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South Africa Binary Options Trading
The binary option represents a type of option where the payoff is a fixed amount based on asset of some kind. There are 2 types of binary options out there – cash-to-nothing binary type and asset-to-nothing binary type. You need to know those things in case you want to be part of the binary trading market all over the world. Many people are generating huge profits thanks to their binary trading skill.
However, in this particular article we would like to pay attention to South Africa. A country that is rather interesting when it comes to financial markets and investments.
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South Africa Forex Trading Specifications
In case you lack experience at all, it might be better for you to find regular binary option brokers in South Africa. As a matter of fact this is not a bad idea, even if you are dealing with forex. It is always safe to use a good helper. We would like to help you and due to this reason we will actually post a list of binary options brokers that you can use. Make sure you can analyze things like clear account closure, transparent account process, demo accounts, hidden taxes and fees, security, low commissions.
The overall volatility of the South African market is huge, and this is why the market is really suitable for risky players. The main factors you need to pay attention to are the demand for different stocks, for example. The risk, as mentioned, are higher, so you have to have good experience, and of course good partner!
In case you don’t have lots of money to invest, then this market might not be the best one with which you should start, but if you think you will handle the fluctuations, then take a look at the offers below.
As we mentioned, it is important to have a good partner when it comes to online binary trading in South Africa. All of the below mentioned brokers have been tested and have been in the business for quite a lot of time so they are really reliable. Take your pick!
Best Binary Option Robots for South African Traders
Binary options trading is quite a profitable business the world over and many investors have been making high returns in this fast-growing financial sector in the past decade. The binary options industry made a splash in 2008 when it was officially introduced into the financial market. It has since then become an integral part of online trade for both novice and professional investors. Due to the intricacies involved in this business, some may imagine it is a difficult concept to understand how to trade or even be successful at it but like with any other field, it’s a learning process.
It simply takes prospective traders a certain amount of effort to learn so they can improve and hone their trading skills to a much better sheen. For traders residing in South Africa, there are a range of many reliable brokerage houses present in industry that they can choose from. These brokers offer a wide array of trading features and resources which include trading guides, tutorials, e-books and webinars among many others.
In South Africa, trading binary options comes with a raft of advantages. Chief among them is the fact that there is little human factor involved considering most of the trading is done automatically. This allows traders to minimize their risk levels since the software employed by binary robots is more efficient in detecting minute price movements as well as predicting and following the current market trends. As such, it becomes easy to trade a varied selection underlying assets with minimal risks.
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How to Make Money with Binary Option Robot
Top Binary Option Robots in Russia
Claim your free binary option robot, get started with three easy steps:
- Name of Robot
- Min. Investment
- Min. Deposit
1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time.
2. The Binary Option Robot Will Predict the Price Movement
Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall.
3. Decide on how much you want to Invest
Then you need to decide how much you want to invest in the commodity and when that investment will expire.
4. Collect your Earnings
Finally, you collect your earnings (the good part!)
Get a binary option robot for free by clicking on the button below and learn how you can make money while you sleep!
Introduction to Binary Option Robots
Binary Robots have been developed to follow and mimic current market trends while at the same time, using embedded algorithms to notice the slight changes prevalent in trading positions regarding the highest grossing trending assets. They use financial tools and software analytics so they are able to achieve precise calculations before they can execute trades. Thanks in great part to the latest technological advances; investors within South African are able to trade on various trading platforms offered by binary options robots.
In a nutshell, robots can be defined as auto-trading software algorithms that execute trades on behalf of online traders. This auto-trading platform in turn requires users to set their own preferences which the robots employ to place trades on a wide variety of commodities, assets, indices, currencies and more. Traders are thus able to invest in the financial market using these auto-traders and all this is achieved with minimum effort that results in winning investments.
Many South African investors are active participants in this versatile scene with many of them seeking to maximize their profits. And because there lies great promise in technology, the industry is slowly becoming an even more exciting field thanks to the advanced features being developed every day.
