BINARY
BINARY OPTIONS MEAN? Before we begin trading, let's define binary options. A binary option is a bet on how the price of a particular asset will change based on the prediction of whether the price will go up or down by a given amount when the bet expires. There are just two possible responses in this scenario: yes or no. The trader's key objective is to correctly predict this movement. Then, there are two possible outcomes for the course of events: loss of funds (if the forecast was inaccurate) or payment (if the prognosis was accurate). These options are known as binary because of this. BINARY OPTIONS TYPES: New trading forms or iterations of current ones emerge as a result of the evolution of binary options. The primary binary option kinds are shown below. They are available on most trading platforms. Cash-or-nothing. The trader stakes money on the price of a particular asset falling or rising. It doesn't matter how much the price has changed in total. Investors must assume that the price will either be above or below a specific level. The trader wins between 70% and 90% if his guess is correct. He will lose everything if he fails. Assets-or-nothing. In contrast to the prior instance, the asset's value determines the winning reward. One-touch. When the value of the asset hits a specific level, the option expires. No contact. The scenario here is the opposite. The primary objective of traders is to keep the price from reaching a particular level. sixty seconds. Before the trend turns, this swift transaction enables the trader to profit quickly. Types of assets Forex/Binance. Foreign exchange is referred to as Forex/Binance. When trading currencies in pairs, consideration is given to how they relate to one another. The currency pair resembles two acronyms. Through the interaction of the global Forex market and binary options, trading in currency pairs takes place. Index.An index is a type of trading indication made up of a collection of particular equities. The average value of all the stocks of the index-businesses' companies determines the index's price. Indices are particularly practical because financial news frequently and comprehensively describes them. Stocks. Trading stocks is purchasing an electronic contract for the shares of a particular company, which is also less expensive than buying the actual shares. Binary option trading is ideal for investors who don't want to put their money in assets in order to earn 5-20% annually. Additionally, shareholders will start to experience losses if the market value of their shares declines. You can profit from the decline in market value if you employ binary options on stocks. CFD. A CFD (Contract for Difference) is an agreement reached for the difference in equity prices between the opening and closing dates of the contract. One of the parties agrees to give the other party the price difference after the contract is complete. Commodities. The natural resource that is supplied and offered for trade is the commodity. Precious metals are the most widely used commodities. Futures. A futures contract is a commitment to conduct a transaction at a price set today. Futures have the benefit of having high sensitivity. Compared to equities, this asset doesn't require a large initial capital. Cryptocurrency. The newest trend in internet trade is cryptocurrency trading. Due to the rise of cryptocurrencies in recent years, traders have begun to take note of digital money and start using it as a normal form of exchange. Cryptocurrency rates are only affected by demand; major economic entities have no bearing on them Is it possible to make money on binary options? If you have the necessary skills and experience, you can make money with binary options. Trading is a skill, and like other skills, it demands preparation and deliberate action. Open a demo account first so you may practice without risking any money. Additionally, a trader can improve their trading technique and comprehend business fundamentals on a demo account. The trader then develops the trading technique through trial and error and continuous learning. And the trader can only open a professional account if he has gained sufficient experience. Start with modest amounts and keep advancing your skills. WHAT IS BINARY TRADING? Binary trading is the act of buying and selling options on various stocks. For instance, the trader might predict that at 20:00 on a particular day, the price of the American Dollar would be above $10 per share or that at 12:30 on Thursday, the price of Bitcoin will drop below $38817. He specifies the specific amount of money, such as $6, that he hopes to win if his guess is correct. The trader then waits for the option to expire and monitors if it occurs at the specified time. The trader will be compensated $6 in option premium if the prediction was accurate. He forfeits this amount if he made a mistake. Trading robots that sell and buy assets are sometimes used by traders. This kind Autotrading is the procedure in which a computer trades on the market using a computed algorithm. Trading robots were widely utilized in the past but are now uncommon. The predetermination of the activities is a disadvantage of auto-trading. The trader, on the other hand, is able to use unconventional thinking and make quick decisions. The time of trading depends on the asset. The trade begins as the stocks open, that’s why the trader should start when a certain session begins. For example, if he trades the GBP or EUR, he should start trading when the European trading session opens. The trading