All about Expiration Times in Binary Options Trading

Best Binary Options Brokers 2020:
  • BINARIUM
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    Free Education.
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  • BINOMO
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    Recommended Only For Experienced Traders!

7 Binary Options

One of the nice things about binary options trading is you have a lot more options then you have with normal market buying and selling. You can do things with binary options trading, like make a successful trade even when the asset is trending downward, that are unheard of in other types of market trading; in normal market trading, either the value of your asset goes up or you lose money. When you purchase a binary trade option you do so with a known target price point at a known expiration. What a lot of traders don’t know is that you can also sell that option before it expires.

Why would anyone want to sell an option before it expires? The answer is simple; to minimize losses if an option starts trending in the wrong direction. It is often an effective weapon for those that like to reduce binary options trading risks by placing two options trending in different directions on the same asset. This is commonly known as “hedging” your trade; you don’t stand to profit as much as you would have with just one trade, but you will also not lose as much as you could have either.

These types of trades can only be done on a site that allows option plus trading. Option plus is different than regular binary options trading; once an option plus trade is initiated, the trader may at any time request a price from the broker that they are willing to buy back the option. That is how you are able to place the trade in both trend directions and still make money. The biggest drawback to this type of trade is you have to monitor the way your chosen asset is trending every 15 – 30 minutes.

The two advantages of being able to place binary options trades that you can opt to sell before expiration are they reduce risk and they can keep your losses to a minimum.

Here is an example and explanation:

You want to place a trade based on the price of gold. You have determined through your analysis that gold is going to rise in price. You place the option plus trade in each direction. All of the sudden you notice the trend has reversed itself. You quickly cancel the trade that was going against the trend; this ultimately saved you 75% of the original trade at expiration. It works because your other trade will still be a winner and you kept your losses to a minimum on the other trade.

This type of trading is suitable for use by both beginners and veteran traders alike. Once you make a few trades using this strategy, you will become an expert at purchasing options and then selling them before expiration. It can be a very powerful tool when combined with good technical analysis to help you make some very profitable trades.

Start trading now by opening a FREE account on one of our recommended brokers.

How to Understand Binary Options

Updated: September 6, 2020

This article was co-authored by Michael R. Lewis. Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.

There are 7 references cited in this article, which can be found at the bottom of the page.

A binary option, sometimes called a digital option, is a type of option in which the trader takes a yes or no position on the price of a stock or other asset, such as ETFs or currencies, and the resulting payoff is all or nothing. Because of this characteristic, binary options can be easier to understand and trade than traditional options.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

Rules of trading in binary options 60 seconds

Options with expiration time of 60 seconds also called turbo options. Almost every broker offers turbo options service. However, this does not mean that this mode will be available for all assets. Some brokers even offer expiration of 15 and 30 seconds, but therein lies the danger. What are the dangers of fast options, how to trade binary options 60 seconds and what is the strategy read more.

The basic principles of trade “60 seconds”

The market is dynamic. Quotes under pressure of supply and demand change every second and this is the main difficulty to turbo options. Even the strongest trend never draws a smooth upward line, and under pressure from the bears or anyone who fixes position, is sinking. Statistics show that after news, the trend could reverse basic movement from several minutes to hours and longer, because for beginners these expiry times (from 5-10 minutes) are preferable. In turbo options no matter how strong the trend may be, the fundamental factors do not work.

Advantages of binary options trading 60 seconds:

  • despite the risks, the income can be 70-95%;
  • quick profits. The martingale strategy can be implemented within 10 minutes;
  • the opportunity to capitalize on the correction and rebound from levels of support/resistance.

How to choose the right strategy

If you still don’t know how to trade binary options 60 seconds, use the following guidelines for choosing strategies:

  • most websites offer trading on the news, with an emphasis on the fact that is already clear, where will the trend go after the news. This is a misconception. First, if the direction of the trend is obvious, the trend acts out the news even before its release (a vivid example — raising of interest rates in the USA). Second, in the first minutes traders themselves determine the interpretation of the news, which increases volatility. Professionals are advised to abstain for at least 30 minutes after the publication of the report. The strategy based on fundamental analysis is not recommended for the beginners;
  • graphical analysis for beginners is not recommended. Quotes are changing very fast, and graphic shapes provide instantaneous opening of a position at the time of their appearance. Due to the lack of experience the trader can take wishful thinking, receiving the loss;
  • the more indicators, the less the input signal is and the less accurate they are. But one indicator can not work. The optimal number is 1-3 indicators from among trend and oscillators.

Conclusion: do not chase yield, there are no 100% profitable strategies. Search for strategies based on technical analysis with a time-tested indicators and in accordance with the features of the platform.

Rules of trading of binary options 60 seconds

Despite the fact that there are no 100% profitable strategies, following these simple rules will minimize the risks:

  • work only in accordance with your own rules of money management. Even after a series of profit do not increase the deposit;
  • for short range the indicators often show errors, called the price noise. You may get rid of it by increasing the timeframe, but then you have to increase the expiration period too. The noise can be removed by duplicating the display or use of additional tools;
  • test the system. Run it on real account only when you get a stable result;
  • trading is performed only on the trend, you can not trade in a flat!

Best strategy for binary options with expiration of 60 seconds

What strategies are best, each defines for himself individually. We share the most interesting in our opinion. They are not just profitable, but carry minimal risk. And we will divide them into three groups, from which you will choose the best option, how to trade binary options 60 seconds.

Profitable indicator strategies for binary options 60 seconds

  1. MACD andМА.A lot of strategies are built on the basis of the moving averages, so it makes no sense to invent anything. MACD – is one of the interesting indicators that is used as confirming. Basic setup of MA we eave the default MA(9). Work with minute timeframe and volatile pairs.

Signals for purchase:

  • the trend is upward;
  • price chart the is above MA(9);
  • the MACD line crossed from top to down.

Please note that the withdrawal of trend (blue line) down has begun before the intersection, but it is not possible whether the signal was accurate. And only at the moment of crossing of the MACD lines, it is possible to open a position. Below is an example of when it would be impossible to open the option due to incorrectness of the signal (flat). The more smooth the intersection angle, the less accurate the signal is.

Signals for sale:

  • the trend is declining;
  • the price chart below MA(9);
  • the MACD line crossed the bottom up.
  1. Bollinger bands and RSI.Another simple tactic is built on the channel indicator and the oscillator. Period of the Bollinger bands is selected individually. Leave the settings of the oscillator the same (levels 30 and 70), for the Bollinger bands put options 20, 2. Work with minute timeframe and any currency pairs. Turn on the candlestick chart and the custom selected area with comfortable shades. For fast reactions it is important to see the reaction of regions.

Signals for purchase:

  • The RSI is oversold (below 30);
  • the current candle touches or breaks the lower border of the channel.

After the signal, the following 4 candles (4 minutes) were growing. Please note that from the previous 4 red candles only one could be profitable, but there was no signal from the oscillator. There was a risk that the next candle could be red. Below is an example of risk input – the signal was not accurate enough.

Signals for sale:

  • RSI is in the overbought zone (above the level 30);
  • the current candle touches or breaks the upper border of the channel.

Another example of unsuccessful entrance, you can see below. Here the error was that it is important to wait for a turn of the oscillator. Red candle broke the channel, the oscillator has entered the area 0-30, but the next candle was red, because RSI have not played the fall fully.

How to trade binary options 60 seconds with indicator lights, now you know, move to indicator-free.

Indicator-free strategy for binary options 60 seconds

Under indicator-free means the tactics, based on graphical analysis. Their essence is that each market situation has its own level of support and resistance, which pushes the trend. Strategy can be both interchannel (entry at the time of rebound from the level), or trending — breakout levels. Available in flat, when the risk of breakdown of levels is minimal, the second carries less risk, as after the breakdown of the likelihood of a return of the trend in the flat is practically absent. Examples of graphic pieces you may find here and here.

