Welcome to the largest expert guide to binary options and online binary trading BinaryOptions.net. It has been educating traders worldwide since 2011 and all our articles are written by professionals who make a living in the financial industry. We have almost a thousand articles and reviews to guide you to become a more profitable trader in 2019, no matter your level of experience. If you want to discuss trading or brokers with other traders, we also have the largest forum in the world with over 20,000 members and lots of daily activity. Read on to start trading today!
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What are Binary Options and How Do You Make Money?
Binary options are quick and easy financial tools that help investors predict whether the price of an asset will rise or fall in the future, such as Google stock price, Bitcoin price, USD/GBP exchange rate or gold price. Intervals can be as little as 60 seconds, making it possible to trade hundreds of times a day in global markets.
Before you place a trade, you know how much you will earn if your prediction is correct, usually 70-95% – if you invest $100 you will be credited $170 – $195 on the trade experienced. success This makes risk management and trading decisions much easier. The outcome is usually a yes or no answer – you win it all or you lose it all – hence it is a “binary” option, the risks and rewards are known in advance and the payouts available. This structure is one of the attractions.
There are now exchange-traded binaries, which means that traders are not trading with a broker.
To start trading you need a regulated broker account. Choose one from the recommended brokers list, which only includes brokers that have been shown to be reliable. Top brokers are chosen as the best choice for most traders.
If you are new to binary options, you can open a demo account with most brokers to try their platform and see what it’s like to trade before you deposit real money.
Introduction Video – How to Trade Binary Options
These videos will introduce you to the concept of binary options and how to trade them. If you want to know more details, please read this entire page and follow the links to all more in-depth articles. Binary trading doesn’t have to be complicated. But as with any topic you can educate yourself to perfect your expertise and skills.
option type
The most commonly used binary options are simple “Up/Down” trades. However, there are different types of options. One common factor is that the result will have a “binary” result (yes or no). Here are some of the types available:
- Up/Down or High/Low – The most basic and common binary options. Will the price be higher or lower than the current price for the expiration time?
- In/Out, Range or Boundary – This option sets the “High” and “Low” numbers. Traders predict whether the price will finish within or outside these levels (or ‘Boundaries’).
- Touch/No Touch – These setting levels are higher or lower than the current price. The trader must anticipate that the actual price will ‘touch’ those levels at any point during the time of the trade expiration.
Note with touch options that the trade can be closed before the expiration time – if the price level is touched before the option expires, the “touch” option will pay out immediately regardless of whether the price moves out of the touch level thereafter. - Ladder – These options behave like normal up/down trades, but instead of using the current strike price, the ladder has a preset price level. As these options generally require significant price movement, payouts often exceed 100% – but both sides of the trade may not be available.
How to Trade – Step by Step Guide
Below is a step-by-step guide to trading binary options:
- Choose a Broker – Use our broker reviews and comparison tools to find the best binary trading site for you.
- Choose an asset or market to trade – the asset list is large and covers commodities, stocks. Cryptocurrency Forex or indices, for example oil prices or Apple stock prices.
- Choose an expiration time – Options can expire anywhere between 30 seconds to a year.
- Set the size of the trade – remember 100% of the investment is at risk, so consider the trade amount carefully.
- Click Call/Put or Buy/Sell – Will the asset value increase or decrease? Some broker label buttons are different.
- Verify and verify trades – Many brokers give traders the opportunity to ensure that the details are correct before confirming a trade.
choose a broker
Alternative fraud has been a major problem in the past. Fraudulent and unlicensed operators are exploiting binary options as exotic new derivatives. These companies are thankfully gone as regulators have finally begun to act.
Note! Do not trade with brokers or use services listed on our blacklist and scam page, stick to what we recommend here on the site. Here are some shortcuts to different pages that can help you determine the right broker for you:
- Compare All Brokers – If you want to compare features and offers of all recommended brokers.
