Binary options how to predict

binary options how to predict Binary Options Prediction Indicator. Binary Options Prediction Signal Indicator for Metatrader (MT4, MT5). 75%-80% stable daily win-rate! Up to 100 trading signals a day!

100% Non REPAINTING! 100% RELIABLE! Predicts price, price movement direction, generates clear buysell, callput signal up to 90% accurate. Based on Neural Networks predictive algorithm. Once you receive the signal, log into your broker account and place winning trade. Works with any financial instrument, be that Forex, Stocks, Indices or Commodities. Shows great performance in real trading. Have tested with over 200+ Binary Option Brokers and shows stable high profit. Keeps prediction history on the chart. Easy-to-use. Works for any broker. Generates sound alert, send e-mail and signal notification to mobile devices (tablet, Android, iPhone) then trading signal occurs. Binary Options Prediction Indicator Features. Binary Options Indicator works like a signal provider on your own MT platform. Binary Options Prediction Indicator plots signals at the opening of each candles, never re-paints or disappear. Generates up to 100 trading signals per day with 90% accuracy. Free technical support via Email, Skype and Teamviewer. Download version. Aftrer payment will made you will get download link. Free technical support via Email, Skype and Teamviewer. Binary Options Forecast. The modern design of Minamaze (Lite) makes it the perfect choice for any website. Business, charity, blog, well everything! Minamaze (Lite) is 100% responsive. It looks great on all devices, from mobile to desktops and everything in between! Get a taste of our awesome ThinkUpThemes Framework and make changes to your site easily, without touching any code at all! Binary Options Trading. Binary options let you make money simply by predicting market direction. You will trade various assets like stocks, gold, FOREX, the Dow Jones and many more. All you have to do is predict if the market will go up or down in the near term. Below are the most trusted binary brokers selected for the best available online service. Best binary options brokers for. How to Trade Binary Options? BinaryOptionsForecast. com is your reference for forecasting financial prices with binary options. Learn the skills to trade binary options profitably what are binary options exactly, why both new and advanced traders prefer them, the best binary trading platforms, efficient trading strategies and in-depth articles to learn new methods for consistently making money with binaries. Our articles covers all aspects of these ground-breaking digital instruments how they work, the riskreward, the profit potential, the underlying assets you can trade, binary financial news, what moves the market, technical & fundamental analysis applied to binary strategies, market chart formation, optimal forecasting signals and advanced trading techniques. Binary options are the latest trading product made available to the public. Highly powerful to trade, there are already individual binary options traders who make a living from them. These options were reserved to traders at the big banks until a few years ago, but not any more. With a deposit as small as $100 you can trade them if you want to. In a nutshell binary options enable you to make a pure bet on the direction of the market. If you have a strong bullish or bearish view about a particular market, no trade is better adapted to such a view than a binary. Because it does not matter by how much the market moves or how long. If you think the market will rise and you buy a call, then if the market goes up, you make money. As simple as that. Forget about the buy and hold strategy, just trade the direction of the market with binaries. Why Trading Binary Options? What is unique about binary options trading is that investors can take fixed odds bets on the direction of the market, unlike any other product on the market. What this means is you know exactly how much money you risk and how much money you will make if you made the right prediction. As these trades have short durations of a few days or few hours, positions are closed very fast and you know the result very soon. This is very different from trading the markets in the old-fashioned way, where traders may keep their positions for an unknown period of time, with the pnl going up and down every day as the market fluctuates. But with digital options (another name for binary options) your position does not fluctuates with the market. It is either in the money (profitable) or out of the money (unprofitable). Hence the name binary, as there are only two cases, right or wrong. This simplifies your trading strategy and removes the headaches. As all is determined before you pull the trigger, once you make a trade there is nothing to worry about as the position will take care of itself. Of course if you decide to trade binary options, it does not mean that you do not need to study market behaviour and trends. Accurate forecasting is still the core skill to develop, but what is easier is how the trades are implemented. What Are The Advantages Of Binary Options? Another fundamental advantage of binary options versus all other trading platforms is that you can trade all major asset classes under one roof. Yes you can trade some large cap stocks and the leading stock indices, as well as currency pairs, commodities like gold or crude oil, and even some bonds. All at a few clicks of the mouse. Where else can you trade stocks, indices, commodities and currencies so simply? Check it out, you cannot. And we are not talking about ETF or other proxies, we are talking about trading the real assets themselves. Simplicity and ease of use are two of the benefits you will enjoy when you trade binaries. And the software provided for free by the leading binary brokers that we recommend are all state of the art with real-time quotations, trading, monitoring and reporting. This way you can focus on what really matters, making your predictions about market direction. What are binary options types and features? The main type is either