How to make Index Binary Options Trading profitable We know

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Contents

Binary Options Strategy – How to make money

Binary options trading is new and attractive way of making money on the Internet. It is defined as fast and simple trades with market assets such as gold, silver or Google stocks.

Simple binary options platform

In order to be profitable with binary trading you just need to predict if the price of selected asset will rise or decline in the next few minutes or even seconds. The accuracy of prediction can be increased using our strategies.

Our trading strategies

  • >60 seconds
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  • >All strategies

Traders can make thousands of dollars crowns with very low risk in just a few hours. You will find the latest and best binary options strategies trade on our website.

Are you ready to make your computer your only employer and make a living by trading from the comfort of your home?

Our binary options trading systems are categorized by the expiration date.

To pull off our strategies, you will need the services of a forex rates program, and we suggest that you use the well known MT4 platform. You should try out a number of indicators so you can find the one that can offer you the best strength parameters. Once you have tested MT4 and found a broker, you need to follow some basic rules and strategies. Watch out for the strength and performance of your chosen currencies during middle of the US and UK market sessions. Once you have identified the currency pair, cryptocurrency or an asset you wish to trade, you need to can now start a trade. If your pair is GBP and Euro with GBP as the strongest, then you can call for a ‘PUT’ trade for EUR/GBP, and choose long expiry time. One of the most accurate binary options strategy is this one: Binary Options Strategy that Works.

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Binary Options Strategy – The Zig-Zag Indicator

There’s this common thinking that binary options trading is only best for the experienced traders around. Keep in mind that it’s one activity that’s open for everyone, at any skill level. In fact, you can even find specific trading strategies that can work for beginners. The idea here is to predict the movement of the prices, and take advantage of the movements. To take advantage of the best binary options strategy for beginners, we recommend to have a look at this one: A trading strategy for beginners.

Strategy for trading binary options

Binary option trade strategies are usually based on use of indicators. People often do not know how these work, therefore you can find the indicators description on our website.

Trading based on indicators may not be always a good idea. It is recommended to employ also technical analysis. This Binary options website contains lots of useful resources for technical analysis.

Easy binary options strategy

Thank you for visiting our website about binary options strategies that can work for beginners. For a start, you should know that binary options is never a ‘get rich quick scheme’. On the contrary, investing and participating in binary options trading requires patience and time, and can be a test of one’s commitment and skills. But the good news is that it can be a source of decent income on a regular basis and if done right, you can even quit your day job and concentrate on trading. But without the right set of strategies, any investing decisions will end up badly. If you want to be successful in this field, we suggest that you read our guide below and with every single strategy itself. There are surely some easy binary options strategy. One of the easiest ones is the Moving Average Strategy.

Binary options brokers

Not all strategies work with every broker on the market. There’s many, many types of binary options, such as high/low options, touch/no touch trading, boundary and so on. Every broker offers different types of trading, just as it is with expiration times.

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  • Binomo
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Some brokers offer expiration times as short as 30 seconds. Other start with 5 minutes. That’s a reason why not every strategy can be traded with certain brokers. Underneath every strategy on this website, you will find a recommended broker the strategy works with. Good luck!

Binary option trade risk

Binary option trade is not a simple matter! Even if you have the best available strategy some things may go wrong. Therefore do not risk more money than you can afford to lose! However we will always recommend only the best and proven strategies.

Every strategy needs to be tested on a demo account first. It is very wise to use a binary demo account to try, whether the strategy works or not. If it doesn’t work for you, try a different one. There’s many options of getting a demo account, but not all demo accounts are the same. Check our option brokers comparsion table to find a broker who offers free demo practice account.

Trend indicators for profitable trading in options

Among all the tools to help you trade on the binary options market and Forex trend indicators allow to make most orders without loss, based on the received signals.

If trading in the trend direction, most of the trades will close in profit than in loss. This rule is verified by years of practice, on all assets.

In this article we will discuss the concept of trend and how it is applied to markets of binary options. Also give analysis of the most famous trend indicators for binary options market.

Trend indicator Scalper MA

How to identify a trend and use them effectively in trading

The main problem with most traders is that they, not being able to determine the trend in the market, open trades. And then wonder why the deposit is merged.

Note that trading in binary options is based on the same principles as Forex.