- Bonuses and Offers – If you want to make sure you get extra money to trade with or other promotions and offers.
- Low Minimum Deposit Brokers – If you want to trade for real without depositing a large sum of money.
- Demo account – If you want to try a “real” trading platform without depositing any money at all.
- Halal Brokers – If you are among the growing number of Muslim traders.
asset list
The number and variety of assets you can trade varies from broker to broker. Most brokers offer options for popular assets such as major forex pairs including EUR/USD, USD/JPY and GBP/USD as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Gold, silver, oil are generally available.
Individual stocks and equities can be traded through a number of binary brokers. Not every stock is available. But generally you can choose from around 25 to 100 popular stocks such as Google and Apple. These lists are growing all the time as demand demands.
Asset lists are always clearly listed on all trading platforms and most brokers list full assets on their websites. Full asset listing information is also available in our reviews.
expiration time
The expiration time is the point at which the trade is closed and settled. The only exception is where the ‘Tap’ option reaches a predefined level before it expires. The expiration of any trade can range from 30 seconds to a year. While the binary started with a very short expiration, demand confirmed that it now has a wide timeframe. Some brokers also give traders the flexibility to set their own expiry time.
Expirations are typically broken down into three categories:
- Short Term / Turbo – Usually categorized as any expiry under 5 minutes.
- Normal – These will last 5 minutes until the ‘end of day’, which expires when the local market for that asset closes.
- Long Term – Any expiration after the end of the day is considered long term. The longest expiration date can be 12 months.
regulations
While it has been slow to react initially to binary options, regulators around the world are beginning to regulate the industry and make sense of them. The major current regulators include:
- Financial Conduct Authority ( FCA ) – UK regulator
- Cyprus Securities and Exchange Commission (CySec) – The Cyprus regulator which is usually ‘passported’ throughout the EU under MiFID.
- Commodity Futures Trading Commission ( CFTC ) – US regulators
- Australian Securities and Investments Commission ( ASIC )
There are also regulators operating in Malta and the Isle of Man. Several other bodies are now focusing on binaries, particularly in Europe where regulators in the country are keen to support cryptocurrency regulation. CySec
Unregulated brokers are still operating and while some are reliable, the lack of regulation is a clear warning sign for potential new clients.
S
Recently, ESMA (European Securities and Markets Authority) has moved to prohibit the sale and marketing of binary options in the European Union. However, the ban only applies to brokers regulated in the EU. This gives traders two options when it comes to trading: First, they can trade with an unregulated company – this is a very high risk and it is not advisable to choose some unregulated companies responsibly and honestly. But many places are not like that.
The second option is to use companies regulated by entities outside the EU. ASIC in Australia is a strong regulator – but they won’t implement a ban. This means ASIC regulated companies can still accept EU traders. See our broker list for regulated or trusted brokers in your region.
The second option is to use companies regulated by entities outside the EU. ASIC in Australia is a strong regulator – but they won’t implement a ban. This means ASIC regulated companies can still accept EU traders. See our broker list for regulated or trusted brokers in your region.
- Open 10 or more trades per quarter from €150 or more.
- Have assets of €500,000 or more
- Worked for two years in a financial company and has experience in financial products.
How to set up a trade
The ability to trade different types of binary options can be achieved by understanding some concepts such as the run price or closing price and expiry date. All trades have a date on which they expire.
Once the trade ends, the behavior of the price movement based on the selected type determines whether it is profitable (in the money) or in a losing position (in the money). Additionally, price targets are key levels that traders set as a benchmark for setting. result We will see the application of price targets when we explain the different types.
There are three types of trades. Each of them has a different format. These are:
- high low
- In / Out
- touch / no touch
Let us take them one by one.
high low
Also known as an up/down binary trade, its essence is to predict whether an asset’s market price will end up higher or lower than its strike price. (selected target price) before expiration If the trader expects the price to go up (a “up” or “high” trade), he buys a call option. If he expects the price to go down (“Low” or “Down”), he buys a put option. The expiration time can be as low as 5 minutes.
