EURUSD Binary Options Trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect Choice For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

How to Make Money Trading EUR/USD?

Trading currencies has been with us for a long time. Binary options trading is a fairly new frontier considering that it has not reached its peak yet; it is still in the growth phase as there are many people all over the world who do not even know it exists. For those in it, it a good way to make money by making trades from their shifting values in relation to one another.

In traditional forex trading, you actually buy the currency when its value has dropped and sell it when it rises and trades of that nature. This is what most people will tell you about forex trading. Binary options trading on the other hand, is making trades on the value of currencies but you do not buy the actual currencies. You trade in binary option pairs.

Binary Option Pairs

This is also referred to as ‘pairs trading’. In this type of trading, you will make predictions on the relative behavior of one currency as compared to another within a predetermined period of time. To put it simply, you select two currencies and put them in competition. You then predict the changes in value of one of the assets against the other. The value can either rise or fall within the predetermined period. A correct prediction is what makes you a profit while a losing prediction loses you your investment in that particular trade.

Binary trading is considered as one the ‘Market Neutral’ trades because you can make money whichever direction the values go.

EUR/USD is the most popular currency pair

How Binary Option Robot Can Change Your Life? Check This Out!

Do You Want How to Make Money Trading EUR/USD? We Have The Best Tips and Free Strategies Professional Trader Teach You To Make Profitable Trades.

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
  • Rating
  • 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.

    Best Binary Options Brokers 2020:
    • Binarium
      Binarium

      The Best Binary Options Broker 2020!
      Perfect Choice For Beginners!
      Free Demo Account!
      Free Trading Education!
      Get Your Sing-Up Bonus Now!

    • Binomo
      Binomo

      Only For Experienced Traders!

    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!)

    Best way to trade EUR/USD pair is with binary option robot. Get this fully automated trading software for free by clicking on the button below, and start making money while you sleep!

    Trading EUR/USD pairs

    This is the most traded pair in binary options trading today and trend looks likely to continue for the foreseeable future. It juxtaposes the Us Dollar against the EU Euro. The two are the most liquid currencies today in the global currency markets and this adds to their popularity with binary options traders. The two are also the most traded currencies in the traditional forex markets.

    Like in the more widely known currency trading, the economic fortunes of the United States and that of the Eurozone countries play a big part in the value movements off these currencies. That is not to imply that they are immune to the happenings in the economies of the rest of the world. An event in the major indices in Asia is likely to cause more than just ripples in the USD and EUR values.

    Considerations prior to trading the EUR/USD

    Since you cannot trade blindly or make guesses on which way to trade this pair, there are a few general factors that you should take into consideration. This is before considering the other more specific news and events that can influence price changes. These factors are:

    • Trading time differences make binary options trading tricky and interesting at the same time. The North Atlantic trading sessions open a good number of hours after the Asian markets open. This means that if you are trading in the American and the European session you need to make short expiry times with this pair while avoiding the Asian currencies or making longer expiry times over short ones with this group.
    • The Asian session is usually a little slow for the American and European currencies. This means you should take longer expiry times on this pair.

    What makes price shifts in the EUR/USD pair?

    People always talk about how one currency can sneeze and another thousands of miles away catches a cold. This is true with the EUR/USD pair, but the analogy of sneezes and colds is not something that happens all the time. Economic news out of both Europe and the US will not make big changes in the pair, but there will be changes all the same and traders can make trades with these changes which will change from time to time according to what is happening in both economic zones. The fortunes of those countries’ economies are hardly recognizable from daily news unless there are major events with a significance implication to those two economic zones.

    What brings out more pronounced changes is the economic releases or announcements by various bodies in both zones about key economic performance indicators like changes in interest rates, unemployment figures, changes in value of production, consumption and exports.

    Best way to make money trading EUR/USD is with binary option robot

    Key economic releases to watch in Europe

    Among the key releases that you should watch out for in Europe that are likely to cause some changes in the values of the EUR/USD are the following:

    • Consumer Price Index (CPI): This is the most important performance indicator to come from the Eurozone. It is a report on the situation in Eurozone as regards inflation and what the European Central Bank (ECB) is doing to support positive results or to counter negative results. It is the main determinant of what the ECB will do to shape the short-term and long-term monetary policy.
    • Purchasing Manager Index (PMI): This indictor will show the performance of a sector in terms of expansion and contraction. This will influence ECB’s decisions arising from the data.
    • Gross Domestic Product (GDP): This release follows a meeting of top Eurozone economists every month and the data from such meetings shows the relative situation in the Eurozone economies.
    • Unemployment figures: These too are performance indicators. An increase in new jobs or their retention is a good indicator while loss of jobs and increased unemployment rates is not.

