Binary options are specific ways for trading. Being differed by the ordinary trading methods, you will need to learn the basic terms, as well as some strategies for beginners in binary options. Keep in mind that even though distinguished the binary options are yet financial instruments for getting an outcome. This automatically means that some of the ordinary rules we know from financial trading refer to the binary options, as well. In this article, though, we would like to introduce you the specifications behind the binary options trading. Let`s get started step by step, so you can learn how to act in financial trading by using the binary options. As a bonus, you will also receive the full list of the best and most reliable for both – beginners and advanced traders – binary options brokers. The binary option trading guide is about to begin!
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Background history of binary options
The origin of binary options is American. The binary options trading were established in USA. They are quite new way for financial trading since they were introduced back in 2008 year. Then, the binary options were unlocked for online trading platforms, as well. Though, today these platforms are numerous, because it seems that traders really love them. This is probably due to the main feature of the binary options – they are extremely flexible and easy to be operated with. In short, the philosophy behind the binary options is that give the trader and opportunity for predicting any kind of situation on the market – even the lack of any situation. On the other side, binary options have been determined as a potential risk for traders, which once again, mean you need to be very well prepared for trading with them. Due to this in June 2013 the US Securities and Exchange Commission has made a warning to be very attentive by giving a Cyprus-based company that sells the binary options illegally. Last, but not least, remember that binary options are also well-known with other names – all-or-nothing options (which say almost everything about this trading type), digital options and fixed return options (FROs). The main goal that any trader should reach first is to find the best binary options brokers for their needs.
What is the binary options trading?
Binary options are categorised as exotic Forex trading options. Meanwhile, though, they aren’t that difficult to be used and worked with. The traders predict as regards the shakes and the happenings of an asset. The asset, on the other side, might be a currency – in Forex trading only – stock, commodity or even an index. The binary options have expiry date on mandatory. The expiry day in binary options is the exact time, when the trader will either lose, or win. The expiration varies, but in general it lasts from 1 minute to the end of the day. Some binary options web sites offer the traders to choose the expiry date. It might be a short-, medium- and long-term expiry. Also, there is a general rule in binary options trading. It says that when a buyer trades with binary options, the potential return is always certain. This factor distinguishes the binary options from the ordinary financial options, where spectrum of payoffs is both – large and continues. Binary options are always sold against fixed expiry time and they can be either call/up or put/down. If the trader measures the market correctly, he or she can be totally sure what the payoff will be. Though, if the prediction is made wrongly, the final outcome is also certain and it is zero, which means that the entire investment is lost. A good start in this type of trading would be to use some binary options bonus offers that variour brokers offer.
Types of binary options on the trading market
There are several types of binary options on the trading market. It is recommended for you to try them all, so you can figure it out which one suits you more. Check out them now:
High-low binary options
They are the most popular binary options on the trading market. Also, they are the simples, so that is why they are so often chosen as the best opportunity for a quick profit. What the trader should estimate, when buy high-low binary options, is whether the market price on the fixed expiry date will end up higher or lower than the current and available offered price. The payoff here is, of course, predetermined. Some binary options brokers add one more option for payoff – fully or for a partial return.
Range high-low binary options
They are quite similar to the previous – the high-low binary options. The trader here chooses from high and low. What he or she needs to determine is whether the final offer price is going to be higher or lower than the current one. When the moment for determining comes, a range for the prediction will be shown. In case the expiration rate refers to this range, you will get your outcome. Otherwise, you lose your investment
One touch binary options
Here, you will receive a boundary line. It is described as above and below the current rate. The trader should choose one of them – the below or the above current offered price rate. Usually, the one touch binary options are available for buying during the weekends – when the markets are yet closed. The trading, though, is made during the week. The one touch binary options trading is usually preferred by the traders, who thinks that the price of an undefined asses will become close to the predefined rate in few days (or during the week). Also, they choose these types of binary options, because they aren’t confident about the rate of the sustainability of the price.
60 Second binary options
Recently, they have become the most popular binary options. The big advantage behind them is the quick chance for a winning. In case the value of the asset is moving in a particular direction right now, the trader can easily get the most of this – or the most money of this. The quick earning and the fast trading analyse turn the 60 second binary options into super financial opportunities.