Binary Options strategies work the same way as Forex. Apart from profitable trading tactics is important not to forget about the rules of money management, as well as the likely risks.

No need to think that binary options is a game where you must guess the direction of movement of the asset. You should not trade for all the money you have.

In order for deals to be closed with money in most of the cases, you need to properly conduct fundamental and technical analysis of current market.

Quotes are moving in the market at first glance chaotic, but this is the only way, it seems. In fact, price makes the same figures of technical analysis. This allows you to look at history, where in the future it may move the price.

If you look at the chart of any currency pair, it is immediately obvious where the price is moving up or down or is on sideways. The price movement up and down is called ascending and descending trend or like some traders call— trend.

So, the market may have three-state rates:

  • downtrend (bearish) – price movement for a long time is down;
  • uptrend (bullish) – price movement for a long period of time is up;
  • sideways or flat (the price is moving within a border up and down).

Upward and downward trend

Description of the indicator

So, we gradually came to the question of determining the trend using the indicator. If to trade, not knowing what trend is in the market – the deposit is doomed to sink.

The first thing you need to do to profitably trade with binary options is to open a trading terminal Meta Trader 4. Then, choose a currency pair where you will enter into potentially profitable deals.

For example, select the currency pair GBP/USD.

Further we are interested in the installation of trend indicator for profitable trading in options. To manage this is very simple.

Turn on the indicator MA

Go to indicators, then “Trend”, then we need to choose the indicator called Moving Average.

Below are two screenshots with the settings of slow and fast MA:

The correct settings of slow MA

Next we need to choose the trend indicator MA, however, set a period of 5.

The correct settings quick MA

For determining of the trend in the market it is enough to set the two moving averages MA (Moving Average):

  • one with a period of 5;
  • the second with a period of 20.

Fast and slow MA

Here is how two moving averages set on the chart look.

The larger the timeframe, the more precise indicator of trend.

Confirmation of the downtrend

If the fast MA crosses slow one down and two candles closed below the two MA, this means that the market has the downtrend.

Example of downtrend

Example of downtrend

Confirmation of the uptrend

In the case where the fast turquoise line crosses the slow (red) from the bottom up, and two candles closed above the two MA, then we can say that this is certainty the uptrend.

Example of uptrend

The important aspects of trading by trend with binary options

The main thing to remember, you should never trade against the tendency, that is, trend.
If you see that on the D1 chart there is the uptrend, all transactions need only to be opened on the CALL, not PUT. Even when it seems that the trend here is about to unfold.

If you at the same decide to trade on the timeframe M5-M15, be careful, as due to market noise, you can quickly lose your deposit.

Downward (bearish) trend, has always been more powerful, but however, it is short-term, what can not be said about the upward (bullish) trend.

It is easy to confuse a downtrend correction. The price, which goes slightly in the opposite direction from the main trend is called corrective movement.

The trend can be considered valid only when after crossing the slow moving average MA by fast MA second consecutive candle opens in the direction of the trend.

Always remember these rules, and the trade will be profitable.

Analysis of key trend indicators

In fact, the trend indicators for binary options are developed in different interpretations and types. Let us analyze the most popular indicators, showing a trend in the market. This will help to determine for yourself the best indicator for trading binary options.

Below we will present analysis of the best (by our view) indicators of the trend for BO and Forex market, namely:

  1. Scalper MA.
  2. Stepma.
  3. MTF Candles.
  4. 4 ma strength.
  5. Bbands stop.
  6. OsMA.

Description of Scalper MA indicator

An example Scalper MA indicator on the chart

Trend Scalper MA indicator is used by many scalpers in the Forex market. Hence its name. However, it is also applicable in the options market.

This indicator can be considered as a complete trading strategy. As it shows the trend of price movement in one direction or another. Based on this you can buy the options of PUT and CALL. The presence of a dial indicator Scalper MA further simplifies the process of determining the direction of the price. As you could understand, blue line of this indicator suggests that the trend is bullish, the red indicate a bearish trend.

To increase the signal quality, it is recommended to enter immediately after the signal, and after 7 candles after the arrow appears, up or down. Expiration: 5-6 candles.

Visually it looks this way:

PUT signal by Scalper MA indicator

The advantages of Scalper MA trading indicator

This trend indicator has a number of advantages:

  • accurately shows the trend in the market;
  • has sound alert after the appearance of the red and blue arrows, so the trader do not have to constantly stare at the monitor;
  • it is not redrawn, it shows the direction of the current price.

