What are Binary Options? They are simple, quick and profitable!
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- What are Binary Options?
- Best Binary Options Companies
- What are the Advantages?
- Strategies for Trading Binary Options
- How to Choose a Proper Broker?
Binary Options (BO) are a simple, quick and beneficial way to earn money in financial markets. They are likely to be the most profitable method to earn. Why? Everything is very clear: to get a large predetermined profit by trading binary options the only thing for you to do is to define exactly whether the chosen asset price (currency, oil, gold, Facebook) will increase or decrease within a given period of time.
The primary thing to know about Binary Options is to remember that you will get the whole profit in any case even if a dollar goes up by one cent! Except for the simplest type of BO – “high/low” presented in our example, there are other types of binary options which allow getting even a greater profit. Don’t you know anything about currency movements, and don’t you want to trade currency in Binary Options?! Working with our partners, you will be able to earn using more than 250 asset types which include shares of such great companies as Apple, Facebook or popular commodities like gold, oil and stock market indices – Dow Jones, NASDAQ.
|Best Binary Options Companies for Beginners|
|Raceoption Review||–||85%||$250||Up to 100%||N/A||Trade Now|
|FinRally Review||–||90%||$250||Up to 100%||Read Review||Trade Now|
|BinaryMate Review||–||90%||$250||Up to 100%||Read Review||Trade Now|
|BinaryCent Review||–||90%||$10||Up to 100%||Read Review||Trade Now|
|Daxbase Review||–||85%||$250||Up to 100%||Read Review||Trade Now|
Binary Options online have become available for a wide range of traders quite recently. After the American Stock Exchange and Chicago Board Options Exchange allowed trading on their platforms in 2008, BO stopped being something exotic and turned into quite a common type of transactions. Nowadays BO online may be considered to be the best way to earn money at the stock exchange.
Can you Find Anything Easier?
Not only are Binary Options so popular due to their high yields, but also due to their relative simplicity in studying. Everybody knows that you can’t be born a trader; you have to turn into a trader. But if you want to be a successful trader at the stock exchange, you have to possess a large body of knowledge and experience, however, in case with Binary Options everything is much easier.
The same is true for trading itself. A trader chooses one of two possible options – an asset cost increases (Call) or decreases (Put). In other words, there are no complicated manipulations with graphs, switching between different computations and calculations. At least it is not necessary to do ones at the moment of closing a transaction.
Binary Options Review: Advantages
- Limited risks: a trader risks only the transaction amount.
- The transaction expiration: a binary option is closed without a trader’s participation when the option expires.
- The performance: to get a result the difference in price points is not important; the asset price trend is to be considered.
The profitability of one transaction made with classic binary options gets up to 70-94% of funds invested.
Almost all types of classic stock trading are focused on getting long-term results. Thanks to Binary Options a trader can receive a significant result even in one minute.
Total Control over Risks
While trading Binary Options a trader originally knows the profit amount and risk level, which allows distributing the trade efforts and managing the capital properly.
It is due to the simplicity of getting profit with binary options that this financial instrument has become so popular in the Internet. Studying the materials of our site you will know that BO trading can bring quite a significant income at the minimum of your time. Novices in trading happen to fail due to their inexperience, for this very reason the primary attention in this article is paid to mistakes. Our site offers to acquaint you with Binary Options and trading techniques step by step, which will lead to reaching such a level when the trading system will work for you.
Minimal Risk and Guaranteed Income
The essence of Binary Option trading consists in the correct estimation of asset profitability within a definite period of time. If your supposition comes true, you will make money. Otherwise you will lose your money. However, the size of both losses and profit is known in advance. Taking a decision on buying or selling an option a trader knows exactly how much money can be lost or earned. This is one of the key differences of Binary Options from other trading types where losses can considerably exceed the asset cost.
Depending on circumstances each successful transaction brings a trader not less than 65% of its sum. In many cases this level is even higher, up to 91%.
Types of BO
There are three main types:
- High/Low Options – This classic binary option is ideal for novices in trading. All you have to know is to determine where the asset price will go: up or down. If the asset price changes by one point or more in your direction by the option expiration, you will get profit. The income of BO transactions can be 100% of funds invested. Forecast the price trend to buy an option “High” or “Low”.
- Range Options – Use the option, if you forecast the asset price to be within a given range. If the asset price occurs within the given range by the option expiration, the transaction income can be 100% of funds invested. Make your predictions and buy “Range” option.
- One Touch – The profit can be obtained with binary options if the asset price has touched some given levels. Your transaction income can be up to 90% if the asset price has touched the definite boundaries at least once. It can be both upper or lower levels. Forecast the price trend and buy options “Touch Up” or “Touch Down”.