a call (bullish) or a put (bearish) option. You buy a call if you think the asset is going up and you buy a put if your view is that it is going south. Recently brokers have added other option types so that you can refine your strategy. For example a range option is a bet that the asset will stay inside a specific range. A knock out option is a bet that the asset will reach a price target. All these tools and the ability to pick any of them on any of the traded assets let you create the strategy exactly tailored to your precise views. To start trading binaries safely today, click here. Binary Options Trading. Welcome to DWHM Trading, a premium resource for binary options traders. In a few quick paragraphs we will try to explain the basics of binary trading and offer you some insight on how this amazing type of trading works. What are binary options? Binary options, also known as digital options, are a special type of financial options. The main characteristic of digital options is that only two outcomes are possible (this is why they are called binary). The two outcomes of binary options are always opposite, so they cannot happen at the same time. Because of this, they are also called " two-way options ". Since they are very simple, binary options have become the most popular type of financial options, and every year more traders engage in binary trading. They can be described as bets on the market outcome, and they can generate a win when the option finishes " in the money " or a loss when it ends " out of the money ". How do binary options work? In order to easier understand how binary options work, we will show you an example In the upper side of the box, you will see the " A sset " (EURUSD in this sample) and the " Option Expire " time (in this case the option expires Today at 2100). In the main part of the box you will see a chart of the recent evolution of the asset, where a yellow line shows the " C urrent asset value " (at 1.30607 in this particular example). The way the binary option works is very simple if you think the " Asset value " will go up until the " Option Expire " time, you should buy a " Call " option. If you think the value will go down, than you should buy a " Put " option. In the above image, the " Call " button was clicked, so the right side of the box shows the details of buying a " Call " option. It shows the expiration date, the current rate, the amount to be invested in the option (here you can fill any amount between the minimum and maximum allowed by the broker) and the payout if the option expires above the current rate, and below the current rate. As you can see in the sample, if the option is a winner you get a 81% profit, otherwise you lose the whole investment. The binary options brokers will sometimes offer a refund when the option is a loser on certain assets. This refund can be as high as 15% of the investment, but when there is a big refund you can expect to see a smaller payout if the option is a winner. How can I trade binary options? In order to buy digital options you need to open an account with a specialised broker, the same way you would need a stock broker if you wanted to buy stocks. This process is very easy and takes no more than five minutes. Binary options brokers operate online and you will be able to fully manage your account just from the internet. You don't need to personally go to the broker's office in order to open an account, and you can fund your trading account using your credit card or other convenient methods like wire transfers or online payment channels like Moneybookers or Neteller (also known as Ewallets). If you want to find the most suitable broker for you, we strongly recommend you to check our binary options brokers section where you will find detailed information about the top five brokers. We have gathered all this information for you in order to help you make a wise decision when choosing the broker. For regulatory information regarding options trading in the USA you can visit the CFTC site ( cftc. gov ) and for options trading in the UK you should check the FCA ( fca. gov. uk ) Below is the list of our most read articles There has always been a fascination with automated trading among forex and binary options enthusiasts. Some of the most experienced traders have developed their own algorithms and trading systems in order to take full advantage of their technical analysis knowledge. Such robots exploit the benefits of automation and computing power. Read More. A very advanced platform that matches fund managers and investors is the Hot Forex PAMM System. PAMM stands for "Percentage Allocation Management Module" and is a system that allows investors to participate in Forex Managed Funds without giving the fund manager access to the investor's money. A PAMM fund will allocate the winnings. Read More. Buying Bitcoins can be a very frustrating process as there are not too many reputable Bitcoin Exchanges and funding your account takes time and is limited to wire transfers in most cases. Since Bitcoin transactions are irreversible, the exchanges will not accept deposits using Credit Cards, PayPal or any other reversible ways of sending money. Read More. Binary options website of the month Wealth & Value ( wvwv. org ) DWHM Trading is the name behind a group of trading experts who aim to provide quality and reliable information about derivatives trading to help educate new investors. DWHM stands for Derivatives Wealth Hedging Management . However, for many people DWHM also represents Durham Western Heritage Museum (Omaha, Nebraska). 