Legit Binary Options Review wants to educate the people on Binary Options so that an individual can be a successful binary options trader. We want to make professional binary options traders for the binary options industry. You will have useful and informative articles and reviews to make you a profession binary options trader no matter what the present experience you have. From this article, you will know how to make money on Binary Options trading. Start learning binary options trading and trade to change your life.
I am Gary Wilson here today from Legit Binary Options Review with this primary article as well as you will see Oscar J. with me with other binary options trading learning articles. I hope our work will help you to be a successful trader in binary options market.
Let’s learn binary options trading.
At first, you should know:
What is Binary Options Trading and How can You Make Money from That?
Binary option is a financial product, it is simple and extremely easy to execute. The binary option allows you to predict an asset future price or bet on an asset price whether in future the price of the asset will go up or go down. For example, you can take the price of Gold, the exchange rate of EUR/USD or the stock price of Apple. The time span which is called expiry time can be 60 seconds or can be a day. If you choose the 60 seconds expiry time it is possible to trade binary options hundreds of times in a day.
You should know the investment return before you start trading and it is 70%-95% usually if your prediction is right. Based on that parentage you bet $100, for a successful trade you will have $170-$195. So you can see that the decision making and risk management of binary options trading are pretty simple. To get an outcome from this trading you always have to choose a Yes or No, if your prediction is right you will win and if your prediction goes wrong you will lose your investment and that is the “Binary Option”.
First of all, you will need a broker account for start trading. I suggest you pick IQ Option or Binary.com as your broker. They are licensed and regulated by the binary options regulatory authority like CySEC, BaFIN etc. so they are totally safe to engage. They are also the top broker in the world and most trader’s choice.
You can open a demo account if you are new to binary options trading in most of the broker’s platform to try and check their platform and see how it’s work before you start trading with real cash.
Check out the videos to learn in-depth.
Video Tutorial – How to Trade Binary Options
With the concept of binary options these videos introduce you and also you can know how to do binary options trading. To know more in details about binary options trading you have to go through this whole page and explore the links to find out more informative articles. Binary options trading is not complicated at all but to be a successful trader and become an expert you have to educate yourself to improve your trading skills.
So, what option types you will have in binary options?
Option Types for Binary Options Trading
“Up/Down” trade is the most common option type of binary options as well as it is simple. However, there are other types of options too, but all has a common binary result which is “Yes or No”. Here are the few options types:
● Up/Down or High/Low – This is the most common and basic binary option. You have to predict that the price of an asset will go up or down from the current price within the expiry time.
● In/Out, Boundary or Range – A high figure and a low figure is being set in this option. Traders have to predict that whether the asset price will finish within the boundaries or will finish outside the levels.
● Touch/No Touch – This option type has set level which is higher and lower than the asset current price. Traders have to predict that between the trade expiry time at any point whether the asset price will touch those levels. Remember that a touch option can be closed before the trade’s expiry time. It only happens if the asset price touches the levels before expiry times and immediately you will get the payout, whether from the touch level the asset price goes away afterward.
● Ladder Option – Ladder option act as the Up/Down option, but instead of using asset current price the Ladder uses pre-set price levels of the asset. From the asset current price, it can be someway often. A significant asset price move is needed in this options, that’s why often the investment return goes beyond 100%, but it’s may not be available the both side of an asset trade.
Step by Step Guide: How to Trader
Here is the step by step guide to execute binary options trades:
1. Choose Broker – To find the best binary options broker for you explore our Broker Comparison and Reviews Tool. 2. Select Asset for Trading – Broker provides a huge list of trading assets which includes Stocks, Commodities, Indices and Currency Pairs. 3. Select Trade Expiry Time – You have to select the expiry time of a trade, expiry times can be between 30 seconds to up to 1 year. 4. Set the Size of Your Trade – Remember that 100% investment is always risky. 5. Press Call/Put or Buy/Sell – The value of an asset will rise or fall? Different broker levels the action button differently. 6. Check and Confirm Your Trade – Before confirming your trade to ensure your details double check it, most of the broker gives the traders an opportunity to check their details.
