Binary options weekend trading 101

Binary Options 101. What are Binary Options? Although they are a relatively new way to trade within the financial markets, Binaries are growing fast. They were legalized in the United States in 2008, and have quickly become one of the fastest ways to trade. Fast does not equal effective all of the time, though. Traders need to be cautious when working within this market. They are. very different from other types of trading. because with these, you are not actually taking ownership of any assets. Instead, you are attempting to predict the movement of the underlying asset only. Think of it as a prediction of which way a particular asset is going to move and less of a long term investment. Try trading with a Trusted Broker of our Choice. How do Binaries Work? In their simplest form, binary options can go only one of two directions, hence their name.

You can be right or you can be wrong. They are an all or nothing type of trade and there is no middle ground. This might sound threatening, but they really are quite easy to understand . You select an asset and then predict whether you think that asset will go up or down in price. Once you figure this out, the broker that you are working with will display the percentage amount that you will have returned to you prior to officially committing your money to the trade. You then select the amount that you want to risk and the timeframe which you want to work within. Once these basic factors are all accounted for, you will click on the button that executes the trade. This is one of the greatest things about binary options. You have more information about how the trade will conclude with this type of trading than with any other type of trading. You know exactly how much you stand to gain and exactly at what time that money will appear in your account if you are correct in your prediction. Binaries explain all of these things prior to your commitment. Trading Tip – Make sure your computer is working in an optimal state. With binary options, you can trade all of the major currency pairs, stocks, indices, and commodities. The exciting thing is that you are not limited to any one place.

Whether you want to trade gold futures, Apple’s stock, or the Japanese yen , you can do it all from the same platform. You can also trade on an international scale without having to change brokers. Many of the top brokers include numerous stocks and indices from Europe and Asia, allowing international traders to use their platforms without problem. The good news for you is that brokers act as a one stop shopping place for all of your trading needs. You can trade pretty much everything with the same web site without having to keep switching screens . How Long Do Trades Last? With binary options, it’s important to remember that all of your trades will have strict time lines that you need to pay attention to. Some of these can be pretty short or they can last a bit longer. Ultimately, you will need to decide what timeframes work best for you . If you don’t like having money tied up in a trade for a long time, 60 second or 5 minute options might be best for you. If you don’t mind waiting, you can trade hour long trades or longer. The thing to remember about expiry times is that they are adaptable only up until you commit to the trade. Once the trade is locked in, you must sit back and wait. This is different from other types of trading where you can sell off your purchased shares at any time you want, but it is a fact of options trading that you cannot get around.

Some brokers will allow you to sell off your trade for a small refund, but this is a rare scenario that you shouldn’t worry about until you become an advanced trader. Instead, it’s far more important to spend time researching trades beforehand. Main Types of Options. There are three main types of binary options that you need to be aware of. The first is the basic callput trade. Here you are simply attempting to predict whether the price of the asset will have gone up or down at the time expiration. The next type of trade is the one touch trade. Here, you will be given a target price at the beginning of the trade. If the asset reaches that price or beyond at any time during the life of the trade, your investment will be deemed a profitable one. This price is always stipulated by the broker before you execute the trade so you can best prepare your information ahead of time. The last of the three major types is the boundary trade. With this choice, the broker will give you a range of prices and it is up to you to determine whether the price of the asset will be within or outside the given range. There are a few different variations of these trades, and some of the more exotic versions can have pretty high payouts, some around 300 percent, depending upon the broker. One example is a one touch trade with a really far off target price. Usually, in order to get the big payouts on these , you need to go with the hardest to reach option.

For this example, you would have to select that yes, the far off target price will be attained. These have higher rates of return because they are much harder to be correct with. Which Binary Option is Best for Me? Figuring out which choice is going to be best for you is something that will be different for each person. First, you want to look at where your experience is. Are you a former Forex trader looking to augment profits with a new method? If this is the case, your expertise on the currency market is fully transferable to the binary options marketplace. Or maybe you are a former day trader, looking to alleviate some of your risk . If this is true, binary options can help, and you will want to begin with your focus on the stocks that you are most familiar with. Ultimately though, it comes down to what your goals are. You need to figure out what your trading goals might be and then develop a plan to realize those goals. If you want to make $1,000 per week, you need to figure out which types of options will help you to hit this mark , and which timeframes will be best suited to get you there. The answer to the above question is something that will be different for each person, but you should always place an emphasis on the quality of your trading and not on the quantity. Five trades per day that are correct are going to return more to you than six correct and four incorrect. First, you need to select a broker.