Please note: some brokers hold/down a different type where the trader buys a call option if he expects the price to be higher than the current price or buys a put option if he expects the price to be lower than the current price. You may see this as rising/falling type on some trading platforms.
In / Out
The Entry/Exit type, also known as “tunnel trade” or “boundary trade”, is used for commodity price consolidations (“in”) and breakouts (“out”). How does it work? First of all, traders set two price targets to form a price range. He then buys an option to predict if the price will stay within the price range/tunnel until expiration (In) or if the price will break the price range in either direction (Out).
The best way to use binary channels is to use asset pivot points. If you are familiar with pivot points in forex, you should be able to trade this type.
touch / no touch
This type is predicated on whether or not the price movement touches the price. A “touch” option is a type in which the trader buys a promise to deliver a profit if the market price of the asset purchased touches at least a predetermined target price. one time before expiration If the price action does not touch the price target (strike price) before expiration, the trade will end in loss.
“Don’t Touch” is the opposite of Touch. Here you are betting on the price action of the underlying asset that has not touched the strike price before expiration.
There are variants of this type that we have Touch and Double No Double. Here the trader can set two price targets and buy a contract that bets on the price that touches both targets before they expire (Double Touch) or No Touch. Both targets before expiration (Double No Touch). You will normally execute a Double Touch trade when there is severe market volatility and the price is expected to be several price levels.
โบรกเกอร์บางรายเสนอทั้งสามประเภทในขณะที่คนอื่นเสนอสองและมีผู้เสนอที่หลากหลายเท่านั้น นอกจากนี้โบรกเกอร์บางรายยังวางข้อ จำกัด ว่าจะกำหนดวันหมดอายุอย่างไร เพื่อให้ได้สิ่งที่ดีที่สุดประเภทต่าง ๆ ผู้ค้าจะได้รับคำแนะนำให้ซื้อสินค้าจากโบรกเกอร์ที่จะให้ความยืดหยุ่นสูงสุดในแง่ของประเภทและเวลาหมดอายุที่สามารถตั้งค่าได้
mobile app
Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms are designed with mobile device users in mind. So the mobile version is very similar if not identical to the full web version on the original website.
The broker offers both iOS and Android devices and produces versions for each device. Downloads are quick and merchants can register through the mobile website as well. Our reviews have more details on each broker’s mobile app. But most know that this is a growing trading area. Traders want to respond instantly to news events and market updates, so brokers provide tools for clients to trade wherever they are.
trading frequently asked questions
What does binary options mean?
“Binary Options” means, simply speaking, trades where the result is a ‘binary’ yes/no answer. These options pay a fixed amount if they win. (known as “in the money”), but the entire investment is lost if the binary trade disappears. So, in short, they are a form of fixed return financing options.
How does stock trading work?
Steps in stock trading through Binary Options;
- choose stocks or capital
- Specify the desired expiration time. (time when the option will end)
- Enter the size of the trade or investment.
- Decide whether the value will increase or decrease and put or call.
The above steps are the same for every broker, more layers of complexity can be added. But when trading stocks the simple Up/Down trade type is still the most popular.
Call and call options
A call and put is just a requirement to buy or sell an option. If traders think that the underlying price will increase in value, they can open a call. But as they expect the price to drop, they can take a trade.
Different trading platforms label different trading buttons, some even switch between buy/sell and call/put. Almost every trading platform will make it absolutely clear which direction the trader opens the option.
Are binary options a scam?
As a financial investment vehicle, they are not deceiving themselves. But there are untrustworthy and dishonest brokers, robots and signal providers.
The point is not to rewrite the concept of binary options based on a handful of dishonest brokers. The image of these financial instruments is affected by these operators. But regulators are beginning to prosecute the perpetrators and are slowly adapting to the industry. Our forums are a great place to raise awareness of any illegal activity.
These simple checks can help anyone avoid scams:
- high yield marketing This is a clear warning sign. Binaries are high risk/high reward instruments – they are not “make money online” and should not be sold as such. Operators making such claims are likely to be unreliable.
- know broker Some providers will ‘funnel’ new clients to the broker they partner with, so the person doesn’t know who their account is. Traders should know they are going to trade with a broker! These channels tend to fall into the previously mentioned “get rich quick” marketing.
- Cold calling Professional brokers will not make cold calls – they do not market themselves this way. Cold calls are usually from unregulated brokers only interested in the initial deposit. Proceed with caution if joining a company that contacts in this way. This includes email correspondence as well – any form of correspondence out of the blue.
- Terms and Conditions When accepting bonuses or offers, please read the full terms and conditions. Some will even include a lock on the initial deposit. (in addition to the bonus money) until the volume is traded The first deposit is trader cash – legitimate brokers will never claim it as theirs before any trade. Some brokers offer the option to cancel the bonus if it doesn’t meet the trader’s requirements.
- Don’t let anyone trade for you allowing avoidance. The “account manager” trades for you. Have a clear conflict of interest But the staff of these brokers will encourage traders to make bigger deposits and take bigger risks. Traders should not allow anyone to trade on their behalf.
What is the best trading strategy?
Binary trading strategies are unique to each trade. We have a strategy section and it has ideas that traders can try out. Technical analysis is used by some traders combined with Indicator charts and price action research Money management is essential to ensure that risk management is applied to all trades. Different styles will suit traders and different strategies will evolve and change.
There is no single “best” strategy. Traders need to ask questions about their investment goals and risk appetite and then learn what works for them.
Is Binary Options Gambling?
This will depend on the trader’s habits. There is no strategy or research so any short-term investment will win or lose based solely on luck. On the other hand, a well-researched trader will make sure they do everything they can to avoid relying on good luck.
Binary options can be used for betting. But it can be used to trade based on expected value and profit. So the answer to the question will come down to the trader.
Advantages of Binary Trading
The main benefits of binaries are the clarity of risk and reward and the structure of the trade.
minimum financial risk
If you trade forex or its volatile cousins crude oil or spot metals such as gold or silver, you will learn one thing: these markets are very risky and easy to get blown out of the market. Things like Leverage and profit margins, news events, slippage and new price references, etc. all have a negative effect on trading. The situation is different in binary options trading. There is no leverage to contend with and phenomena such as slippage and re-quotes have no effect on the outcome of binary options trading. This minimizes the risk of binary options trading.
flexible
The binary options market allows traders to trade financial instruments in the currency and commodity markets as well as indices and bonds. This flexibility is unmatched and it educates traders on how to trade these markets providing a one stop shop to trade all these tools.
ease
Binary trading results are based on one parameter: direction. Traders will bet on whether the financial asset will end up in a given direction. Additionally, traders are free to check when a trade ends by setting an expiration date. This gives a trade that starts badly the chance of ending well. This is not the case with other markets, for example, loss control can be achieved using Stop Loss, otherwise the trader will have to endure declines if the trade will turn negative to give it a gap in profit point. The easy thing to do here is that in binary options the trader has less to worry about than if he trades against other markets.
more control over trade
Traders have better control over trading in binaries. For example, if a trader wants to buy a contract, he knows in advance what he expects to gain and what he will lose if the trade is moneyless. This is not the case with other markets. For example, when a trader places a pending order in the forex market to trade high impact news, there is no guarantee that his trade will be filled in. The entry price or losing trade will be closed at the exit.
higher payout
Payouts per trade are usually higher than binary with other forms of trading. Some brokers offer payouts of up to 80% on trades. This can be done without damaging the account. In other markets, such payouts can occur if the trader disregards all money management rules and puts a large amount of trading capital into the market in hopes of earning. One Big Payout
access
To trade the highly volatile forex or commodities markets, traders must have a reasonable amount of money as trading capital. For example, trading gold, a highly volatile commodity for 10,000 days or more, during periods of high volatility requires tens of thousands of dollars of trading capital. However, binary options have lower entry requirements as some brokers allow people to start trading with as low as $10.
Disadvantages of Binary Trading
Lower trading prices for certain trades.
The payout for binary options trading is greatly reduced when the odds for a successful trade are very high. While it is true that some trades offer payouts of up to 85% per trade. But high payouts are only possible when trading with a set expiry at some distance from the trade date. Of course, in this situation, trading becomes more unpredictable.
Lack of good trading tools
Some brokers do not offer truly useful trading tools such as charts and features for technical analysis to their clients. Experienced traders get this by sourcing these tools elsewhere. Novice traders who are new to the market are not so lucky. This is changing for the better as entrepreneurs grow and realize the need for these tools to attract traders.
Limitations on Risk Management
Unlike in forex where traders can get accounts that allow micro and micro trades in micro accounts, many binary options brokers set up trading floors. The minimum amount a trader can trade in the market. This makes it easy to lose too much capital when trading binaries. As a forex broker it may allow you to open an account with $200 and trade micro lots which only allows the trader to disclose the amount of capital acceptable to the market. However, you will be hard pressed to find many binary brokers that will allow you to trade below $50 even with a $200 account.
cost of losing trade
Unlike other markets where risk/reward ratios can be controlled and set in order to gain an advantage in winning trades, binary options odds skew the risk/reward ratio.
trade fix
When trading markets such as forex or commodity markets, it is possible to close the least losing trade and open another profitable one if the re-analysis of the trade reveals that the last trade is The first was wrong In case binaries are traded on exchanges this is minimized.
Spot Forex with binary trading
These are two different alternatives with two different psychology trade-offs. But both can be used as investment tools. One is more time centric and the other is more price centric. They both work on time/price, but the focus you’ll find on one to the other is of separate interest. Spot Forex traders may overlook time as a factor in trading, which is a mistake. very large A successful binary trader has a more balanced time/price view. Binaries by their nature force out of a position within a set time frame win or lose which instills a greater emphasis on discipline and risk management. In forex trading, this lack of discipline is the #1 reason for most traders’ failures as they will stop losing positions for long periods and cut winning positions for shorter periods. In Binary Options Impossible As Time Expires Your Trade Will Win Or Lose. Below is an example of how it works.
The above is a trade that takes place with buying EUR/USD in the under 10 minute price and time range. Spots that focus on price regardless of the time component will become problematic. The psychology of being able to focus on the limits and this dual core will help you in being a better entrepreneur overall.
The huge advantage of spot trading is the same failover – exponential profit expansion from the price of 1 point. This is to say if you enter a position that you believe will increase in value and the price has not. more But speeding to the downside, the normal trend for most spot traders is to wait or worse add to losing positions. think it will come back The rush in time to the desired opposite direction leaves most of the spot traders trapped in an unfavorable position because they do not plan the time to reason and this leads to a lack of trading discipline. complete
The nature of binary options forces a more complete idea of trading out both Y = price range and X = limit period. They will surely make you a better overall entrepreneur from the beginning. On the contrary, on the flip side they naturally require more win rate on each bet, meaning 70-90%s profit, 100% loss, so your win rate must be on average 54. %-58% to breakeven This imbalance causes many traders to trade or take revenge trades as bad as holding/adding to losing positions as a spot forex trader. To trade successfully you need to practice money management and emotional control.
In conclusion, when starting out as a binary trader there may be a better foundation on which to learn trading. The reason is simple: focusing on time/price combinations is like looking both ways when crossing the street. The average forex trader only looks at the price, which means he looks in one direction before crossing the road. Learning to trade considering both time and price should help in building an overall trader.