Different Assets in Binary Options Trading. Trade on Gold, Stocks & More

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!

Contents

Binary Options

Your Starting Guide to Binary Options

Have you ever wondered what the term “binary option” means?

If you’ve looked into online trading and financial investment before, then the answer is probably “yes.”

Usually, the term “binary option” refers to a kind of trading term, where you get a fixed payout by predicting the outcome of a trade from two potential results. It’s a bit like flipping a coin. If you’re right about whether heads or tails will come up, you’ll receive all the money agreed to. If you’re wrong, then you lose the stake you made on the option, and that’s it.

The reason that binary options have their name is that there are no extra possibilities that might happen. Either you win, or you lose – it’s that simple.

What are the Benefits of Binary Options?

The most obvious benefit of binary options investments is that it’s incredibly simple. There’s a basic YES or NO proposition to consider – and that’s all. Binary options are also very flexible. They allow you to trade in a range of markets, including Forex, commodities and indices, and a variety of market conditions.

With binary options, you’ll also be able to choose between a short-term or long-term investment window, with durations that last anywhere between 10 seconds and a whole year. While your losses are limited by the initial stake that you place into the trade, you can earn huge payouts, up to tens of thousands of dollars.

Which Are The Best Brokers?

There are lots of brokers on the market which offer binary options trading. They differ in: regulation, safety, trading tools, trading assets, support, fees and other factors. Among option brokers with the best reputation we have selected the top 2 choices to make it easier for you to make a decision.

Highly sophisticated platform:
– easy to use
– perfect for beginners
– demo account for training purposes
– lots of different financial instruments
– Great research tools

– Forex, Metals
– Oil, Commodities
– Indices, Stocks
– ETF’s, Gold
– Cryptocurrencies

+ Mobile App
+ Web Trader

– Credit Card
– Wire Transfer
– Skrill, Qiwi
– WebMoney
– CashU

Solid platform:
– Allows Hedging
– Offers MT4
– Offers social trading
Offers mobile trading apps
– Allows scalping
– Accepts credit cards

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!

– Forex
– Indices
– Stocks
– Crypto
– Commodities
– ETF’s

+ Mobile App
+ Web Trader

– Credit /debit cards
– Paypal
– Bank transfers

Our Top Choices in Overview

IQ Option (Best Binary Options Trading Company)

  • USD $10 Account Minimum
  • Average fees of 1.2 pips (EUR/USD)
  • Best For Binary Options Trading

IQ Option has a long trading services history. The company started operating in 2020. Having their main quarters in Limassol, Cyprus, they are authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) only. IQOPTION LTD is registered at St. Vincent and Grenadines, this entity is not regulated.

IQ Option index brand has been recently updated to make sure the UAE clients get the same advanced tools and platforms, internationally available to other customers. They provide an improved in-house advantage platform different from the most known Metatrader 4/5 platform.

Those powerful tools are available without any risk – you can open a demo account with no limitations. $10,000 in virtual currency is also provided for you to practice with and is not limited in any way.

IQ Options has won many awards due to the quality of their services. IF you are looking for a solid platform you don’t have to look any further.

Olymp Trade (Best trading techology – beginners and advanced traders)

  • Allows hedging
  • Offers MT4
  • Offers social trading
  • Scalping allowed
  • Offers trading app
  • Accep

Olymp Trade is an online digital options broker from St. Vincent, operating since 2020. Since 2020, they are a member of the International Financial Commission. By becoming a Finacom member it is under Finacom supervisory. Finacom is a third party regulator guaranteeing security against fraudulent brokers. This gives Olymp Trade the trustworthiness needed to become an authority broker as you have to meet strict rules in order to be approved by this regulator.

All in all, it is a trustworthy platform as it is regulated by FinaCom and comes with a Verify My Trade audit. It also has a lot of interactive learning material. The interface is user-friendly, the design is clean and very intuitive. The broker has a lot of awards, and many positive reviews from traders, on the platform. Overall we would recommend it, especially if you are a trading beginner.

What Are Binary Options?