Once you’ve figured out which broker will best suit your needs, you deposit your trading money with them via a credit card or wire transfer. Make sure that your trading money is money that you can afford to lose and not funds that you will need to get through your daily life. Once you have created an account and have funded it, you are set to begin trading. But you shouldn’t start right away. Many brokers now have demo trading accounts, and you need to take full advantage of these if you can. Demo trading is basically no-risk trading since real cash is never exchanged. You are given play money and for a limited time you are able to trade those play dollars in real time and learn the ropes of how binary options work. The longer you demo trade, the smaller the learning curve will be when you start trading with your own real money. Even if you only have 72 hours to demo trade, you need to capitalize on this. At the very least, you want to learn the software that you will be using in order to eliminate the possibility of user error. Demo trading should be used as much as possible until you have established a method that works for you and you are confident with it. You want to eliminate the possibility of mistake because of inexperience . You want to use them as much as possible while you have the opportunity available to you.

Binary trading is fast paced and exciting, but it’s not for everyone. There can be a lot of risk in binary options trading. If you are new or simply changing your venue, binaries can have a lot to offer. Know that binary options have a lot of possibility for profits, but because of their all or nothing nature, there is also the chance that you can lose substantial amounts of money. For this reason, you will want to get as much practice as possible and want to do as much research as you can. These lessons are a good place to start your journey. ***Your capital may be at risk. This material is not investment advice.*** Getting nowhere trading? Make Sure You Check Out. Latest Updates. Binary Options University Must Reads.

Thanks for checking out Binary Options University. There is one major topic that must be talked about way up front. RISK! Although you could make a lot of money trading these instruments, it’s also very easy to lose everything you invest. Please understand the Binary Risks before you invest any money. This site is for entertainment purposes and should not be held responsible for any losses you may incur. Advertising dollars are generated by clicking on some of the outbound links. You can learn more about this on our Privacy Policy. Trading on the Weekend. When trading in the options arena, traders have the opportunity to profit a great deal – and for those who trade binary options, the ability to transact trades both during the week and on weekends can add an additional amount of profit potential.

Although investors can typically place their intended trades over the weekend through a traditional stock brokerage firm, these “after hours” trades will not actually be executed until trading has resumed on the following business day. There are a number of binary options brokers that are open for weekend trading. In most cases, these platforms will typically allow trading of Above Below andor Up Down binaries that have expiries of 30 or 60 minutes. Other binary option brokers may sell touch binary options that have an expiry on the following Friday within a specific time period during the weekend. By far the best choice for weekend trading is IQ Option . It’s not only the largest and most reliable broker today, it also offers an innovative over the counter (OTC) trading opportunity. There’s no better way to trade on weekends than this. If you’re still not familiar with these terms and are not sure what options there are and how to trade with them you should take a look at our terms and explanations article. There you’ll find everything you need to know to understand everything in this article. While binary option traders can choose their underlying stocks from the securities exchanges that are open for trading on the weekend, these traders may also find many companies that are listed on these markets for underlying assets on the binary options contracts that are offered by binary options brokers. Why Trade Binary Options on the Weekend? One of the biggest advantages to trading in binary options is that traders can place buy and sell transactions on the weekends when most other worldwide investment markets are closed. In so doing, binary option traders may have the opportunity to make a nice profit within a short period of time when trading options with 30 or 60 minute expiries over the weekend. Where Can Binary Options Trades Take Place on the Weekend?

Unlike the U. S. exchanges, there are certain securities exchanges across the globe that are open during weekend days. For example, in the Middle East, the trading week will typically run from Sunday through Thursday in some areas and from Saturday through Wednesday in others. This allows binary options traders to actively enter and exit their trades when the underlying assets that are associated with these trades are listed on a market that is open. Some of the major exchanges that are open for trading on the weekends include: DFM Index – This index is based on the Dubai stock exchange, one of the major exchanges that is located in the United Arab Emirates. Tel Aviv 25 Index – The Tel Aviv 25 Index is composed of the top 25 companies – based on their market capitalization – in the Tel Aviv Exchange. This exchange is the only market that is available for trading securities in Israel. Kuwait Stock Exchange – The Kuwait Stock Exchange represents the stock index for the national Kuwaiti stock exchange that is inclusive of investment companies, banks, real estate, and insurance companies located in Kuwait. Tadawul Index – This exchange is the only stock exchange that is located in Saudi Arabia. As with trading binary options at any other time of the week, it is similarly important to monitor any news or events that may affect the price of an option’s underlying asset prior to placing a trade. This may help a trader to more accurately predict whether the price of the underlying asset will rise or fall.