Binary options robots are an exceptional platform and most traders in South Africa prefer using them. Many are those who prefer not to be involved in the trading process itself either because they don’t want to spend too much time trading or they have hectic schedules which won’t allow them time to participate. The confluence between both types of traders is that they are all after investing in the industry for a chance to achieve high returns.
binary option robot results
Appearance of Binary Options Robots in South Africa
The South African market has experienced a revamped financial sector and being one of the fastest growing economies in Africa, the rainbow nation embraced the binary options industry in the early part of this century. At the onset of binary options trading platforms, there wasn’t an official regulator to cover the safety of traders or provide brokers with licenses. But that didn’t stop the industry from becoming more and more famous as time went by.
However, many of the local brokers held official licenses which allowed them to operate since most traders dealt with brokers that were located offshore. These brokers were mostly firms domiciled in other countries but which accepted South Africa-based traders. In the intervening years, the trading landscape has grown and expanded fast for trading platforms in South Africa and currently, there are licensed and regulated brokers.
The FSB [Financial Services Board] is the authority charged with regulating the South African binary options market. FSB supervises the regulation of Africa’s largest stock exchange market; Johannesburg Stock Exchange. Many traders thus adjust their trading strategies to reflect the processes going on in this stock exchange. However, the main job of the FSB is securing the work of one of its agencies, the Financial Advisory and Intermediary Services [FAIS]. This is the agency that essentially is in charge of the binary option trading industry in South Africa. FAIS is tasked with securing financial service providers through a number of departments, and each department has a particular field of operation;
- Registration of South African brokers
- Supervising the entire binary options trading field
- Compliances by binary option traders
- Assisting binary options websites to become competent global brokers
There are many reliable trading platforms that are allowed to operate in the exciting South African market, with many of them also having a presence in the global market. Among these are the Binary Option Robot, the Option Robot and the Binary Hedge Fund. In this review, we’ll be looking at how each has impacted the South African market.
Binary Option Robot
Trading binary options has slowly gained traction in South Africa in the past few years, with more and more traders joining this lucrative online industry with a goal to maximize their profits. As technology continues to witness remarkable advances, the South African market has embraced binary auto-trading platforms which have proved to be an entirely new concept in trading owing to the many exceptional features they are comprised of.
The Binary Option Robot is one such auto-trader which works through deploying automated software to place binary options trades. Traders use this remarkable software platform to execute trading instructions which they have pre-programmed with clear instructions dependent on a range of variables like time, price, market volatility, etc. The best thing about this software is that it’s totally free and traders won’t need to perform any downloads since it operates straight from servers hosted in the cloud.
To use this robot, traders only need to program their preferences and the auto-trader will go to work regardless of whether traders are online or not. This is made more popular by the fact that it has been specifically designed to give even novice traders an opportunity to make profits by giving them trading analysis and commands which are both controlled through software algorithms.
binary option robot dashboard looks this, easy to use
Partners with Binary Option Robot
For those traders new to investing in binary options, the Binary Option Robot offers a host of reliable and regulated brokers to help on their journey of trading a wide range of underlying assets. It’s simply upon traders to select a regulated broker of their choice that is licensed to operate in their country of residence. If you are a South African trader, below are a few of the licensed brokers available on the Binary Option Robot platform;
- Banc de Binary
- Cherry Trade
- Porter Finance
For optimum best results, you may sign up for an account with two or more of the above brokerage firms as it will make your trading experience even more profitable. The auto-trading binary option robot is an automated system that you can install and launched directly a simple way. It then follows signals that have been developed by financial experts and professional traders. In order to ensure you get the best winning results, the robot only selects indicators that are provided by reliable signal service providers.
The binary option robot packs a host of notable features that make for quite an exciting trading experience. Traders in South Africa are able to rely on a diverse offering of trading options that allow them to select those which most fit their unique needs. Remember too that you’re allowed to use more than one broker in your investments if you want to increase your success rate. The binary option robot comes with a variety of default settings as well as other options you can use to protect your investments. The features below are among those on offer;
- You have access to the “Stop Loss Option Daily” feature which allows you to restrict investment spending.
