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Binary Options Day Trading in Russia 2020
Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.
Binary Brokers in Russia
What Are Binary Options?
Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.
If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.
There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.
A Brief History
If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.
The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.
There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.
- Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
- In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
- Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
- Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.
Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.
As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.
Is Trading Binary Options Legal?
Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.
Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.
Scams & Frauds
The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.
Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.
So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.
Binary Options Vs CFD Trading
Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.
Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.
Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.
Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.
Why Trade Binary Options?
If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.
There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.
- Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
- Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
- Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
- Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
- Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
- Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.
Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:
- Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
- Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
- Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
- Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.
Binary Trading via Mobile App
How Does Trading Binary Options Work?
Trading binary options for beginners is straightforward. Simply follow the steps outlined below.
Step 1 – Find a broker
This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?
If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.
One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.
Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.
With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.
Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?
Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.
Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.
A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.
Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.
You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.
For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.
There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.
For more guidance on making the right choice, see our brokers page.
Step 2 – Choose An Instrument/Market
You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.
Step 3 – Decide On An Expiry Time
As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.
Step 4 – Decide On Size
In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.
Step 5 – Choose An Option
You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.
Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.
Below is a video explaining how to trade binary options on the platform of a leading provider:
Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.
Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.
Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.
Building A Strategy
There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?
Step 1 – Creating A Signal
The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.
Charts, Patterns & Indicators
If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.
You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.
One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:
- Support and resistance levels
- Price action
- Stochastic oscillators
- MACD indicators
- Options close to expiry
For more detailed guidance, see our charts and patterns pages.
You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.
If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:
- Yahoo Finance
- Business Insider
- Financial Times
Step 2 – How Much You Should Trade
If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.
Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.
The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.
A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.
If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.
This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.
You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.
This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.
Bots & Algorithmic Trading
Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.
The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.
It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.
However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.
Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.
Summing Up Strategy
Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.
If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.
For more detailed guidance, see our strategies page.
Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.
To do that, utilise some of the resources detailed below.
- Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
- Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
- PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
- Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
- Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
- Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.
All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.
There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.
Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.
Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.
You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.
As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.
If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.
Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.
Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.
Rest Of World
In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).
You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.
So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.
Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.
Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.
Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?
For more detailed information, see our taxes page.
Can Trading Binary Options Make You Rich?
Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.
Are binary options legal?
Yes, but regional regulation varies.
In India and Australia for example, binary options are legal.
In the US, binaries are available via Nadex, and perfectly legal.
In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.
Can you trade at weekends?
Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.
There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.
Are binary options banned in Europe?
Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.
It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.
Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.
Do binary options work on MT4 or MT5?
There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.
Can you use binary options on cryptocurrency?
Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.
Learn How To Trade Binary Options Successfully And Profitably
How to trade binary options, is a question frequently asked by beginners including our readers. So, we aim to give you a proper solution through this article.
Binary options are popular because of its simple trading nature, with a fixed return percentage. Despite its simplistic nature, many traders use on their binary trades far more often than you think.
It boils down to reasons such as lack of trading knowledge, experience, or choosing the wrong broker. Whatever the reason may be there must be a clear plan ahead of trading, so you don’t face ill-consequences in your trading result.
Before enlightening you with the step by step guideline on how to trade binary options profitably, we will give a short brief on what binary options are.
What Are Binary Options?
We are going to explain a basic concept on binary options here, but for detailed information, read what is binary options trading article.
Binary Option is an investment type where you have two outcomes, all or nothing. It has also a fixed expiration.
You have to accurately predict the outcome with an expiry time to make a profit. Either you will win a trade or lose all the money that you have invested for a particular trade. Moreover, you can perform binary trade in two ways.
- Manual Trading
- Automated Trading
In manual trading, you do all the hard-work and place the trades yourself using trading strategies . But in auto-trading, automated trading software does the trading for you, using a build-in trading strategy.
Which method you use for trading depends entirely on your preference. If you are a new trader, you might take help from a trading robot in exchange for a price. Or you can learn the basics of trading, and do it yourself.
Binary Trading Example
You already know through our citation that binary options give you a fixed payout and loss amount. To power-up your trading journey, you must have to follow some rules.