Binary options are a financial asset that can be traded on any instrument and in (almost) any market. Binary options are considered “all or nothing” trades because the total profit or loss is known before the trade is ever made. Their straightforward nature means that there are no complicated calculations that need to be done.

When you’re adequately informed through news announcements, global trends, or quarterly reviews, you may be able to make an accurate determination about the direction a price may go. Making binary options trade based on this information could generate significant profit for you.

Another significant benefit to binary options is that you can choose from many different kinds of derivatives. Commodities, stocks, and cryptocurrencies are just some of the areas that can be traded using binary options. Examples include aluminum and corn for commodities; Apple and Google for stocks; the dollar and the Euro in Forex; and Ethereum and Litecoin in cryptocurrency. All of these can be traded with binary options.

Quick Recap:

Knowing how and where binary options came to be can be very helpful when you start trading binary options. This is especially true when beginners are attempting to shift to full-time trading. Binary options (also known as “digital” options) came about many decades ago. In the beginning, only large brokerages had access to binary options. After the 2008 recession, the US Securities and Exchange Commission began allowing binary options to be traded through an exchange.

More than a decade later, binary options are now accessible to the entire world, the demand for binary options trading is continuously increasing and, since the investments on binary trades are so small, demand is likely to only increase.

What Types Of Binary Options Are There?

There are many different binary options types that can be treated. Four of the more frequently treated are listed below.

This option answers the question, “Will the future price be above or below the current price at a specific point in time?” This type of binary is, by far, the most common.

  • In/Out (Range or Boundary)

With this type of option, a range of prices is determined based on whether or not the price will finish inside those boundaries or outside of them.

When you set this type of binary options, your position indicates whether the price will “touch” a specific level between the start of the trade and the end. The trade is considered complete as soon as the “touch” happens.

The “ladder” type of binary options is similar to up/down trades with the crucial difference that the future prices are predetermined.

When Do Binary Options End?

One critical component of binary options trading is knowing when the trade will end. This is known as the “expiry time.” The expiry time is the point that determines whether or not you have made or lost money. These times frames can vary from 30 seconds to a year, but the unique variable is that they will end at a predetermined time.

While 30-second expiry times to technically exist, the majority of day traders use the 5 to 30-minute expiry timeframe. This increases the potential for profits while still limiting the risk of loss. Also, by shortening the expiry time of your binary options trades, you can complete more trades within a single day. This, in turn, increases your potential for profit.

The Legality Of Option Trading

Even though it’s occasionally debated on national television, binary options are legal. While some companies use binary options to operate scams, the majority of companies follow the laws and regulations correctly.

Frauds And Scams

Government regulators are actively looking for brokers who promise “quick cash” as this is a sign of a scam. The reputation of binary options was damaged by such dishonest marketing, but it is hoped that the problem will be resolved quickly.

Even though binary options are legal, it is wise to avoid “quick money” promises, telemarketers that claim to be brokers or any claim that connects “free” with “binary options.”

You should always be aware of and knowledgeable about the dangers of fraud and carefully vet any broker you come in contact with.

CFD Trading Vs. Binary Options

Many people wonder whether or not binary options and CFD trading are the same thing. While they are similar in many ways, CFD’s have potentially unlimited risk. For example, if the price goes up, the change in value must be paid by the seller. Alternatively, if the price goes down, the seller gets paid.

Binary options work differently because your risk is limited. If you put in a call option at 10%, it doesn’t matter if the price sinks by 99% you will only lose 10%. Conversely, if the price goes up by 99%, you will only earn 10%. Both the risk the potential for profit are limited. Both options are considered as day trading.

If you want to find the most suitable online trading platforms for options trading then check the article here.

What Speaks For and What Factor Against Binary Options?

The Benefits

Below is a short list of benefits to binary options trading.

Pros

  • Simplicity
  • Low Financial Risk
  • Trade Control
  • Profit Potential
  • Choice
  • Accessibility

There are four significant variables to remember when considering trading in binary options.

Those factors are your risk tolerance, capital requirements, trading style, and the benefits and risks of binary options.

