want to invest in the commodity and when that investment will expire.
4. Collect your Earnings
Finally, you collect your earnings (the good part!)
What Are Binary Options?
Binary options are definitely one of the most fascinating new investment instruments. Their history goes back as close as the year 2007 , when they first got a lot of advertising with Option Clearing Corporation proposing to authorize binary options , and in the following year, with the Securities and Exchange Commission approving the listing of cash-or-nothing binary options.
The investor has two possible options: “Call” when the value of the property is expected to rise , and “Put” when the value of the property is expected to decrease. In order to prevent price manipulation ( for example: an investor makes the first binary option trade “Call” with a very large sum of money, and after that, buys a very large amount of stocks of that company, inflating the stock price in order to force a binary option investment to be successful), many brokers use a volume-weighted average of trades at the expiration time. In most cases, price manipulation would not be even possible, because the investment objects are major companies , such as Google and Alibaba Group , whose share prices are almost impossible to be affected by an individual investor .
At some point in our lives, we’ve all been affected by some type of a global financial crisis. The end result is normally devaluation of assets, recession, unemployment which negatively impact global trade and investments.
Banc De Binary observed the aftermath of a financial crisis and decided to make an investment from it. After the 2008 financial meltdown, Banc De Binary founders anticipated for a demand in simpler ways to trade in the financial markets. As a result, they designed a simpler instrument of trading that was both accessible to experienced and disheartened investors. And that is how binary trading began. Today, they are quite a number of binary option platforms that offer on-line trading. What’s more is that you can use a binary robot trading software which will do all the trading for you.
Binary options trading is a fun and exciting way to invest.
Binary Options Defined
So, what is a binary option? A binary option is an investment tool that makes profit from price movement in stocks, currency pairs, among other commodities. This trading investment is so simple in that it gives traders only two possible options: yes or no. It is the dual choice that resulted to the name ‘binary’ or the commonly used term ‘Call’ or ‘Put’.
Now that we have already established that profits in binary trading are derived from price movements, it is important to understand the trends that result to these movements. Trading can be easy but identifying the patterns that lead to a successful trade can prove to be a daunting task.
The global market is never constant, it keeps changing. If you want to make the most out of your trading, you probably should identify strategies that will make use of these changes. Read through to discover some of the strategies that you need to look out for.
1. Look Out for Breakout
A breakout normally occurs when prices trade within a close-fitting range. The main idea behind breakouts is to identify a price range in which the present price will ‘break through’ as it moves towards a trading range. This means that you need to identify a potential break out level and further anticipate for it to prevail in the market. The stronger your breakout level, the more likely you will experience a strong move.
When looking out for a breakout level, you also need to identify a market’s momentum. This means that you need execute your trades in times of low liquidity. This is usually towards the end of the market when the volume is stronger.
Key considerations for a breakout trading strategy
- It is important to adhere to correct timing in order to avoid whipsaws and pullbacks that normally arise from a break.
- Identify the right market for trading. Use currency pairs because they tend to have more breakout opportunities as compared to other binary assets. What’s more is that currency pairs carry the levels volatility required in breakout trading. Breakout requires an asset that shows a considerable amount of movement during a set period of time. As a result currency pairs works best.
- Avoid early anticipation of a break: wait until your breakout level confirms.
- Remember that defining your breakout level will highly depend on the type of asset you’re trading and the time period that has been set.
Beware of fake outs: this is simply a break out that is not real. There are times when the market tends to test a resistance or support line. In such an instance, the price can briefly shoot above or below and right after go down again to generate a spike. Avoiding a fake out largely depends on experience and an authentic trading system. It is important to note that choppy markets are characterized by fake outs. Smoother markets on the other hand are less likely to generate them.
Basic situations in a binary options trade. Tom and Jim are basically “betting “against each other.
2. Watch Out for Retracements
A retracement is defined as a price reversal that usually takes place within a larger trend. A trend is generally seen as the direction of a market or the direction of a price asset. The key point here is that these price reversals are temporary. They do not imply to a change is a larger trend like breakouts.
If you open an asset chart, you are likely to see a retracement. Even in a strongly trending market, you will notice little peaks or dips which counter the general movement before resuming its course.
