Binary options is reliable financial tool that allows you to make a profit, predicting the direction of change in the prices of different assets without purchase: shares of major companies, oil, precious metals, currencies, etc… Binary option trading takes place on the trading platforms of some of the major players in the market – brokers.
It is important to note that even a novice in the financial sector can make money on the binary options. However, the minimum requirements for effective trading are still required. For example, a novice trader should be familiar with the general concepts of economics and finance, to study the terminology and tools of binary options, scrutinize a few simple strategies and make a demo account to practice. Period, which is needed for a novice to get the basics of the trading, can range from a few days to a week, depending on of free time availability and desire.
The main idea of binary options trades is to choose an asset and predict future changes in its price at a certain time interval, for example, over the next two hours. Period of investment in the option is not limited and can range from several minutes to several months. Every trader chooses the expiry time of the option according to its strategy. One may get profit from any movement of asset price, either from increase or decrease of it. The main task is to predict a trend correctly (the direction, which traded option will move).
Information for beginners and experienced traders
Fortunately for the new traders, to guess correctly the price movement of the option, do not need weeks to study the behavior of the asset on the market. For a start will be enough general information from financial news or stock exchange forecasts that will help determine the direction of the trend. Will it grow or drop in the near time interval. Trading news releases are available to any person; in this case one does not need to be an analytical expert to predict the trend movement. All you need: to follow the news from the world of finance.
It is worth to mention that at our site is located information on the situation in the global and regional markets in the “Market Watch” on a weekly basis. “Economic calendar” will also help to the trader, so we strongly recommend look in it before positions opening.
If you want to start making money on the binary options in a short time, you can speed up the learning process, using a selection of various webinars and videos for beginners, as well as the review of the platform, trading strategies and financial television programs presented at out site. We are confident that, after you will watch a webinars or training videos for a few hours, you can easily make your first correct binary option prediction.
Binary options trading benefits
Binary options trading has a lot of advantages. Let’s look at the main ones:
1. 24/5 availability (24 hours a day, Monday through Friday). You can trade on the various exchanges with different time zones;
2. Transactions and financial quotes transparency. All option prices (closing / opening) could be checked using actual market prices, which are freely available. Profit from the option is calculated in advance – you will know the amount you will receive in case of correct prediction;
3. Risk Management. You control the amount of investment and you can put any limitations. In the case of incorrect prediction, you lose not the entire deposit, but only invested sum;
4. Low-cost contracts. Allows you to trade the underlying assets of global companies, buying not the asset itself, but only a contract for it, that a hundred thousand times cheaper;
5. There are no restrictions for profit. Since the amount of income depends on the amount of investment, in case of correct market forecast you can easily make a profit starting from $ 50 or $ 100 per day. So you can make unlimited number of transactions in one trading day. More successful option purchases – a larger volume of profits;
6. The minimum threshold needed to start trading with binary options. The deposit required to start trading with binary options usually ranges from $ 200 to $ 300. Use the advice of experienced traders on account deposit: follow the ratio of 5% to 100% between the amount of investment and deposit amount in one transaction. This will allow you to allocate the risks properly.
How to increase profit in binary options trading
Any financial activity requires systematic approach and binary options trading is no exception. In order to remain a successful trader and steadily increase income, it is necessary to analyze the market constantly and develop new trading strategies.
Among traders are popular two types of binary options market analysis: technical and fundamental. The trader will significantly increase the frequency of trades and reduce his losses to a minimum with their knowledge and choosing the most appropriate analysis method for his work. In other words, constantly analyzing the binary options market, you will increase your profit.
Technical analysis for market forecasting is based on the study of combinations of signals and indicators. This type of analysis predicts the future direction of the option price, based on the previous history. The basis of technical analysis is a price charts statistics. Even a beginner could easily understand the tools of this analysis type. In addition to identifying market trends, technical analysis interprets the graphic patterns that show typical situations in the options market, forming the certain “figures” on the graphs. Each of these situations is considered as a separate. The expiry date of the binary option trading with technical analysis help can be minimized.
Fundamental analysis for the binary options market is considered as more difficult for understanding and requires basic knowledge of economics. But it is quite popular in the trader environment because it helps determine the long-term market price movements. This type of analysis is more profound comparing with technical analysis. Future market trends are determined by an analysis of the current situation in the world economy or country. Usually it takes into account such factors as: macroeconomic statistics, gross domestic product, unemployment, inflation. Also central bank interest rates are important indicators for currency. Expiry terms for binary options, projected on fundamental analysis, shall not be less than a week.
As we have noted, the study of various strategies on the stock exchange – an integral part of the trader’s work. Beginners tend to use ready-made strategies, and more experienced traders develop their own by combining two or three known strategies. Our website contains the description of the basic strategies with understandable methods to increase profits in binary options trading. All strategies are freely available and practically used by traders.
Here are some of them:
1. Strategy for binary options trading – “Alligator”. A long time has been used in the Forex market, but also suitable for binary options trading;
2. Trading news releases. One of the most accessible and popular methods to receive a profit on the binary options for novice and experienced traders;
3. Trade strategy using trend lines. Doesn’t require special skills. Simple and effective strategy in which an instrument is the price;
4. The one-minute strategy for binary options trading.
Bollinger and trend indicator. Suitable for traders who want to save time;
5. The strategy for long-term investment;
6. Strategy “absorption” for binary options trading on stocks. Provides high reliability of signals.
Binary options will help you make good money even with minimal investment. Remember that binary option – it’s your prediction for the change in price of the asset, so all you have to do is to specify the direction of the cost movement. You will always know how much profit you will gain from investments, while the size of investment is controlled by you. Everything is quite transparent and understandable. You don’t need to be an economist or financial analyst with a higher education; all you need is just a bit of diligence to learn the basics. Trading platform has user-friendly interface. Education (such as webinars) and support from broker will help you to learn basic things.
Experienced traders are advising for beginners to keep a diary during binary options trades from the very beginning. It helps to see the growth trend, analyze failures, fix a profit and adjust your strategy. Get your invaluable experience in trading binary options and make a profit from the early days!