Binary Options – Tips, Trading Patterns, Broker Reviews and Much More!
Binary option trading is a new way to trade on the stock market and make money online.
Imagine you were a trader. Is the value of gold going to increase in the next hour? If so, open a trade! If your prediction is right, you get your profit. That’s it!
But here’s the twist.
Nobody really knows what exactly is going to happen, because it is hard to predict for a novice trader. But there are methods that can help you accurately predict the outcome.
There is no secret formula that will help you win 100 % of the trades you make, but if you understand the market, you can trade profitably. However, it is important to note, that not all traders manage to make money. Read more about risks connected with binary trading here.
How to trade binary options
Professionals always use a specific trading strategy to help them predict the price movement. They are highly effective, but you need to download special software to use them. To read more about that software, visit Meta Trader Articles.
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Binary options trading patterns
Yes! There are trading patterns (strategies) that will help you trade binary options profitably! The trading patterns are usually difficult to learn, which is the reason why you should visit our website often. We provide you with the best articles on technical analysis, fundamental analysis, and other related topics.
Apart from that, you’ll read about mentioned trading patterns, news and other important information from the world of binary options. Once you choose the right trading pattern to use, earning money with binary options could become your one and only income.
Whether you are ready to fully engage yourself in trading or you are a newcomer in this area, I am sure you will find something interesting. Our reviews and intuitive comparative platform in tables will help you make your decision.
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What are binary options? More detailed information…
Binary options are one of the several types of online stock trading. Trading of this type is specific with its extreme simplicity to grasp, just like the name says (binary – having only two parts – profit or loss). Even a new trader, who would have big problems in the stock market, could trade options profitably. However, not everyone can do so.
Trading binary options is always clear and fast. Everything is about commodities prices or currency pairs and their decrease/increase. In the last few years, this type of trading has become very popular, offering investors with a low budget a way of trading on the financial market.
Investors in this field receive a fixed profit rate, minimizing the amount that an investor could lose in a separate trade. Compared to forex trading, this trading style is easier, but potential gains don’t reach as high. All in all, binary options are a suitable way to get started in the financial markets.
Binary options brokers usually offer profits ranging between 70-90%. Meaning that if your trade (your prediction) is correct, you’ll get your money back plus an extra profit of around 90 percent.
A Trader (you) chooses whether the price of gold, silver or a certain stock will fluctuate up or down. If the guess is correct, you’ll get a reward in the form of up to 191% of the traded amount. These movements can be predicted fairly accurately so trading binary options is a way to make a long-term profits.
It’s easy to understand, right? 😉 Not as easy to do, however. Now you know what binary options are.
Binary options over the weekend
Binary options trading over the weekend isn’t usually possible, because the stock market is closed, stocks and commodity prices don’t really move, so we have nothing to predict, since there are no movements happening.
There are, however, a few brokers that allow you to trade over the weekend. You usually trade indices or cryptocurrencies and their volatility isn’t high. Also, the profits are usually fairly low. That’s why it’s not really easy to predict their direction, but give the trading over the weekend a go, as every experience counts.
Types of binary options:
- High-low: The most popular type of trading, where the trader speculates whether the asset price will increase or decrease over a certain time period (until it expires).
- One touch: The trader speculates whether the asset price will reach a certain price over the course of the open trade – before it’s expiration. It doesn’t have to end up at this price, which makes the trade a bit easier
- No touch: This binary option trade is quite similar to the previous one. A trader speculates whether during a certain time (the expiration period) the price won’t reach or go over a given limit.
- Ladder: Traders speculate whether the price of an underlying asset, at its expiration date, will be higher or lower than the price they’ve set. The potential risk will increase or decrease, depending on the difference between the price over the time of the purchase and the determined expiration time. This usually makes the profit fluctuate, too. You can get a profit of between 1 and 500%.
Why trade binary options?
The biggest advantage of binary options trading is the opportunity to achieve a high return rate with each successful trade even if the price movement is minimal.
The majority of brokers offer a profit of up to 100%. Early returns are also one of the main reasons to start with this type of trading. There are many trading patterns on the internet which may help you increase your chance of profit.
Trading of binary options is becoming very popular all over the world, which is indicated by rising number of brokers on the market in the past years.
How to start with binary options
If you have decided to start with binary options trade, we recommend you to read the tips for beginners and FAQ. These pages offer valuable information to get you up and running. Our list of recommended brokers for beginners is also worth mentioning.
Do you know what to expect from binaryoptions and trading and are you ready to start? Our page will help you choose the right broker with which you will cooperate. You will find many reviews: Olymp Trade review, ExpertOption, IQ Option review, Binomo review, and many other brokers.
It’s entirely up to you which one you will choose, but why wait? Read the reviews now!
Binary options demo account
If you want to start trading but are unsure if this activity is right for you, there is nothing easier than trying it on a demo account. Some brokers have their own demo accounts (such as IQ Option) to try out their platform. But if you want to try trading with no risk and with no need to register, our website also offers demo accounts for free.
Try it here: Binary options demo
Binary option trade risks
Although everything written on this page is true, there are certain risks in binary options trade which you should know of. Even if you manage to win 50% of the trades you place, you will eventually be losing money, because the payouts are usually lower than 100%. You choose how much you can lose.
If you make a deposit of let’s say 500 USD, you can’t lose more than that. That is an advantage compared to trading on forex, where your loss can exceed your deposited capital. With binaries, this can’t happen. Please, do not deposit money that you can’t afford to lose because it is possible that this will happen.
Binary options brokers are no non-profit organizations. In order for brokers to be able to pay out clients who know how to trade, there must be clients who lose. So which group will you join?
References and more information on binary options
- Rethinking risk management (RM Stulz – Journal of applied corporate finance, 1996)
- Event-driven trade link between trading and clearing systems ( Baecker, J Buddendiek, K Carnahan 2008)
- One-touch double barrier binary option values (CH Hui – Applied Financial Economics, 1996)
- Static hedging of exotic options (P Carr, K Ellis, V Gupta – The Journal of Finance, 1998)
- Binary option pricing using fuzzy numbers (A Thavaneswaran, SS Appadoo, J Frank – Applied Mathematics Letters, 2013)
- Binary options: fixed odds financial bets (H Raw – 2011)
- Hedging by sequential regression: An introduction to the mathematics of option trading (H Föllmer, M Schweizer – Astin Bulletin, 1989)
- Derivatives: principles and practice (RK Sundaram, SR Das 2011)
- Option trading and individual investor performance (R Bauer, M Cosemans, P Eichholtz – Journal of banking & finance, 2009)
- Option trading and the relation between price and earnings: A cross-sectional analysis (LCJ Ho – Accounting Review, 1993)
- Exotic options systems (In german, Bernd Schatz, Bachelor’s work, 2007)