Before jumping to those specific points, we will try to connect your existing knowledge with a small example.
James Chen from Investopedia explains binary options trade with the help of an example.
Assume stock XYZ is currently trading at $64.75. A binary option has a strike price of $65 and expires tomorrow at noon. The trader can buy the option for $40. If the price of XYZ finishes above $65, the option expires in the money and is worth $100. The trader makes $60 ($100 – $40).
If the option expires and the price of the stock is below $65, the trader loses the $40 they put into the option. The potential profit and loss, combined, always equals $100.
5 NoteWorthy Steps To Trade Binary Options
What you are expecting from this phase?
Hang on! Let me guess. Maybe, you might think that we will share with you a spell so that you can earn a lot of money. But, the section will focus on the 5 noteworthy steps on how to trade binary options.
- Choose a regulated broker
- Analyze the market and asset
- Practice on a demo account
- Make an initial deposit
- Start Live trading
As each step is very powerful, so our recommendation is to read each step without skipping.
# Choose A Broker
Choosing a broker without evaluating some factors can bring disaster. On the other hand, the retail investment market is large and have a lot of scopes. According to a report of SEC,
approximately 7,600 investment advisers registered with the SEC that serve retail investors, with over $12 trillion in retail client assets under management, and approximately 34 million clients.
Isn’t it crazy!
The actual craziest thing is that one has to choose one or more than one broker from thousands. Here, we will mention some factors that you should keep on mind before selecting any broker.
- Demo account
- Minimum initial deposit
- Ease of use
- Variety of assets
- High Payout percentage
- Fast withdrawals
- Multiple modes of payment
In addition to that, you refer to our list of binary options broker . It’s not necessary that you have to stick to one broker. No broker is perfect, and one broker may not suit all your needs. Don’t hesitate to trade with multiple brokers.
Taking all the above factors into consideration, we have prepared our list of recommended brokers that you can trade with.
These brokers meet all the requirements such as regulation, offering a demo account, huge asset index, high payouts, fast withdrawals, easy-to-use trading platform, and much more. Here is the list of brokers Binary.com , IQ Option, and BinaryCent that we think will offer you the best binary options trading experience.
# Analyze The Market & Asset
The trading market is unpredictable and changes every sec. Three main types of analysis bring an optimal trading result.
- Fundamental Analysis
- Technical Analysis
- Sentimental Analysis
Here, an economic calendar works as a ground from where traders use data to forecast the market movement. As there is “no” best method of analysis, so you have to pick the most viable option depending on time-frame and asset information.
# Practice On A Demo Account
Registering an account is free of charge with most brokers. All it takes is your vital information such as an email address, your first, and last name. Once you have created an account, you need to practice trading through a demo account.
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Train yourself with the help of a demo account until you create an unbeaten situation. Educate yourself on the basic concepts of binary trading. Understand what strike price, expiry time, call, and put option, etc. Familiarize yourself with the different ways you can trade binary options.
Just because the funds and the outcome in demo accounts don’t hold any real meaning, it doesn’t mean you should trade recklessly.
Trade on the demo account exactly how you would live trade. This practice will develop your trading skills and build valuable experience.
There is no fixed duration on how long you have to practice on a demo account. Take as long as you need. Finally, when you feel confident enough, you can step up to real trading.
# Make An Initial Deposit
The initial deposit amount varies from broker to broker. You need to deposit on the trading account to carry out live trading. On the other hand, there is a big difference between an investment and deposit.
An investment is a price what you pay to get the future value. Meanwhile, the deposit is a certain amount of money that one needs to open an account.
It is wise to start with a small deposit amount like $10 to $20.
# Start Live Trading
You can start trading on a real account once you are familiar with the ins and out of binary trading. Select your preferred asset and choose your investment amount. Depending on your prediction, buy a call or put option.
Place your trade, and wait until your trade expires. In the next section, we have listed some tips and techniques on binary trading to make your trading successful and profitable.
How To Trade Binary Options Successfully And Profitably – Best Way To Trade
We already discussed a few steps above. Those steps are the principle that one trader should follow whether he is professional or not. After that, you need to turn your binary options trading into a successful profit machine.