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Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often-misunderstood instruments. Binary options are different from traditional options. If traded, one will find these options have different payouts, fees and risks, not to mention an entirely different liquidity structure and investment process. ( For related reading, see A Guide To Trading Binary Options In The U. S. ) Binary options traded outside the U. S. are also typically structured differently than binaries available on U. S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these exotic options. In June 2013, the U. S. Securities and Exchange Commission warned investors about the potential risks of investing in binary options and charged a Cyprus-based company with selling them illegally to U. S. investors. What Are Binary Options? Binary options are classed as exotic options, yet binaries are extremely simple to use and understand functionally. The most common binary option is a "high-low" option. Providing access to stocks, indices, commodities and foreign exchange, a high-low binary option is also called a fixed-return option. This is because the option has an expiry datetime and also what is called a strike price. If a trader wagers correctly on the market's direction and the price at the time of expiry is on the correct side of the strike price, the trader is paid a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the market's direction loses herhis investment. If a trader believes the market is rising, shehe would purchase a call. If the trader believes the market is falling, shehe would buy a put. For a call to make money, the price must be above the strike price at the expiry time. For a put to make money, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed at the trade's outset. For most high-low binary options outside the U. S., the strike price is the current price or rate of the underlying financial product, such as the S&P 500 index, EURUSD currency pair or a particular stock. Therefore, the trader is wagering whether the future price at expiry will be higher or lower than the current price. (For more, see What is the history of binary options? ) Foreign Versus U. S. Binary Options. Binary options outside the U. S. typically have a fixed payout and risk, and are offered by individual brokers, not on an exchange. These brokers make their money from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades. While there are exceptions, these binary options are meant to be held until expiry in an "all or nothing" payout structure. Most foreign binary options brokers are not legally allowed to solicit U. S. residents for trading purposes, unless that broker is registered with a U. S. regulatory body such as the SEC or Commodities Futures Trading Commission. Starting in 2008, some options exchanges such as the Chicago Board Options Exchange (CBOE) began listing binary options for U. S. residents. The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Nadex is also a binary options exchange in the U. S., subject to oversight by the CFTC. These options can be traded at any time at a rate based on market forces. The rate fluctuates between one and 100 based on the probability of an option finishing in or out of the money. At all times there is full transparency, so a trader can exit with the profit or loss they see on their screen in each moment. They can also enter at any time as the rate fluctuates, thus being able to make trades based on varying risk-to-reward scenarios. The maximum gain and loss is still known if the trader decides to hold until expiry. Since these options trade through an exchange, each trade requires a willing buyer and seller. The exchanges make money from an exchange fee - to match buyers and sellers - and not from a binary options trade loser. High-Low Binary Option Example. Assume your analysis indicates that the S&P 500 is going to rally for the rest of the afternoon, although you're not sure by how much. You decide to buy a (binary) call option on the S&P 500 index. Suppose the index is currently at 1,800, so by buying a call option you're wagering the price at expiry will be above 1,800. Since binary options are available on all sorts of time frames - from minutes to months away - you choose an expiry time (or date) that aligns with your analysis. You choose an option with an 1,800 strike price that expires 30 minutes from now. The option pays you 70% if the S&P 500 is above 1,800 at expiry (30 minutes from now) if the S&P 500 is below 1,800 in 30 minutes, you'll lose your investment. You can invest almost any amount, although this will vary from broker to broker. Often there is a minimum such as $10 and a maximum such as $10,000 (check with the broker for specific investment amounts). Continuing with the example, you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiry determines whether you make or lose money. The price at expiry may be the last quoted price, or the (bid+ask)2. Each broker specifies their own expiry price rules. In this case, assume the last quote on the S&P 500 before expiry was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. Had the price finished below 1,800, you would lose your $100 investment. If the price had expired exactly on the strike price, it is common for the trader to receive herhis money back with no profit or loss, although each broker may have different rules as it is an over-the-counter (OTC) market. The broker transfers profits and losses into and out of the trader's account automatically. Other Types of Binary Options. The example above is for a typical high-low binary option - the most common type of binary option - outside the U. S. International brokers will typically offer several other types of binaries as well. These include "one touch" binary options, where the price only needs to touch a specified target level once before expiry for the trader to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before expiry. A "range" binary option allows traders to select a price range the asset will trade within until expiry. If the price stays within the range selected, a payout is received. If the price moves out of the specified range, then the investment is lost. As competition in the binary options space ramps up, brokers are offering more and more binary option products. While the structure of the product may change, risk and reward is always known at the trade's outset. Binary option innovation has led to options that offer 50% to 500% fixed payouts. This allows traders to potentially make more on a trade than they lose - a better rewardrisk ratio - though if an option is