Binary Meta options
For some reason, these binary options have become quite attractive for the past few years, too. They give a chance for the trader to sell earlier or to double the earning as a mid-trade. These binary options are provided only by few binary options brokers, which also offer to their clients interesting and innovative tools for examining the history of the assets.
The simplest and shortest binary options trading guide
We are offering you a guide with all the little first steps you need to do and consider as a start in your binary options trading experience. First of all, find out the two alternatives for final results. Most of the binary options platforms offer to main final outcomes – Put and Call. Put describes your personal prediction of a price decline. Meanwhile, the Call shows the eventual increasing of the current price. Next, you will need to determine your own opinion, which in binary options trading is your individual prediction, when the expiry date comes. To do so, you need to estimate the current situation on the market and to bind your asset with the rise/fall of the available price. You will also need to check the implicit transactions fees of the binary options. Do your research over the places where binary options are traded and find out how a contract price is lately estimated. Last, but not least – get the best binary options broker!
Here is a list of the most reliable and reputable binary options brokers
Here you can make a maximum profit of 85% of the price. The minimum deposit here is 100 EURO. The TopOption broker covers the UK, European, Asian and US markets.Read Here Detailed Review of TopOption.
This web site is quite suitable for freshmen in binary options trading. It is also well-known as the most user friendly broker among the whole online trading platforms` list. It also has a mobile version and the 60 second binary options are most loved here.
- Banc De Binary
This is the top binary options broker, but it is definitely recommended for advanced players on the market. The trade limit is 3000 here and the maximum profit, though, is about 91% of the Banc De Binary. This web site covers all the international markets. Read review of Bank de Binary here
- 24 option
This binary options platform is well-known for the fact that it has been created and operated by professionals in the sphere. Probably, this turns the binary option broker into a really reliable, modern and contemporary online trading platform. It offers the following binary options trading systems – high and low, above and below, 60 seconds binary options and many others.READ HERE – review of our top binary options broker – 24Option
Here we are pointing the TradeRush binary options broker since it provides more than 100 different assets. They are mainly focused on trading European two-way options. The maximum outcome is up to 81%. What makes the TradeRush so attractive, though, is the detailed guide with binary options strategies and useful tips.
- Grand Option
Last but not least is one of our premium partners – Grand Option binary options broker. This operator offers fantastic platform, offers and help for new and experienced traders. The benefits trading with them are numerous, so if you are interested read here detailed review of Grand Option.
Why trading with binary options?
Naming all the advantages behind the binary options trading is almost impossible. However, binary options brokers are usually thrilled with this trading method for few main reasons. First of all, they are simpler and they require less estimations and analyses on the global market. Also, a trader needs a sense of direction for the price and no other special skills. Binary options are definitely for you in case you are a beginner in trading at all. This is also proved by the fact that binary options have potential risk you always know and can predict. Also, you dive into this trading with the clear idea how much you can earn. The risk is transparent and you can use all the available and known trading and hedging binary options strategies. Binary options are safe, because they provide contracts – even though with a short term duration. Meanwhile, though, you can browse the web and find even binary options platforms, where the contract can last for a whole year. Also, the binary options – unlike the ordinary options and trading systems – the final outcome isn’t proportional to the amount by which the final results end in-the-money. Add to these the low investment, which is always a real strong point for any trader – regardless his or her reputation and advance. Last, but not least, the benefits of trading with binary options are also the wide range of internationally traded assets, the chance for trading anywhere and at any time without any limits of the markets or the gadget you use. Most of the binary options platforms come with mobile web site versions, as well. The simple trading and the determined risks, however, are the key advantages that make the binary options really thrilling, intriguing and so widely spread across the entire online trading audience.
Conclusion and final words
You can now be more confident and equipped with the necessary knowledge to step into the world of binary options. Never underestimate the online guides and tips you can find among the whole web. The deeper you get into the binary options trading, the faster you will be able to receive the desired outcomes. Last, but not least – remember that as in any other trading type, binary options hide their own risks and weak points, too. The good thing, though, is that you find out about them even before making your binary options purchase. There is nothing else we can do except for wishing super luck in binary options trading experience!