    Key economic releases to watch in United States

    The US economy is the largest in the world and so it is expected that there will be many releases on the state of the economy and its various sectors each and every month. These releases are also expected to have an effect in global indices as well as the currency markets including the EUR/USD pairings. These are the key releases you should watch out for:

    • Interest rates: There is always excitement and consternation in equal measure every time an announcement on the raising or reducing interest rates is imminent. The announcement usually causes movements in price as traders shift positions on the likely outcomes.
    • Jobs data: Unemployment rates, job losses and creation of new jobs are key indicators of the state of the economy and this will influences the dollar value in relation to the Euro and other currencies as well. This is especially so for the Non-Farm Payrolls data.
    • Consumer Price Index: As in Europe, this release is important too as an indicator of the state of the economy.
    • Others: Other important releases to watch are: Retail Sales, Institute for Supply Management, GDP, Producer Price Index, Durable Goods Orders, and other releases.

    All these releases assist traders to make informed choices when they are trading the EUR/USD pairs. Of importance is any release by the ECB and the Federal Reserve.

    The behavior of the EUR/USD in relation to releases, news and events

    Market volatility is to be expected at all times. It is only the level that changes between high and low. There many factors that determine how the EUR/USD pair behaves and this will include the time the release, news or event happens, the reasons for their happening and the financial implications of such factors. These are what you will need to collate, synthesize and analyze to enable you to come up with more winning trades than losing ones on this pair, and this is essence of all binary options trading.

    Trading with brokers and robots

    Trades and robots will promise to give you winning signals so that you can make profits with your trades. They use the same indicators noted above but they have the added advantage of having created algorithms to help them with all the analyzing and synthesizing. This is where they will always have one on you when it comes to binary options trading. The signals they promise will give winning trades in most cases if you are trading with the right brokers and platforms. Issues of scams abound and a careful selection process is demanded of you if you do not want your investment to fall into the wrong hands.

    Trading with the EUR/USD pair is preferred by most traders in the binary options market because it is always rising and falling. During the NorthAmerican and European trading sessions, traders who prefer short expiry periods for their trades have a busy time. The volatility makes it an interesting place to be as the values change rapidly, sometimes in periods as short as 60 seconds. In the Asian trading sessions, traders in the EUR/USD will be experiencing a lull of some sort. At this time they will mostly be making longer term expiry periods because the movement in values is not as rapid as it is during the North American sessions.

    With the expected growth and expansion of binary options trading in both the players (traders, brokers and trading platforms) and in the traded volumes, the EUR/USD pair will continue to dominate proceedings in the currency markets. The best thing is to ride with it and always keep watch of the main indicators as well as the releases from both economic zones.

    Start trading EUR/USD with binary option robot for free by clicking on the button below

    Trading binary options vs. Forex

    If you’re looking to kick off your trading career, then you might have already seen the various instruments offered by Forex companies. The most popular of these instruments are binary options and Forex trading, and the choice between the 2 will determine how profitable you will become as a trader.

    We have already looked at the history of binary options and how they work, but just how does this trading system stack up to its more popular rival, the Forex market. Both of these trading systems are recognized by regulatory bodies, and are the most popular option for the retail trader. Before investing your money with a broker, how about we look at arguments from both angles before making the leap:

    In favour of binary options

    There are certain reasons that make binary options very lucrative, and why more investors are choosing to invest in this market. Some of these are:

    Variety of financial instruments

    The Forex market only allows traders to work with foreign currencies, and trade currency pairs like the GBP/USD, EUR/USD, etc. Binary options, though, are not limited to foreign currencies – you can still trade currencies, but also get access to stocks, commodities futures, and indexes. More is always better, because as the trader you get a variety of instruments to work with and maximize your profit by hedging all these instruments.

    Specified returns

    With binary options, you know exactly how much profit you are going to get from the trade. Every trade you make is merely a speculation on whether the value of the stock, commodity, index or currency pair will either be higher or lower than its value at the time of the trade. Since there are only 2 options, win or lose, you know exactly how much you are going to gain or lose at the time of trade.

    The advantage to knowing this information beforehand is psychological. A Forex trader has to spend time staring at real-time Forex charts as the markets oscillates up and down, and close the trade only when they feel satisfied with the result. As for the binary options trader, the stress ends once the trade is placed, and they can move on to another trade or other businesses depending on their trading strategy.