Don’t miss out the chance by skipping points that we covered below. Follow these tips to ensure you don’t lose money while trading binary options.
- Choice of assets
- Start trading with small
- Eliminate emotions from trading
- Choose the right expiry time
- Follow the market news
- Risk management
- Knowledge is power
Choice Of Assets
As you can trade with a large number of assets, so trade those assets that you are most familiar with. Do not take unnecessary risks by trading in markets that you cannot predict.
Successful binary trading depends on how well you can predict the market. Follow the market news before executing trades. Diversification of your portfolio is one way of reducing your overall trading risk. But it doesn’t mean you should diversify to assets that may not be profitable to you.
Stat Trading With Small
You may have heard about the risk management where you have stick on either 1% or 2% rule. It is a general rule of thumb for traders.
90% of traders failed in trading because they have lack of knowledge on money management. Investing a huge amount of money will not help you to increase profits.
So, at first, start with a small amount like $10. After gaining valuable experience, you can start increasing your trade size. No matter how much you practice on a demo account, trading on a live account is a different scenario. As there is real emotion involved, which brings us to our next point.
Eliminate Emotions From Trading
Professional traders are not super-human. They also fight to control their trading emotions. Eventually, all traders must go through a cycle of market emotions.
Controlling emotions is not sky-rocket. However, you will find a difference in gratitude of a winning trader and a losing trader. No wonder, a low expectation level can save you from a massive failure.
Stop dreaming about to get rich quick and follow the 7 secrets that will help you to improve your trading emotions or psychology.
Choose The Right Expiry Time
It is may seem like a matter of preference or a trivial issue, but even expiry time is a crucial factor when it comes to binary options trading.
For example, a trend was supposed to reverse within an hour. But if you placed a trade with 2-hours expiry, the trend would have reversed by then. And, you had lost the trade.
Follow The Market News
Whatever underlying asset you may trade, you need to be informed on the latest global events, and news associated with that asset. Many traders build strategy depending on the market news. So don’t skip on that, and act accordingly.
For example, if there is negative news regarding the gold and a price drop is imminent, log in to your binary options trading platform, and open a put position on gold.
Reacting appropriately to market news can bring in more trading success than you think.
Risk Management (Hedging)
Unless you are a pure gambler looking for absolute results, you should make use of hedging. Hedging is a money management strategy used to protect your profits. In this way, if you are wrong on your prediction, you lose money from your call option, but you regain that back from the put option.
Protecting your investment by buying a binary option contract opposite to your initial contract is hedging. Hedging may reduce your overall profit potential, but it also protects your capital.
If you quite confident about your prediction but still want to hedge, invest the lesser amount in the hedge position compared to your main position.
Knowledge Is Power
Trading education is one of the big factors that play a vital role in success. You need to constantly educate yourself with trading knowledge. Even though binary options look easy and simple, there is a lot that goes into constantly turning your trades into a profitable one.
Moreover, you are less likely to commit mistakes and perform better trading analysis when you are equipped with trading knowledge.
Learn To Trade Binary Option (Manual Vs. Automated Trading)
You can either manually trade binary options or can use binary options software which will do the trading for you.
When you trade manually, you choose the asset, the expiry time, and most importantly, the decision to call or put. Everything depends on you alone. Moreover, you have to set a strategy using indicators and trend lines to make a decision.
In the case of automated binary options trading, a binary robot does all the work for you. It is a programmed software that makes decisions based on certain algorithms.
On the other hand, most binary options robots allow you to customize settings such as investment per trade, risk level, indicators, and choice of assets.
However, if you want to completely leave your fate at the hands of the trading robot, you may do so. Or you can put manual effort also by building strategy.
We would recommend a mix of both auto and manual trading for the best results. We have compiled and reviewed the best binary option trading robots for you.
