What assets do I trade with Binary Options?

binary_option_020All you have to remember are four possible main category assets to trade in binary options. The first and easiest assets to understand are the stocks like Facebook, Whole Foods, Disney, etc. The next one is Forex which involves the currency like the British pound, the US dollar, and so on and so forth. The next is the Indices which are the total assets markets like Nikkei or Nasdaq. The fourth and final asset to trade with binaries is Commodities. Commodities are things like steel, silver, or oil.

When choosing which assets to make your first binary trade, go with what you understand the most. This will make your decision easier. You want to have a clear mind, and your instincts and logic intact, when putting up your own money, even someone else’s.

Start

If you are very familiar with the ups and downs of the American companies, then stocks are the best place for you to start. Being comfortable with all areas of the asset category you choose to binary trade will help you make the best possible decision when calling or pulling the trade.

If you are unfamiliar with all of them, just pick one that you have any connection to and start your research. Understand your binary brokers rules and understand your asset categories behavior over the last year and you will be in a good place to start trading.

None of the four categories are necessarily easier than the other. Your best possible outcome is the asset you are familiar with and have the clearest mind in making your choices for a binary trade. You can also try your hand at all four. If being challenged gets your mind working at a more efficient level, try all four. The most important asset category is the one that makes you the most amount of money.

Do I own anything in Binary options?

binary_option_022In traditional trading and assets investment, you may have a stake in a company as in if you buy stock. You would technically own a piece of a paper that equals the percentage of what you own of in the company that represents the amount of money you gave to the company. This saves the money you invested and hopefully gives you a return in the form of dividends or the price of the stock going up thus your initial investment also goes up. In binary trading you never own a thing, and you do not have to wait long for your return.

Trading

All you are doing with binary trading is making a transaction that sets a time and says whether a particular asset will go up or down at a certain time. If the assets does what you say it does then you will get the amount of money your broker stated that you would get when you made the deal. If you lose, then all or most of the money you put up to the broker will be given to the broker. Your account will be deducted the money if you were wrong or you will be “in the money” and the amount that is stated you get since you were right will be added to your account. It is rather cut and dry. Binary trading is the instant gratification of investing.

What is Binary Option Broker?

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Binary Options trading has grabbed attention since the beginning of its inception in the financial market.  Simplicity and ease of understanding for layman are the key reasons for its popularity. As this platform of business is rising enormously, a large number of people are attracted towards this platform and joined the binary options trading. With the increase in a number of investors, the Binary Options trading has witnessed exponential increase in the number of binary options brokers.

Brokers

The figures of binary options brokers rise so rapidly that one can find thousands of such providers. These brokers vary in reputation, financial stability, and reliability. Hence, investors should pay attention before picking any broker to improve trade. There are very few of them with cemented reputation in the financial market.

The brokers monitor market fluctuation keenly and help the investors to trade potentially and profitably. Investors are looking for binary brokers that provide them the safety of funds, deposits options, customer support, withdrawal speed and many other measures.

To understand the term binary options brokers, first, we have to take a quick look on the term of binary options trading.

Binary options trading

Binary options trading – It is the simplest, user-friendly and reliable web platform to invest in the commodity, stocks, currency pairs etc. It offers traders two simple options “call or put” to trade with. The whole scenario depends upon the prediction of the traders whether they want to pick call option or they want to go for a put option.

Binary options brokers- one impressive and pleasant tool in binary options trading is broker platforms. These broker platforms are capable of generating positive result and potential profits.  Brokers help you in picking the right direction either a CALL or a PUT.  These brokers increase investor’s business and guide in a well-disciplined manner.

The role of binary options brokers- When it comes to minimising risk and invest profitably, investors are looking for reliable and expert binary options brokers.  Before making any decision related to capital investment investor must realise the role of binary options brokers.

No doubt, broker platforms help traders in many ways and also increase the profit percentage. But it is very important to choose binary options broker wisely.

Some tips

Reputation – Being a reputed broker varies a lot when there are thousands of brokers available out there with almost similar services. There are very few binary options brokers with cemented reputation in the financial market. A trader can rely for their positive results on the broker with good reviews and reputation. In the binary options trading, reputed brokers are always preferred as the first choice by traders.