offering a 500% payout, it is likely structured in such a way that the probability of winning that payout is quite low. Some foreign brokers allow traders to exit trades before the binary option expires, but most do not. Exiting a trade before expiry typically results in a lower payout (specified by broker) or small loss, but the trader won't lose his or her entire investment. The Upside and Downside. There is an upside to these trading instruments, but it requires some perspective. A major advantage is that the risk and reward are known. It does not matter how much the market moves in favor or against the trader. There are only two outcomes win a fixed amount or lose a fixed amount. Also, there are generally no fees, such as commissions, with these trading instruments (brokers may vary). The options are simple to use, and there is only one decision to make Is the underlying asset going up or down? There are also no liquidity concerns, because the trader never actually owns the underlying asset, and therefore brokers can offer innumerable strike prices and expiration timesdates, which is attractive to a trader. A final benefit is that a trader can access multiple asset classes in global markets generally anytime a market is open somewhere in the world. The major drawback of high-low binary options is that the reward is always less than the risk. This means a trader must be right a high percentage of the time to cover losses. While payout and risk will fluctuate from broker to broker and instrument to instrument, one thing remains constant Losing trades will cost the trader more than shehe can make on winning trades. Other types of binary options (not high-low) may provide payouts where the reward is potentially greater than the risk. Trading Binary Options. Binary options are a simpler, quicker way to earn profit speculating on the financial markets than trading through a stock broker, spread betting, or contracts for difference. Like all options, binary options are always based on an underlying instrument or asset which you choose, from currencies, stocks, commodities, or indices. Once you pick an asset to trade, you decide whether you think the asset’s market price will move higher or lower than its current price by the expiry time you select, from one minute away up to one hour away. Binary options can have one of two outcomes. You answer a simple “Yes or No” question, such as will the USDEUR finish above the current price at the end of the hour? If Yes your trade wins and is “in the money”. If No your trade loses and is “out of the money”. If you predict correctly, you earn the profit plus you get your trade stakes returned. If you predict incorrectly, you lose the trade stakes and nothing more. You can trade from as little as $1 £1 €1 C$1 A$1 up to $1000 £1000 €1000 C$1000 A$1000 per trade with no charges or commissions. You can operate an account with as little as $10 £10 €10 C$10 A$10 . Unlike contracts for difference (CFDs) or spread betting, binary options do not involve margins or require stop loss orders. You know exactly how much you stand to gain or lose when placing the trade. Binary options are fixed return options (FROs) for a pre-determined, fixed amount. Binary options are therefore perfect for traders who want the potential for substantial, short term gains with strictly limited risk. Binary Options Trading. Binary is a word used when there are two options to answer a question or to express a concept. Binary options trading relies on two directions - higher and lower - with respect to commodities prices, foreign exchange market rates and indices. These two indications are meant to answer the question, “Will the current price rise or fall from this moment until my option expires, or closes?” If you purchase a “higher” option in binary trading and the rate rises, then you will receive a return. Had you chosen “lower”, then your trade would not yield any returns and you would lose your stakes invested in that binary trade or binary bet. Binary options trading or binary options betting tests your skill to predict what the markets will do in the future. They are popular because they allow you to know how much you stand to win and how much you may lose. Many people prefer this type of trading to other forms of betting or speculating on the markets, which can be more difficult and more complicated. Binary options trading is one of the simplest methods with an all or nothing fixed return adding certainty. Whether you wish to trade casually or vigorously, MarketsWorld allows you to do so without large brokerage fees that take away from profits. MarketsWorld also stands for trust. It is licensed and regulated in the Isle of Man, Great Britain and is supervised by the Isle of Man Gambling Supervision Commission. That supervision allows MarketsWorld members to trust that real-time quotes are true and accurate, that the website operates fairly and that deposits and earnings are safe. MarketsWorld is required to have the necessary funds to pay all its customers on hand at all times. In short, you can trade binary options with confidence at MarketsWorld. Where can people trade binary options? Just about everywhere because MarketsWorld operates online. We also offer a convenient smartphone app for trading on the go. If you have any questions before registering for our site or any questions while trading, then just ask us through online chat, available 247, or by email. We are proud of our responsive and knowledgeable customer service team. Free and unlimited demo accounts are also available on our site. Demo accounts do not require a deposit. You can use a demo account to familiarize yourself with binary options trading methods and strategies. Use your demo account until you are ready to start trading real money. When is it a good time for someone to trade binary options? There are many scenarios whereby binary options trading is a great way to go. This is a game of skill that let’s you profit from your knowledge and correct predictions and can be a lot of fun too. If you do not have the kind of money to make big investments or trade over an