The Risks

Despite the long list of benefits to binary options, there are several risks.

Cons

  • Reduced Trading Odds
  • Limited Trading Tools
  • Price Of Losing
  • Risk Management

What Are The Steps To Becoming A Binary Options Trader?

The pathway to becoming a binary options trader is just as simple as binary options themselves.

Step 1 – Find A Broker

Finding your broker is probably one of the most difficult, and most important, decisions that you will make in day trading. So how do you determine which broker is right for you? We would definitely recommend to go with IQ Option UAE if you are from the UAE

If you’re going to day trade binary options with high-frequency, you’re going to spend a lot of money on commissions. The key here is broker transparency. This lets you know in advance how much each trade will cost and how much you need to make on each trade in order to pay the fees for each trade.

Most brokers require a minimum deposit of approximately $50 in order to begin options trading. When first starting out as a binary options trader, it may be worthwhile to find brokers who offer low minimum deposits.

Focusing on a specific asset type – though not required in options trading – can be beneficial for beginning traders. Finding a broker who specializes in your asset of interest may accelerate your success in that asset class.

You should always verify that your broker is registered and compliant with the proper regulatory bodies in your region.

Trading binary options is done through some kind of platform. You will also spend many hours per day on that platform, so you should make sure that you like it, it provides the data you need, and it’s easy for you to use. Without the proper platform, it’s almost impossible to make profitable trade decisions. Before paying for a trading platform, do your due diligence by comparing and contrasting platforms and checking reviews from other traders.

For day traders, maximizing your time directly correlates to your profit. Because of this, errors or problems in systems or support can cause significant losses. Be sure to verify that your broker offers 24/7 customer support in the format that you prefer (live chat, phone support, email, etc.)

Smartphones and iPads have come a long way in recent years, and many brokers now offer valuable mobile apps for enhancing day trading. Be sure to check with your brokerage about compatibility and the tools that would best support you in your trading.

One technique that brokerages use to attract customers is through creating an offer around their services. Examples of this would be online courses or certain trading situations that are “fee-free.” Be sure to evaluate their offer to see what extras are beneficial for your specific situation.

However, be wary when the offer seems “too perfect.” This is also a technique that scammers use to attract victims.

  • Demo Accounts

After filtering through the hundreds of different brokerages that offer options trading services and arriving at a list of 2-3 that you like. Now is when the decision becomes more difficult. Since there’s no such thing as a “perfect broker,” the better brokerages have set up “demo accounts” where you can “play” with different assets and options.

Since demo accounts are updated using live data but do NOT use real money, they are an excellent place to practice trading. This gives you experience with trading, but it also helps you learn the systems that the brokerages use.

Using this technique, you can improve your trading skill while saving for the initial deposit of capital you will need when you open your trading account.

Our recommendation for trading binary options is IQ Option platform. You can read our detailed review, insights and trading experience here.

Step 2 – Which Market And Which Instrument?

Since binaries can be traded on pretty much anything from Forex, stocks, wheat, or Google, you can trade in pretty much anything. However, it is wise to begin with an asset class you are already familiar with in order to shorten the learning curve.

Step 3 – When To End The Trade?

Profitable binary options trading balances the number of daily trades with the movement in price. Day traders usually focus on shorter trades with expiry times from 30 seconds to 6 hours. Even though a higher trading volume potentially means higher profits, it’s advisable to trade based on accurate data, not just the number of trades possible.

Step 4 – What Size Should Your Trade Be?

The more you bet, the more you could make. In contrast, the more you bet, the more you could lose. Careful risk management will help you make enough disciplined trades to make a profit without risking everything in a single trade.

Step 5 – What Option Should You Choose?

After going through the previous steps, you should have a list of options to choose from. That may, in fact, be very large. This is a dangerous situation for a beginning day trader as the temptation is to focus on the trades that have the most substantial returns. However, it’s almost always better to focus on the trades that are relatively safe as these virtually guarantee that you will get a return. Remember, the goal isn’t just to win, it’s to win over and over again.

