Learn Binary Options Basics (and Improve your Trading)

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Sign-up Bonus!

  • Binomo
    Binomo

    Trustful Broker!

7 Binary Options

The Basic Tools for Successful Binary Trading

Binary options are complex, exotic trade options, but these are particularly simple to utilize and understand the way they work. The most familiar type of binary option it the high-low option and it’s relatively simple to comprehend. This technique is also referred to as the fixed-return option and provides access to commodities and foreign exchange, indices and stocks.

Trading with binary options is easy, and you do not need any previous experience. Below are some basic guidelines that we have compiled to help you start trading in a few minutes.

  1. To be a successful binary options trader, you need to use more than one broker. Choose one or more from our compiled list of brokers.
  2. Register with your chosen trading platform and deposit money to start trading. The minimum deposit for some trading platforms or binary options robots is only $ 100.
  3. Select the asset to trade. Trading platforms have assets such as currencies, indices, commodities, and stocks. You can choose to trade in currencies, the popular one being EUR/USD.
  4. Decide on the amount to invest. When investing in an asset, you will see the payout or the returns for the asset, which can go up to 91%. Make your prediction on the movement of the price of the asset. If you predict the price of the asset to rise, select Call (up). If your prediction is that the price will fall, select Put (Down).
  5. When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $ 100 with a 90% payout means that you will have made 90 dollars in a few minutes.

BINARY OPTIONS REVIEWS – WHAT’S NEW IN 2020?

WHERE AND HOW TO TRADE BINARY OPTIONS, FX OPTIONS, SMART OPTIONS & CRYPTO in 2020?

There have been a lot of changes in the binary options trading industry in the last few years. Many brokers with low liquidity or shady practices were swiped of the scene and we now have more flexible and potentially more profitable online trading opportunities. Let’s take a look at some of the best binary options brokers in 2020 .

Where and how I trade in 2020?

The big players in the binary options industry have in 2020 adhered to the new regulation rules. This means that they introduced new models of trading which are available on many trusted platforms.

Unfortunately most regulated brokers have blocked EU and USA residents from using binary options as the trading instrument of their preference. Some brokers have transformed to other regulated types of trading, such as CFD or Forex, and others kept binary options only as a choice for non-EU or non-USA residents.

Nevertheless, there are still possibilities to trade binaries regardless of where you reside. I am always looking for opportunities and good and reliable brokers, since a big part of my monthly revenue comes from trading and I really love binary options.

Personally I am well aware of the risk involved in binary options trading, and I consciously accept it. In the last year I found two platforms which I really love to use and trade with, so I will present and compare them both on this page.

The best binary options broker in 2020 in my experience is Pocketoption. While I am also a fan of Spectre , I find the lower return rates on winning trades to be one of the decisive factors which lead me to prefer the first listed broker. In any case, I tested both platforms and I also trade on both of them. Take a look at my in-depth reviews and comparison below.

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.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Sign-up Bonus!

  • Binomo
    Binomo

    Trustful Broker!

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)

2020 Binary Options Basics: Revealed Best Updates About Binary Options Trading

Learning how to trade Binary Options is a simple process for all types of investors which includes only a few basic trading strategies that allow you to trade more efficiently. To trade successfully, traders need to just have a small budget and a little knowledge about the Binary Options basics that enables them to learn how the real trading industry works. Binary options trading platform actually require traders to make a forecast of either higher or lower of where a certain asset will be at the expiry time.

The first thing that traders need to do while trading binary options is to select their underlying assets that is currently active in the market and have a good scope of profit. A reliable broker can offer you a variety of underlying assets in different markets, so try to pick one of the best assets that have better chance of returns. The next step is to select the direction of the price that they feel the underlying asset will move and therefore expire at the chosen time. Your entire result will totally depend on your predictions and the expiry time that you have chosen for your trading asset. In binary options trading, traders have freedom to choose their preferred expiry time and most traders select one of the most relevant expiry time that fits the current financial market circumstances.

Aside from that, latest Binary Options Basics have revealed that without any trading knowledge and bit experience you can’t add profit to your invested capital. In order to make your investments double, you need to learn about Binary Options basics which include expert reviews, forums, basic trading strategies and few easy tricks that not only enhance your trading but also protect you from scams and fake brokers.

Binary Options Basics – a perfect way to determine latest trading facts and financial analysis that definitely improve your trading experience.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Sign-up Bonus!

  • Binomo
    Binomo

    Trustful Broker!

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