- You can set a certain amount per trade depending on your investment capital or level of experience.
- This auto robot also allows you to reverse your trade should it appear to be headed in the opposite direction of your initial prediction.
- This auto robot is able to work on Smartphones, Tablets and Personal Computer and it can operate on mobile devices supported by Windows, Linux, iOS and Androids operating systems.
- Another special feature of the Binary Option Robot is you are allowed to select as may assets as possible if you want to increase your chances of winning trades.
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Another auto-trading platform is available for South African traders and it promises rich profit amounts. The Option Robot is on offer to traders who would want to trade binary options but lack the time to check the price movement of the underlying assets they have their eyes on. This Option Robot is an automated software facility that will save your time and will place trades on your behalf according to the preferences you set. Automated software is among the advanced techniques used in binary options trading that is considered as one of the easiest and most convenient solution in the industry today.
Because this auto-trader operates from servers hosted in the cloud, it is able to relate to and follow the instructions given by any user. By using the binary options market’s technical patterns and price pointers, it then creates accurate signals that work towards assisting your investment portfolio while also greatly reducing the risks that are attendant to this financial facility. It’s by using the Options Robot that traders in South Africa have been able to invest in a variety of assets, commodities, indices and currencies without having to be afraid of potential losses. The Option Robot will guide you in making the right investment decisions while at the same time, give you the opportunity of achieving great success in your trading journey.
How the Option Robot Works
The Option Robot is especially nifty for beginner traders as it offers them valuable tools that help invest in global assets even in their absence. Such tools include the ability it offers to traders so they can set their trading options and time limit, loss amounts as well as the number of trades to be executed per day. The Option Robot deploys auto-trading software to analyze price movement then place the trades that end culminate in the highest possible return rates.
An exceptional facet of this auto-trading software system is that it’s one of the best results oriented and advanced trading systems that is available in the market today, not only for traders in South Africa but in the global scene too. This automated robot employs sophisticated algorithms to locate market trends such as the behavior of financial assets, minor market fluctuations and other significant events that are common in binary options trading.
Using these parameters, it closes in on patterns which are likely to be repeated then executes trades according to preset conditions. The Option Robot identifies trending assets then informs you on which to invest in. By using mathematical algorithms, an inbuilt software system, it is able to generate signals which it applies in detecting and executing high frequency transactions. In a nutshell, the Option Robot offers you;
- Access to a single interface and variety of online brokers
- Access to binary options signals every time a great investment opportunity arises
- The ability to execute the trades on your behalf
option robot main page
The Option Robot packs a host of special features that will make your trading experience all the more exciting in South Africa. These features have been designed to offer traders a seamless platform that makes trading binary options online to be quite the simple, fun and profitable pursuit. To start you off, the platform will allow you;
- To set your trading preferences as well as customize the platform’s settings. This means that you are essentially in complete control of the entire trading process.
- To set the assets to trade, daily investment amount limit and daily maximum loss amount among many other parameters.
- Access to the “Risk Level Control” facility which allows you to select a risk level that is suitable to your investment amount. This feature will also let you control the assets you want to trade, daily investment amount and loss amount level among other aspects.
- Access to the “Reverse Trading” facility which allows you to place trades in contrast to the generated trading signals. If you find that the generated signals will most likely end in the red, you’re able to reverse the trade to prevent losses. This also allows you to make profits by placing trades that are contrary to the generated signals.