Trading binary options on Weekends – How to guide. The binary options market has become quite active and vivid in the past several years. Previously, the market was limited to business day trades only, and weekends were closed for business. But with the onrush of different binary options companies and the competition in the market, more and more options brokers leave the trading window open over the weekend. Weekends offer great potential to profit and to gain even 400% back on the options market. The weekend trading is beneficial for several reasons. First, traders usually have not enough time to devote to their trading career over the week, so weekend trading represents a great way to compensate for all missed trades during the long work week. Do not get me wrong here, since traders could always place weekend trades via their brokerage companies, but yet, these trades were not executed until Monday or the first business day. Traders had to patiently wait for the market to open in order to see whether they have won or lost their investment. The binary options market was sleeping for a long time on the weekend, but now, options firms recognized the significance of running the market 247. Why You Should Trade on Weekends. If you are an options trader, now you get the chance to use your weekend wisely and earn some money. Weekend trading can generate your profits, even more than trading during the week, since you have got more time, you can focus better, and you can use the weekend price movements to your benefit. There are very lucrative trades on offer during weekends, and you should definitely try your luck since the market is not yet overwhelmed by the number of weekend traders given that it is a new trend still in progress, which leaves you enough room to spot the best trade offers.

Where to Trade on Weekends? We have already mentioned that some binary options brokers let you trade on weekends with actual weekend expiry dates, i. e. expiry dates which do not wait until Monday to close automatically. Still, some brokers offer weekend trading, but they limit it to a handful of options. These brokers will let you trade at least HighLow options with expiry dates of 30 and 60 seconds, so if it does not cut it for you, you might want to look up brokers who offer a greater variety. It is not uncommon that options brokers also offer touch options during the weekend with a week-long expiry date, which means that your trade would close next week, but on a weekend day. Some of the most popular brokers offer binary options trading on weekends, so if your current broker is closed for the weekend, you might open a new account with a new broker. Middle East Markets and Their Influence on Western Options Brokers. Weekend brokers might not be mainstream yet, but you still have an alternative to use your weekend for binary options trading. Check out the Middle East markets which have a different weekend policy. Namely, their weeks start on Sunday and end on Thursday, or last from Wednesday to Sunday.

This means that you have a completely new market to trade in regardless of the weekend. In the end, it is not weekend for the Middle Easterners. Many western binary options brokers have tried to make their breakthrough in these markets as well, and their major stimulators to attract new clients were swap-free or Islamic accounts, 247 trading to match the working hours of the Middle East traders, and they also added a couple of local indices and stocks to their service package. This method and marketing plan seemed to have worked since there is rarely an options broker who does not offer a swap-free account or Arab indices. The new work policy also benefited regular western traders who can now finally trade on weekends with local options companies. Still, it is always good to keep an eye on what is happening in other markets as well, so you should not abandon the Asian market completely. The binary options markets shifted to a big global community, and such a course of events has to be followed by adapting to traders’ needs, not only local but from around the world. As we can see, weekend trading is one of the outcomes of the globalization process in the binary options market. The Best Weekend Options Brokers. IQoption has been the options broker number 1 for a very long time now, and there is rarely an options trader who did not hear about IQoptions. The industry forerunner is also one of the best brokers for weekend trading since it offers active trades throughout the weekend as well. IQoptions was also one of the first brokers to expand worldwide and to enter other markets as well, which means that the broker offers a variety of choice when it comes to trading assets including on weekends.

Click here to read our IQOption review. IQ Option is one of the most reliable and secure brokers and a safe haven for all traders. This broker is regulated by and offers options for as low as $1, plenty of stock options and a great trading platform! Trading Basics. Prior to trading in the binary options market, it is essential that traders have a thorough understanding of the trading basics in this arena. While binary options trades typically offer traders a fixed amount of return – or no return when an option expires out-of-the-money – there is still an amount of risk that traders must be aware of prior to placing their own money into such trades. In addition to an awareness of how actual trades work, it is also necessary for traders to have a familiarity with the many different tools that are available to them from the binary options trading platform that they have chosen to use. In educating themselves on binary options trading, here are some of the key aspects that traders must understand: Most Important Terms – Glossary. There are some specific terms to binary options trading. If you are a beginner and not familiar with them, it’s hard to understand the more advanced articles. Please refer to our Glossary if you don’t understand the meaning of an expression used on our website. Many of the online binary options trading platforms will allow traders to use a demo account prior to executing trades using real money. Traders may typically trade using real underlying assets – and in real time – yet without the risk of losing real funds. In most cases, traders must first open an account with the online binary options platform prior to being offered the use of a demo account.

In addition, many platforms will also require that traders make at least a minimum deposit into their account. Funds in the trader’s account will, however, be returned if the individual opts not to pursue trading binary options from that particular platform. One of the best ways for individuals to learn anything is to see an example – and this is true for trading binary options as well. Studying trading examples can also help traders to develop trading strategies that may help them to attain more profit. In most cases, it is best for traders to study and become comfortable with basic trading examples before moving on to more advanced trading strategies. Trading with Real Money. Before traders begin trading binary options with real money, it is advised that they first have an understanding of both the binary options market, as well as with the tools that are available for them to use. Most binary options trading platforms allow traders to make real money deposits into their account using a variety of methods, including: Debit andor Credit Cards Online Payment Processing Systems Domestic andor International Wire Transfers. In addition to offering a vast array of online tools that can execute trades from a PC, some of the binary options trading platforms are also starting to offer mobile trading capabilities. These smartphone apps can allow traders to manage their accounts, place trades, and monitor their positions from various types of mobile devices. Trading on the Weekend. While most investment markets only allow trades to be executed during the week, binary options traders have an added advantage of being able to trade on the weekend as well.

This is because there are several overseas exchanges that are open on Saturday andor Sunday. The ability to trade on the weekend offers binary options traders additional profit potential. Certainly, when participating in any type of activity, it is important to have an understanding of related important terms. Knowing what particular terms mean can provide traders in the binary options arena a good solid foundation for moving forward with their trading activities and with being much more comfortable in doing so. Knowledge of important terms can also help traders to develop and execute trading strategies that may produce a higher probability for profit. Auto-Trading 101. Recently we made a big addition to our site in the form of a huge list of binary options signal providers and auto-trading services. If you are wondering what auto-trading is all about and what these “bots” are for, you are in the right place. Before you sign up for any of these services, it is really important for you to understand what they are and how they work. A lot of them promote themselves as effortless solutions to all of your trading problems, and some of them can legitimately help you out—but they all have limitations. First things first … What Is an Auto-Trader? What Are Signal Services? What is the Difference? A signal service is any service which generates binary options trading signals or alerts.

Signals simply let you know that a trading opportunity exists, and that you may want to take it. An auto-trading program or a binary options robot (“bot”) is software which places trades automatically for you based on the signals generated by alert providers. Some of the services on our list simply send out signals via text messages or email others include auto-trading software, and will place trades on your behalf, even when you are away from your computer. So in short, all auto-trading programs use signal services. But not all signal services are auto-traders. Know what you are looking for before you start browsing, so that you can select a service which makes sense for you. What Binary Options Signals and Bots Cannot Do For You: Help you “tap into an unlimited stream of binary wealth.” Help you generate $$$$$$ in a single hourdayweekmonthyear. Help you trade “risk free.” And yes, all of those bulletins are based on actual quotations from sales pages for binary options bots and signal services. I feel it is very important to say right off the top that you cannot go into this with unrealistic expectations. There is no service that can take the risk out of trading. Binary options trading is and will always be a high-risk activity. There is also no service that can guarantee you will be profitable, or that you will generate a certain amount of money within a certain time period.

You are not going to become a billionaire overnight, and certainly not by sitting on your hands at the beach. Some things you simply have to do yourself. What Binary Options Signals and Bots Can Do For You: Alert you to potential money-making opportunities you might otherwise have missed. Trading signals from legitimate providers can help you spot excellent trades you might have glossed over without the alerts—either because you simply missed them on your own, or because you were too busy to spot every trade opportunity. Help you to trade when you cannot be at your computer. If you trust the signals which a binary options robot is using to place trades, it makes sense to use those signals when you cannot trade manually. Maybe you have a day job which takes you away from your computer for nine or ten hours a day. Or perhaps a lot of the best opportunities show up in the middle of the night when you are sleeping. Auto-trading helps you to make money during these times so you do not miss out. Free up hours in your day. If you are tired of endlessly staring at the charts day and night (which you really should not be doing anyway), a binary options signal service can help by staring at the charts for you. It cannot replace the opportunities you would find using your own system, but it may help you to stay active and in the game when you need your time to do other things. Build up capital while you are learning. It makes sense to lean a bit on someone else’s knowledge while you are trying to build up venture capital for your trading endeavors.

While you can start trading on a shoestring budget, you cannot realistically get very far very fast with a small account. Using signals from a reliable service can help you to build up your bankroll while you work on developing your own binary options trading strategies. How Do These Services Work? That depends on the services you sign up for. Some services will simply send you an SMS or email when there is a trade opportunity available. You can click, view the details, and decide to manually place a trade or not on your trading platform. These services give you more control over your trading, and are a great middle ground if you want to take advantage of trading signals without handing over that control. Other services will automatically trade on your behalf whether you are at your computer or not. The best programs allow you to select preferences, including a stop loss, so that you do not blow your bankroll if the program has a losing streak. You may have to download a program to use some of these trading bots others work entirely online and do not require any kind of download. It is important to know whether a program is compatible with your device and your browser before you purchase a service.