How can I use a retrace to my advantage? When you have spotted a trend, it is important to wait for the first retracement to complete before entering a trade. A completed retracement tests resistance or support which further acts as a confirmation of a certain price direction.
Let us say you are interested in buying gold probably because you believe that its price is going to skyrocket. Your immediate reaction is to place a ‘buy’ on the binary option for gold. However, when price retraces you will find yourself loosing. There is also the possibility that you’re misinformed about the trend; the signal you are observing might be a fake out and not a break out.
On the other side, you can wait for the initial retracement to happen and right after enter your gold trade. This way, you stand a better chance of making the right move since the counter movement will have been tested by the market with support being held firm. It is good to understand that you will still be faced with retracements ahead. Even the strongest of trends is usually faced with minor retraces.
3. Identify Support and Resistance Levels
Identifying support and resistance levels is one of the most reliable strategies in binary trading. A support level is defined as that level that keeps the market from attaining lower levels after it has been rejected at least twice. Resistance level on the other hand is defined as that level that prevents the market from attaining high levels after being rejected at least twice.
There are normally three things that happen after a market has hit a resistance or support level:
Knowing what the market is likely to adapt to after attaining these levels makes it easier for one to design a trade strategy based on that information.
You can only identify support and resistance levels through plotting. This allows you to see where the price is hesitating upon current levels. It also allows you to see other future areas where price might likely hesitate at. These levels are commonly termed as “pivot levels”. Pivot points can also help one to figure out the most viable expiry time for a specific trade.
How can one trade by using support and resistance levels?
For an upward trend, the price has to go above the resistance level. If it does not go higher than the resistance level, it will either maintain its position above support level, form a range or take a downward trend. You can go a long way when prices go beyond resistance level. This is because it forms another peak which is usually higher than the previous level.
For a downward trend, the price has break right below the support level. If this does not happen it will maintain its position above the support level, form a range or adopt an uptrend. With a support level you can go short when prices break below this point. When a price breaks below this point, it goes lower to form another support level which is lower than the previous one.
Points to note:
- The more a price is tested at a certain support or resistance level without attaining a breakout, the stronger that resistance or support level is.
- When support levels are broken they become resistance levels and when resistance levels are broken they become support levels.
4. Recognize Market Conditions
One strategy that will take you far while doing binary trading is recognizing and interpreting different market situations. The binary market can be highly compared to the weather, it comes in different patterns. One time it will be smooth sailing, the other time it will be choppy and unpredictable. Listed below are the various examples of a market condition.
- a) Ranging Markets
This is a type of market that keeps moving back and forth between higher highs and higher lows making it difficult to attain a breakout. It can be tough to profit from a ranging market but there are different types of trading that could feasibly help you become profitable. These include:
Boundary or trade ranges: they are designed to help one profit when price is trading within a particular range or channel. When you are range trading, what you’re basically implying is: price won’t go beyond the defined range boundaries. If indeed price does not go beyond the set boundary then you make a profit.
No touch trade: this type of trading implies that price will not touch a specific set value at a given time period. If price touches the set value, too bad because you lose. You win the trade when price does not touch the given value. Payout usually depends on how close the set value is to the current market value for a specific asset.
- b) Trending Markets
This is a type of market that is characterized by prices moving towards an obvious direction through a systematic and well-defined fashion.
The dominant movement in a trending market is upwards and downwards. Profits can be made by spotting trends as they develop.
- c) Chopping Markets
Many people confuse chopping markets with ranging markets. They have some similarities but unlike a well behaved boundary market, choppy markets feature whipsaws, spikes and other various forms of misdirection that can easily trap an unwitting trader.
The easiest way to identify a choppy market is through trading bars. A choppy chart is characterized by lots of bars that are coupled with relatively short bodies and long wicks. When you identify long wicks it means that the market has been testing high and low prices but is still facing too much resistance or support to move anywhere.
Is it possible to profit from a choppy market? In rare cases it is but most people don’t trade on it. The wisest choice is normally to wait until things smoothen again.
5. Use Trend Signals
How can one spot a potential breakout? Through using methods that easily identify breakout signals. Basically, a trading method identifies when to enter trade based on fundamental indicators, events and price changes. A trading method can also help identify the best trade. Listed below are some of the prominent trade methods that can be used to identify trend signals.