    Security of funds

    Every Forex trader is wary of the moment they receive a margin call from their broker via email. When this happens, it requires that the trader deposits more funds into their trading account quickly to avoid losing their entire capital. This is a situation many Forex traders find themselves in during moments of financial turmoil like after major financial news announcements are made.

    A binary options trader, however, doesn’t have to worry about margin calls because, as we have already seen above, the returns are specified and known. The trader knows right from the start that they are either going to lose their investment or gain the pay-out percentage specified by the broker. Some traders view this as a disadvantage, the idea that you can lose all your investment in a single trade, but it really isn’t.

    Consider the period after the Brexit vote, or the time that came to be known as Black Thursday when the Swiss National Bank (SNB) de-pegged the franc from the Euro. These situations led to major losses for Forex traders, most of whom were stopped out. On the other hand, a binary options trader whose expiration date had not been reached would still be comfortable knowing that they were still in the game. Additionally, markets have a way of bouncing back from major market moves, so this provides added security to the traders’ funds.

    Did I mention insurance cover for binary options trades? Well, you should know that insurance is also offered by some brokers for every trade, which helps you regain some of your capital, in case the trade is a loser. This takes away the risk of losing all your investment making your finances more secure.

    Absence of financial costs

    The broker already includes their profit into the pay-out percentage offered for each trade, which is why the pay-out is less than 100% and ranges from 67% to 81%. This crosses out any hidden charges which may be experienced in the Forex market in the form of spreads or commissions, and you get the exact profit you expected.

    In favour of Forex trading

    Just because binary options are so lucrative doesn’t rule out the Forex market as a lucrative financial investment. After all, why would there be so much volume being traded every day is it wasn’t a great alternative? Here are some of the reasons Forex trading is still so active and popular:

    No need for huge initial capital

    While binary options require a substantial initial deposit, you can get into the Forex market with as little as $100 or even less. However, this is not recommended because you become more prone to margin calls, but it’s a great start for someone looking to get a taste of Forex trading.

    There are many Forex brokers in the world, and this has bred tough competition forcing them to lower their required initial capital and tightening spreads in order to attract investors choosing a Forex broker. Some of the brokers even offer bonuses as high as 100% on top of the capital deposited, essentially doubling your trading capital. These incentives attract first-time investors who would like to give Forex trading a try with as little as $100 initial deposit.

    Multiple trades

    Even with a small capital, a Forex trader is able to make many trades in a single day. This is called scalping, and enables even a trader with limited capital to earn huge profits. With binary options, this is difficult to do, since the expiration date for the trades is usually hours ahead.

    Safety in numbers

    Both the Forex market and binary options market are over-the-counter systems, meaning that there is no centralized system to monitor all trades, leaving room for crooked brokers to scam traders out of their money. However, there are still some differences.

    The Forex market has been in existence for a very long time, and is monitored by various Forex regulators around the world. It caters to retail traders like you and I, but also to large institutions like hedge funds and mutual funds. Of late, there has been a proliferation of traders from all walks of life, and the Forex market is more robust than ever. The result, people share their experiences through real Forex broker reviews which point to crooked brokers. These networks of rating brokers keep them in check, and they tend to avoid getting a bad name.

    On the other hand, binary options were only recognized by regulators in 2008, and there aren’t as many participants. As a result, there have been numerous cases of traders being cheated, and since there aren’t many reviews for binary options brokers, it’s difficult to find reliable binary options brokers. The Securities and Exchanges Commission (SEC) actually warned investors about binary options because they recognized this risk.

    Variety of trading instruments

    To make Forex trading even more lucrative, brokers have created various tools on their Forex trading platforms that help you maximize profits. Use of trailing stops, stop losses and taking profits all help to keep your trades manageable and to avoid margin calls.

    Chances of huge returns

    A Forex trader is not limited by an expiration date, and since the market runs for 24 hours, they can maximize their profits by holding on to winning trades. This is just not an option with binary options, because regardless of how much the markets move in your favour, the returns will always remain constant.

    Which system best suits you?

    After looking at the advantages of either system, you might still be wondering where you are going to make your stand, and this comes down to your personality. Looking at some of the common mistakes traders make, you will find that it’s got more to do with their personality than expertise, so here’s how you know where you fit in:

    Characteristics of a binary options trader

    Successful traders of binary options have certain attributes that lead them into this system instead of Forex trading. If you have these qualities, then binary options would be a good option for you:

    This is the kind of trader who only makes a few trades at a time, or is involved in another kind of business and trading is merely a side-job for investment. The fixed expiration date for the trade at a particular time in the future is an advantage to this individual because they know exactly when they need to place the next trade.