In addition to the special features, South African traders have a choice of technical indicators that serve to improve the overall Option Robot platform. You can choose to rely on a single technical indicator, or you can choose two or more indicators as your sources of trading signals. The six indicators are:
- RSI [Relative Strength Index]
- MACD [Moving Average Convergence Divergence]
- CCI [Commodity Channel Index]
You can adjust any of these technical indicators in your settings tab either individually or collectively. If you want to employ multiple indicators at the same time, you must make sure that each mirrors the other in order for the Option Robot to generate trading signals.
option robot strategies
Binary Hedge Fund
Update: Binary Hedge Fund no longer accepting new customers
Trading binary options in the Rainbow Nation has continued to progress remarkably well in the past decade. The major reason for this is because the last few years have witnessed a greater penetration of global markets by South African traders. Investors in South Africa, like in the rest of the world, want to increase their profits too through trading in this fast-growing financial industry. As such, they are searching online reviews regarding binary robots, binary options brokers, auto-trading signals and classic binary options platforms in order to have an edge when trading.
To be a successful trader, you need to have analysis-based on technical strategies if you’re to understand the minimal movement of the market’s trending assets. And this is where the Binary Hedge Fund comes to take on the technical aspect so any trader can invest without worrying about mathematical formulae of technical analytics. The Binary Hedge Fund is based on specific investment drivers which serve to offer exceptional trading experience to South African investors.
Hedge funds were hardly ever regulated or even available to the public in the not too distant past. In South Africa, many traders had not heard of them until they peaked on the global level. At present, the Binary Hedge Fund is available to every trader the world over. Like what happens with traditional hedge funds, the Binary Hedge Fund has been developed as a trading vehicle for traders who seek to take risks in the binary options field. However, these traders’ capital funds are typically handled by professional investors. One of the major advantages of this facility is that it’s a web application that gives you access to specific professional trading rooms to place your trades in.
How the Binary Hedge Fund Works
The name “Hedge” refers to a financial instrument that’s totally independent of current market situation and its future growth. As such, a hedge fund is a financial facility which pursues absolute profit returns without regard to the prevalent economic conditions. Traders use hedge funds to invest in shares as well as various asset classes like assets, commodities, currency pairs, etc., as well as various other derivative risk management instruments to maximize their return on investment.
In Binary Hedge Fund platform, a variety of technical tools are offered to traders. These tools have been designed with the sole intention of assisting you access maximum returns from your invested funds. They combine with the best financial market traders who are selected to place trades on behalf of traders using result-oriented strategies to guarantee rich payouts. In short, the best traders in the South African market share their investment knowledge with you so you can have the best experience trading binary option online. The Binary Hedge Fund is essentially an auto-trading software robot that functions in much the same way as the Binary Option Robot detailed above.
binary hedge fund main page
Advantages of the Binary Hedge Fund
Investing in hedge funds for the ordinary citizen in South Africa is virtually impossible due to strict regulations. But since the Binary Hedge Fund is essentially not a fund but automated software, the same limitations attached to hedge funds aren’t applied. You are thus able to access all its advantages free of charge and without risking millions of Rands. Among the many advantages of the Binary Hedge Fund are;
- It works independently
- It only places trades via the most reliable, trusted brokers
- It gives you access to the most popular trading assets in the market
- It gives you access to signals from trading experts so you make high profits
- It is designed to make profit without regard to prevailing market conditions
- It allows you access to a professional trading platform that would otherwise cost hundreds or thousands of Rands
Partners of the Binary Hedge Fund
The most amazing factor with Binary Hedge Fund is the fact that its fund managers are experienced economists, renowned investors and finance experts. While binary options own the initiative in this direction, the hedge fund has essentially become the de facto leading mover. The success of Binary Hedge Fund is due to the fact that it works with some of the best binary options brokers in the market. These brokers’ trading platforms include;
- Bloombex Options
Notable Features of Binary Hedge Fund
There are various special features that the Binary Hedge Fund boasts of. Most of them have been designed to make the trading experience not only easy to muster but also to make it more convenient for South African traders from all walks of life. Among these are;
- You can choose the total number of trades to place per day as well as the daily loss amount you are comfortable with.
- You are able to monitor your trades via the “Trading History” facility. This facility gives you a full account overview of assets traded and trading results among other specifics.
- You are able to check signal types versus their success ratio via the “Signals” facility that displays all the signals generated.
- Expert traders have access to a special feature that allows them to select the maturity of their individual portfolios.