Other strategies for binary options 60 seconds

Other strategies that are neither indicator nor graphic, include the following:

  • the martingale strategy;
  • trading strategy by heat map and Pivot points. I should add that both strategies can be combined with each other, as individually without supporting tools give many false signals. The reason for this is the time in which it takes the service to update the information. Therefore I advise a heat map and Pivot points to use for strategies with expiry of 10 minutes, or use advanced technical indicators;
  • trade by the signals. The broker earns on the spread, interested in the fact that the trader made a profit and increased trading volumes. Because some brokers offer the trading on their own signals. Analysts of the broker develop a unique strategy and without revealing their essence, share their signals with trader. The most valuable are those signals by which analysts of the broker trade themselves. You can get them by downloading the platform Grosl Trader;

In this example you can see that most of the signals were correct and brought 1% of profit.

  • social trading. If the broker provides such an opportunity, then you can connect to account of successful manager and copy his position for a commission or % of the profits. Or vice versa to connect to the very unprofitable trader and open opposite transaction.

Memo to the trader

Now you know how to trade binary options 60 seconds. To summarize a couple of major theses:

  • risk in turbo options is several times higher than in options with an expiration period of 5-10 minutes;
  • do not use one indicator, use 2-3 different indicators and auxiliary tools;
  • allowable risk per trade — no more than 2% of the deposit;
  • test any strategy as much as you need to define its basic parameters: the ratio of profit and loss, number of losing trades in a row etc.;
  • in case of series of losses change a strategy or an asset.

Leave your feedback, opinions and questions in the comments after the article!

Binary Options Trading: A definitive guide for newbie’s

Trading is a nice way of making money in a shorter period of time, learn how?

Hey Friends, the first day of this week, I am going to share a new trend of making money online which was named after so-called Trading business.

This is called Binary Options Trading, which empowers many individuals and corporates to become a millionaire in a shorter period of time.

This is not a magic but works on logic. People who have the market knowledge can easily get into this business with a little investment to start.

Make your investment in any tangible (or) intangible products, and trade upon to make profits over time.

We will discuss this method more in detail in this article. Let’s get your note and pen to take down important aspects that will be a nice decision for a perfect start.

Table of Contents

2.1.) High earning potential
2.2.) Quick outcome
2.3.) Ease of trading
2.4.) Affordability (independence of stock price levels)

7.1.) Free practice
7.2.) Minimum entry threshold
7.3.) Maximum profitability
7.4.) Quick and smooth money withdrawal
7.5.) No extra fees

8.1.) Technical settings and design
8.2.) Assets
8.3.) Types of accounts
8.4.) Depositing and withdrawal of money
8.5.) Educational opportunities
8.6.) Technical Support
8.7.) Customer Reviews

1.) What are Binary Options?

The World Wide Web of today offers plenty of opportunities for making extra income online to both employed and unemployed people.

If you are one seeking to improve your family budgets, then you’ll find it worthwhile to learn about binary options – one of the most innovative styles of trading.

This is a type of a short-time investment, that does not require buying actual stock. All you have to do is forecast the direction of a stock price fluctuation, which is possible to do via some basic analysis of the market.

As the name suggests, there are only two types of binary options to select from: Call or Put.

Some binary options brokers use the Up or Down terminology, but they mean essentially the same.

This new style of trading has attracted a huge number of traders and is getting more popular by each passing day. The reason why it is experiencing such a huge growth is that it offers an unmatched money-making potential in a very small period of time.

In binary options trading, all you have to do is to predict the price level movement of an asset. Suppose you want to trade the Apple stock with binary options trading. Let us assume that the Apple stock is currently trading at $93.5689.

You have to make a prediction if the stock price of Apple will be higher or lower than the current price level after an expiry period (The expiry period is selected by you).

Suppose you predict that the price level of Apple will be higher than its current price level after one hour. If your prediction is correct you will earn a profit of about 80%. However, if your prediction is incorrect you will lose the amount you invested.

2.1.) High earning potential:

When it comes to the money-making potential, nothing beats binary options. You can nearly double up your money by trading in the binary options market. In fact, there are some options which can even give you a profit of 500%.

2.2.) Quick outcome:

The expiry time for trading binary options is very short. It is generally in terms of hours and can be as small as 30 seconds.

It essentially means that you will get immediate results and you certainly do not have to wait for a long time to know the outcome of an investment.

2.3.) Ease of trading:

Trading binary options are very easy. Anyone with an internet connection can trade at any time during the trading hours. You can trade from anywhere in the world.

In fact, you can use the dedicated apps using which you can trade via your smartphone while traveling. Not much information is required to start trading in binary options.

However, being able to trade and being able to make profit require totally different skill levels.

2.4.) Affordability (independence of stock price levels):

The actual stock prices do not matter much in the case of binary options trading. All that matters is if your prediction regarding the price level was correct or wrong.

It essentially means that there is no difference if your prediction is correct by 0.1 points or 100 points. Both give the same result. Same is true when your prediction is incorrect as well.

All that said, one thing is important to keep in mind before you invest: all the attractive features of binary options trading come at the price of a big risk factor. A risk factor is, of course, high but so are the rewards.

3.) How binary options differ from regular trading?

Regular trading (also known as vanilla trading) and binary options trading might look similar at first for a newbie to financial markets, but in truth, they are very different from each other.

One key difference is that in vanilla trading the actual value of the price level matters. In binary options trading, all that matters is whether your prediction is correct or not.

Suppose Google is currently trading at $100. If you buy the stock in vanilla trading and after a day the stock is priced at $101, you will earn a profit of 1%.

Meanwhile in binary options trading, if you buy the Up option for Google which is trading at $100 with an expiry time of 1 day and the price level of Google is $101 after 1 day, you will earn about 75%.

In fact, it doesn’t matter how high Google ends. As long as it makes your prediction correct, you will make the same profit.

It is therefore for the same reason that you will make the same profit in binary options trading if Google would have ended at $200 or $120 or $500 after 1 day.

The risk factor in binary options trading is significantly higher than in vanilla trading.

Taking the previous example if Google had ended up at $99 after a day, a vanilla trader would have lost just 1% while a binary trader would have lost all the invested amount (considering the trader had selected the Up option).

When it comes to the expiry period, vanilla options have very long expiry periods of 6 months, a year, 5 years etc. But in binary options trading, the expiry period is generally just a few hours. It can be as small as 30 seconds.

In binary options trading, you can easily make money even if an asset is falling down. It is not possible with vanilla options.

Vanilla option traders may buy a falling stock when they feel that the asset has hit its minimum and will start to rise soon.

Binary options traders can just select the Put or Down option and if the price level of an assets ends lower than the strike price after the expiry time, a profit will be made.

Binary options traders can’t sell their bought option before the expiry period.

If a trader has bought an option with an expiry period of one hour, he or she will have to wait till the expiry period ends to get a result and it can’t be sold in between.

A vanilla trader, on the other hand, can sell the bought options anytime.

Binary Options

High money-making potential
Small expiry time
Actual value of an asset doesn’t matter
High-risk business
Profit can be made if an asset price falls

Vanilla Options

Low money-making potential
Big expiry time
Actual value of an asset matters
Low to moderate risk business
Profit can’t be made if an asset price falls

4.) What are the limits of my potential earnings?

Theoretically, a binary options trader can become a millionaire – because there is no sky to how much you can make by making correct predictions.

You can nearly double your money every few seconds. Although being correct all the time is not practically possible – one has to remember that.