    Trades in the binary options system can be placed as far away into the future as the trader would like. This could be in terms of weeks, months or even years, which makes the system favourable for someone looking for a long-term investment strategy.

    Substantial trading capital

    Unlike the Forex market where a trader can get started with a very small capital of around $100, you need a lot more to get into binary options.

    Characteristics of a Forex trader

    About 90% of all Forex traders lose money, 5% of the rest barely eke out a profit, but there’s the last 5% of traders who make tremendous profits. These traders can be identified by the following characteristics:

    To succeed in Forex trading, you must be ready to make time to study the Forex charts and Forex calendar. This could mean hours of staring at your computer screen before placing the trade, then following it up with patience as you watch the markets move.

    Of the 90% of traders who lose money trading the Forex market, impatience is perhaps the most common flaw. Most of them will close a trade as soon as they notice it’s not going their way, only for the trend to turn around. To become profitable, you have to wait for a trade to ‘mature’, and then hold on to a winning trade for as long as possible.

    Watch this animation for a recap of the differences between the two financial instruments:

    USD/EUR Binary Options Strategy

    There are many binary options website out there that offers strategies for your trading needs. However, because of the number of websites that lure you to trusting them, it can be hard to decide which one you should trust. If you are trading USD and EUR currencies we have this great strategy than can help you be successful with your trading ordeals. USD and EUR are the most commonly traded pairs in the foreign exchange market. This is why there are some strategies that you have to rely upon. Trading both currencies is a smart move because these are very liquid and is less risky to sudden unstable movements. Another reason most traders chose both currencies is that it almost trades 2/7 and typically has good prices as compared to other currency pairs.

    HOW DOES IT WORK?

    The EUR/USD simple strategy for binary options was specially created for using low/high and touch or no touch kinds of binary options. It makes use of PSAR and MACD for signals. Novice traders can surely appreciate BO.net. Trades, as well as Analysis, depend on thirty minute charts. This means that is quite a short strategy. Its momentum indicator here is the MACD and the PSAR is for trend determination. PSAR and MACR are set to standards which are 9,12,26 for MACD and 0.20 and 0.02 for PSAR.

    This strategy makes use of 2 signals specifically bearish and bullish signals. For bullish signals, you need to wait for PSAR to be below the price action and the MACD has to be bullish. This shows that the trend is bullish and that it has a bullish momentum. The opposite is correct for the bearish signal to transpire. PSAR begins above the price action and the MACD crosses over from a bullish signal to a bearish signal. To enter a trade, you need to have either signal. We suggest a touch or no touch for its trade when there is a strike in price that is below the resistance level for bulls or for bears – an above support. Because this is what resistance and support can offer a barrier towards trade. If this is the case then it is recommendable to take the no touch position.

    WHY THE EUR/USD STRATEGY IS NOT SO GOOD?

    This strategy may not be so good because it advices your to use the touch or no touch options which is a kind of trading that typically comes with great returns, but also comes with great risks. The fact that it only comes with one touch for pay out makes the required levels quite far from what you will most likely expect on asset movement. Moreover, if you choose the no touch due to support and resistance and some factors, then you are taking risks that the movement will just go as far as the line. It also sucks because longer term trends are not that important here.

    WHY THE EUR/USD STRATEGY IS GOOD?

    This strategy is quite good because you can use 2 approved indicators with good entry points. These indicators also suggest what kind of binary option you may trade. A likable and commonly used indicator here is the MACD making it a very useful tool. As mentioned before, it is considered as a momentum and confirming indicator. If you have less experience on PSAR, you will come to like it if you use this strategy. It can be used in binary through forex or futures trading and offer great signals. When you use this together with MACD, you can surely improve your binary options. The strategy comes with well defined signals lacks some extra support for long term trends. With this being said, every buy signal needs the two indicators for confirmation thus doing away fake signals.

    FINALE

    If you want to trade short term binary options, this can be a great strategy. But it can leave you with some stipulations. The thing that you can change would be the kind of option from the referred touch or no touch to a high or low style position.

    A Guide to Trading Binary Options in the U.S.

    Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

    Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

    Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

    Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

    U.S. Binary Options Explained

    Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

    Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

    If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

    The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

    Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

    The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

    A Zero-Sum Game

    Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

    Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

    A trader may purchase multiple contracts if desired. Here’s another example:

    • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

    The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

    You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

    Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

    Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

    Best Binary Options Brokers 2020:
    • Binarium
      Binarium

      The Best Binary Options Broker 2020!
      Perfect Choice For Beginners!
      Free Demo Account!
      Free Trading Education!
      Get Your Sing-Up Bonus Now!

    • Binomo
      Binomo

      Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading For Beginners
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: