Binary Trading Options

The fundamental premise of trading in the binary marketplace involves predicting what the price of a specific asset will do; it can only move in one of two directions within a given time frame ( read more about put and call options ).  Your chosen item does not need to hit a certain price; merely to increase or decrease in line with your predicted.  This will ensure you can trade successfully and you receive the advertised rate of return.

Binary Trading Options

Before you can place a trade you must establish the funds you are willing to risk and what rate of return is being offered.  Every trade will also have an expiry time; these can range from as little as one minute to as long as several hours.  Once you have established these basics and chosen your asset; whether stocks, indices, commodities or currencies; you can get started.

Assuming you have read the market correctly then the price of the asset is moving in the direction indicated you will have your money returned and an agreed additional amount will be given to you.  This is how you make money trading in binary options and should be the first type of trade for you to master.  Of course, if your prediction is not true then you will lose the funds you have invested on that trade.

There are only two possible options every time you engage in this type of trading.  Either you will be right and receive the agreed rate of return, or you will not and your funds will be lost.

Types of Trade

The simplest and most popular type of binary trading is to predict the price direction of an asset.  However, this is not the only option.  You can select from the following types:

  • One touch – you will need to specify a price and your asset must touch that price during the timeframe of the trade.
  • No touch – this is the opposite of one touch. You simply state a price that the asset will not be able to reach during the trade.  If you are correct you gain the agreed rate of return.
  • The range – This type of trade involves creating a bottom and top price line. Your chosen asset must stay within these boundaries for you to win the trade.

Advantages

Trading in binary options will enable you to become active in the stock market without needing to sign up to the main stock market and find a large amount of capital.  Binary trading is easy to understand and accessible to everyone.  It is an excellent place for new investors to gain experience without risking large amounts of capital.

]]>

Trading Binary Options in Sixty Seconds

Trading Binary Options in Sixty Seconds

As with all investment trading, there are risks as well as the potential for high rewards.  Understanding the advantages of trading this way is essential to ensure you undertake successful trades:

Advantages

  • Trading in just one minute allows you the opportunity to make exceptionally good returns on your investment very quickly. Many brokers offer between sixty and ninety percent returns.  Investing $100 and predicting the price direction correctly could become $190 in just one minute!  There are not many opportunities to make money that fast in most other careers!  Ideally, you spot an upward trend and ride this trend with repeat investments for several minutes.  If you can imagine five minutes trading, investing your lump sum and profits each time at a ninety percent return, your profit after five minutes would equal:
    • 100 + 90% = 190
    • 190 +90% = 361
    • 360 + 90% = 684
    • 684 + 90% = 1300
    • 1300 + 90% = 2470

Your profit after just five successful, sixty-second trades could be $2,370 from just a $100 stake!

Of course, high reward trading does involve high risk; if just one trade goes against you in the above list then you lose your initial investment and any chance of a profit.  This is an essential point to consider when placing your trades; it may be advisable not to roll all your funds over each time.

  • Trading long time frames will give you the opportunity to rethink your strategy and second guess your decision. This can be a fatal move as you may decide to sell out a trade or cut your losses; when in fact, the trade was good.  Trading in short-term options does not give you the chance to second guess yourself, by the time you even start thinking about it the trade is over.  Win or lose, your lesson is learned.

It is important to consider your experience level before you start trading short term.  If you are new to binary options trading it is advisable to trade in long time durations.  This will help your funds to last longer whilst you develop an understanding of the most effective way of trading.

Working out when to trade

The difficulty with any trade is knowing which way the price is going and whether it is likely to suddenly change.  The easiest way to start is by studying simple candle graphs; these will show the upward and downward movements of your asset and potential boundary lines.  These can then be used to identify the best time to place a trade and which direction the price should be going in.

If you intend to trade in sixty seconds it is advisable to start with a longer duration chart, such as an hour or two.  As you start to see patterns emerging you can shrink the timeframe, focusing on the pattern and attempt to identify it on the smaller timeframe.  Ideally, you need to know the peak and low of your asset, trade to close to these and you are likely to be burned.  You need to locate the opportunities where the trend goes in one direction for several minutes; you can then trade at the bottom of the price movement.

Finpari and Banc de Binary are two of the best brokers ( you may check the full list of regulated binary options brokers ) on the market at the moment offering sixty-second trades; it is advisable to use one of these brokers to ensure you stand the best chance of a successful trade.

]]>