Let us take a few assumptions and calculate your payout. Suppose you invest $100 in every trade and have an accuracy of 80%.

Let us also assume you execute 30 trades per day and the average payout is 80%. In this case, your pure profit is $57,600 per month.

Even if your winning rate is 70%, you will pocket a monthly income of $50,400. The best part is that you can earn this money sitting on your couch.

As per a report published in binary today, a trader makes more than $20,000 per month by trading binary options.

He follows some basic strategies with discipline and gets amazing results. There are many similar success stories on the web.

5.) Who can earn with binary options trading?

Generally, the answer to this question goes: “Anyone who is interested in making online home income, wants to try this type of financial instruments and has a good Internet connection”.

For a start, basic knowledge of the financial market and access to economic news will be enough.

Talking in a more long-term perspective, one has to be open for self-education. The more extensive learning you get, the better you can create a well-structured trading plan and not rely on sheer good luck.

Luck is part of the fun, of course, but its combination with proper skill will lead you to more steady income in the future.

In this context, when you are selecting a broker – which is the first thing you need to do – pay attention to the training and practice facilities the company provides.

6.) Olymp Trade – a trusted partner in binary options trading

If all the above has sparked your interest in binary options trading, your first step will be choosing among a variety of brokers on this growing market. How should one make such a choice?

Things which are of crucial importance:

••• Ease, convenience and transparency of the trading mechanism
••• Profitability levels offered by the broker
••• Opportunities for education and improvement of your trade skills
••• Honesty and reliability, confirmed by credentials from official bodies.

There are not many companies who stand out of the crowd by virtue of their premium trading serves, and Olymp Trade is one of them. This Seychelles registered broker was founded by Smartex International Ltd. and has operated on the market since 2020.

Olymp Trade is an “A” member of the International Financial Commission, an independent organization that provides and guarantees the protection of traders’ rights. Which means if a broker acts unlawfully, the Commission reimburses the trader up to $20,000 from its Compensation Fund.

The broker is highly recognized by the industry professionals and boasts four important awards, received over a short period of time:

••• IAIR AWARDS prize in the category “Best Binary Options Platform”
••• KROUFR Awards as the “Best Binary Options Broker”
••• ShowFX World prize as the “Fastest Growing Broker”
••• CPA Life Awards international prize as the “Best Financial Broker”

Now we shall dwell a bit more on its advantages, which matter especially for a beginner trader.

7.) What are my key benefits with Olymp Trade?

7.1.) Free practice:

Each trader is given access to a free demo account with 10,000 virtual units right after the registration. It is particularly useful for beginners who can practice as long as they wish before trading with real money.

The balance is rechargeable if it has less than 5,000 units (back to 10,000 for free), and you can always go back to the demo mode – in case you want to practice a new strategy.

7.2.) Minimum entry threshold:

Depending on the account currency, you can start trading binary options with just $350/$10/€10/20

7.3.) Maximum profitability:

With Olymp Trade it is possible to earn up to 80-90% of the investment if your forecast was correct.

7.4.) Quick and smooth money withdrawal:

As soon as you make a profit, you can apply for a transfer of money to your bank card or an e-wallet. The processing usually takes no more than a day or two.

7.5.) No extra fees:

The broker bears commission for all incoming and outgoing payments.

8.) How does Olymp Trade platform work?

The company has developed its own trading platform and continues to improve it every day. This is an essential thing because it implies almost zero chances of technical failure – so you may be positive that the platform will not freeze at the most inappropriate moment.

The product is custom-designed by the broker with input from experienced programmers, financial analysts and traders. It provides convenient tools for the market analysis, so you could make informed “up or down” decisions every time.

Available in both a desktop version and a mobile app, downloadable at Google Play.

8.1.) Technical settings and design

The platform is designed in a very user-friendly, understandable way. Once you look at it, trading on the financial market immediately becomes less dense and daunting. The design will not make you doubt whether trading can become a part of your life – you will know that it can if you wish.