exchange where funds required can be in the thousands or tens of thousands of dollars or more per investment or trade, then the binary options trading skill game offered by MarketsWorld may be a perfect fit. At MarketsWorld, trades can be made starting at only $1£1€1. Those who would like to bet more still can up to $1000£1000€1000 per trade. Binary options can simplify the market for many people. Few people are investment bank analysts who research markets for a living. Casual and serious market watchers alike have a chance to make profits in binary options trading without being an expert analyst or consulting teams of advisers to place investments. MarketsWorld offers short expiration times on trades. That means that you can make your fixed odds bet on the markets with as short a duration as 60 seconds and receive a payout that fast. That contrasts starkly with some funds that require multi-year commitments. Whether a serious investor or not, someone looking for quick turn around times on their market positions who wants to place short duration trade positions, then MarketsWorld can be a good fit for them. How do people participate in binary options trading? It is simple to participate in binary options trading on MarketsWorld. To trade, you choose a “higher” option (traditionally referred to as a “call”) or a “lower” option (traditionally referred to as a “put”). Suppose the current USDEUR exchange rate is 0.81. If you think the rate will rise at the close of the trading day, then you would enter a highercall position that expires at a specific time for an amount of your choice. If the exchange rate was quoted above your position at the expiration time, then you will receive the payout. The amount of your payout, up to a 190% total return on stakes, is based on factors such as how long your position was valid for before its expiration time. If you put up stakes of $100 on a position and your payout rate is 90%, then you can get $190 total return. The potential payout is made clear before you enter the position. Beginner Binary Options Winning Strategy - Up to 70%-80% Average Winning Chances. August Special Offer Get started with only €50 at HighLow #1 Ranked regulated broker Get Started Here! In this strategy tutorial I'm going to teach you two of the simplest and most efficient binary options strategies. The first actually has no clear name, however its accuracy has been proven on multiple occasions in the binary options business. In order to use this strategy you will have to use a total of 4 indicators on your chart. The great advantage of this newbie binary options winning strategy is the fact that it promises very high potential returns (provided you execute it correctly). If you use this strategy well, you may as well achieve a winning ratio of above 70% most the time (again, provided you accurately execute this strategy). So, below you’ll find the complete description of this strategy as well as tips regarding its applicability. Follow these guidelines you trade next time and you may be able to win the majority of contracts you purchase. UPDATE There are now tools out there that will automatically execute this strategy for you in your binary broker account. These are called signals and bots. The best one of these is Binary Options Robot. The good thing about Binary Options Robot is that it does not force you to sign up at any specific broker. You can use your own broker. It also has an accuracy of around 70% (which it actually achieves, unlike other tools). This signal service is in operation since 2014 and has shown proven results, unlike the vast majority of similar services. These tools will basically scan the charts and use the strategy described in this article (and also other strategies) and based on those they will automatically execute trades or make predictions which you have to manually execute yourself. You'll of course be able to adjust how much they will be allowed to trade and how frequently. I recommend using this strategy with one of the brokers in the list below, especially BinaryMate (USA only) or HighLow (EU and international). I selected this list based on the availability of the indicators mentioned in this article (not all brokers have them - so you can end up not being able to use it at some brokers), reputation, easiness of withdrawal and payout rates. binary options how to predict Unlike many other jurisdictions, the United States has amongst the strictest regulations when it comes to providing binary options to US-based clients. As a result, there are only three exchanges regulated by the CFTC that have regulatory licensing to provide binary options trading. The three exchanges permitted to provide these types of investment services include Cantor Exchange LP, the Chicago Mercantile Exchange (CME), and the North American Derivatives Exchange (NADEX). Aside from these specific platforms, which must uphold the highest degree of standards to maintain their CFTC and SEC licensing, there are no other regulated binary options providers that are legally allowed to operate in the United States. While there are companies that provide services to US clientele, these types of services are normally unregulated, meaning that an investor has no recourse in the event of fraudulent or deceitful activities on the part of the broker. In an in effort to protect American investors, these regulatory agencies have taken a hard line towards unregulated entities and have stepped up their tools to enable investors to do their research prior to getting involved. To check if a broker is regulated and licensed, there is the BrokerCheck tool available from FINRA and the BASIC tool from the National Futures Association which is designed to verify the registration and background of any firm or licensed financial professional. Considering the lengths regulators go to protect investor interests, US binary options brokers are amongst the most secure when it comes to protecting client funds and providing remedies for any type of problems that may arise while investing. The Basics for Binary Options. With the proliferation of the internet and