- Technical analysis: this is a trading method that revolves around technical analysis. You are simply required to plot indicators on an identified chart. This will help to spot breakouts.
- Fundamental analysis: it involves looking at important events, new releases which can drive price movement towards a particular direction.
- Price action: this is simply the process of identifying certain formations in bars or candlesticks that signal the ability of price to break out from its range.
Tips and Tricks that will get you Ahead in Binary Trading
Apart from binary strategies, there are a few tricks and tips you can add up to your sleeves to make sure you always make the right trading choice.
Find a working strategy
There are numerous strategies out there. Finding one that personally suits you can prove to be a daunting task. It will involve the process of testing numerous systems and strategies. When you identify one that works, stick to it as you continue learning all the ins and outs of it.
Stick to longer expiry dates
It is normal to want everything to happen “now”. Have you ever heard of the saying that ‘good things happen to those that wait.” This is more true when it comes to binary trading. Markets have a lot of noise and it can be easy to get tempted to trade on smaller time frames.
This can work but in most times, the trade usually goes right for a while then it takes a turn towards a downward trend..This happens all the time and it can be very frustrating.
Trading with longer expiry dates cancel out the option of listening to market noise. However, this is not to say that you should never use short expiry dates. With experience and the right strategy, a short expiry time can have its moments.
Put your Emotions in Check
Statics indicate that the biggest reason why most traders fail is because they never take charge of their emotions. Trading psychology is a difficult aspect to overcome and it might take years before you can fully function out of emotions.One tip that will help you is to always
go with what you know rather than that gut feeling.This means submerging yourself more in the learning process in order to make decisions on facts rather than intuition.
Identify the right broker
Identifying the right broker is essential in making a successful trade. There are numerous traders in the market and it is up to you to identify a legitimate, reputable, trustworthy and professional broker.
Some of the things you need to look out for when identifying a broker include: withdrawal times, customer support, tradable assets, payout percentages, regulation among others. At the end of the day, a broker should fit within your needs and preference.
Practice makes perfect
If you want to become a master in binary trading, it boils down to three things; practice, practice and more practice. You don’t have to use real money when practicing. With demo accounts you can trade without spending a dime. Try back testing by using various historical charts while identifying different assets and at the same time looking for trading opportunities. Try and find out what will happen if you followed particular entry rules within different market situations.
In order to achieve success, it is recommended that you present yourself at a trading market for at least one hour a day. During that time you can make up to three or more trades. In the first few months it is important to dedicate yourself to learning.
Don’t fall in love with just one asset or strategy
The market is never constant, it keeps changing. So is the assets behavior. Committing yourself to just one strategy or asset is setting yourself up for a pitfall. For you to succeed, you have to be dynamic and rational. When a market change occurs be ready to adjust it to your trading performance. Make sure you do your homework right by looking out for all the adjustments needed for your daily trading routine.
Binary options trading is sometimes extremely fast paced.
The Future of Binary Options Trading
It has been seven years since the platform for retail binary option trading first rolled out. What does the future hold? Knowing what the future holds will help you get ahead of time and in return experience greater success.
According to experts, the future appears to be bright and fully loaded with opportunities for growth. Some of these opportunities include:
New Asset Types
Technology and innovation is continually resulting to the existence of new trading assets. The number of assets that can be traded is expanding. There are brokers who have started to offer crypto-currency Bitcoin as an item for trading.
Today, traders are demanding more asset ratios from their brokers such as gold verses silver or oil verses gold. One thing that many brokers will never tell you is that you can succeed by scrambling for these new asset ratios. Make sure you watch out for them.
Experts are also foreseeing the probability of new binary option contracts which are based on economic data releases. For example it may soon be possible to bet on high impact news release. These include building permits, consumer sentiment surveys, among many others. These releases can cause specific assets to hit or not hit specific price targets.
New Trading Types
The advent of new trading types is one thing that savvy traders should look forward to. Japan has taken the front line and has already set the ball rolling by launching a new trade platform that features exciting trade types that conform to regulatory conditions set by FFAJ. An example is the introduction of 0-100 binaries
Use of software and technology
Existence of new software has made trading to be easier than it used to be. The market is already faced with trading robots which have an automated software attached to browsers, This allows them to communicate with trading platforms and in return execute trade for traders operating on an automated basis.
