Binary options are one of the most popular tools for brokerage trading now. In fact, it is a kind of brokerage contract, where most important conditions are slump or rise of financial asset with profits and losses, which are discussed beforehand.
The object of option trading can be any financial tools and in particular the following shares: BMW, Vinci, Disney, ArcelorMittal, Microsoft and etc., currency pairs: EURUSD, USDCAD, USDSGD, EURAUD and etc., indexes: FTSE 100, Russell 2000, AEX, NASDAQ, DAX 30 and product items: GOLD, SILVER, CRUDE OIL, GAS, CORN.
Very often it is not so important how many points will be passed by value of asset. It is important to make value of asset go in a predictable direction.
Are binary options difficult?
It goes without saying, that the name “binary options” is serious and rather mysterious; however the system of this tool is very simple. To get profit a trader must make a logical choice between two price movement directions – UP or DOWN (CALL or PUT).
More than that, previously fixed parameters of profits and losses help to build tactics and strategies more effectively, and also they help to manage your own capital.
How do binary options work?
Let’s take the example: The authoritative Germany bank Deutsche Bank AG 29.07.2014 year declared about the reduction of net profit, which was got in the second quarter of 2014 year, to 237 million EUR, while last year it was 334 million EUR. At the same time, the given index didn’t justify prognostics of analytics from international rating agencies, who were speaking about the profit of Deutsche Bank AG to 545million EUR in the second quarter of the year.
As a result, at the opening of bidding of European share market 30.07.2014, they started active sales of shares of this company, it led to fall in their prices.
Having back traced the news and having struck a bargain by binary option to sell Deutsche Bank AG shares for 1000 USD, a trader could earn 6000 USD of net profit during 12 hours.
This example shows brilliantly what binary options are and how they work. And the term when you can invest money, using the given tool, can be from 30 seconds to several months.
In the process of binary option buying, a broker’s company shows a trader possible profit and loss. If the price is against us of course we lose money, if the price rises in predictable direction we, of course, earn money.
The time for binary options trading
Binary options in trading vocabulary have a lot of names. They are called figures, dual, “everything or nothing”. But having so many names, the main point of binary option can be identified as the simplest tool for trading with the opportunity to get good profit with clearly fixed losses in a very short limit of time.
It is necessary for us to understand whether the price will go up or it will go down during the certain period of the deal. They usually buy a binary option for the certain period of time: 30 sec., 1 min, 5 min., 10 min., 15 min., several hours or several months, it makes trading easier. As we have two indestructible constants: previously known profit with losses and previously fixed time, when we will get them.
Taking into consideration all things mentioned above, we must say that binary options have become the most highly profitable brokerage tool all over the world. Why? Because there are only 30 seconds, which are between a trader and his profit, which is 80% of the sum of investments. Nowadays, this highly effective product of a financial market, is used by the main participants of stock and currency playgrounds of the world.
On-line binary options trading
Trading with this highly effective tool is held by trading platforms on-line. So, every trader has his own terminal, where he can see on-line diagrams of financial assets. There are a lot of assets and their price is changing every second under the influence of supply and demand in the market, economical news and the mood of other participants of the market.
To help everyone, brokers’ companies offer economical news of the most effective assets, forecasts, qualified analytics and technical analysis of asset’s price behavior in the nearest time. Thus, a trader can make a decision not just according to his intuition, but according to exact data, which characterize and prognose the future asset behavior. All trading decisions are made by traders in real time, usinf binary options on-line.
A wide choice of assets – big opportunities
Binary options give an opportunity to trade with the most highly liquid assets of the world stock, currency and trade playgrounds. Every trader has:
Binary options forex are quotes of currency pairs, beginning with the majors of the market, finishing with the most exotic ones (EURUSD – euro/dollar, NZDUSD – New zealand dollar/American dollar, USDCHF – American dollar/Swiss franc, USDJPY – American dollar/Japanese yen, CHFSGD – Swiss franc/Singapore dollar, AUDJPY – Australian dollar/Japanese yen, USDNOK – American dollar/Norwegian krone and 50 more pairs of the most popular currencies of the world;
Binary options of stock market (shares) – shares of the most popular world companies – Google, Apple, Microsoft, Macdonald’s, Coca-Cola, IBM, BMW, Boeing and 80 more assets;
Financial assets of commodity exchange – gold, silver, platinum, cooper, soya, beans, crude oil, gas and 70 more highly liquid goods; Indexes – average data of economical branches of different countries: Dow Jones, NASDAQ, S&P500, CAC 40 and 50 more popular tools.
As you see, arsenal for binary options trading amazes by its choice. Every trader has endless perspectives in getting of profit thanks to vibrations of any possible financial assets, whose behavior is predictable, if you are attentive.
For example, during USA index economical rise S&P500, which characterizes the state of things in 500 the most famous highly technological enterprises of America, will also become better , and index will rise. Thus, according to this financial asset, we will open our deals with the priority to its rise.
Forex binary options give an opportunity to trade currency pairs, which consist of the most famous currencies of the world. If a trader understands the situation in currency exchange market, he has a big potential to get profit. It is so easy! Every trader has an opportunity to keep an eye on economical news in the world thanks to constantly renewing news systems. For example, the news about unemployment in the USA leads to vibrations of currency pairs EURUSD, GBPUSD, USDJPY, AUDUSD, NZDUSD and USDCAD – the main currency pairs of the market, including American dollar USD.
Worsening of the situation in the labour-market in America lets think, that the power of dollar to the main competitors NZD, AUD, JPY, CAD, GBP and EUR will get lower. So, it is a guaranteed source of getting profit. The fall of dollar value will lead to considerable changes in quotes EURUSD, GBPUSD, USDJPY, AUDUSD, NZDUSD, USDCAD and other currency pairs, including the USA currency – USD, and this is a profit up to 85% for every invested 100 USD. During a trading day, every trader can get about 500% of profit.
Of course, the output of micro economical data of labour-market in the USA happens not every day, but except this kind of news there is another micro economical indexes from different countries of the world, which are not less significant and which are available every day. Thu a trader gets bigger and bigger income from invested money every day.
The main point of binary options is the big chance to get profit
It doesn’t matter, whether a financial asset, which was bought, will be able to realize 10, 20 or 100 points. The important thing is in what direction will be his movement. Even the theory of probability is on the trader’s side. Even flipping a coin, 50% of struck bargains will be profitable, but if apply a strategy to the process, your profit will rise from 50% to 75 – 85, it lets you increase your investments, as it has already been mentioned above.
Binary options – strategy trading
Binary options selling, with the correct approach, can make every trader rich. There are a lot of trading strategies, using them everyone can get more and more profit on his account every day.
News trading (the examples have been shown above), using the tactic of martingale – capital management strategy, indicators strategies – using of technical tools of analysis, PriceAction – tactic of trading on the clear diagram – all of these is the smallest part of things, which every trader has in his arsenal. The effectiveness of such approaches is tested by time and was brilliant way of getting rich for many people. It will be useful for you too, to come your dream true not so many steps are left.
How should you choose your binary option?
The first advice for all beginning traders is to use classical kinds of options, because they are less risky and the easiest for understanding and applying. When you get the experience of using trading terminal and skills of the correct determination of entry points, you can test other kinds of options.
However don’t forget about demo-accounts. You had better start your experiments with them. As every incorrect deal (all beginners have enough incorrect deals) is a minus from your trading deposit.
The most important thing you must remember, choosing options for your own trading is searching for profitable trading strategy.
If you prefer high – frequency trading, which is called scalping – the best variant in this case is to use binary options for 60 or 120 seconds or classical binary options.
If you decided to use arithmetical trading strategies, which are based on martingale system and alike ways of exit from slumping – choose binary options for “30 seconds” or “60 seconds”. Also for such approaches classical options and Range options are suitable.
Do you trade with clear diagram and don’t use any styles except price-action? In this case you can choose Range options, as a way of trading inside the canal or for it disruption. Do you use indicators strategies in trading? Such options as «ОNE ТOUCH» or «NO ТOUCH» will help you. But the advantage is always taken by classical options, which are more unified approach in binary options trading.
The quotation:All that is mentioned above tells you just about the fact that traders possibilities in binary options trading can be infinite, but trading in financial markets can give enough freedom to every trader’s life.
Don’t forget about the rules of moneymanagement, which will help you to avoid any slumps and lead your deposit to treasured levels of profits.
Automatic options trading
Nowadays, many brokers companies offer traders services of automatic trading, which can trade profitably and earn for their owners non-stop. Undoubted advantages of such kind of trading are in the fact that beginning traders, who can’t manage their capital efficiently and who haven’t mastered trading principles in financial markets yet, can make their money work even now, while they are getting the experience and professionalism of market trading.
Moreover, a trader mustn’t control robot’s trading. «A robot» trades, whiles his owner is sleeping, going to his work… that is while he is living ordinary life and mastering his own trading, using demo-account. At this time, trade turnover earns more and more money. But sometimes a question arises, do you need your personal trading, if there are robots?
Nowadays there are a lot of trading consultants for binary options, we can devide them into the following groups:
- automatic copying of successful traders deals. Such system is given by Utrader company, and is called U-Bot. Virtually indicated robot gets trading signals from trading platforms of other traders, who constantly gets profit. At the same time, your trading robot is not connected to one certain platform, but it gets signals from all trading platforms and filters them according to a certain algorithm and chooses the best of the best, after it, it strikes bargains with them.
Thus, automatic system U-bot – is the synthesis of big number of traders, who have good experience and skills in binary options trading. With U-bot system, all positive experience of other traders will be applied to trading with your deposit.
- copying of one trader’s deals, who was chosen from company’s rating. Such system you can find in Alpari company. Every working trader has access to effectiveness indicators of the most profitable accounts, which are open in the given company, in his personal web-office. Every client of Alpari can join his trading terminal to the service of copying of all trade orders of a trader, who runs this profitable account. And all deals, which are closed by this successful trader, will be duplicated on your account.
- Trading according to profitable trading systems. This automatic service is also nowadays in the time of trading development in financial markets. While beginning traders are trying to comprehend the craft of binary trading, the others have been applying it effectively in trading. The question arises, why should you go this way by yourself, when you can start trading right now, using the experience and skills of successful traders of binary options, which are programmed in a certain algorithm and integrated in trading terminal?
The number of all brokerage companies, offering the service of automatic options trading you can find here.
Signals for binary options
As it has been mentioned above, while young traders are trying to understand all details of binary options trading, the others have been applying it in their profitable trading. So, one more principle of service of trading signals of binary options appeared.
Brokerage companies offer such signals for their traders for free, take fixed fee, offer just to fill up your deposit with the exact sum of money. However, in any case, if you use these signals right, all investments that were put will be effective in these signals purchase and will increase money on traders deposits.
For example, Utrader company installs the service of trading signals for free for all clients, who have filled up their deposit with the sum more than 500 dollars of the USA. Such insignificant fee lets get twice a day signals of 7 financial assets with different terms of expiration. The official statistics of data processing of trading signals shows that 71% of open options according to them, is worked off with profit. To get to know the rating of companies, which offer their traders the service of trading signals you can here.
Using the information of our internet-resource, you will always stay on the crest of a financial wave. Don’t forget, everything is possible, especially in binary options trading.