The best Binary Options Strategy – (That works fast)
On this site, I will show you my best Binary Options Strategy. It has a hit rate of over 60%. You can easily use it in every timeframe like 60 seconds or higher expiry time. Also, it is possible to use the Martingale strategy to improve your results. It is called the “False Breakout Strategy”. It works on every asset and in every timeframe. Learn to trade profitably in a few moments. Look at the picture below for the first impressions.
If you only trade this style of trading, it is possible to make a lot of money. Just search in the markets for a high/low or support and resistance and wait for a false breakout. In the next chapters, I will provide you more information to win against the market!
The False Breakout Strategy
Why do you need a Binary Options Strategy?
Binary Options Strategies can be different methods to trade the market. First of all, a Binary Options Strategy does not have to be difficult. It is possible to make money with simple ideas and methods. Therefore it is important to use strict rules for trading the market. The most common mistake is not keeping to your own rules! In addition, a good strategy reduces emotional and irrational trading.
Most traders lose their money because they trade without a proven method and strategy. Advanced traders know how the market work and they practice their own methods a lot. You have to learn and get a higher knowledge of the market. From my experience, it is not easy to learn to trade successfully in a short time horizon. In the following article, I will give you strict rules for trading the markets and I will show you how the strategy is working easy and successful.
4 steps to become a professional trader:
- Get knowledge about the financial product and the market
- Learn a profitable Binary Options Strategy
- Practice in the Demo Account
- Start trading with real money if you trade successfully
False Breakout – The Best Binary Options Strategy
False Breakout is an easy way to trade the markets. To trade breakouts do not work very well. I have tested it many times in the past (I will show you the reason why it does not work good below). After a breakout, the market comes back most of the times.
All you have to do: search for a level (high/low or support/resistance) and wait for the market to break the level. If the market comes back you can go short (put) and long (call).
False Breakout: The market breaks a high/low or support/resistance and comes back to the level and stays under/upper the level. Support/resistance are more than one high/low in a row. You can use this method in any timeframe and with any asset/market. It is universal. See the picture below!
Why does this Binary Options Strategy work so well?
For this question, it is important to have more knowledge. At highs and lows are a lot of stop-losses from other traders in the market. Professional traders use this knowledge to get high liquidity for their own positions. They quit or open a trade where high liquidity is. In most cases they will fake this breakout or the market will turn because of closed positions.
There are a lot of traders who will trade such breakouts. Algorithms are programmed and triggered to make lose them money.
- Stop-losses are triggered with a breakout
- A lot of stop-losses means higher liquidity
- This knowledge is used to open or close big positions
- The market will turn around in most cases
- Sometimes it is a short turn around and sometimes the trend will change completely
Which levels are the best for trading?
New and fresh highs and lows are the best levels for this Binary Options Strategy! With several highs in a row, it is more likely that the market will break through this level. Search for big new and fresh highs. For the best results, the level should be created in the current day. See the picture below.
Different levels for your entries
Furthermore, the best levels got the V-Form. I will show you in the picture below. The V-Form is seen clearly by a lot of other traders in the market. They put their stop-losses on these levels. Also, it is possible to trade the V-form as support and resistance. I rather wait for the false breakout of the V-Form. It works with a high hit-rate and you can easily make money with Binary Options.
The best level V-Form
When choose your entry? – For Dummies
Risky traders open a position directly in the opposite of the breakout. In my opinion, there is a better way to get good results. In the picture below I will show your my exact entries. Select the level in the markets. If the market passes the level back, you can open the trade. It is just so simple as it sounds. Sometimes you will need 2-3 trades to make a profit. That is why I double my invest amount if I lose a trade.
Additional information: You can wait for a candle close below/upper the breakout level to get a better confirmation
Which timeframe can I use for the Binary Options Strategy?
You can use any timeframe for this strategy. The time does not matter for your analysis. Only the price of the asset matters. No professional trader cares about the time. You will see that the small timeframes are more difficult to trade because you have to pay more attention to the market. You have to react much faster than in higher timeframes. In conclusion only the price of the asset matters.
Money Management for the best success
Money Management belongs to every Binary Options Strategy. Without the right money management, you will lose everything. Most traders do this mistake. I personally prefer to risk 1 – 5% of my trading account in one Binary Option. So you can lose some trades without destroying your account completely. The money management depends on the trader, too. Some traders are very aggressive and take a lot of money to invest. In the end, you have to decide for yourself how much money you want to risk.