Know a bit more about few facts of binary options.
If your broker is legit and licensed, and if you trade regularly using your skill you will be one of the successful traders in this industry. Why am I saying about legit and licensed broker? Because there are many operators available in the market who are not licensed, they are the scam and dishonest. They are trying to fraud the trades and take the advantage of novice traders.
Warring! Do not trade with an unlicensed broker, they are risky and design to steal your money. Check our Binary Options Scams Blacklist, avoid those brokers and automated software and stick with my recommended broker which given below. From the below sources you will find the best broker for you.
● Compare Brokers – Compare my recommended brokers benefits and features.
● Given Bonuses and Offers – Check to find out bonuses, offers, and other benefits.
● Brokers with Low Minimum Deposit Amount – If you want to trade with a low deposit amount check this out.
● Demo Account – If you want to test a broker platform without deposit real cash, this is for you.
● Halal Brokers – This is for Muslim traders who wants to trade according to the Sharia Law.
Select Asset for Trading
The number of trading assets varies on the brokers. Most famous and renowned broker offers popular assets like currency pairs which include USD/JPY, AUD/USD, EUR/USD, GBP/USD, USD/EUR as well as popular indices like Dow Jones, FTSE, and S&P 500 etc. They also offer commodities like Gold, Silver and oil, and stocks like Apple, Google. Some broker offers Bitcoins also for trading.
You will not find all the assets in a broker but you will find most of the major assets in a good licensed broker. Brokers always adding new assets to their trading assets list. So broker’s trading asset list is growing every day.
On most of the brokers trading platform, the asset listed clearly, and on the website of the brokers, you will have the list available.
Select Trade Expiry Time
The point where the trade closed is known as the Expiry Time. Only one exception can happen in the Touch option if the asset price hit preset asset price level before expiry time. The expiry time can range from 30 seconds to a year, while in most of the cases traders choose short expiry times. So it is clear that broker has a huge range of trade expiry time. Some brokers allow the traders to set their own expiry times.
In three categories we will find the expiry times:
● Short Term or Turbo Expiry Time – These expiry times closed under 5 minutes.
● Normal Expiry Time – These expiry times range from 5 minutes to end of the day, generally it closes when the local market of the asset closes.
● Long Term Expiry Time – These expiry times ranges from the end of the day up to a year.
License and Regulation
Binary options trading is an increasing market globally. Considering the market situation global finance regulatory authorities started licensing and regulated binary options brokers. The major regulatory authorities are:
● CySEC – Cyprus Securities and Exchange Commission (Cyprus base regulator)
● FCA – Financial Conduct Authority (UK base regulator)
● CFTC – Commodity Future Trading Commission (USA base regulator)
● BaFIN – Bundesanstalt fur Finanzdienstleistungsaufsicht or Federal Financial Supervisory Authority (German base regulator)
● CONSOB – Commission Nazionale per le Societa la Borsa (Italy base regulator)
● AFM – Netherlands Authority for the Financial Markets (Netherlands base regulator)
● REGAFI – Registre des agents financiers (France base regulator)
If you search you will find more regulatory authorities which are based on Isle of Man and Malta. Nowadays many other financial regulatory authorities are interested in binary options especially in Europe base regulatory and all of them justify CySEC regulation as legit.
You will find unlicensed and unregulated brokers in the market. The lack of licensing and regulation is a clear warning for you to engage with an unregulated broker, potentially it’s unsafe for the traders.
Trading Strategies and Guides
To trade binary options successfully you need to have a good trading strategy. Below I am giving you some sources of trading strategies and guides which will help you to learn about trading strategies. You can also explore the Trading Strategy Page for more details.
If you are a new options trader, you should watch the below video of Professor Shiller who is a professor of Yale University and from this video, you will learn about the main facts of options.
