♦ 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 the 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 every broker, 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.

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 trading platform

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.

binary options strategy

Basic situations in a binary options trade. Tom and Jim are basically “betting “against each other.

  1. 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.

  1. 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:

  • Retrace
  • Change direction
  • Stall

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.
how to do binary trading

The term of “bull” and “bear” describing markets comes from the way the bulls and bears attack their opponents. A bull thrusts its horns up, while a bear swipes its paws down to a opponent. These actions are metaphors for the market movements.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.
japanese candlesticks

Japanese candlesticks are one of the most popular and useful tools in a binary options trade.

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.

Participate actively

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.

make money binary options

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.

Other Remarks

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:

How to trade with binary options? A simple four-step guide.

binary option trade

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.

trading platform

Binary Options trading is carried out on an electronic trading platform.

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.

trading stocks

Stocks of major companies are most popular trading assets

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.

Extremely important! Good money management plays a huge part in binary options trading, so I strongly recommend that you read the following article before you start investing:

Step 2: Choose the right trading strategy

Binary Options Strategy Articles:

  1. Deposit and Withdrawal Methods in Binary Options Trading
  2. Can You Earn Millions by Trading Binary Options?
  3. Correlation Strategies for Binary Options Trade or Forex
  4. Binary Options Trend Lines
  5. Top Five Binary Options Beginner Tips
  6. Binary Option Types
  7. Binary Options Charts
  8. Binary Options Regulations
  9. Are Binary Options Gambling?
  10. Best Binary Options Trading Systems
  11. 10 Rules For Smart Binary Options Trader
  12. Banc de Binary Strategy
  13. The Elliot Wave Theory
  14. Choosing a Currency Pair to Trade Binary Options
  15. Risk Assets and Binary Options Trading in Financial Crisis.
  16. How to Trade EUR/USD
  17. How to Trade GBP/USD
  18. How to Trade AUD/USD
  19. How to Trade USD/CAD
  20. How to Trade USD/CHF
  21. Roulette vs. Binary Options
  22. Stock Trading vs. Binary Options
  23. CFD vs. Binary Options
  24. Wedges in Binary Options
  25. Oscillators in Binary Options Trading
  26. Trading Binary Options with Moving Averages
  27. How to Control Fear of Trading Binary Options
  28. How to Consistently Profit from Binary Options
  29. Trading Binary Options in Volatile Environments
  30. Binary Options Ladder Trading
  31. Binary Options with Ranges
  32. Risk-Free Binary Options Trading
  33. Trading Binary Options with Pivot Levels
  34. Binary Options vs Forex
  35. Binary Options Hack Strategies
  36. Are You Ready to Trade Binary Options?
  37. Can You Make Living by trading Binary Options
  38. Best Binary Options Trading Platforms
  39. Best Signals
  40. Deposit and Withdrawal Methods
  41. Can You Earn Millions by Trading Binary Options?
  42. Binary Options Scams
  43. What is social trading and copy trading?
  44. Are binary options a good way to make money?
  45. Trading Triple Combinations
  46. Double Combinations
  47. What are interest rates and why are they important?
  48. How To Be a Succesful Binary Options Trader

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

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

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 chart

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:

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.

All Our Recommended Brokers

Number One Recommendation: IQ Option[yasr_overall_rating size=”small”]

  • Founded: 2011
  • Minimum Deposit: 10 USD
  • Bonus: Up to 100%
  • Demo Account: Available
  • US Traders: Not Accepted
  • Minimun trade: $1
  • Maximum trade: $1 000
  • Trading Sofware: Own

The Best Binary Options Broker. Our #1 Recommendation! Practice free of charge. IQ Option Also Has The Smallest Minimum Deposit ($10) And The Smallest Minimum Investment ($1). Check Out The Best Bonus Offer By Clicking On The Picture Or Button Below.

iqoption

IQ Option is our number one broker site recommendation. Great bonuses, excellent trading platform and free extensive educational material. Get an exclusive 27% deposit bonus by clicking on the button below:

