Tips for the Right Binary Options Trading Execution

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What is binary option trading?

What is binary option trading?

Binary option trading is a type of business that offers two options – either the price of a particular asset goes up or down, and you have to estimate which direction the price runs in a given time period.

It is a relatively simple method of betting on whether binary options trading will be a definitive result or not. The name ‘binary’ (meaning ‘two’) indicates the fact that you have to choose from just two scenarios – yes or no

Binary Option Broker

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In financial business, it usually happens whether the price of an asset will be more or less than a certain level at a given time.

The most common type of binary option is a digital option, sometimes breaks into ‘up / down’ or ‘call / put’ options.
With a simple call / put option, if you think the price of the underlying asset will be more or less than the strike price, then you buy a ‘call’ option. If you think that at the time of expiration the price will be less than the strike price, then you buy a ‘put’ option.
If you are right, the option is ‘in money’ and pays a certain amount of compensation.

This compensation is usually money, but some contracts may have the amount of the underlying asset.
If you are wrong, then this is ‘out of money’ and you do not get anything.
Because of this, binary options are sometimes called ‘all-end-nothing options’.

Attractions of Binary Options Trading

Because you have only two possible results to consider, binary options trading is considered to be simpler than many other types of financial trading.

Generally, you need to decide which direction in which direction you think that the value of the underlying asset will increase.

Unlike other forms of financial trading, where your potential profit or loss is also determined by the size of a price movement, it does not matter to the binary options trader, above or above the strike price agreed upon when the option ends. How far have gone . Along with binary options, a winning business always produces a single payment.

Because of this, you have a clear picture of your risk-reward ratio before entering the business.

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  • BINOMO
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This is in contrast to traditional options where profits and disadvantages can be infinite.

With binary options, therefore, you do not have to sit on your trading terminal, are looking eagerly – once you do your business, you do not need to check until the contract is terminated. You do not even have to worry about applying a complex risk management tool like stop loss.

Binary options are flexible, brokers are usually offered contracts for various types of underlying assets – from foreign currency or commodities to company shares or index like FTSE or S & P 500.

Contracts can last from 30 seconds to several months, depending on your broker’s offer. This means that you can tailor your business to areas of your expertise or trading style.

If you are an experienced trader in other markets, such as foreign currency or shares, then you can apply some of the skills you have already developed.

For example, both fundamental and technical analysis can be used to help you create a view on future value movements.

Binary Option Broker

Risks of binary options trading

Is Binary Trading Gambling?

There has been a vibrant debate over whether a binary option constitutes trading gambling for a long time or not. Binary options brokers argue that this is not a gamble, it suggests that the payment includes third parties (meaning that this is not the only customer against the home), as well as brokers do not take a commission for a business Which ends “attract.”

But these are Fringe arguments. Many still argue that the basic format of making a prediction and losing or making money on it is worthy of the game of chance. The interesting question becomes whether this interpretation extends into all stock and asset trading.

Binary Options Trading Guide: Choosing the Right Asset

Binary options brokers present ever diverse asset lists, but the trader’s decision on which ones to place their deposits should

One notable way for binary options brokers to stand out from the crowd and differentiate themselves is by their offered asset class array: the more exotic and diverse, the better.

As competition grows fiercer, today you can find pretty much every kind of asset you want to trade. The question then arises. The first thing to take into consideration would normally be the payout provided by the broker. Higher payouts are usually applied to options on assets with high liquidity, such as euro and US dollar.

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Apart from the payout, liquid assets provide smoother charts with less gaps, which are clearer and easier to grasp. That is to say, they provide more information.

Currencies also deserve to be an equally important point of discussion when choosing trading asset, timing. The USD/EUR pair, for example, is most active during the European and American trading sessions, and that should be the time to put your money on.

Once again, picking the right asset is entirely subjective. Some will want the commodity they know and feel comfortable with, while others will prefer to follow the news and go for the hottest stock around. Since trading is about making money, it is imperative to know every fact about the preferred asset. Largely speaking however, unless you possess some kind of insider tip it is best to choose the most liquid assets and options, with the highest payouts and trading hours that best fit your daily schedule.

5 easy ways to avoid cheating when trading binary options

Summing up, we can say that, in most cases, the usual “sanity” from scammers, scammers and cheating in binary options trading is ordinary human sanity and prudence.