with forex is available only on business days. If you want to trade 24/7, pay attention to the cryptocurrency. Crypto trading is available on weekends and holidays. You can use forex assets for binary options trading if you wish to trade forex but lack the capital to do so. Numerous currency pairings are included as forex assets. Choose secure investments like the dollar. Watch the financial news and use the economic calendar. Additionally, keep an eye on the economy of the nation whose currency you are trading. The software that brokers offer that allows users to manage their trading accounts and trade a variety of assets is known as a trading platform. A broker provides every platform. A broker acts as a go-between for buyers and sellers. As a commission, the broker keeps a small portion of the client's revenue. Customers can trade a wide variety of assets on a reliable platform, and there are several ways to withdraw their profits. Brokers frequently offer you the chance to develop your strategy while testing it out on a demo account. The key to profitable trading is the quality of the broker platform. Brokers occasionally employ fraud methods. To avoid paying out revenues, they abruptly freeze the profitable accounts. Before beginning work, the trader should carefully review the broker's platform to prevent fraud. Pay attention to other traders' reviews. You can check it out on the specific trading forums and the trading community's social media. Make sure you comprehend how the broker's platform functions. The trustworthy broker describes the platform's operation in detail, including how to withdraw money, set up a personal account, and customize trading indicators. Get in touch with the broker's support team if something upsets you. Examine the situation of the money's withdrawal. Make sure the broker utilizes the offerings offered in your nation. Verify the support team's efforts. You should stay away from this platform if the customer support doesn't respond to your questions or stay in touch with you. Keep in mind that a reputable broker will never guarantee quick riches because trading may occasionally be very taxing. Both patience and talent are needed. Be confident that it is undoubtedly a publicity trick if a certain broker assures you that you may make a fortune without working hard. Yes, trading binary options is completely secure if you know how to do it properly. Trading with a level head, professional tools, and a sound plan will quickly result in winning. Practice, patience, and persistence are the "three Ps" of the "rule of three." The trading process is quite easy. Open the broker's platform, choose the required asset, and set the trading indicators in accordance with the trading plan. Then, he selects only the strongest trade signals by tracking their movement. Pick the assets that are most reliable and profitable. Work with another currency if you are confident it will be profitable. Select a reputable broker with glowing testimonials and a helpful support staff. Compare the data from the trading indicators with the information from the signals. If you predict an impending trend reversal or the emergence of the certainty signal, you should use three indicators to confirm your prediction. You are permitted to perform a given action if they concur. Every new tactic should be tested using various resources and under various circumstances. Utilize the profitable technique with a variety of assets. Maintain composure and emotional restraint. Do not let the unpleasant emotion divert your focus. If you know how, binary trading may be both incredibly safe and lucrative. However, if you place your faith in luck and treat binary options trading like the lottery, the outcome could be disastrous. Just like painting or driving a car, binary trading requires talent. Every skill requires education and a practical approach. Apply risk management and risk diversification if you want to minimize your exposure to risks. A set of guidelines called risk management is used to specify the maximum amount of losses that are acceptable as well as what should be done in the event that they do. To lower overall trading risks, risk diversification involves investing trading capital across a range of assets and brokers. Use them to prevent losses. Don’t pull all eggs in one basket. Even the most stable asset can suddenly lose profitability. It is much smarter to invest in several assets depending on their value. For example, you may open one option for the currency pair USD/JPY, another for the EUR/GBP, and the third for the USD/CAD. The money should be distributed according to the profitability and the time of the signal expiration. For example, $5 for the first pair, $8 for the second, and $6 for the third. Don’t risk all your deposit. Save a rainy day fund. Sometimes the market may be very volatile and unstable, and if you have some amount on your deposit, at least, you’ll have a chance to stay on the market and then compensate the losses. You can risk an amount of no more than 5% of the actual deposit for one transaction. If the risks are kept within 5%, then the total loss will be approximately the same. It is necessary to open positions on several instruments but within the amount of the guaranteed provision. Losses from one group of assets should be offset by profits from others. Try to divide funds between assets wisely. Make the stop-losses. Sometimes traders forget that there is time to stop, and the stop-loss acts like an emergency brake in such situations. Here are two formulas that will