widespread use of mobile devices, investing has evolved significantly. Interconnected financial markets and new technology has made investing more accessible than ever before and led to the creation of numerous new products designed for beginners and less sophisticated investors. One of the easiest ways available to invest in global financial markets is with a product called binary options. A “binary” decision in simple terms implies that there are two available choices. When it comes to binary options, the product itself gives an investor two choices to buy or sell a financial asset. Once a binary decision has been made, an investor is entitled to a fixed gain if they make the correct decision or nothing if the wrong decision is made. What makes binary options unique is the fixed nature of the payouts from correct or incorrect decisions along with the ability to invest significantly lower amounts of capital than financial services companies would traditionally require. The result is an accessible financial product that can be used by a range of individuals from novice retail traders to highly sophisticated and advanced institutional investors. Thanks to the innovative nature of binary options, getting involved with global financial markets has never been easier. To get started, there are several different companies that provide these regulated services in the United States, including popular platforms NADEX and Cantor Exchange. How to Succeed with Binary Options Trading in Estonia. Welcome to the largest expert guide to binary options and binary trading online. BinaryOptions. net has educated traders globally since 2011 and all our articles are written by professionals who make a living in the finance industry. We have close to a thousand articles and reviews to guide you to be a more profitable trader no matter what your current experience level is. If you wish to discuss trading or brokers with other traders, we also have the world’s largest forum with over 20 000 members and lots of daily activity. Read on to get started trading today! Top Brokers in Estonia. What is a Binary Option and How Do You Make Money? A binary option is a fast and extremely simple financial product which allows investors to bet on whether the price of an asset will go up or down in the future, for example the stock price of Google, the USDGBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day. Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you bet $100 you will receive $170 – $195 on a successful trade. This makes risk management and trading decisions much more simple. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “ binary ” option. To get started trading you first need a broker account. Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders. If you are completely new to binary options you can open a “demo account” with most brokers, to try out their platform and see what it’s like to trade before you deposit real money. Introduction Video – How to Trade Binary Options. These videos will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic you can educate yourself to be an expert and perfect your skills. The most common type of binary option is the simple “UpDown” trade. There are however, different types of option. The one common factor, is that the outcome will have a “binary” result (Yes or No). Here are some of the types available UpDown or HighLow – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry. InOut, Range or Boundary – This option sets a “high” figure and “low” figure. Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’). TouchNo Touch – These have set levels, higher or lower than the current price. The trader has to predict whether the actual price will ‘touch’ those levels at any point between the time of the trade an expiry. Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterwards. Ladder – These options behave like a normal UpDown trade, but rather than using the current strike price, the ladder will have preset price levels (‘laddered’ progressively up or down). These can often be some way from the current strike price. As these options generally need a significant price move, payouts will often go beyond 100% – but both sides of the trade may not be available. How to Trade – Step by Step Guide. Below is a step by step guide to placing a binary trade Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you. Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Forex or Indices. The price of oil, or the Apple stock price, for example. Select the expiry time – Options can expire anywhere between 30 seconds up to a year. Set the size of the trade – Remember 100% of the investment is at risk Click Call Put or Buy Sell – Will the asset value rise or fall? Some broker label buttons differently. Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade. No trader will be more successful than his or her broker is honest. Trading in binary options is still not regulated well enough to be considered an established investment alternative, and so there are plenty of dishonest operators trying to take advantage of naive traders. Note! Don’t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site. Here are some shortcuts to pages that can help you determine which broker is right for you Compare all brokers – if you want to compare the features and offers of all recommended brokers. Bonuses and Offers – if you want to make sure you get extra money to trade with, or other promotions and offers. Low minimum deposit brokers – if you want to trade for real without having to deposit large sums of money. Demo Accounts – if you want to try a trading platform “for real” without depositing money at all. Halal Brokers – if you are one of the growing number of Muslim traders. The number and diversity of assets you can trade varies from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EURUSD, USDJPY and GBPUSD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered. Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple. These lists are growing all the time as demand dictates. The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. Full asset list information is also available within our reviews. The expiry time is the point at which a trade is closed and settled. The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time. Expiries are generally grouped into three categories Short Term Turbo – These are normally classed as any expiry under 5 minutes Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes. Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months. While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include Financial Conduct Authority ( FCA ) – UK regulator Cyprus Securities and Exchange Commission ( CySec ) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID Commodity Futures Trading Commission ( CFTC ) – US regulator. There are also regulators operating in Malta and the Isle of Man. Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation. Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers. Strategies and Guides. We have a lot of detailed guides and strategy articles for both general education and specialized trading techniques. Below are a few to get you started if you want to learn the basic before you start trading. You can find plenty more on the strategy page. Signals and Other Services. For further reading on signals and reviews of different services go to the signals page. If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options Education for beginners How to Set Up a Trade. The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, and expiration date. All trades have dates at which they expire. When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types. There are three types of trades. Each of these has different variations. These are Let us take them one after the other. Also called the UpDown binary trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes. Please note some brokers classify UpDown as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a RiseFall type on some trading platforms. The InOut type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price rangetunnel until expiration (In) or if the price will breakout of the price range in either direction (Out). The best way to use the tunnel binaries is to use the pivot points of the asset. If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss. A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels. Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set. Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version. Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are. What Does Binary Options Mean? “Binary options” means, put very simply, a trade where the outcome is a ‘binary’ YesNo answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses. So, in short, they are a form of fixed return financial options. How Does a Stock Trade Work? Steps to trade a stock via a binary option Select the stock or equity. Identify the desired expiry time (The time the option will end). Enter the size of the trade or investment Decide if the value will rise or fall and place a put or call. The steps above will be the same at every single broker. More layers of complexity can be added, but when trading equities the simple UpDown trade type remains the most popular. Put and Call Options. Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade. Different trading platforms label their trading buttons different, some even switch between BuySell and CallPut. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in. Are Binary Options a Scam? As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing. These simple checks can help anyone avoid the scams Marketing promising huge returns . This is clear warning sign. Binaries are a high risk high reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy. Know the broker . Some operators will ‘funnel’ new customer to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier. Cold Calls . Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue. Terms and Conditions . When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades have been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading. Some brokers also offer the option of cancelling a bonus if it does not fit the needs of the trader. Do not let anyone trade for you . Avoid allowing any “account manager” to trade for you. There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits, and take greater risks . Traders should not let anyone trade on their behalf. Which Are The Best Trading Strategies? Binary trading strategies are unique to each trade. We have a strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts and price action research. Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change. There is no single “best” strategy. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. Are Binary Options Gambling? This will depend entirely on the habits of the trader. With no strategy or research, then any investment is going to win or lose based only on luck. Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the trader. Advantages of Binary Trading. The world is filled with a plethora of financial markets, and advances in technology has made it possible for each of these markets to be accessible to the average Joe who has an internet connection and a computer or mobile device. As such, there may be some confusion as to what financial market to participate in. Forex has caught a lot of attention because the promises seen on the sales pages of forex brokers and vendors seem to point to it as a way of easy money. However, because this market has some peculiarities which traders must be thoroughly at home with, many unprepared traders have seen themselves at the wrong end of the market. This is where binary options come to the rescue with its unique set of advantages over other forms of market trading. Minimal Financial Risk. If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing these markets carry a lot of risk and it is very easy to be blown off the market. Too many parameters affect trade outcomes that traders have to battle with. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. This is why trading the currency and commodities markets is a risky venture. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum. Unlike what obtains in other markets, many brokers return a fraction of the amount used in purchasing contracts when the trade is a losing one. The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. A binary trade outcome is based on just one parameter direction. The trader is essentially betting on whether a financial asset will end up in a particular direction. In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets. Greater Control of Trades. Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. This is not the case with other markets. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss. The payouts per trade are usually higher in binaries than with other forms of trading. Some brokers offer payouts of up to 80% on a trade. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout (which never occurs in most cases). In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital. For instance, trading gold, a commodity with an intra-day volatility of up to 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. This restricts the access of everyday people to such markets. However, binary options has much lower entry requirements, as some brokers allow people to start trading with as low as $10. Disadvantages of Binary Trading. Reduced Trading Odds for Sure-Banker Trades. The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high. While it is true that some trades offer as much as 85% payouts per trade, such high payouts are possible only when a trade is made with the expiry date set at some distance away from the date of the trade. Of course in such situations, the trades are more unpredictable. Lack of Good Trading Tools. Some brokers do not offer truly helpful trading tools such as charts and features for technical analysis to their clients. Experienced traders can get around this by sourcing for these tools elsewhere inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders. Limitations on Risk Management. Unlike in forex where traders can get accounts that allow them to trade mini - and micro-lots on small account sizes, many binary option brokers set a trading floor minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries. As an illustration, a forex broker may allow you to open an account with $200 and trade micro-lots, which allows a trader to expose only acceptable amounts of his capital to the market. However, you will be hard put finding many binary brokers that will allow you to trade below $50, even with a $200 account. In this situation, four losing trades will blow the account. Cost of Losing Trades. Unlike in other markets where the riskreward ratio can be controlled and set to give an edge to winning trades, the odds of binary options tilt the risk-reward ratio in favour of losing trades. In other words, traders lose more money when their trades end as losses than they can gain when their trades end up as profits. It is estimated that for every 70% profit that end up in profits, the corresponding loss of the same trade if it ends in a loss is 85%. The implication of this is that for a trader to break even, the winning percentage has to be at least 55%. It will therefore take a trader winning 6 trades out of ten to get into profit, but only 4 trades out of ten to end up in the red. When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. This scenario cannot be replicated in binary options – the moment a trader has placed a trade, the value of his equity in the trade drops to reflect the trade commissions taken off by the broker. The payout on the reverse trade is fixed and cannot be used to cover the loss from the wrong trade. Spot Forex vs Binary Trading. These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools. One is more TIME centric and the other is more PRICE centric. They both work in timeprice but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake. The successful binary trader has a more balanced view of timeprice, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose. Below are some examples of how this works. Above is a trade made on the EURUSD buying in an under 10 minute window of price and time. As a binary trader this focus will naturally make you better than the below example, where a spot forex trader who focuses on price while ignoring the time element ends up in trouble. This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall. The very advantage of spot trading is its very same failure – the expansion of profits exponentially from 1 point in price. This is to say that if you enter a position that you believe will increase in value and the price does not increase yet accelerates to the downside, the normal tendency for most spot traders is to wait it out or worse add to the losing positions as they figure it will come back. The acceleration in time to the opposite desired direction causes most spot traders to be trapped in unfavourable positions, all because they do not plan time into their reasoning, and this leads to a complete lack of trading discipline. The nature of binary options force one to have a more complete mindset of trading off both Y = Price Range and X = Time Range as limits are applied. They will simply make you a better overall trader from the start . Conversely on the flip side, they by their nature require a greater win rate as each bet means a 70-90% gain vs a 100% loss . So your win rate needs to be on average 54%-58% to break even. This imbalance causes many traders to overtrade or revenge trade which is just as bad as holdingadding to losing positions as a spot forex trader. To successfully trade you need to practice money management and emotional control. In conclusion, when starting out as a trader, binaries might offer a better foundation to learn trading . The simple reasoning is that the focus on TIMEPRICE combined is like looking both ways when crossing the street. The average spot forex trader only looks at price, which means he is only looking in one direction before crossing the street. Learning to trade taking both time and price into consideration should aid in making one a much overall trader.