Step 6 – Confirm The Trade

This is the final step, and after all of the previous steps, you should feel very confident about your choice. The only thing you need to do now is wait for the trade to expire. After that, you just collect your payout and repeat the process.

Strategies

Strategies for binary options are more straightforward than trades for other asset types, so the strategies for them are less complicated. However, you must have a strategy.

One primary reason why you must have a strategy is that it helps limit emotional decision making when trading. One of the most subtle emotions, overconfidence, always leads to errors in the long term. The time tested way to limit emotional decision making is to follow a strategy.

A second primary reason a strategy is essential to professional trading is that it allows you to repeat your successes. Without a strategy in place, you never know if your profitable trades were because of intelligent decision making or just luck.

Building A Strategy

Two critical parts of your binary options strategy are creating your signal and money management.

Step 1 – What Is A Signal, And How Do You Create One?

A “signal” is the direction that a price will go. Knowing the signal allows you to make a prediction about that price movement. Technical analysis and the news are the two main ways of creating a signal.

Technical Analysis

It is possible to predict price movements in advance if you are able to identify patterns using financial charts. Using appropriate charts and identifying the data patterns in those charts is the first step in building your strategy.

Since those patterns form the foundation of your strategy, you should triple check that your brokerage has the right tools available for your research.

But remember, this research does not have to be as nuanced as other forms of market analysis. Common indicators such as price actions, trends, mirrors, support and resistance levels, and MACD indicators are all useful in options trading.

News

If technical analysis is not your strong point, you can also base your decisions on the news. One benefit of this approach is that the information is easy to understand. Techniques for using the news as your data source are to look at the release of company financial reports or global news that affects an entire market.

One negative of depending on the news for your information is that key details for your particular strategy can be left out of the report, leaving you with insufficient data to make your trading decision.

By staying up to date on market changes, you should be able to make your trades before most traders. A few useful new sources for trading information are:

(Insert your own list here)

Step 2 – Trade Amount

It is always a good idea to keep things simple when beginning to trade. A straightforward strategy is to set a fixed amount to trade for each day. This provides you predictable income and helps you know when you’re “done” for the day.

What is the Martingale Strategy?

The idea behind the Martingale Strategy is to quickly win back what you have lost. This is done by trading simply trading more than you usually would after a loss. For example, a person who loses on a $500 trade would bet more money on the next bet (around $1000) in order to quickly recuperate the lost money.

Obviously, if you make a series of losing bets, this strategy could go very wrong, very fast. This strategy is best used in conjunction with mistakes or accidents in estimation to predictions. If however, you are still in the learning phase, it’s more likely that it was an error in the strategy that needs to be fixed. If this is the case, you should focus on identifying and correcting the error as quickly as possible so that you can go on to predictably generating income.

What Is The Percentage Strategy?

Many binary options traders recommend a system based on percentages. This means that you identify a specific percentage of your total funds that you are willing to risk and then make a bet for that amount. For example, if you have $20,000 available to trade, a 1.5% risk rate would mean that your trades would be at most $300.

You would then adjust your trade amount based on your risk assessment. If, for example, your risk rate was 10%, you could make larger trades, and therefore more substantial profits (or more substantial losses). Maintaining a low percentage helps prevent you from trading more than you can afford.

What Is The “Straddle Strategy?”

In simple terms, the straddle strategy is when you place a bet on both the increase and decrease in value of an asset. This is best to use during periods of high volatility because the price change can occur rapidly; thus, you can profit on both the increase in price and the decrease in price at the same time. As this strategy is based on rapid movements over short periods, it works best in 60 seconds to five minutes intervals. However, it can apply to periods of up to one day.

Should You Use Algorithmic Trading And Bots?

One of the benefits of using a strategy is that it can be automated after that strategy is producing a consistent profit. Different software services provide “bots,” which rely on algorithms and signals that you can program beforehand.

All of the analysis and trading is done for you by the bots. This is beneficial because the bots can do more trading than you can since they are directly integrated into the trading systems. This increases your potential for profit.