In the age of high technology and the spread of the Internet, everyone who wants to start trading binary options, can type in the search engine string “binary options brokers” and get a lot of links to brokers’ websites that provide binary options trading services. However, not all of them may turn out to be who they say they are. Along with the popularity of binary options trading, the number of frauds and scammers is growing. Very often, the good reputation of an honest and decent binary options broker is adversely affected by a handful of cybercriminals whose traders come across tricks. Nevertheless, no matter how sophisticated the crooks are, there are several ways to recognize them, saving your money and nervous system.

Meet on clothes

Pay attention to the binary options broker website. The site should be functional, with a working user menu. Decent brokers do not spare money on the design of sites. If you see any inconsistencies, inconsistencies, or even grammatical errors – this is almost an absolute sign of scammers, because you will not go to buy gold jewelry in a beer stall?

Test the trading terminal

The next step is to analyze the trading platform that the binary options broker offers through the use of demo accounts. With it, you can check the functionality of both the client and browser trading platforms for adequacy to the tasks. The broker’s lack of a demo account or any other opportunity to familiarize himself with the conditions offered by the broker for trading binary options is an alarm call indicating scammers.

Customer support service

Next, you should find out ways of feedback from the administration and not be too lazy to check each of them. Decent binary options brokers provide, as a rule, online chat, email address and contact phone numbers. The response to the request should be prompt and adequate. Fraudsters disguising themselves as brokers often ignore customer requests or try to get off with general answers based on the principle “Your message has been accepted, in the near future you will receive a response to the email address provided during registration” or something like that. Of course, there is no question of online contacts.

Methods of depositing and withdrawing funds

Any binary options broker that respects itself offers the client several alternative ways to deposit and withdraw funds from a client account. This can be electronic payment systems, bank cards, bank transfers and more. All methods and conditions of monetary transactions should be indicated on the binary options broker website. As an additional confirmation, you can make sure that the broker uses SSL encryption when actively transferring financial information.

Promotions, bonuses and fast money – a frequent trick of scammers

The main task of scammers is to seize the client’s funds in the shortest possible time, without violating anything. To do this, customers are invoked with promises of bonuses, sky-high sizes, or super-duper stocks, with participation in which the client can again get almost unlimited profit. Here you need to clearly realize that money does not come from nowhere, and the binary options broker is not a good uncle who distributes money left and right just like that. Carefully read the terms of participation in promotions and bonuses. As a rule, attackers specially print them in small print. Do not be too lazy to read them, for sure you will find there a lot of “interesting”.

Summing up, we can say that, in most cases, the usual “sanity” and reasonableness is a natural “guard” against scammers, scammers and cheating in binary options trading. Nevertheless, the number of victims of the actions of imaginary binary options brokers is not reduced. No need to rush, you always have time to earn your million. Take a look binary options broker reviews on our forex forum or read these simple recommendations that will save you time and, most likely, a serious amount of money.

Binary Options Guide: The Truth About Binary Options

Trading binary options can seem deceptively simple, but leaning too far into that notion can blind people to some of the risks that often accompany this type of trading.

Before I go any further, I want to make it clear I’m not a binary options trader. I trade penny stocks and teach day trading. I’d love to see you join the Trading Challenge — it’s the result of over two decades of trading and a decade of teaching. It’s awesome.

If you’re interested in taking the binary options path, it’s critically important to understand exactly what you’re getting into and set appropriate expectations. And you should get a mentor who trades binary options. Seriously. Preparation is key.

Again, I don’t trade binaries. For the most part I think they’re scams. Can you trade them successfully? There are successful traders in every niche. But most traders lose. That’s the reality of the industry.

It doesn’t matter if you’re trading forex, penny stocks, options, big caps, or … binary options. Most traders lose and most trading teachers don’t want you to know about it. So I’m going to tell you about binary options in this post. But I don’t trade them and I don’t recommend it.

Will trading binary options enable you to buy a villa in the South of France next year? Probably not. Will they allow you to quit your full-time job and finally start on that novel you’ve always wanted to write? Don’t count on it.

Here, we’ll take a look at what binary options trading is all about and you can decide whether it’s right for you. As you read, keep in mind that binary options are getting outlawed in more and more countries. Companies are getting shut down. Or they’re based overseas in places where you can’t sue them. More on that later.

Table of Contents

What Are Binary Options?

Before we dive into specific binary options trading strategies, let’s review exactly what binary options are. According to Investopedia’s definition:

A binary option, or asset-or-nothing option, is a type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset.

At the core, binary options are based on a yes or no proposition. You must decide whether you believe an underlying asset will be above or below a specific price at a specific time.

Binary trades are ruled by expiry times. These time constraints indicate how long you have to make your predictions regarding whether you believe an underlying asset will be above or below a specific price at a specific time. Once the expiration limit occurs, your predictions determine whether you gained or lost money.

Expiration times vary from binary option to binary option. Some of these minimums are known as short expires, which means the expiration date is actually within mere minutes of the buy-in.

There are medium and long expiries, as well. For medium expiries, the deadline could be anywhere from two to five hours. Long expiries typically last between two and 24 hours. Many experts believe that longer expiration times can help make predictions easier.

What Are the Underlying Assets of Binary Options?

In order to participate in binary options trading, you must first have ownership of an asset that can be optioned for a fixed amount. The types of assets common in binary options include stocks, indices, commodities, and currencies. Many binary traders chooses to trade with stocks, as this option can allow them to get high returns within a short span of time.

Along with indices and commodities, currencies are another popular binary option vehicle. Since currencies are liquid and often subject to dynamic price fluctuation, many traders choose to analyze their binary options across the complex — and often shifting — global currency market.

A quick aside since we’re talking about forex. Be aware that the forex market is among the most difficult to trade. Why?

Because it’s the biggest and most liquid market in the world. You’re up against the smartest, richest, and often most experienced traders in the world. Personally, I don’t want to compete against that. Plus, the forex markets move so fast on news you don’t have access to, that there’s no edge whatsoever.

And now, a new asset has emerged: cryptocurrency. I don’t trade crypto, either. I’ve traded the random crypto-based stock. But this is a whole niche unto itself and I’m happy with penny stocks. Crypto has its own version of binary options — which is why I’ve included it here.

Led by Bitcoin, this new, digital currency class is intriguing investors around the world who see the digitization of finances as the way of the future.

According to Options Advice, there are two prominent ways you can capitalize on Bitcoin binary options. The first strategy is by trading on what you think the imminent fluctuation of Bitcoin might be, and the second is trading regular options with Bitcoins as your currency.

If you’re interested in taking the cryptocurrency binary options route, I strongly suggest familiarizing yourself as much as possible with the trends dictating the ebbs and flows of the altcoin market.

An entire niche financial industry has been built up around educating consumers and future investors of digital coins and tokens. From resources like Cryptoslate to ICO listing sites like Coinschedule, there are many resources available to help you make the most strategic crypto trading moves possible.

There are also a lot of scams. And strange happenings. Like when a crypto exchange CEO died with the ONLY key to $137 million in crypto. Ouch. More than 100,000 cryptocurrency holders learned a very hard lesson. Back to binary options …

What is a Call and What is a Put?

Two of the most common terms you’ll hear throughout the binary options world are call and put. These two labels represent the market positions of binary options.

You typically choose to call if it looks like the value will rise within the confines of the expiry time.

Options also have a strike price, which is the price at which the security would be bought or sold.

If you choose to call, you’re signifying your confidence that a stock will rise within the time limitations. If the stock valuation moves upward at all, you’ll receive both your initial investment as well as the return.

On the opposite end of the spectrum, a put signifies your confidence that the valuation of a stock will drop within a certain time limitation. So if you predict that a stock valuation will decline before the expiration date, and the stock does dwindle, you will have succeeded at that trade and will receive your initial investment — as well as the trade — back.

What Are Other Types of Binary Options?

Beyond call and put options, there are other distinguishing factors that separate binary options from one another.

This guide from Binary Tribune delves more specifically into binary options types based on the number of interactions a trader must initiate with the trade. The levels include one-touch, no-touch, double one-touch, double no-touch, and paired options.

Let’s take a look one-touch and no-touch options …

Essentially, a one-touch binary option indicates that in order for you to receive a payout, a trigger (or predefined barrier) must be reached. Traders often choose one-touch if they feel confident that a stock will move in a certain direction at a minimum amount.

The option only has to meet the predefined trigger level once (hence the “one-touch” term). However, as indicated by Binary Tribune, this strategy is often accompanied by some risk.

Beyond simply calling or putting, you also must feel confident that a certain valuation threshold will be crossed. However, with greater risk often comes greater reward.

In contrast, a no-touch binary option essentially depends on a trigger level not being reached.

Rather than hedging your bets that the valuation of a stock will rise above or dip below a specified amount, you’re betting that the trade will not dip above or below an amount.

Because you’re making the trade with the intention that a threshold will not be crossed in either direction, it’s referred to as “no-touch.” Like their one-touch counterparts, these trades come with greater reward — and risk — potential.

I liken one-touch and no-touch calls and puts to something like an electronic stop-loss. The problem is, you don’t have control. You’d better be damned sure you’re right. Which is impossible.

What Are the Pros and Cons of Binary Options?

Now that you understand binary options basics and the different factors between them, you might be wondering whether this type of trading aligns with your goals. Let’s weigh the pros and cons.

We’ll start with the benefits …

Low Barrier to Entry. You don’t need a masters in economics to engage in this kind of trading. For this reason, many first-timers enter the trading arena through buying and selling binary options. Comparatively, binary trading is relatively simple. When compared directly to other types of trading, including quantitative or arbitrage, trading binary options is straightforward.

Fast Returns. Many traders are eager to see fast results and liquidate within a specific time frame. Those who play the long game (investors) are typically most concerned with growing their money steadily over long periods of time. Many opt to invest in index funds, IRAs, or bonds. Trading binary options is fast paced.

Thing is … you can get all the speed you need trading penny stocks. So, while binary options might be a fast game, the reward might not be worth the risk.

High Rewards. Binary options trading is touted by those who promote it as high reward. It’s possible to receive up to a 70% return on their investments if your binary trades reach your expiration dates in the money. This high average return is what makes this type of trading vehicle attractive to many novice and expert traders.

As explained by Investopedia, the risk on binary options is capped off, so while the rewards could yield high returns, you can’t lose more than the cost of a trade.

Low Cost. If you’re just getting started with trading, there’s a good chance you don’t have excess capital lying around to snatch up shares of the fastest-rising stocks on the market. Binary trades offer an alternative to other types of investments that require high-capital buy-ins.

In theory, you can experiment with a binary trade for any amount you’d like, whether it’s $5 or $50. Starting small and working your way up to bigger trade amounts incrementally is a great way to learn the lay of the land.

As you familiarize yourself with expirations, strike prices and — if you’re interested in one- and no-touch options — triggers, it’s best to gamble with an expendable amount that won’t derail your entire financial status. Notice I used the word gamble — just sayin’.

Accessibility. Binary trading platforms make it easy to trade on any day and at any time. When it comes to binary options, traders aren’t necessarily beholden to standard market times and broker availability.

Now, let’s explore some of the disadvantages of binary trading …

Scams. Conduct any Google search on binary trades and one of the first things you’ll likely notice are the abundance of hits warning against binary scams and shady binary brokers.

Remember when I said I’d get back to the part about shady companies? Here goes …

… and I say this to protect and warn you.

Like I said, these companies are often based overseas. Places like Cyprus. (I have nothing against Cyprus. It’s a beautiful country with amazing people.) Anyway, these companies are based in places where you can’t sue them if they screw you.

Then you sign away pretty much your entire life in the forms they make you fill out. Your odds of winning are so low the brokers who do it are pretty much laughing at you. They’re laughing that so many people fall for this crap. It’s like going to the casino.

So, if you come across a binary broker that sounds too good to be true, it’s because he or she most likely is. And if you come across a binary broker who doesn’t let you liquidate your investment, run in the other direction.

Short term. Binary trades have expiration dates that are often fairly short windows of time. Given this, it’s impossible to use binary options as mechanisms for long-term investments. Which, of course, I don’t mind because I day-trade and teach day-trading. But if you’re looking for buy-and-hold investing, binary options aren’t the right solution.

Can You Really Make Money with Binary Options?

Short answer: It’s possible, but you MUST know what you’re doing. Like I keep saying. Most traders lose. Doesn’t matter the niche. I would never trade binary options. Ever. Your choice, I’m just tryin’ to keep it real.

If you’re serious about binary trading, start small. By making small trades and working your way up, you give yourself breathing room to assess market trends and develop the necessary skills.

As is the case with many types of trading, history is sometimes the best predictor of the future. Many successful binary options traders experience trading wins and financial growth because they’ve spent time studying and familiarizing themselves with market movements.

Wait. Does this sound familiar? Yep. You guessed it: you can’t cheat your way to success. Doesn’t matter the niche. I don’t trade binary options. I don’t recommend you trade them. But if you decide it’s for you then prepare yourself. Study your ass off.

Learning common candlestick patterns can make it easy to spot recurring trading patterns. If you want to understand candlestick patterns — and you do if you are serious about trading — I recommend you get a copy of the classic “Japanese Candlestick Charting Techniques” by Steve Nison. Doesn’t matter which niche you trade, this book should be on your bookshelf.

Of course, trading patterns are never 100 percent accurate, so don’t fool yourself into thinking of them as absolute stock predictions. However, the more you can learn about patterns and begin to recognize them yourself, the more likely you’ll be comfortable making your own options decisions.

Naturally, binary options contain risk. And by now you know my take. I pretty much think they’re scams. But there are differing opinions and some even consider them safe trading routes. I’m not gonna tell you not to trade them. I recommend you don’t. I’ll be interested to hear back from you. When you’re ready to trade the way I teach … apply for the Trading Challenge.

While it’s legal to trade binary options within the United States, they’re only available to trade on Commodity Futures Trading Commission (CFTC) regulated exchanges within the country.

Binary options traded outside the U.S. are structured differently to those traded here. You can learn more in this article on Investopedia: What You Need To Know About Binary Options Outside the U.S.

The Bottom Line

The good: Some traders like binary options because they are traded at fixed costs. You know where you stand.

The bad: Binary investments are too much like flipping a coin, there are too many scams, and your odds of winning are so low you might as well go to the casino.

The bottom line: Educate yourself like crazy. Avoid sketchy brokers. Start small and work your way up. Remain vigilant. Stick with these rules, and someday you might reach your trading goals. Will you do it with binary options? I doubt it. But you might prove me wrong.

Want to Try Binary Options Trading?

At this point, I hope I’ve shed enough light on binary options trading that you don’t do it. But … you might be thinking about giving binary options trading a shot. If you do, study your butt off. Get a mentor. Don’t screw around. The best of the best in every niche work with a mentor.

Trading — any type of trading — can quickly become complicated. Like any other sector of trading, it’s important to seek out an education before you attempt to invest in this way. I can’t help you trade binary options. But I can help you learn to trade penny stocks …

Is the Trading Challenge for You?

As a teacher I want to help my students forge long-term, sustainable careers as traders. The Trading Challenge can help you reach your goals through risk-averse, conservative trading.

Plus, my best students — those who have become millionaires themselves — join me in coaching you.

What do you get?

  • Wednesday morning live trading webinar. I show you live trades so you can see how it’s done. And it’s not only wins. These are true live trades. Sometimes I lose. But you’ll see how fast I cut losses and why I get out so fast when things turn against me.
  • Wednesday evening live lesson and Q&A. No matter where I am in the world. This is killer stuff.
  • Thursday live trading & review with Mark Croock. @thehonestcroock is at it every Thursday. You don’t want to miss this. Mark is one of my best students/teachers. He’s constantly in the challenge chat room alerting students.
  • Annual Penny Stocking Silver Membership. You need this. Thousands of hours of video lessons and archived webinars. Immerse yourself. This is how to get good fast.
  • PLUS: Two monthly bonus webinars by my top student Tim Grittani. It won’t take long to understand how Tim went from $1,500 to where he is now when you see how meticulous he is about his trades. Learn from a master.

WAIT! There’s more …

I always wanted to write that. Anyway, there is more, but you have to apply for the Trading Challenge to get it. Simple.

Will you be my next success story?

Conclusion

As you’ve now learned, if you study hard, start small, keep your scam radar on high alert, and stay educated, then becoming a successful trader is possible. But it’s not easy. So don’t even think about doing it if you’re not willing to work hard.

As for binary options …

Look, whatever you decide, it’s about how much time and effort you put into learning. I don’t think binary options are a good way to go. Plain and simple. But there are success stories.

If you’d rather learn what I teach, then apply for the Trading Challenge. But no lazy losers allowed. Seriously. Only join the Trading Challenge if you’re willing to work hard.

Are you a trader? Do you trade binary options? Comment below and let your fellow traders know how it works for you. Even if you are brand new, I love to hear from readers. Comment below!

Best Binary Options Brokers 2020:
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    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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