Since its introduction, the Binary Hedge Fund has become quite popular with binary options traders and it’s easy to discern why. Together with the features detailed above, it has gained the trust of South African investors who are continually turning to this exceptional trading platform that allows them access to professionals support while they invest on a wide range of global assets. And by working side by side with influential brokerage houses, the Binary Hedge Fund can afford to assure traders that this is clearly an auto-trading platform that’s on its way to marking a leading position in the coming years.
Basic Concept of Binary Option Robots
Many binary options investors domiciled in the Rainbow Nation traders know that this financial instrument is completely legal. In addition, traders should know that most of the brokers who are licensed to operate in the country are mostly based in the United States and Europe. But this is a big advantage since most investors know that signing up with offshore brokers afford them a bigger piece of the binary options pie, especially for brokers regulated in Europe as they give traders access to the entire European Union trading block. There are various types of brokers, just as there are various types of trading platforms that South African traders have access to.
Because each of the trading binary robot platforms above comes with its own pros and cons, it is up to the traders to choose the one that will suit their preference best. When using the signals provided or their auto-trading robots, ensure they fit not only your investment expectations but your strategic goals as well. In addition, make sure that the broker you eventually sign up with is both reliable and trustworthy. Read up on each of your prospective brokers in order to make the choice that fits you best. As a prospective investor in South African, you must understand the different offers given by various binary options brokers.
The registration procedure is made quite easy and simple so you can sign up for an account and deposit funds. Because different brokers offer different registration rules, feel free to select the broker who suits your needs the best. In addition, each broker available on the binary option robot has minimum initial deposit amount as well as a minimum investment amount so selects the one who suits your needs.
You might also want to consider the minimum withdrawal and bonus amounts each is offering before deciding on the broker you will finally sign up with. Many South African traders who are new to binary options will more often than not choose a broker who offers a demo account so they can get experience through trading using virtual money as opposed to placing real money trades.
Customer Service Support
The binary option robots reviewed here typically offer users a Live Chat option. Should South African traders have any questions regarding the trading platform or process, they can get comprehensive information from the customer service support team via Live Chat, Email or Phone Number. In addition, users are provided with articles which detail the inner workings of these auto-trading robots, plus excellent FAQ section which host various answers about the entire trading process in simple language.
Choosing a Broker
Because not every binary options broker is the best fit for your trading needs, it then becomes vital to be smart about it before you sign up for a trading account. Below are a few factors you should consider when looking for the best broker to register with in South Africa;
- Ensure your broker of choice comes highly recommended by any of three auto-trading robots reviewed above. Make sure the broker isn’t a fraud and has good reviews online.
- Ensure your broker of choice will provide you with a range of tools that will teach you about trading binary options. Such tools include tutorials, technical guides, e-books, etc. A demo account is certainly the icing on the cake for it will enable you to place trades using virtual money thus giving you much needed experience.
- If you’re looking to conduct binary options trading via auto-trading robots or by following signals, ensure your choice of robot has the requisite reputation in the market before you commit your trading capital to their platforms.
The binary options trading industry in South Africa has been growing in leaps and bound in the past few years and from the look of things, South Africa is well positioned to be the prime trading hub for online traders. Binary robots in turn are quickly gaining a reputation as among the best trading tools South Africans can rely on for increasing their investment returns. The Binary Option Robot, the Option Robot and the Binary Hedge Fund have proved to be some of the greatest tools investors can have access to.
South African citizens who have been searching for the best binary options robots, binary options brokers as well as trading signals need look no further. It’s in this knowledge that we have compiled this review so we can make it easier for the residents of South Africans, and any trader wanting to access the binary options industry via the Rainbow Nation, to access all the information they need to know concerning this exceptional financial facility. Now you are ready to choose the robot as well as the broker who suits you best so you can begin trading.
Get a binary option robot for free by clicking on the button below and learn how you can make money while you sleep!
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.Best Binary Options Brokers 2020:
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# 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.
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.Best Binary Options Brokers 2020:
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