You definitely do not want to make the mistake of purchasing a Windows-only program if you trade on a Mac, or a desktop - or laptop-only program if you want to go mobile. What Does Auto-Trading Cost? This also depends on the service you sign up for. There are several different pricing models which are common for trading bots: A lot of services charge on a monthly basis, often a couple hundred dollars. Others may charge by the year, or you may be able to qualify for a discount if you pay for a full year upfront. Other services may charge a single flat rate for a lifetime of signals and support. These are generally quite expensive upfront, but may be a great investment over the long run. Others may charge you per signal, which can keep your costs down if you only want to place a few trades each month. Note that some services may automatically charge your card each month unless you request a discontinuation. Paid services usually include some kind of free or discounted trial so you can check out the service before you commit. What about free binary options bots?

If you are wondering why anyone would offer a service worth hundreds of dollars per month for free, there is actually a completely legitimate pricing model there. These services require you to sign up with a partner broker and deposit money there to trade. The broker pays the signal provider so you do not have to. If you trade with one of these providers, you get the advantage of free signals. Just make sure you select one which partners with legit brokers. While binary options signal services and auto-trading robots can enhance your trading, it is smart to observe the following precautions: Carefully read the terms and conditions of any service before you sign up for it. If you can, try a program for free before you buy it. But keep in mind that does not mean you are using the program risk-free. There is still the risk associated with the money you are putting down on your trades, and you can still lose that. Most of these programs do not work with demo accounts, so you will have to put real money on the line to find out if something is going to work for you. Set a stop-loss and know how to deactivate the auto-trader if you need to. Always look for past performance data. If you cannot find it on the site, ask for it directly. Be wary of services that promise unrealistic results.

Never trade with a company that reports impossible past data (like 100% wins). If you can, try and find out how alerts are generated. Avoid trading with services that partner up with untrustworthy brokers (whether you sign up with those brokers or not). Be cautious when signing up for a service that does not have much in the way of believable user testimonials. Do look for fair, balanced, believable customer reviews. Try and find out not only about the quality of the signals, but also the quality of customer service you can expect. When you do start using a binary options bot, make sure you understand exactly how to use the software. What can you control? What can you not control? How do you make changes to your preferences? How do you shut it off or turn it on? Know in advance how to discontinue your account. Do not rely completely on any signal service or trading robot. While you are auto-trading, it is a very good idea to work on coming up with your own trading strategies.

You may even want to combine signal trading with your own trading in real-time. You will never become a winning trader over the long term without first becoming a trader, and a trader is someone who knows how to trade. Used with care, binary options bots and signal services can be a great tool in your trading toolbox. Used improperly or irresponsibly though, they can spell disaster for your trading account. Be careful about which services you sign up for some are excellent while others are scams, and there is plenty of mediocrity in between. Do not mistake an auto-trading program as an effortless solution or a shortcut to riches ultimately all traders must rely on their own ingenuity for long-term success. Binary Options Trading Guide. Welcome To Our New Traders “Dummies Guide” On The Basics Of Binary Options. Hi and welcome to the BinaryTrading. org’s New Binary Option Traders Guide. This page covers the basic but important facts about binary options you need to know before you begin trading. It is a good idea to bookmark this page as you will likely reference it in the future. Here is an outline of the things you will learn.

What is a Binary Option? Types of Binary Option Trades Available Basic Strategies Tools You May Want List of “Things To Know” Example Trades Getting Started. What Are Binary Options Themselves. Binary options are very simple option contract with a fixed risk and fixed reward . These options are called binary options because there is a “one or the other choice” and a one or the other payout after the option expires. One or the other choices include up or down, or touch and notouch. In computer code binary means 1 or 0, or one or the other. The way a binary option works is from the traders perspective (yours) is that you choose whether or not a certain underlying asset (a stock, commodity, currency etc) is going to go up or down in a certain amount of time. You essentially bet money on this prediction. You are shown how much money up front you will earn if your prediction is correct. If your prediction is wrong, you lose your bet and the money risked.

If you predict correctly you get your money risked back PLUS a return. These returns usually are between 70-85%. A brief example would be that you predict the price of gold to rise from it’s current price of “$1612.75” one hour from now. The winning trade offers a return of 80%. You place a $100 trade on this idea. One hour from now the option contract expires (closes) and the contract is graded as a “win” or a “loss”, or “in the money” “out of the money”. Gold goes up to $1613, you predicted correctly. You get your $100 back and a return of 80% – or $80 for a total of $180. Even though gold only went up a tiny amount, you still earn the 80% return. Magnitude of price movement is not a factor in the amount of your return. Key Ingredients Of A Binary Option Trade. All of the different binary option contracts have these three key ingredients that traders need to take note of. They are the expiry time, the strike price, and the payout offers. The expiry time is simply the length of time from the moment you ‘buy’ the option contract until it closes. This can be as fast as 60 seconds or as long as a month.