Binary trading is still a fairly new investment tool and many may shy away from it. The truth is that binary option trading is an investment just like any other. It possess its unique advantages and disadvantages. However unlike many other investment vehicles, binary options:
- Have fast returns: for many investments you have to wait for at least six months before you start experiencing high levels of profits. With binary options it is possible to see returns right after 60 seconds. Most have an expiry date of one day or shorter.
- It’s the easiest form of investment: all you need to do is learn a few tricks and you are good to go. What’s more is that you will be trading only on a dual basis. It doesn’t get any easier than that.
- Have high returns: it is possible to experience a return of 70% and above.
With that said, it is time to learn how binary trading actually works. If you play close attention to the strategies mentioned above, you may be surprised with the amount of money you will be able to earn. What’s more is that we’ve provided you with some tricks and tips that will help you get ahead.
If you want to know the main differences between binary options and forex trading, I recommend you to read the following article:
- Binary Options vs. Forex (Differences explained . You will also learn which one fits you better and why . )
How to trade with binary options? A simple four-step guide.
Step 1: Choose the trading asset. First, you have to choose your preferred trading asset. You have hundreds of different options at your disposal, such as stocks, currencies, commodities and indices .
Step 2: Choose the direction. Next, you need to select a direction. If you believe that the price will increase, select “call,” but if you believe it will decrease, select “put.”
Step 3: Choose the desired investment amount. You need to choose the amount you wish to invest. This can be anything from a few dollars to tens of thousands of dollars.
Step 4: Choose the expiration time. Select the time when you want your investment to expire. This can be anything between 30 seconds and several months.
After this, you just need to wait and see if your investment went right.
Example of a binary options trade
The starting price of gold is $1,167 at 12:30 p.m., with an expiration time of 60 minutes.
If a trader thinks that the price of gold will close at or above $1,167 at 1:30 p.m. , he/she can buy a “call” option contract on that outcome. If a trader thinks that the gold price will close at or below $1,167 at 1:30 p.m. , he can buy a “put” option contract. If the value is more than $1,167 at the expiration time, the “call” investment will win , but if the value is less than $1,167, the “put” investment will win .
How do I earn money using Binary Options?
Earning with binary options is easier than you may initially believe. You just need to know if the value of the trading asset is more likely to move up or down. Remember that not every trade needs to go right; it is sufficient that you make a profit in the long term. Please check out the following simple example of how to make money with Binary Options.
Step 1: Choose the right trading asset
This is the main point of Binary Options trading. You should start thinking about what trading asset could be the most suitable for you. Do you have first-hand knowledge of some asset? Do you have a strong view on what direction the value of a particular trading asset will change? Do you have friends or relatives who have strong knowledge of some trading asset? If so, can you use it in your investment?
If you answered yes to any of the above questions, you know where you should start. However, if your answer to all questions is no, then you have in front of you a little bit bigger task, but the reward is also in the best case really good.
How do I find the right trading asset without prior investment knowledge?
One of the most important factors is to follow the financial news . Is there something happening in the world now which you could benefit from in your binary options investments? You can also explore what trading assets brokers are offering and which would be fastest for you to learn. Alternatively, are there any trading assets that you are particularly interested to learn better?
One of the advantages of binary options is that you can make big profits from the mere fluctuations in the value of assets. For example, if the value of gold rises and falls back and forth from one day to the other , but it remains within a few percent of the same range in what it was a year ago, you will still have the opportunity to earn large sums of money, if you have correctly anticipated the direction of the change. On the other hand, if you had invested directly in gold , the value would be close to the same one that existed a year ago .
Step 2: Choose the right trading strategy
Binary Options Strategy Articles:
As a binary option investor, you have a number of different strategies and options at your disposal . I recommend trying several different strategies and use the most profitable . Once you have learned how to productively use one of the strategies, you can gradually increase other ones into your repertoire. This way , you will always have several different options for obtaining as high yields as possible. Next, we will discuss the ten most popular and profitable strategies.