The “quality-of-life” improvement provided by these bots is so significant it is worth researching and discussing your brokers offering regarding the availability and use of algorithmic trading. Some brokerages have a bot that you are allowed to use. Other brokerages give you tools so that you can build your own bot and program it according to your preferred entry points and moving averages.

However, algorithmic trading with binary options can be risky because if there is a mistake in the program that you have given to the bot, then that mistake will be in repeated rapidly and you can lose a lot of money in a short period of time.

How Is Timing Important?

The timing of your trades can dramatically affect the strategy you choose and the success you have. Some strategies performed well with expiry times of five minutes while other strategies are more successful with 15 minute or 60 minutes time frames. All strategies and all time frames can produce a significant profit. However, combining the right strategy with the right timeframe will significantly increase your potential for profit.

Summary

Success in binary options trading depends on finding a strategy that complements your style of trading. In order to do this well, carefully choose the instrument you’ll be trading. You should then use a trusted system to manage your money. The next step is to use patterns and charts in order to identify signals and other indicators about when the trade should occur and in what direction. All of these things together for your strategy.

As always, when you start something new, it’s good to get some practice in first. Demo trading accounts were invented for precisely this purpose.

Recommendations

Educate Yourself

To succeed at trading, you should start learning now and never stop. Each day, the markets change, and this means you need to change with them. In order to help you with that, we have provided a short list of resources below that you can use as you immerse yourself in the world of binary options trading.

Video Tutorials

Each day, a new webinar, video tutorial, or video course becomes available. These tutorials can be beneficial as they walk you through the process of making your trades. This is particularly useful when you have first started with a new piece of software or a new brokerage.

Books & Ebooks

While many internet influencers exclaim that “books are dead” and that “nobody reads anymore,” the reality is that more books and ebooks are sold today than ever before. Financial literature like Joe Duarte’s book “trading binary for dummies” or other more technical manuals give invaluable insights into the world of binary options day trading. By reading the books written by experts, you are able to learn in days or weeks what took them decades to master.

Forums & Facebook Groups

One often overlooked the benefit of social media is how beginners are able to contact and communicate with experts in their market that they would otherwise be inaccessible. This means that if you’re in the right forum or the right Facebook group, you might be able to get online feedback from experience traders about situations that are specific to your life and your trades. While not the same as having a true “mentor,” this is support can be an invaluable as it accelerates your ability to profitably participate in binary options trading.

PDFs & Instruction Guides

Similar to the video tutorials, instruction guides and PDFs provide you with a breakdown of steps that is clear and easy-to-follow. These PDFs instruction manuals are almost always completely free and downloadable, so you get instant access.

Copy Trading/Social Trading

Copied trading or social trading is an area of social media where experienced traders post their results and information from their trades for others to follow. You can then analyze their strategies and model their success. Many of social trading networks are paid, so be sure to evaluate them carefully by checking the reviews.+

Newsletters & Blogs

Similar to staying up to date with the major news outlets, company newsletters, and blogs from individuals who are “in the know,” can help you to stay aware of new developments that can cause your markets to change.

Each of these recommendations is important for successful binary options trading. Maximize on these free resources before you pay for more advanced material.

Trading Journal

One of the best practices of many successful traders is to keep a trading journal. By keeping a record of all of your trading results, you are gathering data that you can utilize to answer the question of “Why?”

“Why was that trade successful?”

“Why was that trade unsuccessful?”

Since very few beginning traders are able to afford a mentor, which in cost upwards of $50,000 a year, your best teacher is your past. If you have accurate data, you can answer his questions. In addition, having this record helped you to answer questions from your government tax authority in the case of an audit.

Psychology

Having the right strategy is only one part of successful binary options trading. Another Central component is your ability to control your emotions. Overreacting emotionally can cause you to make expensive mistakes. For example, becoming overconfident can cause you to make trades that are larger than you can afford. In contrast, becoming fearful can cause you to make trades that are too small and therefore limit your profitability.

This is why we have a strategy. If your strategy is based on technical analysis and accurate calculations, you will make money. However, if you start basing your decisions on your emotional response, your future success as a daytrader is doubtful.