The majority of traders are trading the short term binary options, anywhere from 60 seconds to 30 minutes. The strike price is the price that you were able to enter the trade at and this is the price that determines whether or not your trade is a winner or a loser. In the brief example above, the strike price is $1612.75. This is the price that gold needed to close at above in order to win this trade. The payout offer is the return that binary option broker is offering to you. In the gold trade example above, the payout offer was 80% for a win and 0% for a loss. Some trades do have a return percentage for losses, typically up to 10% although this is broker and trade dependent. The payout offer is known up front before risking any money. Types Of Binary Options Available. There are multiple types of binary options available to trade. The simplest and by far most common trade is the UpDown trade.

You can learn about the different types of binary options available to trade here. We have compiled a list of basic binary option strategies that will help you get started making higher probability trades. Tools You May Want To Use. I am going to beef up this section as new tools arrive on the market to help you make your trades. For now you can review some of the binary trading signal services on this page. Key Things To Know About Binary Trading. So now you understand the basics of trading binary options. Some key things you should remember before you dive in are these: Your risk is limited to your trade amount The minimum trade is as little as $10 You do pay for losing trades – you lose your trade amount (or the majority of it) There is plenty of risk involved. Never ever invest more with a broker than you can afford to lose. It’s risky! You never take any ownership of the underlying asset – you only “bet” on the direction of it’s price movement To make money over the long term you have to win the majority of your trades Up Down are only 1 type of binary option, there are many different kinds of trades available to make with binaries Trading binary options is designed to be easy to do. Your risk is limited to the amount you place on the trade. Your payoff is clearly stated before making the trade. If you win a binary options trade you win a fixed amount of cash. Since there are only two possibilities, that’s the origin of the name “binary options.

” Screenshot of a Binary Trading Interface – Choose Up Or Down, How Much To Risk and “Apply”. Up or Down aka ‘Call or Put’ Do you think the price of “x” is going up or down? In the screenshot above from Banc De Binary, we are looking at the current price of gold. Gold is “x”. The green line is the price movement of the gold over the course of time. The red section on the right hand side is the last moment you can trade this binary option. After that point, the option is closed for trading. It has not expired quite yet if you traded previously, however your window of trading is over. If you think the price of “Gold” is going up you place a “call”. If you think the price of “Gold” is going down, you place a “put”. Those are your only two options. Hence “Binary”.

If you pick the right choice of the two you win the trade. If you pick wrong you lose the trade. There are two choices only. ‘Up or Down’. And two outcomes, ‘Win or Lose’. That is the very basics of binary trading for dummies. It is that simple, and it is designed to be that easy. Your return is clearly stated before hitting the ‘apply’ button. You will earn 72% on your investment if you finish the trade ‘in the money’. “X” can be any number of underlying assets.

It can be a certain stock or it can be the price of gold or oil. It can be a currency pair or it can be the price of facebooks stock. You get to choose what underlying asset you want to trade. There is one more important factor left out of the simple illustration above and that is the expiration time or maturity date of the option. This is the point in time when the trade expires. This is the point when the actual price of the underlying asset is determined and you find out if you finish the trade ‘in the money’ with a win, or ‘out of the money’ with a loss. If you chose ‘up, or call’ and at the the price expired higher, you win. The expiration times vary from as fast as 60 seconds to as long as hours, days and even weeks. Example Basic Binary Trade. The easiest way to explain what a binary trade looks like is to provide an example.

Example Trade 1 – Trading Googles Stock With A High Low Binary Option. Screenshot From Google Finance of Current Price Of Google. Perhaps Google is doing well and you expect it to be trading above $672.10 by 3:30pm est this afternoon. A binary trade means you place a bet on that theory. Corresponding Candlestick Chart From FreeStockCharts. com For Google’s Stock Price. Above is the corresponding candlestick chart for Google, from FreeStockCharts. com. You can use this to read price action and find trading opportunities. Here is the Corresponding Trade From TradeRush. com – Risk of $1000, Return of $1700 If You Win – $100 Rebate If you Lose (10%) And here is the corresponding Binary trade offered by TradeRush. com – You risk $1000.00 that Google’s stock will be trading at or above $672.10 at 3:30pm later today.