Strategy number one: Binary option pairs
In binary option pairs trading , you have two different trading assets and you need to know if either value will increase compared to the other within a desired period . This is a particularly good strategy in situations in which you think that a specific event will raise the value of another trading asset and decline the value of another . Even if your guess would go a little bit wrong, and the value of both declines, you can still win if that which you originally though would decline actually declines even more .
Gold vs. Silver is one of the most popular trading pairs
Strategy number two: Long-term binary options
Long-term binary options are similar to stock investing. The expiration time may vary from a few hours to several days and even months. This is my personal favorite strategy. It is ideal for individuals who invest larger amounts of money and want to carefully analyze the trading assets before investing.
Strategy number three: Sixty-second binary options
Sixty-second binary options are the precise opposite of the long-term binary options. They are a short-term form of investment in which the risks are considerable , but if you learn how to make profit with them, only the sky is the limit for how much money you can earn with them. Sixty-second options are suitable for investors who are able to accept the fact that if they want to win a lot of money , they have to be willing to lose a lot from time to time.
Strategy number four: One touch binary options
When you are trading with one touch binary options, you make profit when the rate goes above or below the set target price. On the plus side is the fact that once you hit the target price, your investment cannot go wrong , even if the value of the asset changes in the other direction strongly thereafter.
Strategy number five: Binary options ladder trading
Ladder trading means what the name suggests: you have many different levels, each of which are paid a certain percentage of yield. This form of investment is suitable for those cases in which the investor believes he knows which direction the trading assets value will follow , but it is not sure at all of how much value eventually will change and in what time frame.
Ladder trading is an excellent strategy for skilled investors. You can get very high returns in a short time.
Strategy number six: Pinocchio strategy
This is one of the clearest and simplest strategies. When the value of the trading asset rises, it is expected to fall next , and when value of asset falls , it is expected to rise. The investor always invests in the opposite direction of the market trend. It operates under the assumption that markets often overreact to certain news, and because of this, value changes momentarily more than it should change, correcting itself, sooner or later.
Candelstick charts are an excellent tool for for those that uses pinocchio strategy
Strategy number seven: Support and resistance lines strategy
Support line is the point of which value does not change lower and the resistance line is the point of what higher value does not rise. These often apply particularly in certain commodities, such as the value of coffee or sugar. When values are sawing a certain range within the framework, it is easy for the investor to benefit, when he discovers that the value is approaching one of the two levels and will most likely will go in the other direction very soon.
Strategy number eight: Trend strategy
Trend strategy is also a very simple strategy, and something that both novices and experienced traders often use, considering it is really good and functional. In trend strategy , you invest in the market trend ; if it is rising, you place a “call” investment, but if it is descending , you place a “put” investment . You can use support and resistance lines for help to assess when the trend direction changes.
Strategy number nine: Martingale & anti-martingale strategy
Martingale is a strategy especially and frequently used in gambling . In martingale , you always double the bet when the investment goes wrong. This way , you make profit even if you just get one of those investments to go right. Martingale is really a high-risk strategy ; you rarely lose when you use it, but when you lose, the amounts tend to be big . The reversed version of this strategy is anti-martingale. Through it, the stakes are only doubled when the investment is correct ; wins are rare, but the sums tend to be big . Please read more about the Martingale strategy on the following article:
- Binary Options Martingale Strategy (Can you earn tens of thousands of dollars using it? All the secrets of this strategy are now being revealed for the first time.)
Strategy number ten: Fundamental analysis
Fundamental analysis is often used in stock trading ; it focuses on the determination of the real value of the investment object , based on various economic indicators , such as : the overall economic picture, the profitability of the industry , and future growth prospects. Making fundamental analysis requires a lot of time and effort, but the end results obtained can be generally utilized in various ways.
You can also mix the strategies as desired . For best results, I recommend you to first study a single strategy properly.
Step 3: Choose the right broker
Choosing the right broker is extremely important, as there are some dishonest operators on the market who are trying to ruin the reputation of honest ones by acting unethically. We only mention the most honest and reliable binary option brokers on our recommendations . If you only invest on our recommended brokers and open accounts through our links , you can have peace of mind and more time to focus on the most important thing : making money by investing. Our number one recommendation is IQ Option , as they have the smallest minimum deposit ($10), the best trading platform and the best bonuses.Best Binary Options Brokers 2020:
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