Some trades use 10% or more of the account balance for trading. For example, if you got 4 losing trades (this happens) in a row, your account balance is minus 40%. In my opinion, it is insane to use this risk. The most professional traders use a risk of 0.5 – 1,5% of their portfolio for one trade. From my experience, you will get hard emotions by losing a huge amount of money in a short time horizon or a few trades.
First of all, it sounds like a hard process to invest only 1% or less of your portfolio, but with a steady and continuous trading strategy, you will earn a lot of money in the future. For example, if you make a profit of 2% every day, the account will grow very high in a few weeks.
Martingale for the False Breakout Binary Options Strategy
For better results, you can use the popular “Martingale Strategy”. If you lose your trade, you can double your investment or use more than 2,3x of the last investment in the next trade. This is very risky, but with a successful strategy, it is a good way to work with. In my opinion, only experienced traders should use “Martingale”.
A martingale can blow up your account in a few trades. I only use it when I feel very safe for the next trade and I recommend that.
- Use sensible money management (I prefer to risk 1-5% per trade)
- Martingale is a good way for experienced Traders (double the trading amount if you lose)
Attention to Market News
Another point of successful trading is the market economic news (picture below). A lot of traders use this economic news to trade the market. In my opinion, it is like gambling, because you do not know the result of the news. In addition, you are to slow to react quickly when the news appears. Orders are triggered in less sen 0,01 seconds. There are automatic trading programs which are faster than you!
In conclusion, it is not a good idea to trade economic news. My advice to you: Stop trading 10 minutes before and after the news. The volatility is very high and in most cases, the market will jump right over your screen. The market does not care about the numbers, because they are priced in already.
I use the economic news of www.investing.com. You will get the right news 0,1 seconds after they are released.
Get started – Use a good Binary Broker for your Strategy
In the table below you will find the best Binary Options Brokers. It is very important to use a broker with good charting software. You have to analyze the candlesticks/chart for the false breakouts. It is useless to trade a successful strategy for a bad broker because maybe they do not pay out your profit. I tested several brokers and recommend them on my website.
You can create a demo account to practice this new method of trading the markets. My recommended brokers offer you a free and unlimited account. The conditions are the same as in the real money mode.
Another relevant point is the trading software for the execution of your trades. You should analyze the chart in the best way you can. Use the candlestick- or line chart. I recommend the candlestick version. The drawing tools are offered by the platform and you can start in a few seconds.
Facts for a good broker:
- Free demo account
- High asset profit
- Flexible trading platform
- Good service and customer support
The brokers below give you the highest yield and the most functional platforms for your trading:
|1. IQ Option||(5 / 5)
|CySEC (EU)||up to 100%+|
High Yield 92%
Conclusion of the Best Binary Options Strategy for beginners
On this site, I have shown you how it exactly works to make a profit with Binary Options. Just use the false breakout strategy. First of all, it is important to practice this strategy. You can use a free demo account to trade with virtual money.
Follow the next steps:
- Find a good level in the market. This can be a big low or high. You can use support and resistance lines, too. These are more highs or lows in a row on the same price. New and fresh highs/lows are working well for this strategy
- Wait for the break of the level. Sometime the market will never break your level. This is no problem because there are enough opportunities in the market every day.
- If the breakout is done and the market comes back to the level you can do a call or put option. (it depends on the breakout direction)
The strategy is very flexible. You can use it with any timeframe, asset or market. You just need a blank chart of candlesticks or line and a horizontal drawing line tool for trade successful trading the markets. On this website, I showed you how the market works on highs and lows. With this knowledge, you know more than 95% of the traders in the world. Good luck and happy trading
What are binary options?
Binary options are a sort of exchange-traded contract used for getting income from the performance of assets (currencies, shares, goods) in the global financial markets. In making a deal, the purchaser of binary options forecasts the asset’s price change. This financial tool has a fixed price, contract expiration time. and paper profit margin known in advance.