help you to calculate the level of risk during the trading. Formula for calculating risk in one trade Risk in one trade = Purchase cost - Stop Formula for calculating risk for all trading capital Risk = Expected losses in the trade/Capital * 100 Trading instruments are tools that aid in good decision-making. Keep in mind that there isn't one right way to use trading instruments. However, a trader will be more accurately able to predict the price behavior of the associated assets if he owns a variety of instruments. The economic calendar, charts, and indicators are the primary trading tools. There are two main types of market analysis: technical and fundamental. The fundamental analysis describes the influence of economic factors on the behavior of trading instruments. This type of work is based on the analysis of fluctuations as a reaction to the financial news. Technical analysis is based on the visual evaluation of the graphic figures of the charts. Economic calendar. The economic calendar shows the main economic events (information from the state banks, decisions of the economic departments) that may influence the market situation. Such an instrument allows traders to monitor the market in real-time. Market trends. Market trends display the upcoming change of certain trends in different timeframes. The trader compares the data of the trends with information from the calendar and creates the forecast. Online-chart. This is a graphical representation of price movement. The main task of the trader is to analyze the graph and to define the trend, reversal, and the point of breakdown. Identifying pivot points, trends requires knowledge to work with live binary options charts. Technical indicators. A technical indicator is an instrument that makes certain calculations according to specified formulas. Most often, indicators look like graphical constructions (lines, histograms) that are automatically plotted on the chart. Nowadays the developers offer automated bots for binary trading. The pros for using the bot are quite reasonable. The bot acts according to the predetermined algorithm and never gets tired. A bot is faster than humans and it can’t be affected by negative emotions. Sometimes this type of trading can be quite beneficial, especially in small periods. However, the usage of the bot has a list of cons. The drawback is that you don’t clearly understand who developed this algorithm. The developers often offer several typical options to act and won’t provide the variants for the unusual situations. You can’t check the quality of the trading algorithm and you can’t change it. And remember that robots can’t replace humans. Even when you use the bot, you can’t rely on it completely. Signals show the indication according to the precalculated algorithm and this calculation does not always comply with the currency market situation. There is always a certain percentage of instability, especially when the market volatility is high. A trading robot just automatically reads the indications on the signal and does certain actions according to the algorithm, but the real situation does not always follow the algorithm. A binary signal is the alert with information and is the trader who decides what to do with this information. Some people think that binary options are just a way to make money. Trading tools are really simple, but only visually and in terms of the number of actions. However, trading is a complex process that requires certain knowledge. It is necessary to correctly analyze economic news, and learn technical analysis. The novice trader may apply these tips to make trading more convenient. Test all your trading ideas on the demo account. Stay calm and follow your strategy. Trade regularly at the same time. Compare the information from the signals with data of the trading indicators. Learn more about the trading strategies and different assets. Stay positive and analyze your mistakes. Many new traders wonder if binary options are forbidden. Everything depends on the nation. The government of several states views binary trading as gambling and places strong limitations on the operations of binary services. Germany, Sweden, France, Finland, and the Czech Republic all forbid trading in options. Thailand, Chile, Argentina, South Korea, Colombia, and Brazil allow options. There are additional nations, such as Indonesia, where particular government agencies or departments have authority over possibilities that aren't outright forbidden. You should therefore research the laws governing binary trading. Select only licensed brokers to protect your funds. If binary options are restricted in your country, choose another method, such as cryptocurrency. In general, you should proceed from what is allowed in your country and which broker is certified. The broker's platform itself can offer various methods of legal trading. Pay attention to the international trading platforms that work in different countries. If you don’t, whether a certain platform works in your country, contact the broker’s technical support.WHEN TO TRADE?
HOW TO TRADE FOREX WITH BINARY OPTIONS?
PLATFORMS FOR BINARY OPTIONS TRADING
HOW TO CHOOSE A TRADING PLATFORM?
ARE BINARY OPTIONS TRADING SAFE?
Recommendations for the safe trading
HOW DO I MANAGE RISK?
Rules of risk management
TOOLS FOR TRADING BINARY OPTIONS
Types of market analysis
Instruments for fundamental analysis
Instruments for technical analysis
Bot for binary options
TIPS FOR THE BEGINNERS
ARE BINARY OPTIONS ILLEGAL?
How to trade if binary options are prohibited in my country?