Your return on this trade is 70% if you win and 10% if you lose. When 3:30pm rolls around and Googles stock is trading at or above $672.1.00 as you predicted, you’ll be paid $1700.00. This includes your $1000 you put up on the trade up front and the 70% return ($700). If you’re wrong and the stock is trading at less than $672.10, you receive $100, a 10% rebate, losing $900 total (Your $1000 investment amount minus the $100 return = $900 loss). In the example above, $672.10 is called the “strike price.” Since you bet in a positive direction, we would refer to this as a “call,” not a “put.” $700.00 is the “payoff value.” The date and time are called the “expiration date,” or the maturity date. The $100 is the losing return, or a 10% rebate offered sometimes on trades. Not all binary option brokers offer rebates on trades that finish out of the money. You could also have bet in the opposite direction, that the stock’s price would be trading at or below a certain lower value, which would have been a “put.” In that situation, you would need google to finish below the strike price.

Usually, this would be a few pips below what the strike price would be if it was a call. This price is set by the individual broker along with the returns offered. It is up to the trader to take the trade or not. Example 2 – Tutorial on Trading The Price Of Gold With A ‘Touch Trade’ If you want to profit from the swings in the gold market, there are hardly any better ways to do so than with a binary option. With a one touch trade, the only thing that has to happen to win is that the asset hits the 1 touch price. You bet $100 that the price of gold will touch $1617.40 by 3pm EST today. The payout for this trade is 70% if you finish in the money. If you win, you will get a payout of $170 which includes your $100 risked up front plus the $70 return (70% of $100 = $70). Since a 70% return is a bit low on the payout side, the broker offers a 15% rebate on losses. If you lose, you get $15 back and only lose $85 instead of the full $100. You can see how this can offset the lower than average return for wins. You place the trade and need the price of gold to reach the target price, or trigger price of $1617.40 before 3pm today. Luckily for you, there was a some negative news regarding the dollar’s value that drove fears of inflation. The price of gold and oil went up accordingly. When the news broke, the gold price spiked up and hit your target price.

Triggering your trade to close in the money. You were paid $170 which includes your $100 bet up front plus the $70 return on your investment. You can trade one touch options at sites like marketsworld. com, not all brokers offer them even though they are the 2nd most popular form of binary trading. A General Trading Example. Trade commodities like gold and oil with easy to buy binary options. Choose your underlying asset. IE gold, currency pair, stock etc. Decide how long until you want the option to expire. As little as 60 seconds up to a days or week. Common expiry times are 15-30 minutes. Choose the amount you wish to risk. As little as $5, as much as thousands. Decide which way you think the price is going to move (up or down).

Click “Up or Down” and hit the “Apply” Button – just before hitting “Apply” you will see the exact payout if you win or lose. At expiry you have either won or lost and get the fixed payout offered prior to hitting the ‘apply’ button. You can not lose more than your risked amount and you can not make more than your fixed return, regardless of how far the price moves. Binaries are one or the other choice with a one or the other payout or loss. Winning returns average 70-85% at the respectable brokers for most trades. If you lose, you get between 0-15%. Some brokers kick back some percentages on losses, that’s why their winning returns are sometimes a bit lower compared to the other brokers. Things To Remember Before You Begin Making Option Trades. Risk is known up front and fixed. You can not lose more than you put into any trade. You are not and can not get burned by leverage like you can with forex trading. You do not need to set ‘stop losses’. The return is the same whether you win or lose by 1 pip or 100 pips. Payouts are clearly stated and known exactly up front before risking any money on the trade. Most of the brokers we list have early closure feature.

This lets you close your option at a price they are offering any time up until the final closing minutes. You can lock in profit or minimize loss with early exit Executing the trade is easy. Choose your asset to trade, how much to risk, choose ‘up or down’ and click the ‘trade now’ button. Returns are 70-85% on average at the trading brokers listed here. No hidden costs – Your risk and full return are clearly listed. You do not have to be a financial “expert” to win. You never take any actual ownership of the underlying asset. You are just predicting what happens to the price of the asset. Your trade comes down to a ‘one or the other’ choice (hence binary ) The trading is simple by design. If you know what a binary option is but would like to learn how to get started trading binaries then jump back over to our page focused on the things you need to know to start trading.

This page is more a basic overview of what is going on when talking about binary options. Trading Binary Options For Dummies. Anyone can trade binary options. Even a dummy can win any given binary trade, too. It is one or the other choice, it is hard to get it that wrong all of the time. However, to be a long term winner you have to develop a method and method that works for you. You have to consistently profit by winning more trades than you lose. Since there is risk involved, that means that you need to create a method to succeed. You can do that by studying up on our tips and strategies to win and practicing with a no risk trading account. We also recommend learning the basics of candlestick chart reading in order to judge price action. If you are ready to take the next steps and learn more about binary trading then jump back to our Binary Trading Guide list of lessons. To continue reading through the lessons and tutorials.