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  56. Secret Millionaire Society
  57. Fast Cash Biz
  58. InvestoCopy
  59. Profit Maximizer
  60. Pro Binary Robot
  61. Quick Cash System
  62. Ultra Binary Auto Trader
  63. Make Money Robot
  64. Binary Boom
  65. Binary Meta Bot
  66. The Amissio Formula Review
  67. TradeFusion System Review
  68. Binary Options Pro Signals Review
  69. Trade Tracker Pro Review
  70. Trade X Confidential Review
  71. Binary Brain Trust Review
  72. Drexel Code System
  73. Sydney System Review
  74. Free Money Guaranteed Review
  75. Quantum Income Machine Review
  76. TrianaSoft Review
  77. BinaDroid  App Review
  78. Wall Street Lifestyle Review
  79. Automated Binary Options Trading Software
  80. Binary Option Auto Trading Review
  81. The Binary Pot of Gold Review
  82. BinaryRobot365

Step 5: Start trading

Now that you have all the necessary knowledge about binary options investing, you can start trading. Please remember to follow our articles and learn more about binary options and investing on a daily basis. This way, you ensure that you will make profit and good results now and in the future.

Black-Scholes model and binary options valuation

Black-Scholes Model can be used to calculate the theoretical price of binary options. It has been demonstrated to yield prices very close to the market prices. Fortunately, the trader does not need to know the math behind it. The easiest way is to let the binary option robot handle this task completely; or you can just plug required inputs into a calculator. However, for those who are interested, below are the formulas of call and put investments.

T is the time to expiration, r is the risk-free return rate,  denotes the cumulative distribution function of the normal distribution, S is the initial price, K denotes the strike price, q is the dividend rate, and  is the volatility of the option price.

 d_1 = \frac{\ln\frac{S}{K} + (r-q+\sigma^{2}/2)T}{\sigma\sqrt{T}},\,d_2 = d_1-\sigma\sqrt{T}. \,

Call investment

Pays one unit of cash if the spot is above when expired.

 C = e^{-rT}\Phi(d_2). \,

Put investment

Pays one unit of cash if the spot is below when expired.

 P = e^{-rT}\Phi(-d_2). \,

Benefits of binary options trading

Binary options are a type of digital options, and their investment can only produce two possible outcomes: profit or loss. They have been very well received among investors due to their versatility, attractiveness and other excellent features. Next, I will go through the benefits of binary options in comparison to other forms of investment.

  • You do not need to know the right moment to buy or sell 

In binary option investing, you always choose the due date beforehand. When this time comes, your investment either lost or wonHowever, this does not limit your chances in any way. If you believe in the value of the investment object to continue in the same direction, you can easily set the same investment again, and for as many times as you want.

  • You can multiply your initial investment in a very short period, even within a few hours

Binary options trading can be carried even for 30-second increments. This means that the investor has a possibility to get very high returns in a short period. This also entails a risk. Therefore, it is very important that you invest in such amounts of which potential losses do not affect the mandatory expenditures. I recommend you to increase the input level, little by little, as you develop your skills as an investor.

  • You can trade with binary options from anywhere in the world

We only recommend on this site binary option brokers who accept clients from all countries. You will also have the opportunity to trade through a single broker in every corner of the world, with no country-specific restrictions.

  • You do not need to have a big initial capital to start investing in binary options 

Unlike in stock trading, you can start investing in binary options with a few hundred dollars. In equity investments, transaction costs quickly eat your winnings if you start with a small initial capital. With binary options, you do not have this problem, considering the costs are always the same, no matter how big your investment capital is.

  • You will have the opportunity to get great bonuses

Equity investors are not generally able to get any kind of deposit bonuses. On the other hand, binary option investors can get thousands of dollars in deposit bonuses, as well as other great benefits. Many brokers also have competitions and promotions, with the chance to win trips and cash prizes. Therefore, we recommend you to create an account with all brokers; this way, you can take full advantage of the best competitions and rewards.

  • You have a big variety of different trading assets at your disposal

Brokers have a large supply of various trading assets for you to have at your disposal. It is easy for you to choose those that best fit your style. In the repertoire, almost all possible shares of various companies and commodities – such as gold and silver – can be found. Your chances are almost endless. Please also read the following article, if you want to get the most out of binary options trading:

 Binary option robot trading: why should I trade with the robot instead of just doing it all myself?

If you are wondering if it is worth your while trading binary options with the robot or just by yourself, then the answer is quite simple: you should always use the robot. If you have not yet read the front page, I recommend you to read it immediately. We go through the numerous advantages of the robot and explain why all investors should include this excellent tool on their arsenals. If you want to redeem a free binary options robot now, please click on the button below.