Trading Education for the New Binary Options Trader
● Topic 1: The Best Time to Trader Binary Options
● Topic 2: Available Tools for Binary Options Trading
● Topic 3: How to do Trade Breakout by Pivot Points
● Topic 4: Fibonacci Tool: How to Use
● Topic 5: Binary Options Trading Risk Management
● Topic 6: Variable Binary Options: How can It Work for You
● Topic 7: Expiry Times: How to Postpone
● Topic 8: When and Where You Should Not Trade Options
● Topic 9: Binary Options Trading in Mobile
● Topic 10: How to Use FX Helpers System
● Topic 11: How to Use FX Turbo Marksman Indicator
● Topic 12: Binary Options Trade and Market Analysis
● Touch/No Touch Option
● High/Low Option
● Target Bet Option
● Tunnel Bet Option
● Ladder Bet Option
Setting Up a Trade
If you have the ability to understand the facts price barrier, strike price and expiry time you then will be able to trade to trade different binary options types. Remember that all the trades have a fixed expiry time.
The asset price what you selected behaves in profit or in loss only can be determined after the trade expiry time. Moreover, the key levels are the price targets. As the benchmark of outcomes traders sets them. When I will explain about different types, you will find the facts of price targets there.
Mainly, the options trades are three types. All of them has specific variations and they are:
High/Low binary option is also known as the Up/Down option, you have to predict that before the trade expiry time the asset price will go higher or lower than the strike price (target price what was selected). You have to purchase a Call option of you think the will go up (Up or High) and if you think the price will head down then you have to buy a Put option (Low or Down). In this options type, the expiry time is low and it can 5 minutes or less.
Note that High/Low option may have a different name in different brokers like Up/Down option or Rise/Fall option.
Touch/No Touch Option
An asset price will touch a price barrier or not, on this basis you have to predict this type of option. Before the trade expiry time if your purchased asset touches the set price or target price at least for one time you will get profit from that. You will loss if your purchase asset price does not touch the set price or target price before the trade expires.
No Touch is just opposite of Touch. Here you predict that your purchased asset price will not touch the set price or target price before the trade expires.
You will find variations in this option type because this option type has Double Touch and Double No Touch. You can set two set prices or target price and can bet that your purchased asset will touch both the target price before the trade expiry time (this is Double Touch) or you purchased asset price will not touch any of the target prices of two before the trade expires (this is Double No Touch). If the market volatility is intense and the asset prices are expected to reach multiple price levels only then you should execute Double Touch option.
The In/Out option type which is also known as the boundary trade or tunnel trade. In this option type, the price consolidation is “In” and the breakout is “Out”. In this option type to form a price range you have to set two price targets and then you have to purchase an asset to predict that the price of the asset will stay within the price tunnel/range or not until the trade expires (this is In) or in either direction the asset price will break out of the price tunnel/range (this is Out).
If you want the best result from this type of option then you should use the asset pivot points. Make sure you are familiar with the pivot points of Forex to be successful in this trading option type.
These three type of option offers by some broker, some offer two and some offer only one. Moreover, in some brokers, you will see restrictions on setting up expiry times. To get the best broker platform for you I suggest you go with my recommended binary options broker.
All the renowned and major brokers have mobile applications for traders to make trading more easy and efficient whatever they are trading forex or binary options. Most of the brokers designed their trading platform as mobile friendly. The mobile version of the brokers trading platform is so much similar to the web version.
Brokers developed their mobile version trading platform both for Android and iOS devices. You can easily download them from the Play Store, App Store, and Apple Store. You can sing up and sign in through the mobile site of the brokers. About the mobile applications of brokers, we discussed in detail in our broker’s reviews. The brokers are well aware of the growing market for mobile trading. Most of the traders want quick updates and news of the market, for that reason, brokers are proving this tools for their customers so that they can trade from anyplace anytime.
I hope you enjoyed this article on Binary Options Trading. Let me know that if this article is helpful for you or not. Keep engaging with Legit Binary Options Review to find more details and updates about binary options trading. See you soon with another article, in the mean time you can check our post Binary Options Trading FAQ and I think you should check it for better understand on Binary Options Trading.