You certainly want to learn to read a candlestick chart as well as find the right broker to trade with. NOTICE. BinaryTrading. org has financial relationships with some of the products and services mentioned on this website, and may be compensated if consumers choose to click on our content and purchase or sign up for the service. – U. S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to BuySell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC rule 4.41 – hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading.

also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. no representation is being made that any account will or is likely to achieve profit or losses similar to those shown. Please note: All content on this website is based on our writers and editors experiences and are not meant to accuse any broker with illegal matters. The words Scam, blacklist, fraud, hoax, sucks, etc are used because all content on this website is written in a fictional, entertainment, satirical and exaggerated format and are therefore sometimes disconnected from reality. All readers must personally judge all content and brokers on their own merits. Additionally, visitors comments are not moderated other than the obvious link spam. People lie. Use your discernment. DISCLAIMER: Trading binary options is extremely risky and you can lose your entire investment.

Only deposit and trade with money you can afford to lose. Always refer to local laws, jurisdictions and authorities before performing any action on the internet. The content on this website is NOT financial advice and by use of this site you agree to hold us 100% harmless for any loss. Starting With Binary Today: Binary Options 101. I’m John Kane, creator of binary today. If you’re new to the world of binary options, trading and investing, this page is for you! Here you will be able to get up to speed quickly and be earning money in binary options with confidence! Binary Options: How it Works. Today I will show you the easiest way to earn with binary options and help you start your reliable investment income with under $500 . Guide Updated: December 16th, 2017. Binary options trading is different from other investments and simpler . Traders set a specific time period for the trade to last.

So, 60 seconds, 5 minutes, 15 minutes, 30 minutes, 1 hour or another time. The trader will decide whether the market in that period of time is going to go up or down. If correct, you win the trade , and collect your earnings. In the video below, I walk you through a binary options trade to show you exactly what it looks like. This is how I trade on a daily basis and make my living in this market. Here on Binary Today I will teach you how to trade like me, sharing my strategies and simple trading methods. For PutCall trades which are my favorite you decide whether or not a specific pair (or asset) is going to go UP or DOWN by a specific time (that you choose). In the examples above I believe that the EURUSD is going to go UP by 10:40 so I click CALL (which is up) and set my investment. Binary Today DOES NOT Stand For. Scams – 98% of the software and signal solutions in this market don’t work. On my website you will see that 98% of the reviews I write are negative in nature. Get Rich Quick Schemes – Here at Binary Today we are only interested in long term growth at a consistent rate so that we can increase our investments and make money in the long term. Laziness – Don’t want to learn how to manual trade?

OK. But if you are going to use the systems, strategies and methods I recommend use them the right way. Don’t use them for one day or one week and give up, stick with it and you’ll be succesful. Step 1. What is the Best Binary Trading Platform? Luckily, you’ve come to Binary Today where our intelligent community of traders have ranked ( click the stars to vote ) all the top rated brokers in the world. Our #1 currently ranked platform is: I’ve been with HighLow for over a year now and it has been very easy to deposit and withdraw my earnings whenever I want. Plus I like the idea of starting with a few hundred dollars and building my investment from there. Want to see all the brokers that have been rated by our community? Go here . Step 2. How Do I Know What Trades To Place? This is where signal software comes in. I’ve tested hundreds of these different programs and two of them have been dependable. I use both these systems every day for over 80% of my binary options trading . Loading… (15 Minute Expiry Trades) Loading… (30 Minute & 1 Hour Expiry Trades) Loading… (5 Minute Expiry Trades) Want to see all the software that have been rated?

Go here . These are my favorite systems because they provide reliable signals that can be trusted all throughout the day. You can live in any country around the world and find success . Many of my readers trade part-time after work and these work perfectly for that as well. Once you’ve completed the above two steps you are ready to start placing trades and profiting from your investment. Make sure that you don’t get caught up in the rush because trading can be exhilarating and also addicting. Please practice first and learn how to work with the trades you are receiving before using your real money. If you enjoyed this lesson today, and it’s helped you get your investment off the ground please make sure that you sign up to my newsletter below and Like us on Facebook (just made the account this week)! In my newsletter I provide more free binary options tip s, strategies and methods to help make you be more successful. I am glad you are embarking on this journey with me and I wish you only the best of luck going forward.

I know this first step can be difficult but it is worth it, trust me. To all your success, In order to maintain the utmost transparency I now provide a monthly report on my trading figures: Binary Options Education. Learn lessons and trade better here: Expert Review: Binary method September 27th | by John Kane Altredo – 250% Profit Per Month December 15th | by John Kane Binary Review: VorteXz Signals December 13th | by John Kane. Trading binary options is a life long hobby turned career for me. Now my focus is on keeping the community honest. I am an avid user of binary options software so I understand how to diagnose and provide valuable insight. There are many dishonorable binary product developers on the internet, I have made it my duty to point you in the winning direction. Our newly released Binary Today podcast is now available, check out the latest episodes here: