BINARY OPTION TRADING

WHAT IS BINARY OPTION TRADING

Binary Options are bets that a trader takes on the direction of where an asset will head over a certain amount of time. For example, a trader has the view that the price of Euro, relative to the Dollar (EUR/USD), will rise between now and the sixty minutes. He/she may wish to bet $25.00 on this. If they are right, even if only marginally by 1 micropip (the smallest movement possible in the currency price), he she can expect a high 70-85% return on that bet. If they are wrong, they lose the $25.00 invested. Hence the outcome is, indeed, binary. 

There are more exotic types of binary options, such as pair-trades, no-touch options, barrier options and a range of others; however these are the minority , we will focus on the mainstream and most frequently traded category. The trading of Binary Options is strictly not gambling as the outcome of where price lands, either above or below your entry, is not random. By researching the underlying asset, for example the EUR/USD, you can significantly increase your odds of winning. Random outcomes, however, occur on a roulette wheel where the black or red occurrence is truly random. 

Market prices follow technical geometries and market fundamentals; all of which are a direct functions of market and human psychology. The currency market is made up of hundreds of thousands of traders who are either work for institutional trading desks at investment banks, sovereign nations or corporations who buy and sell currency for a range of transactional and hedging reasons. Currency movements or for that matter, movements in stocks as well (on which binary options are based as well), can be explained by news and technical factors. 

Binary option trading, however, can be classified as betting as you never really buy or sell any underlying asset; you merely bet on its movement.

BINARY OPTION BROKERS

Binary Option brokerages offer binary options. Their trading platforms, however, are white-labelled versions of generic trading platforms offered by Binary Option technology firms called platform providers. Therefore, Binary Option brokerages are not platform providers themselves. There are only a handful of recognised platform providers.

BEST BINARY OPTION BROKERS

Binary.com's patented pricing technology allows you to benefit from the same rates of return as traders in the interbank market.
Real-time prices, bench marked against interbank options markets.
No hidden fees or commissions.
Choose a payout from $1 to $50,000.
Trade all major currencies, indices, stocks, and commodities.
Choose a duration from 10 seconds to 365 days.Choose your own strike.
Binary.com is the award-winning industry pioneer in online options trading

IQ Option is one of the fastest growing online trading brands in the world! Voted the best mobile trading platform, we have now expanded our offerings to include stock trading, ETF trading, Forex trading and a brand-new product unique to IQ called Digital Options.

Plus500 is a leading provider of Contracts for Difference (CFDs), delivering trading facilities on shares, forex, commodities, ETFs, options and indices, alongside innovative trading technology. Plus500AU Pty Ltd is an Australian based company with its main offices located in Sydney. The Company is licenced by ASIC (AFSL #417727) to offer CFDs to Australian residents and the FMA (FSP #486026) to offer CFDs to New Zealand residents. Plus500AU Pty Ltd is an Authorised Financial Services Provider #47546 in South Africa. There are over 2000 instruments available on the platform.

HOW TO TRADE BINARY OPTION

To trade binary options through your broker is easy. Just follow these steps

1.If you already have an account, just log into it.

2. If you don’t have an account, create one and log into it.

3. Deposit funds into your account.

4. Select an Asset and specify an Expiry time.
5. Choose your position. You can choose a call position, which means that you expect the price to go up, or a put position, which means that you expect the price to drop.


6. Enter the total amount that you’d like to invest.

7. Click on the “Apply” button to complete the transaction.

BINARY OPTIONS SIGNALS

A binary options signal service provides trade recommendations for clients to follow on their Binary Brokers. It gives precise instructions on which direction to bet on and for what expiry. An auto-trader trades a client’s account on his/her behalf requiring no input from the client. In an increasingly busy world, a growing amount of clients seek out such ‘hands-free’ services.

Binary options signal services or auto-traders will work in Binary Options. This means that those new to the sector need to exercise great caution in committing capital to services as statistically 90% will destroy value, not create. Signal services and auto-traders that offer free-trials that do not require deposits at Binary Option brokers and work with demo money accounts are most likely the ones that are legitimate. Furthermore, legitimate signal services will provide an updated historical and real-time record of signal outcomes without altering losses with the view to bolster results.