Growth – Traders are always looking for potential brokers, so they used to monitor the growth of brokers. A broker with rapid increase in taking the right decision and generating profit is usually practicing the right things.

Banking – Investor must be provided by various payments options while utilising the services of a binary options trading. Quick withdrawals are very important in this industry. The trading platform must provide ease in deposit and withdrawal options to investors.

 Customer support – It is very vital part of trading. An investor should be treated immediately with their problem is the key role of customer support.

  Profitability – Investors whole run is to get the maximum profit. Few brokers provide more payouts than other brokers and for a trader; it can be the deal of profit or loss.

Diversity – Higher returns can be achieved by more options. In binary option trading traders have options like pair options, touch options, and boundaries to increase profit if they get used wisely.

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It is suggested by experts that when investors are going to pick binary broker platform to trade keep in mind the above guidelines.

 

 

 

 

Binary options trading strategy for beginners

Binary trading is probably the easiest methods of trading because of easy yes or no investment decisions. In this article we will tell you how, as a binary trader, give yourself a distinct edge and enhanced chances in a number of ways. The techniques that we will tell you can be learnt by anyone having little to no experience in the world of trading. We guarantee that it will have considerable affect on your trading abilities.

Gather knowledge about the assets:

The assets that you can trade here can be in the range of hundreds. Each asset is unique having its own properties. We recommend you to give your time in understanding just a few assets rather than going straight, in understanding them all. The more knowledge that you can gather about an asset the easier it would be, for you, to predict why it’s showing its distinct behavior. If you focus on just a few number of assets only then it is the best and most profitable practice, opening doors to further possibilities.

Work hard and practice.

Practice is all about patience and putting your hard work, will and concentration on a single entity. This is the only way to learn in binary trading. The more you practice the more the chances are that you will do it right this time. You really don’t have to waste money in doing that. Make a practice account to get the feel of the trading. Demo accounts are a great way to try new strategies.

 

 

Be in touch with the latest happenings:

You don’t have to become a couch potato and dig the news channels all day long. Following certain good websites will be just enough even for the naïve user. Be aware of the major market events. Read the daily market analysis, provided by popular websites, of markets such as Forex, Stocks, Commodities and Indices. Have access to an economic calendar. This will help you predict the market volatility.

Select the right platform.

This is probably the most important step. There is no shortage in choosing a platform because a large number of them are available. The major problem is how to choose a right one. The following points will ease the work for you.

Number of assets: Every platform will offer you with a different variety of assets. The number can vary from as little as 10 to even 100. Don’t judge a platform on the basis of the number of asset it offers. The more important thing to consider is choosing a platform that offers the right kind of assets for you and especially when trading currency and stocks. It is however certain that more the assets the more the profit opportunities.

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Returns: Different platforms offer different returns and it is important for you to compare them because they vary widely. For example trading gold on two different platforms can give you a difference of as much as 20% in the profits.

Deposits and withdrawals: This one is often overlooked by many traders. Every platform has different rules regarding deposit and withdrawal process. The affect will be on your liquidity because of certain penalties and limitations. So going through the terms and conditions is important.

A final word on how to trade

After all, that has been told, is done i.e. choosing a platform, an asset and doing all the research it’s time to trade. There are just 4 steps to do it.

  • Select an asset from Currencies, Stocks, Indices and Commodities.
  • Select the call or put option and make your prediction.
  • Finalise on an amount to invest
  • Wait for the expiry period

What will happen at the expiry is that, if your prediction was correct, at the closing time you selected, you will receive the said payout. If incorrect, you will receive only a portion of your invested money.    

Binary Options trading tips

Binary options trading rises as the giant conqueror in the arena of the world’s financial trading.  It is referred as the simplest way of trading price fluctuation in the various global financial markets. Trading with binary options offers traders a lot of flexibility to work with. But traders have to keep in mind both pros and cons of trading with binary options. Novice traders often overlook the details of binary options trading. The traders can extract huge profits on their investment; it all depends on their right decision.

binary_option_030Before making any investment, traders are suggested to understand what binary options trading exactly means. The more you understand the product, the more you can direct it towards a profitable direction. In digital electronics or mathematics, binary means two possible outcomes, traditionally 0 and 1. Binary Options trading is not different from this term, it also means two possible outcomes: one is profit and the other one is loss. If you trigger the right option, you will make a satisfactory profit otherwise you will find a little amount in your account. Binary Options trading is all about calculating the future direction of an asset.

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Trading

One reason behind the popularity of binary options trading is its ease of understanding with average traders. It offers much straight and simple environment of trading as compared to other trading programs. Binary trading provides instant and satisfactory results to the traders. It mostly requires online setup and can be connected from anywhere through computer, tab etc. A program of binary options trading runs on a variety of operating systems such as windows, Mac and even Android.

Binary options trading is equipped with numbers of benefits such as simple trading, minimum risk, trading through networks, an experience like playing game and possibility of huge profits. While enjoying rewards of binary options trading, a trader needs to take a look on demerits of binary options trading.

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“High – low” is the most common binary option offering access to commodities, foreign exchange, indices, and stocks. It is also known as fixed- return option.  A reason is its expiry time/date and in the financial term, it is known as the strike price. If an investor bets in the direction of the market and, fortunately, the value reside on the right side at the time of expiry, the trader enjoys a fruit of fixed return profit. And on the other side, a trader who moved in the wrong market direction will lose amount from their account.

Put and Call

Binary Options trading is similar to playing poker in the casino, no one knows in the next minute you are going to earn or lose money. The whole thing depends upon the decision of an investor. If investor decided to bet on the rising market, then investor probably buys a “call” and if investor decided to bet on falling market, then he/she probably purchase a “put”. In a case of “call”, strike price should be below the price at the time of expiry to extract profit and in case of “put” strike price should be above the price at the time of expiry.

To increase the probability of extracting potential profits, an investor should trade with profitable and tested strategies. Risk management and capital are the two important tools investors must have. Simplicity is the success key of binary options trading. The investor simply deals with two options, one is investor can earn gratification profits and another is flushing the invested capital. An investor can simply deal with a market like if he/she believes the market will increase, an investor will select up arrow and if he/she believes the market will decrease, an investor will select down option.

Choosing the right expiry in Binary Trading

Everyone knows that binary options are way easier to trade then the other forms of financial alchemy. We are not talking about the ease of accessibility here. Results speak and say that binary trading is attracting more and more traders from their areas and into the world of binary. The most attractive thing about binary options is their account size. There is no need to create a margin account and margin calls. The next best thing here is the risk. Take an example of spot positions which let loose your account to unlimited losses. On the other hand there is very less risk to simple yes or no trade.

And here lies the reason why so many Forex and Commodity traders have switched to binary trading. If that is not enough for you to know the catch here then go talk about the delta, theta and implied volatility to any equity trader and it will give chill down his spine. After so much discussion about how easy it is to trade, be mind of the fact that its easiness is relative to other financial instruments. That means it’s easy to make money here then with other trading areas. One still have to make an effort in understanding the market and show good judgement. And when it comes to the hardest part then one can say without a doubt that it is the expiry.

 

Some tips

Expiry in binary depends upon the platform and the broker. As for the first form of decision that you will face with the expiry would be to go long term or short term. Next will be how to determine expiry relative to time of purchase. By that we mean is it set at some fixed future date or does its time depend on your purchasing date.

Let me explain: Take for example I made a purchase at the start of the month and my expiry is fixed at the end of the month, in case of an end of month expiry, then I have a time of 30 days to the realisation of my money. If however I made a purchase on the 25th of the month I will have 5 or 6 days with me. This same thing is also true for short term expiry. An end of day expiry will have 6 to 7 hours of expiry time if you purchase it at the start of the trade. Most of the beginners in the trade aren’t aware of these restrictions on expiry times.

Choose the right expiry time based on your own strategy

binary_option_009The important thing is to understand your strategy and tie it all together. Your expiry time will wholly depend on your strategy. While trading day signals having an expiry before the end of the day you will not need long term expiry. Traders can use these tricks to pinpoint expiry times using charts. This is the most useful tip for a technician. Tell them to check back their charts, every detail including decline, correction, rally and every trading range until you get that final feeling of where the movement of your asset is going.

Don’t be worried about the size of your chart. Be it a day or a year chart. Measure your chart in different time frames. That is how you find out all the signals you would want to trade. Measure the movement of candle sticks required to move the asset and then take an average of that. This final figure will tell you how to choose your expiry. Also make sure that it is employable on your platform.