Binary options trading is one of the online trading choices that are ideal for investors who want quick profits. But you may not realize this if you have not heard about this kind of trading before. The good news is that after reading this, you will not only know the basics of binary options, you will also know where to go with it!
Here we go!
Binary Options Trading Signal Providers Reviewed
The easiest way to trade binary options is to subscribe to signal providers. They have already done the grunt work of analyzing everything for you. All you have to do is to trade. Please take note, however, that it is important for you to become an expert on how to successfully trade binary options yourself. Only go with the signal providers if are busy and do not have time to analyze things yourself.
|Binary Options Trading Signals||5/5||Website, Review||Stocks|
|3-5 signals per day||Live Streaming||$97 Every 14 Days||Fully Transparent
No Touch/Touch Options
|Auto Binary Signals||4/5||Website, Review||Forex Options|
|1-5 signals per day||Email|
|$97 Per Month||1-Month Free Trial|
|Binary Options Pro Signals||3/5||Website, Review||Stocks|
|6-12 signals per day||Email|
|$97 Per Month||14-Day Free Trial
60-Day Money-Back Guarantee
|Quantum Binary Signals||3/5||Website, Review||Forex Options|
|1-3 signals per day||Email|
|$99 Per Month||7-Day Trial At $9.99|
|Updown Signals||3/5||Website, Review||Forex Options|
|1-5 signals per day||Email|
|$97 Per Month||60-Day Money-Back Guarantee|
|Winning Binary Signals||2/5||Website, Review||Stocks|
|1-5 signals per day||Email|
|$97 Per Month||100% Money-Back Guarantee|
|Binary Power Bot||1/5||Website, Review||Stocks|
|2 signals per day||$69 Per Month||2-Month Money-Back Guarantee|
What Is Binary Options Trading?
Binary options trading is a type of trading that allows you to predict whether the market cost of a given asset will either go up or go down within a specified time period. It offers you 2 options to predict and thereafter choose from those two options. The expiry time can range from a couple of minutes to several days depending on your choice.
This kind of trading is regarded as being completely transparent and extremely easy to trade. It is transparent unlike other types of online trading because you will always be in a position to know the exact results. Its main advantage over other types of trading is that it is quick and profitable with minimal capital investment and time.
Things You Need To Know
There are some important things you need to know so that you can profit from binary options. Below are some of these things:
1. There are two (2) outcome options.
As an investor of binary options, you need to anticipate the direction 0f the price movement of a given asset. Within several platforms, the 2 choices are normally referred to as Call and Put. CALL is a prediction where an investor anticipates a price increase. PUT is a prediction where an investor anticipates a price decrease. Unlike traditional options, you are not required to know the intensity of the movement. Instead, you are just supposed to correctly predict whether the price of a particular asset will rise or fall.
CALL = PRICE INCREASE
PUT = PRICE DECREASE
2. Decide your position.
You should evaluate the current market conditions surrounding the asset which you have chosen and then predict whether the price of that asset will appreciate or depreciate. If your prediction is correct, the return rate of the binary options will be decided upon by your broker. In most cases, these earnings are always made known upfront.
3. Be well acquainted with the process of determining a contract price.
This is arguably the most important thing you should know when trading binary options. A binary options contract price is approximately equal to the market’s perception of the likelihood of the event taking place. For instance, if a contract has a value of $100 while the last trade of the binary options contract was $96, then it is an indicator that roughly 96% of investors in the market believe that an event is going to take place. Hence the price of the contract will go up.
4. Be acquainted with the benefits of trading online binary options over trading traditional options.
Here are some of the differences between trading traditional options and trading online binary options:
- It is generally simpler to trade binary options as opposed to trading traditional options. Trading binary options only needs a sense of direction of price movement of an asset. But with traditional options, you are required to have a sense of direction of price movement as well as the intensity of the price movement. While trading binary options, no real assets are sold or bought and therefore, stop losses are not part of the trading process.
- Binary options have a controlled risk-to-reward ratio. This means that both the reward and the risk are pre-determined at the time when the investor acquires the contract. On the other hand, traditional options have no specified reward and boundaries of risk and thus both the losses and gains can be limitless.
- Trading binary options allows one to use numerous hedging and trading strategies as opposed to trading traditional options. Both technical and fundamental analysis strategies can be used for purposes of increasing the accuracy of the price movement prediction while trading binary options.
- Contrary to a traditional option where the payout amount is proportional to the amount that the option results to revenue, the payout amount is not proportional to the amount that online binary options trading ends up in revenues.
- Unlike traditional options trading, binary options trading offer contracts that have short-term duration. There are some markets where binary options contracts close several times throughout the trading session. There are some contracts that can even last for a year. This offers you multiple investment opportunities as well as flexibility as markets continue to change.
5. Know who the best signal providers are.
This is expounded well on the first part of this guide. Typically, a binary option signal service is used for purposes of increasing an investor’s chance of succeeding in this kind of trade. There are several signal providers online. As such, it is imperative that you acquaint yourself with as many reputable signal providers as you can.