Disadvantages of Scalper MA indicator

As with all Forex indicators Scalper MA also has its drawbacks. Among the disadvantages of working with it should be noted:

  • a lot of false signals during flat;
  • after a long signal candle a long pullback is possible, but not the fact.

Description of Stepma indicator

Stepma indicator on the chart

This indicator excellently monitors the trend. Indicator Stepma is applicable absolutely to any asset. It is better to trade with the timeframe of H1 and above. It is easy to understand its signals: if the price is under the indicator line, then trend is bearish, and while the price is above the indicator line – the trend is bullish.

The advantages of trading with Stepma indicator

  • The indicator is easy to use;
  • it is not redrawn;
  • shows a clear trend.

Disadvantages of trading with Stepma indicator

  • The long-bodied candles that change the trend, sometimes, can dramatically roll back in the opposite direction.

Description of MTF Candles indicator

MTF Candles indicator on the chart

This trend indicator shows the trader the true trend by its bands. Blue bar indicates a bullish trend, the white – bearish trend.

Advantages of MTF Candles indicator

  • Demonstrates the current trend;
  • it is not redrawn;

Disadvantages of MTF Candles indicator

  • Ineffective on flat areas.

Descripton of 4 MA Strength indicator

4 MA Strength indicator on the chart

If the bars of the histogram are directed upwards and turned green, in this case, the market has obvious trend, if the columns of the indicator look down and stained a crimson color, then the market is flat. The strength of the trend can be understood by the height of the bars of the histogram. The bigger they are, the stronger the trend.

Advantages of 4 MA Strength indicator

  • Accurately shows whether the market has trend;
  • detects the flat.

Disadvantages of 4 MA Strength indicator

  • Not showing what trend the market has (an upward or downward).

Description of Bbands stop indicator

Bbands stop indicator on the chart

Two-tone dots indicate bullish and bearish trend. The indicator Bbands stop can be considered a modification of the standard indicator Bollinger Bands. It is present in each MT 4 terminal. If green – market has trend. The appearance of orange dots indicates flat.

Advantages of Bbands stop

  • Indicates the presence of a clear trend;
  • shows flat price movement;
  • doesn’t draw values.

Disadvantages of Bbands stop

  • Does not demonstrate what the market trend is (bullish or bearish);

Description of OsMA indicator

OsMA indicator on the chart

Standard OsMA indicator represents the histogram of the columns located in the basement of the terminal. Best signals for this trend indicator can better be seen on higher timeframes. If the histogram bar is below zero, this means that the market has the downward trend. Conversely, upstream from the zero column indicator indicates an upward trend.

Advantages of OsMA indicator

  • It is not redrawn;
  • shows rising bullish and bearish trend;
  • no lag.

Disadvantages of OsMA indicator

  • A lot of false signals on flat market, especially in narrow range.

Summary. It is not easy to know your power.

So, we have considered different trend indicators for binary options. Some of them are worse and some better. It all depends on the preferences of the trader. Also we have considered the pros and cons of trend indicators for the binary options market that will allow the trader to identify which of them should be applied in trading.

What You Need To Know About Binary Options Outside the U.S

What Do You Need To Know About Binary Options Outside the U.S?

Binary options let traders profit from price fluctuations in multiple global markets, but it’s important to understand the risks and rewards of these controversial and often-misunderstood financial instruments. Binary options bear little resemblance to traditional options, featuring different payouts, fees, and risks, as well as a unique liquidity structure and investment process.

Binary options traded outside the U.S. are also structured differently than those available on U.S. exchanges. They offer a viable alternative when speculating or hedging but only if the trader fully understands the two potential and opposing outcomes.

The Financial Industry Regulatory Authority (FINRA) summed up regulator skepticism about these exotic instruments, advising investors “to be particularly wary of non-U.S. companies that offer binary options trading platforms. These include trading applications with names that often imply an easy path to riches.” 

Key Takeaways

  • Binary options have a clear expiration date, time, and strike price.
  • Traders profit from price fluctuations in multiple global markets using binary options, though those traded outside the U.S. are structured differently than those available on U.S. exchanges.
  • Non-U.S. binary options typically have a fixed payout and risk, and are offered by individual brokers rather than directly on an exchange.
  • While typical high-low binary options are the most common type of binary option, international brokers typically offer several other types of binaries as well.