Different Assets in Binary Options Trading. Trade on Gold, Stocks & More

Binary Trade Options The Best Time To Trade On Various Types Of Assets

Binary trade options is incomparable to the traditional stock investment. It is easy to trade and you do not have to own the asset in order to make a profit. The numerous benefits notwithstanding, it is important to learn trading strategies first, in order to have a successful trading career. Therefore, if you are thinking of investing in binary options, go ahead and invest because it will be a rewarding investment.

Unfortunately, a majority of investors in binary options rely on speculative strategies. The most important thing to know is that this investment has a large profit potential. However, this profit potential comes with a huge underlying risk.

Therefore, if you want to excel in this trade, educate yourself first. Learn when to trade and when not to trade. You probably know that binary options is a 24-hour trade. Nonetheless, it is important to know that there is the best time to trade different kinds of assets.

Currencies/Forex Trading

Currencies are one of the best assets to trade because you can trade currencies all day, starting from Monday to Friday. It is important to note that you can only trade currencies in pairs. Some of the most popular currency pairs traded are GBP/USD, EUR/USD and USD/JPY, among others. You cannot certainly define the best pair of currency to trade in the binary options trading strategies because each currency has unique characteristic. Therefore, when choosing the best currency pair to use, it is important to consider your individual advantage in the market. Furthermore, you consider the time of trade because markets operate during different hours, depending on their geographical location. In as much as you can trade currencies at any time of the day, it is important to consider the different trading periods during the day.

Stock Indices/Stock

Unlike currencies, stock trades can only be traded during a certain period of the day. Apparently, you can only trade on stock assets in their respective home stock exchange. For instance, can trade on British Stock in the London market and Japanese Stocks in Tokyo.

In this regard, you have to trade during the trading time when these markets are operating. Similarly, you can only trade on stock exchanges that represent the stock indices when they are in operation. In this regard, it is necessary to learn the operating hours in the binary options markets, while considering different time zones.

Commodities

Commodities are peculiar assets, traded on commodities exchanges, in other words, mercantile exchanges. Some of these exchanges include New York Mercantile Exchange, Chicago Mercantile Exchange and Globex Mercantile Exchange. You can use both online and physical exchanges and, therefore, in most cases, there are two trading periods of a commodity in a single day.

Ultimately, it is important to learn the trading times of various asset classes in order to know the best time to place a trade. Consequently, you will develop your investment knowledge and learn how different market conditions affect various options.

Binary Options – Trading

Binary options trading Course for free! One of the simplest most popular trading methods. The Binary options trading is one of the most popular methods of investment these days, and now you can learn how to trade with binary options, and it is for free! This new appealing trading method is based on a simple ‘yes’ or ‘no’ answer on assets from forex, the stock market, commodities market and more. Learn in this 6 lessons course the terms and concepts, the way of trading options, pros and cons of binary options trading and advanced formulas to invest strategically. A few tools that will help you finish the course successfully and get the most out of the app: 1. Schedule lessons times and reminders – You can set the time and days of the week in which you want to use the time learning, and the app will remind you. 2. Notes tool – a place to write your notes and your thoughts about the course. 3. Easy navigation between different topic and lessons. 4. Sharing button. Complementary bonuses: a course of forex investing, technical analysis, stock investing and commodity investing inside! Download now.

Binary Options – Trading

Available on

Description

Binary options trading Course for free! One of the simplest most popular trading methods. The Binary options trading is one of the most popular methods of investment these days, and now you can learn how to trade with binary options, and it is for free! This new appealing trading method is based on a simple ‘yes’ or ‘no’ answer on assets from forex, the stock market, commodities market and more. Learn in this 6 lessons course the terms and concepts, the way of trading options, pros and cons of binary options trading and advanced formulas to invest strategically. A few tools that will help you finish the course successfully and get the most out of the app: 1. Schedule lessons times and reminders – You can set the time and days of the week in which you want to use the time learning, and the app will remind you. 2. Notes tool – a place to write your notes and your thoughts about the course. 3. Easy navigation between different topic and lessons. 4. Sharing button. Complementary bonuses: a course of forex investing, technical analysis, stock investing and commodity investing inside! Download now.