One of the platform’s advantages is that traders can adapt it to their own liking:

••• Change the language: Vietnamese, Russian, English, Thai, Indonesian, Spanish (LATAM), Portuguese (Brazil), and Turkish are available;
••• Select how the chart is displayed: area (line), Japanese candlesticks, or HeikenAshi;
••• Set the color scheme to light or dark.

The technical settings are equally varied. Traders can:

••• Change chart time frames from 25 seconds to 1 month on the area chart and from 15 seconds to 60 minutes on the Japanese candlesticks and HeikenAshi;
••• Add indicators and oscillators to the chart to analyze it more accurately.

8.2.) Assets

The Olymp Trade platform is pretty versatile and allows to trade in a variety of key assets:

••• Foreign exchange market assets (currency pairs);
••• Assets of the stock market (stocks, bonds, indices, etc.);
••• Assets of the commodity market (gold, silver, oil, etc.);
••• Exchange assets of the cryptocurrency (Bitcoin is the most popular).

8.3.) Types of accounts

The platform offers 3 types of accounts: demo-account for a newbie, a standard account for everyone willing, and a VIP account with special privileges for more experienced traders. See a more detailed description in the table below:

8.4.) Depositing and withdrawal of money

Use any of the following ways to make a deposit:

••• Through E-wallets: Qiwi, Webmoney, Epayments, Neteller, Skrill, Yandex.Money, and Bitcoin;
••• Through Visa or Mastercard bank cards.

You can also withdraw money through the same payment systems.

Important: you can make a withdrawal only to the same e-wallet/card that you used to make a deposit. This rule enables the broker to guarantee payment security and protect traders’ funds from fraud.

The maximum withdrawal time is 3 business days, but the broker tries to process traders’ requests as quickly as possible. All operations are commission-free.

8.5.) Educational opportunities:

Never had a trading experience before? No worries. Olymp Trade offers a whole range of educational materials that will help improve your confidence – whether you are a complete beginner, or a trader seeking more in-depth expertise. At your disposal are:

••• Video tutorials
;••• Interactive courses;
••• Webinars
;••• Strategies developed by leading analysts.

Besides, the broker supports its customers in various social networks. Join the company Facebook page and YouTube channel to get access to all up-to-date information, extra educational content, daily analytics and articles with useful trading tips. Not to mention special contests offering bonuses and gifts for the lucky winners.

8.6.) Technical Support

Olymp Trade technical support department operates 24/7 – every day, around the clock, so be sure that your question will be answered by specialists promptly and at any time.

For English-speaking support, you can call on +357 25030996, write to [email protected] or ask your question in the online chat on Olymp Trade platform.

8.7.) Customer Reviews

You may find it useful to read some feedback from Olymp Trade customers.

Nobby Jackson describes his experience of binary options trading in this manner:

“As an amateur trader, I was overwhelmed by the number of binary options brokers. I, being an amateur trader, was looking for a broker which offered a quality way of learning how to trade and high payouts.

Olymp Trader offered both. My trading experience with Olymp Trade has been phenomenal. I am able to make a consistent profit and learn how to trade better.”

Steven Levitt, another amateur trader, puts his experience as follows:

“I love the way Olymp Trader has designed its trading platform. It is easy to use with simple navigation. The fact that you can do a lot of analysis using the website itself makes my trading very smooth.”

Bottom Line

Making an online income with binary options is a reality. And you will not have to sit long hours in front of the monitor in order to do that. Besides, it is totally affordable.

You may start with only a ten-dollar deposit, investing as little as 1 dollar in every trade before you gain more expertise and confidence.

Choosing a reliable broker is essential, and the Olymp Trade platform offers all the necessary facilities and transparency of trading.

The platform now has more than 6.5 million registered users with at least 20,000 traders actively trading each day.

You can easily join them and start utilizing the earning potential of financial markets while sitting at home.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

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