Binary options outside the U.S. are an alternative for speculating or hedging but come with advantages and disadvantages. The positives include a known risk and reward, no commissions, innumerable strike prices, and expiry dates. Negatives include non-ownership of the traded asset, little regulatory oversight, and a winning payout that is usually less than the loss on losing trades.

Understanding Binary Options Outside the U.S

What Are Binary Options?

Binary options are deceptively simple to understand, making them a popular choice for low-skilled traders. The most commonly traded instrument is a high-low or fixed-return option that provides access to stocks, indices, commodities, and foreign exchange.

These options have a clearly stated expiration date, time, and strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, they are paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.

The binary options trader buys a call when bullish on a stock, index, commodity, or currency pair, or a put on those instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.

The broker discloses the strike price, expiration date, payout, and risk when the trade is first established. For most high-low binary options traded outside the U.S., the strike price is the current price or rate of the underlying financial product. Therefore, the trader is wagering whether the price on the expiration date will be higher or lower than the current price.

Binary Options Outside the US

Foreign Versus U.S. Binary Options

Non-U.S. binary options typically have a fixed payout and risk and are offered by individual brokers rather than directly on an exchange. These brokers profit from the difference between what they pay out on winning trades and what they collect on losing trades. While there are exceptions, these instruments are supposed to be held until expiration in an “all-or-nothing” payout structure.

Foreign brokers are not legally allowed to solicit U.S. residents unless registered with a U.S. regulatory body such as the Securities and Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC).

The Chicago Board Options Exchange (CBOE) began listing binary options for U.S. residents in 2008.   The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Chicago-based Nadex also runs a binary options exchange for U.S. residents, subject to oversight by the CFTC.

These options can be traded at any time, with the rate fluctuating between one and 100, based on the current probability of the position finishing in or out of the money. There is full transparency at all times and the trader can take the profit or loss they see on their screen prior to expiration.

They can also enter as the rate fluctuates, taking advantage of varying risk-to-reward scenarios, or hold until expiration and close the position with the maximum gain or loss documented at the time of entry. Each trade requires a willing buyer and seller because U.S. binary options trade through an exchange, which makes money through a fee that matches counter-parties.

High-Low Binary Option Example

Your analysis indicates the Standard & Poor’s 500 index will rally for the rest of the trading day and you to buy an index call option. It’s currently trading at 1,800 so you’re wagering the index’s price at expiration will be above that number. Since binary options are available for many time frames—from minutes to months away—you choose an expiration time or date that supports your analysis.

You choose an option that expires in 30 minutes, paying out 70% plus your original stake if the S&P 500 is above 1,800 at that time or you lose the entire stake if the S&P 500 is below 1,800. Minimum and maximum investments vary from broker to broker.

Say you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiration determines whether you make or lose money. The price at expiration may be the last quoted price, or the (bid + ask)/2. Each binary options broker outlines their own expiration price rules.

In this case, assume the last quote on the S&P 500 before expiration was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. If the price finished below 1,800, you would lose your original $100 investment.

If the price expires exactly on the strike price, it is common for the trader to receive her/his money back with no profit or loss, although brokers may have different rules. The profit and/or original investment is automatically added to the trader’s account when the position is closed.

Other Types of Binary Options

The example above is for a typical high-low binary option—the most common type of binary option—outside the U.S. International brokers will typically offer several other types of binaries as well.

These include “one-touch” options, where the traded instrument needs to touch the strike price just once before expiration to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before the expiration date/time.

Meanwhile, a “range” binary option allows traders to select a price range the asset will trade within until expiration. A payout is received if price stays within the range, while the investment is lost if it exits the range.

As competition in the binary options space heats up, brokers are offering additional products that boast 50% to 500% payouts. While product structures and requirements may change, the risk and reward is always known at the trade’s outset, allowing the trader to potentially make more on a position than they lose. Of course, an option offering a 500% payout will be structured in such a way that the probability of winning the payout is very low.

Unlike their U.S. counterparts, some foreign brokers allow traders to exit positions before expiration, but most do not. Exiting a trade before expiration typically results in a lower payout (specified by broker) or small loss, but the trader won’t lose their entire investment.