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What’s new in this version

Binary options trading Course for free! One of the simplest most popular trading methods. The Binary options trading is one of the most popular methods of investment these days, and now you can learn how to trade with binary options, and it is for free! This new appealing trading method is based on a simple ‘yes’ or ‘no’ answer on assets from forex, the stock market, commodities market and more. Learn in this 6 lessons course the terms and concepts, the way of trading options, pros and cons of binary options trading and advanced formulas to invest strategically. A few tools that will help you finish the course successfully and get the most out of the app: 1. Schedule lessons times and reminders – You can set the time and days of the week in which you want to use the time learning, and the app will remind you. 2. Notes tool – a place to write your notes and your thoughts about the course. 3. Easy navigation between different topic and lessons. 4. Sharing button. Complementary bonuses: a course of forex investing, technical analysis, stock investing and commodity investing inside! Download now.

The best asset for trading binary options

How to choose the best asset for trading binary options? What to look for? We look at information content, volatility, popularity. We choose an asset suitable for a trading strategy.

You can trade binary options using a great many assets. At the same time, as in any other segment of the financial market, each asset requires a thoughtful approach and has its own characteristics.

What should I look for when choosing an asset when trading binary options?

Assets Binary Options

Each binary options broker has its own set of assets for which trading is offered. As a rule, there are a lot of them so that a trader can choose a suitable option for himself.

The most common assets in binary options trading are:

  • Currency pairs;
  • shares of large companies;
  • stock indices;
  • Precious metals;
  • commodity and raw material assets;
  • kriptovalyuty.

Each type of asset has its own set of indicators and characteristics.

What characteristics of an asset are important when choosing?

As we have already said, each type of asset for binary options has a number of indicators. However, to select a tool for trading binaries, we recommend that you pay attention to three indicators, which are key for all types of assets, without exception.

Volatility

Volatility is that indicator, which, in fact, allows you to profit from assets traded on financial markets. Assets with good volatility make it possible to predict price movements and use them to trade binary options.

Availability of information necessary for analysis

Currently, the network can find analytical information on almost any financial market instrument. Nevertheless, the information flow can play a cruel joke with the trader.

On the one hand, trading binary options without information support of fundamental analysis, based only on the technical picture, is quite difficult. For effective trading, you just need to know what fundamental factors affect the asset you choose.

On the other hand, not all information related to an asset is qualitative. On the Internet, now every second is an analyst, and every third is an expert. Often, the published information is far from the real picture and may be the reason for the trader to make a wrong decision.

Asset popularity

This indicator is a logical continuation of the previous two. An asset that is very popular among traders will have good volatility and fairly dense information support.

If you choose some less popular no-name asset to trade binary options, be prepared to minimize information on its trading and low level of volatility that will not allow you to earn.

The best BO asset for a beginner

The best choice for a beginner binary options trader would be an asset that has sustained popularity, but without sharp price spikes, with adequate information support.

For example, it could be representatives product market segment – oil, gold, platinum, etc. You can try trading binary options using shares. To do this, you must select one or more companies, preferably not the most TOP-ones. Stocks of very popular companies like Microsoft, Google or Apple hardly suitable for a beginner, because of their popularity, their price is often subject to market “noise”. Information about the selected company can be obtained directly on its official website.

Rђ RІRѕS, stock indices they are hardly suitable for beginners to trade binary options. The fact is that the index includes dozens of companies, so it will be quite problematic for a novice trader to track the information flow in this case.

Well, of course, the good old ones will be suitable for beginners Currency Pairs. At the same time, almost all couples have good liquidity, and their diversity allows you to choose the level of volatility you need for yourself and the information resource suitable for fundamental analysis.

Of course, before making the final decision on which asset to trade using binary options, you need to try several types of assets. In this case, you will certainly find a suitable tool that is perfect for your trading strategy.

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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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