Strategies for Trading Binary Options
After looking through sites we have found some of the best binary options strategies for trading our tricky pseudo-financial instrument. We will present our comments on their secrets in turn:
- Martingale. They call it “Double up” and say that if you consider an asset to go in the direction you have opened the position in, you should double your investment. Firstly, taking psychology into account a person who is already losing is inclined to double, secondly we have heard that this strategy causes the greatest losses; it is true especially for those who don’t follow strict discipline and don’t have any definite experience. (But aren’t you that kind of a person?!)
- Roll-Over. Binary options have their contract expiry time (60 secs, 30 min, 1h, 1 week, etc.), this function allows traders who are losing money to transfer their positions to the following expiry time. In principle, it is the same Martingale, why? The thing is when you transfer your position to the next time your investment grows by 30%. The situation is: you are losing money, and you are given some hope to get back all your investment if you add no less than 30%. (Can’t you use that?!) Such a function (strategy) works only once.
- Put+Call, Call+Put. At first sight they seem to be basic, but in fact, they have nothing to do with common options, because they have been originally invented to get profit. Most of the sites recommend this binary options strategy for you at least to reduce your potential losses (in case the price goes against you, take the opposite direction), there is some risk of losing both in Put and Call, if the price is in between contracts by the expiry time. The confusion appears due to the fact that a new instrument is very simplified, that is “Put” means “down” and “Call” means “up”, with no variations to sell options.
Short Term Transactions
The temptation to earn 80% of your investment in some minutes is more connected with gambling than a reasonable approach to trading. It is important to understand that to trade such types of options means that you use your working capital minding the reasonable distribution of risks.
Why? The possibilities to react adequately while working on the so called noises within short time periods are minimal. If you consider binary options as an income source but not a roulette game, we advise you to start with buying long-term options. Well, you won’t get profit immediately, it will take hours, but you will have much more chances to win, which means your profit will grow and let you improve your skills.
How to Choose a Proper Broker and Get Profit?
Of course, to get profit is of primary importance for anyone who starts trading binary options. But how to choose the best binary options broker who will pay you back the earned profit in time? Not all the companies can boast by their good reputations in this respect, so try to observe the following rules:
- Be very careful choosing brokers and check their reputations.
- Don’t open an account using a borrowed name, it can complicate the payout.
- Be careful reading all the rules of working with a broker.
- Check the terms of bonus offers.
Which Information Do You Have to Check?
To choose a broker you have to check the following information:
- Who provides the given broker with quotes?
- The possibility of opening a demo-account?
- Providing the training facilities and materials?
- The availability of customer support services?
A Trader’s Psychology
Trading operations are simple but not from the viewpoint of psychology. The problem is to take decisions which do not always seem to be logical; the optimal action is taken when it is separated from your emotions. As the result will directly depend on your emotional state, you have to stop trading while being emotionally unstable and do your best to relax. Don’t let your emotions overcome You and get You to deviate from the chosen strategy.
Is it Real to Get Profit?
Any trading in financial markets requires some basic skills. As a rule, novices greatly lack discipline. In principle, the absence of discipline is the main reason of losing at the stock exchange. Simple though it might sound, but 90% of traders do lose their deposits due to the lack of that discipline. So it is crucial to be ambitious, ready to learn and admit your mistakes, only in this case your success will not be long in coming.
The statement that it is impossible to earn on binary options is principally wrong. Really, trading is not a simple deal, and it doesn’t come easily to everybody. Perhaps, you will never earn for a private penthouse in Miami-Beach, and a new Ferrari will never appear in your garage. By the way, the same can be said about any other market, the only puzzle is where these successful traders come from. All of them seem to be permanent lucky dogs.
Is it Worth Trying to Trade?
It should be remembered that any trading at stock exchange is always connected with some risks. This is precisely why we never recommend trading on other people’s money, taking mortgage credits and things of the kind. It is like learning to swim. At first you get into water to try it, and only when we feel strong enough, we swim to the opposite bank where there is a golden sandy beach and turquoise tides. The temptation is the greatest enemy; you should not start crossing the river without having an idea about the river depth.
The site Forexforbeginners.net is mainly devoted to Forex; therefore, we have created a separate portal on how to trade binary options for you to find all the necessary materials specifically on trading binary options.
Also, you can use the materials of this resource elsewhere because, as we have mentioned earlier, most trading systems are universal. Study and try trading, it is well known that nothing could be better than your own experience, especially in trading at the stock exchange. Good luck!