Are binary options a fraud? A professional assessment
FraudBroker.com is an investigation center for shady transactions of binary brokers, along with Forex and CFD brokers, stock brokers, cryptocurrency exchanges, etc. Our team of experts – professional traders dealing with various brokers – is ready to provide our website guests with precise information about whether any given financial market broker is a scam artist or not.
Our customers ask: «Are binaries the real thing or a scam?», «Is Forex a scam?», «Is cryptocurrency a real thing or a scam?» – everyone is concerned about professional opinions. That is because in trading in various markets there are many fraudulent brokers whose sole mission is to get trader’s money and do their best to make him lose. They may tamper with price behavior charts, may leave a trader without a payout, may just disappear and go silent or tap into other contrivances just for one purpose: to play you. Our professionals are ready to assist you in finding reliable brokers.
The most reliable binary options brokers for March 2020
|Broker||Bonus||Min Deposit||Payout||Review||Open Account|
|Up to 100% deposit||$10||Up to 90%||Review||Visit Broker|
|$10||Up to 91% *||Review||Visit Broker|
|10 USD||Review||Visit Broker|
|Deposit bonus||50 USD||Review||Visit Broker|
|2 types of bonuses||$100||Up to 90%||Review||Visit Broker|
|Up to 100% on deposit||$5||Up to 100%||Review||Visit Broker|
*Amount to be credited to the account for a successful trade.
«General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose».
Our aim is to expose scam schemes and provide traders with reliable information on which they can based safe trading decisions. Please check our completed reviews to know if a broker works according to terms imposed by regulatory institutes. If you are not able to find information on our site, make a request to initiate a review scrutinizing the broker in which you are interested. Just fill out the application form. We will investigate the broker’s activities and send you the results by email. Due to a large number of requests to investigate the activities of brokers’ who show signs of cheating, we will provide you with an answer in the shortest time possible, likely a few weeks. We strongly recommend you send your request us as soon as possible to secure a place in the queue.
Binary options – is this a scam or not?
The idea that binary options mean cheating novice users comes from the fact that sometimes even the best brokers may be marked as not being utterly honest. Our goal is to provide complex reviews that are based on the real trading experience. Only then can we be sure that a particular broker is cheating. Binary options trading is one of the most rapidly growing financial industry sectors. That’s why the scammers are trying to get in on this market. We would like to help you to expose that kind of market participant and avoid possible harm. Our team of experienced binary options traders has worked professionally for over 5 years in the financial markets. We know how to spot the scammers.
Is Forex a scam?
Apart from investigation of the activities of binary brokers, we study companies that give traders a chance to earn income by investing in other financial markets. The currency market forex is for good reason among the best ways to get a decent income from trading currencies. It works 24 hours a day, is available for traders of any wealth, and, due to internet technologies, it’s easy to become a part of it just by going online from a home computer. Of course, apart from various advantages, it has also led to the emergence of a huge number of scam brokers. They seduce traders by promising them high earnings, unreal payout percentages, and lucrative bonuses, but instead disappear immediately after the funds are collected.
The mission of FraudBroker.com is to study the activities of market brokers providing trading services on Forex and to caution traders against problems they may face by catching scam artists. How do you identify a swindler and a cheat among many Forex brokers? Check brokers for possession of a license and work on their demo accounts carefully. Also have a look at the current rating of verified Forex brokers and read the references of traders about them right now on the specific webpage.
Is CFD a cheat and a scam?
CFD (contracts for difference) have been especially popular with traders recently as they allow traders to essentially make money on the difference of prices of various assets: raw materials, metals, currencies, etc. There is no purchase of assets here, no solution offered for the issue with title documents and so on. This aids interaction between trading parties, lets a trader earn both from assets appreciation and loss. Dealing with CFD is lucrative, quick, and easy.
Taking into account the high popularity of this market many brokers immediately started offering access to its capacities, which is not bad in general. However, today there are a lot of suspicious companies, too, with unique bonuses in their arsenal and guaranteed high income from investments in CFD from small traders’ efforts. How do you choose a reliable CFD broker and not lose your money? For our website users, we have prepared an urgent rating of CFD brokers, where they can not only read the detailed brokers reviews, but also study real traders’ feedback about them.
Is cryptocurrency a scam or the real thing?
Cryptocurrency is popular and one of the most volatile assets of our time. It is among the most vital financial markets and lets you obtain income by purchasing and selling digital coins. This growing market resulted in the whole cryptocurrency boom, and we all are unintentional witnesses of its rapid development, have hot discussions on the latest news of digital assets dynamics, become tokens holders etc.
Such attention to cryptocurrency couldn’t help but generate a large number of scam lottery websites and fraud projects in the market, which were created just for one purpose – to take over traders’ cryptocurrencies and disappear. How «not to fall in their hands» and to keep and multiply your digital money are the topics the team at FraudBroker.com works on. You can read a lot of informative articles about cryptocurrency and digital assets trading strategies, along with detailed reviews of cryptocurrency exchanges and brokers allowing trading digital tokens.
Is the stock market a scam and a fraud?
The stock market is one of the oldest financial markets allowing any concerned user to make money investing in shares of the major companies and brands, and it is popular all around the world. For instance, a trader may easily become a holder of shares of Coca-Cola, McDonald’s, Apple, Adidas, Starbucks, Gasprom, Nornikel, etc. Shares have always been among the safest assets, and the chance to become a holder of assets of famous brands is appealing to solid investors. With the emergence of the huge market of internet technologies, the chance to get a decent profit from stock trading only increased, and ordinary people became concerned about them, too.
Obviously, there are not only fair stock brokers in this oldest market, but also websites promising naïve traders heaps of money when in reality they are fraudulent scams. How do you choose a reliable stock broker? On the project website FraudBroker.com you can not only study the up-to-date ratings of stock brokers but also read a huge number of reference materials about trading in the stock market.
John Reichard, 38, New York City, USA
Hello! I’m John Reichard. I will be glad to help you. Not many people could boast that their profession and hobby are the same thing. For more than 5 years, I have analyzed binary options brokers. I devote my time to trading and market research, and I’m ready to share my experience. My goal is to guard myself and other traders against thieves. I have opened accounts with different brokers to check their trading platforms and payout obligations, so everyone knows what firms are honest and which are just running their scam schemes and robbing the clients.
Floyd Lewis, 33, Toronto, Canada
For over 8 years I’ve specialized in binary options, robots, and signals. I have been a computer engineer and programmer. After my second daughter’s birth, I started working from home. I personally check the binary options robots and signals, different trading strategies and tactics. My aim is to verify whether programs are working properly or not, in order to determine winning strategies in these systems.
Kevin Murray, 29, London, England
I have a master’s degree in finance management and specialize in Forex trading and binary options. I’ve been the senior consultant with a project called FraudBroker.com since 2020 and have devoted most of my time to lead traders in the right direction. The latest articles on this site are mine. Now I’m a daytime trader with over 5 years’ experience in the binary options industry. People regularly contact me to ask my professional opinion on various things, including binary options scammers.
Recognize how to avoid scamming
Cheating is possible. First of all, you must ensure that your broker has a certificate issued by one of the regulatory institutes. Verify if there are any positive or negative remarks on the Internet. Pay attention to the conditions of the services that brokers provide, including trading conditions and bonus-receiving conditions.
You can ask your questions online using an online chat application or request a telephone call and ask your questions this way. Furthermore, you can request the broker’s verification and wait until we determine if there are signs of cheating and deceiving.
How to choose a decent binary options trade broker?
The choice of the right binary options trader is the first step to a successful trading career. Actually, it is really hard to choose an honest broker out of the more than 350 working firms on the market. That is why we at FraudBroker.com decided to intervene and help visitors on our site. We have ample knowledge about how to choose a binary options broker. Our site is a good place to do the first steps in binary options trading. If you are not utterly sure that your broker is reliable, we would advise you to choose a broker number 1 from the list above and start trading safely by having a broker whom the FraudBroker.com team members trust.
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