The Upside and Downside

Risk and reward are known in advance, offering a major advantage. There are only two outcomes: win a fixed amount or lose a fixed amount, and there are generally no commissions or fees. They’re simple to use and there’s only one decision to make: Is the underlying asset going up or down?

In addition, there are also no liquidity concerns because the trader doesn’t own the underlying asset and brokers can offer innumerable strike prices and expiration times/dates, which is an attractive feature. The trader can also access multiple asset classes anytime a market is open somewhere in the world.

On the downside, the reward is always less than the risk when playing high-low binary options. As a result, the trader must be right a high percentage of the time to cover inevitable losses.

While payout and risk fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades cost the trader more than they can make on winning trades. Other types of binary options may provide payouts where the reward is potentially greater than the risk but the percentage of winning trades will be lower.

7 Binary Options

In Binary Options trading the investor has to merely predict whether the price of an asset will rise or fall at the end of a given period. These include indices, currencies, and so forth. This does not depend on the actual amount of the change in the price of the asset, etc, just solely on the fact that it will rise or fall by the end of the expiry time. Binary options can be very profitable, if the trader accurately predicts whether the price will decrease or increase from the opening prices. The expiry times in binary options range from 60 seconds to several hours.

If the trader makes the correct prediction (i.e.: it is “in the money”), the profit is determined based upon a predetermined percentage, which was decided upon at the start of the “life cycle” of that particular contract. If the market does not go as the trader predicted, the investment has expired “out of the money”, hence the trader will lose the entire amount they had invested.

In other words, Binary Options trading can be summarized as “all or nothing” trading and is similar to “Under/Over” sports betting, in which the player must choose between only two possible outcomes, either win or lose. Only in binary options the trader must choose between the rise or fall of the particular asset, commodity, etc.

Types of Binary Options

The most popular type of binary options are the “high/low fixed price.” The traders must determine if the underlying asset price will increase or decreases by the end of the expiry period.

In “On Touch,” or single fulfillment binary options, it is enough for the title value to “touch” the predetermined price at least once by the end of the expiry time for it to be profitable. This could be either a lower or higher price threshold.

With “Binary Range” contracts, the trader must predict whether the asset price will be within a predetermined range of values at the end of the expiry time or not.

Example of Binary Options Trading

Suppose the traders predicts that in four hours the price of silver will be higher than the current rate, but does not have to determine how much higher the amount will be. The trader will select the “Call” time for the product (i.e. 4 hours) and the amount he wants to trade (i.e. $100) Let’s say the yield of this trade is 80% preset.

In 4 hours, if the prices of silver has risen from the current rate, regardless of how much, the investor will receive $180, $100 from the original investment put $80 in profit from the 80% yield. If the price of gold fell below the current rate at the end of the 4 hour expiry time, the investor will lose the entire investment amount.

On the same token, when investors predict the fall in the price of the asset, they must chose the “Put” option. If the market price falls the contract will expire “in the money” while if it rises it is “out of the money.”

The investor has the ability to “close” the contact before the expiry time with some trading platforms. In this instance, the yields obtained will vary with the movement of the market at that time.

Advantages of Binary Options

Binary Options have a wide variety of assets that are traded on a worldwide market such as indices, commodities, equities, currencies with low monetary requirements. This opens possibilities for those who want to invest but do not have an excessive amount of funds available to them. It is also a good market for those who are new to the world of financial trading to gain some experience with little risk involved.

The premise of binary options is rather simple. It only requires the investor to predict if a specific trade will rise or fall during the specific time, regardless of the amount of change in prices during this period. However, binary options trading are ideal for day traders as they do not physically possess the underlying asset, and they allow risk management in open stock positions through hedging, hence do not burden others investors as well. The profit potential in binary options is clearly defined at the onset of the trade and can reach as high as 100%. The amount of risk if the investor predicts incorrectly is also predetermined at the start of the transaction.

Since binary options have a short expiry time, investors are asked to limit the number of trades they place at one time. This helps avoid “dips” in their trading account, as well as additional psychological stressors.

Binary Options are believed to gain a lot of interest and popularity over the coming years as more brokerages are made available and the range of options offered increase as more and more people turn to binary options trading as a means of investment.

Start trading now with Binary Option Robot

Start trading now with our recommended Binary Options Brokers.

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!

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