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South Africa Binary Options Trading
The binary option represents a type of option where the payoff is a fixed amount based on asset of some kind. There are 2 types of binary options out there – cash-to-nothing binary type and asset-to-nothing binary type. You need to know those things in case you want to be part of the binary trading market all over the world. Many people are generating huge profits thanks to their binary trading skill.
However, in this particular article we would like to pay attention to South Africa. A country that is rather interesting when it comes to financial markets and investments.
Best Forex Brokers for Russian Federation
South Africa Forex Trading Specifications
In case you lack experience at all, it might be better for you to find regular binary option brokers in South Africa. As a matter of fact this is not a bad idea, even if you are dealing with forex. It is always safe to use a good helper. We would like to help you and due to this reason we will actually post a list of binary options brokers that you can use. Make sure you can analyze things like clear account closure, transparent account process, demo accounts, hidden taxes and fees, security, low commissions.
The overall volatility of the South African market is huge, and this is why the market is really suitable for risky players. The main factors you need to pay attention to are the demand for different stocks, for example. The risk, as mentioned, are higher, so you have to have good experience, and of course good partner!
In case you don’t have lots of money to invest, then this market might not be the best one with which you should start, but if you think you will handle the fluctuations, then take a look at the offers below.
As we mentioned, it is important to have a good partner when it comes to online binary trading in South Africa. All of the below mentioned brokers have been tested and have been in the business for quite a lot of time so they are really reliable. Take your pick!
Binary Options Brokers
Currently, there are more than 400 trading platforms or brokers. This was not the case in 2008 when binary options trading started since there were about 10 trading platforms. The emergence of many brokers has been good since it has created high competition, which is beneficial to investors in terms of more bonuses and high returns.
Binary Options Broker Comparison
When you start trading in binary options, one of the most important decisions is in choosing the right broker. This is a task we have made easy for you since we have looked and tested for the most reliable and best brokers and included them on our binary options broker comparison.
Browse our website with full confidence, we provide most reliable, accurate and up to date info about brokers from all over the world.
Best Binary Option Brokers 2020
Currently, there is no regulator who can oversee and regulate all binary options and Forex activities across the world. Over the years, there has been a remarkable increase in these trades. This may be attributed to the increased accessibility and advances in technology across the globe. As a result, various regulatory bodies have been formed to regulate binary options and Forex activities.
In most cases, such bodies operate within certain geographical regions and their main task is to monitor the various binary options and binary brokers in such regions in a bid to protect traders and monitor the best practises by such brokers.
Many binary options and Forex brokers have enticing trading platforms in addition to a horde of fabulous attractions for their traders. With this in mind, many traders are wondering whether it is okay to just invest in any binary options or Forex broker. The truth is that not all brokers in the market today are reputable. In the U.S.A, for instance, there are strict regulations that have been imposed for the brokers in the region to be in a position to accept US-based traders.
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Free Demo Account!
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It is such regulations that make some brokers not to accept traders from certain geographical regions. Rather than go through all the trouble to ascertain the best brokers in the market, we have researched the market comprehensively and are happy to present to your the best binary options and Forex brokers this year.
All the binary options and Forex brokers we have recommended on this page have been tested and approved to be genuine and to deliver up to their promise. We have also gone a step further to group the recommended brokers according to the regions they operate in best indian binary options brokers. As such, you just have to find your preferred broker from the following list, based on your geographical location, after which you just need to sign up and start trading right away.
Recommended Brokers in the US
Currently, there are two main regulatory bodies for all binary options and Forex brokers in the United States. The two bodies are the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). According to the current regulations, it is not illegal for any broker to accept traders who are based in the United States. However, if any dispute arises between the trader and the broker, the broker, either binary options or Forex, will be liable for prosecution. in the recent past, the majority of such prosecutions have led to hefty fines and penalties on the side of the brokers.
As a result of this, there have been two distinct categories of binary options and Forex brokers that accept US-based traders. These categories are the brokers who are duly regulated by any of the two regulatory bodies in the U.S.A and the offshore brokers, who are not regulated by any of the two bodies.
Most of the us binary options brokers accepting US-based traders have trading platforms that are faultless. However, you still need to do your own research on any given broker, prior to trading with them. However, we have made the process much easier for you; we have researched, tried and verified the brokers in our recommended list to be effective and genuine.
Best Brokers Accepting US Customers
Recommended Brokers in the UK
Residing in the United Kingdom offers traders two main benefits, with regards to binary options and Forex trading. While in the UK, you can trade with virtually any broker, without being affected by any regional restrictions. Again, you can also choose to trade with the brokers who are regulated by Cyprus Securities and Exchange Commission (CySEC) and Financial Conduct Authority (FCA), the two main regulatory bodies in the UK. The two are also the most predominant licenses when it comes to Binary Options brokers. As such, it is advisable to choose a broker that is regulated within Europe.While traders from the UK have a freedom to choose any broker that seems appealing to them, including offshore regulated and unregulated brokers, it is highly advisable that you research on your preferred broker before investing your money with them.
Top Brokers for UK Customers
Recommended Brokers in Australia
Binary Options trading is incredibly popular with Australian traders, and it seems to be growing in popularity with each month. Binary Options trading is not banned or illegal within Australia, and brokers based in or outside of Australia can offer their services to Australian traders.The increased demand in online binary options, binary options brokers in Australia and Forex trading has led to the formation of a regulatory body in Australia, the Australian Securities and Investments Commission (ASIC). However, it is not illegal for people to participate in this form of binary options trading in Australia. In this regard, brokers from Australia and other parts of the world can offer their services to people based in Australia. Currently, there are many brokers in the country, some that are offshore and others that are licensed and approved by the ASIC. We have tested and verified all the platforms on our list of brokers to be reputable in Australia.
Top Brokers for Australian Customers
Recommended Brokers in Canada
Although online trading is allowed in Canada, there is still no overall regulatory body for the entire country. Instead, each of the 10 Canadian provinces has its own online binary options and Forex trading regulatory body. Among the regulatory bodies in the country is the Investment Industry Regulatory Organisation of Canada (IIROC). Although this body is capable of formulating and enforcing laws in the Canadian trading markets and securities, it cannot do the same when it comes to online trading.We have taken time to review and evaluate each of the brokers offering their services to the Canadians. Canadian binary options brokers As such, the list provided here comprises of the brokers offering convenient banking support and options for online traders in Canada. Just click on the above link, review the various brokers and start trading right away, with your preferred broker.
Top Brokers for Canadian Customers
Recommended Brokers in Europe
When it comes to binary options and Forex trading, traders in Europe are some of the most fortunate traders across the globe. Among the renowned regulatory bodies in Europe is the Cyprus Securities and Exchange Commission (CySEC). This body enforces a strict regulatory process, which includes Markets in Financial Instruments Directive (MiFID). According to this body, european binary options brokers that are licensed by CySEC can accept online traders from any member state, within the European Economic Area. Additionally, CySEC happens to be the main regulatory body for binary options traders.Traders in Europe also have the option of trading with offshore binary options and Forex brokers. This leaves European traders with a multitude of options, with regards to both online and offline binary options and Forex trading. However, you still need to research on any given broker before trading with them. In this regard, we have extensively studied all the available brokers for European states and have provided a list of the best binary options and Forex brokers in the region. Just go through the list, select your preferred broker, sign up and start trading right away.
Top Brokers for European Customers
Recommended Brokers in India
If you are living in India, you’ll be able to trade absolutely any type of Binary Options and work with any of our top rated brokers. Having such a wide choice is truly a blessing, but can also become overwhelming when you have to choose a broker that will be the best and most profitable for you.What are the criteria you should look into? The main body to regulate binary brokers in India is Securities and Exchange Board of India. However, since most top-performing brokers are focused on European and North-American markets, it is difficult to find a good broker licensed by this authority.
Most of traders from India choose brokers licensed in the European Union member country – Cyprus. The CySEC (Cyprus Securities and Exchange Commission) gives licenses to most of our recommended brokers that traders from India tend to use. One of the major issues for the traders from India is usually the high minimum deposit requirement for most of the brokers. The majority of our best brokers have a minimum deposit of $250. However, if you search carefully, you can find those that bring equally high results with a lower minimum deposit such as TopOption, BDSwiss, Tradesolid.
Best Brokers for Indian Customers
Binary Options Brokers in Dubai, UAE
The Dubai market has an enormous potential for all binary options traders. Funded in 2000, it has 57 companies listed with a majority based in UAE. Dubai Financial Services Authority (DFSA) is the institution responsible for monitoring The Dubai International Financial Center, and the rest of the UAE is regulated by various authorities. They are Ministry of Economy Planning, The Central Bank of the UAE and the Emirates Securities and Commodities Authority, to name the most important ones.There are various benefits that make binary options brokers from this region attractive to choose over others. Firstly, UAE market has experienced some major fluctuations over the past year. This, contrary to what some believe, is a huge plus for risky players. The market is perfect for experienced traders who are ready to take advantage of this extraordinary market.
Many experts recommend getting into binary options trading here while the conditions are still favorable and there is a big chance to profit on a larger scale. Secondly, there is an opportunity to trade during the weekends. While all other are open Monday through Friday, The Dubai Security Exchange is working Sunday through Thursday. This is a lot more convenient for those of us who prefer to trade in our free time. Dubai is expanding very fast, both as a city and as a new attractive financial market. Many experienced traders have already taken their chance and started benefiting from this fast-growing economy with binary options trading.
Top Brokers for Customers from the United Arab Emirates:
Binary Options Trading in South Africa
Currently, binary options trading is extremely popular in South Africa. It became so just a few years ago, and before that there were no particular regulations for binary options brokers in this country. Nowadays, the Financial Services Board (FSB) is a government agency that is responsible for regulating financial market in South Africa and binary options brokers here. Particularly, the FSB special task force called The Financial Advisory and Intermediary Services Agency is responsible for assuring quality binary options trading in the region.When looking for a top-performing broker, keep in mind that it is important to pay attention to the its regulation. However, no matter what is the country of origin the broker, it should be able to suit your need and bring you benefits. That is why, traders can also consider brokers with proven results that are regulated by European authorities. There are various brokers that we can recommend in this region that have proven results and have been recommended by many traders that benefited from them.
Top Brokers for South African Customers
Binary Options Brokers in New Zealand
Although New Zealand is a small country, its size has no impact on the level of interest and quality of binary options trading in this region. Traders from this country are becoming increasingly interested in the opportunities binary trading has to offer. However, before choosing a broker and starting to trade, it is important to educate yourself on what to look out for in the process. This is particularly true in this region, since binary options are just becoming known and there is a lot of tricky moments to consider.First of all, of course, that’s regulations. In this aspect, New Zealand is ahead of many other countries that still remain without regulatory bodies to help traders navigating the market. This country assures the quality of trading by The Financial Markets Authority (FMA), a state regulatory authority that oversees binary options trading and other financial operations in the country. There are standards that brokers must keep in order to obtain and keep their license. For instance, the company must be able to function effectively and fulfill the licensing conditions imposed by FMA. The regulatory body evaluates brokers constantly to make sure it doesn’t impose threats to the state funds or its customers.
Since binary options trading is relatively new in New Zealand, traders often have limited choice of broker. On the other hand, if you wish to keep your funds in the country, you can always be sure of the licensed brokers. For those traders who are willing to trade with brokers from abroad, there are also excellent choices of top-performing brokers licensed in the UK or the EU.
Best Brokers for Kiwis
Recommended Brokers in the Philippines
To become a successful binary option trader, you first need to carefully evaluate your opportunities and threats. That also includes choosing a licensed and promising broker. In the Philippines the regulatory body that is responsible for evaluating these companies is called Securities and Exchange Commission (SEC) of the Philippines. It assures that all the trading activities happening in the region are legal and in the best interests of the country and its citizens.While there are very few brokers based in the country itself, the traders from the Philippines can also expand their search for licensed brokers that will suit their needs licensed by foreign regulatory bodies, such as Financial Conduct Authority (FCA) in the UK or CySEC (Cyprus Securities and Exchange Commission) in Cyprus. These brokers have earned excellent reputation all around the world and proved to be worthy of their reviews. Fortunately, they all accept the traders from the Philippines. Because of this, binary options trading is becoming a popular and exciting part of the life in the region.
Best Brokers for Customers from the Philippines
Binary Option Brokers in Malaysia
In Malaysia, binary options trading is extremely popular. There are currently two Malaysian Government organizations that are regulated and licensed binary options brokers. These are the Bank Negara Malaysia and the Securities Commission of Malaysia. After an extensive search for any regulated binary options brokers in Malaysia, we could not find one as of this writing.This is due to the fact that at this time the primary focus of the binary options market is based in Australia and Europe. However, this has not stopped Malaysian residents from taking part in binary options trading with CySEC & ASIC regulated brokers as well as unregulated brokers.
Best Brokers for Malaysian Customers
Binary Options Brokers Russia: Rules and Regulations
In the world of binary options trading, Russia is starting to get the reputation as a force with which to be reckoned. However, there have recently been some new developments due to recent economic sanctions which have been placed on Russia by the European Union and the US. We will then discuss the overall role of binary options in Russia as well how, if at all, the sanctions have affected the market.It is not illegal per the Russian government to trade binary options so therefore Russian citizen are permitted to do so. Traders in Russia have two options for binary options brokers and they are as follows:
1. They are able to trade with local binary options brokers
2. They are able to trade with offshore brokers that are regulated in other nations.
Safe and Recommended Brokers for Russian Customers
Tips for Comparing and Choosing a Binary Options Trading Broker
The world of trading offers many exciting opportunities and they can be best enjoyed with the guidance of a binary options broker. Choosing a broker that works best for your trading needs can be a daunting and frightening experience but it’s a necessary one for certain. The brokers can help them perform better when trading and instruct them on getting the best return on their investment.
There are several binary options brokers out there who are eager to assist you as a client. However, it is important to remember that choosing a binary options broker can be a detailed process and it’s important to find one that is capable of performing all of the necessary trading tasks. Below are some helpful tips to simplify the process and assist with finding the best broker for your trading needs.
1. Deposit bonus – how much bonus you get on your first deposit and redeposit.
2. Payout – Binary options trading produces varied payouts. Some brokers present variable options that allow them to exit the options prior to the expiration date. Sometimes brokers (for example 24Option) allow payouts as great as ninety one percent per trade. The goal for most people in trading is to make money and with a great binary broker, they can succeed. In addition, look for the following benefits:
– Various Payment Options
– High Bonuses
– Outstanding Customer Support
3. Deposit and withdrawal options – the trading platforms have different ways of depositing and withdrawing money. Check the one that is suitable for you.
4. Types of stock options and warrants closing times
5. Minimum deposit – trading platforms require different amounts of minimum deposit for you to start trading. Look for the one that is suitable for you.
6. Trading tools – some trading platforms may have trading signals and automatic trading while some do not have. Choose the platform depending on the trading tools that you prefer.
7. Demo account – various trading platforms cater for its binary options traders, especially the first time investors by providing them with a demo account. This helps to create experience in trading before ones does the actual trading.
8. Customer service – find out if the trading platform has good customer service to cater for all your enquiries concerning binary option trading.
9. Simple User Interface – This is a dependable and professionally structured trading program that offers a simple user interface. This helps to conserve time and effort for the user. The majority of the programs are web based and should be and is recognized as a simple program with interactive controls.
10. Multiple Asset Investing – One of the major benefits of professional software is that is doesn’t restrict investing. Dependable binary options brokers should provide a means for investors to make multiple investments in various assets such as forex, commodities and stocks. This increases the profit margin for the investor.
11. Expiry Dates Info – Dependable brokers offer expiry dates on a weekly frequency, while offering some daily or hourly options as well. The maximum trade control is obtained only when maximum expiry details exists.
12. Payout of Maximum Percentage – Dependable brokers offer their clients maximum payout percentage. Search for trade option platforms that present between 75 to 91 percent payout and even the unsuccessful trades will generate about a 5 to 10 percent return to investors.
13. Multiple Languages – Global trading options makes it extremely beneficial to have multiple languages and therefore, the platforms are being presented to support the language spectrum as well.
Despite the trading platforms having a lot in common, their way of trading may differ in terms of bonuses, initial deposit, the maximum payout, their means of depositing and withdrawing money, time of trading and their customer service. You may also find trading platforms, which give back to the trader a certain percentage of their investment if they do not win the returns. Therefore, it is important to find out information about the trading platforms before deciding on the ones to use. Using a binary option robot is often also profitable.
Binary Options Trading Guide
On this page, we will go through the basics of binary options trading. When trading with a binary option robot, you do not necessarily need to know anything about binary options investing, but it is useful to be aware of the mechanism by which option robot operates. Plus, if you are interested in binary options trading so much that you do not want to use the robot, you can do everything yourself. In addition, remember that the robot does not work with the best binary options brokers, so if you want to take advantage of every good money making opportunity, it is also good to know at least a little bit about binary options and option signals.
How Binary Option Robot Can Change Your Life? Check This Out!
TABLE OF CONTENT
How to Make Money with Binary Option Robot
Top Binary Option Robots in Russia
Claim your free binary option robot, get started with three easy steps:
- Name of Robot
- Min. Investment
- Min. Deposit
1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time.
2. The Binary Option Robot Will Predict the Price Movement
Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall.
3. Decide on how much you want to Invest
Then you need to decide how much you want to invest in the commodity and when that investment will expire.
4. Collect your Earnings
Finally, you collect your earnings (the good part!)
What Are Binary Options?
Binary options are definitely one of the most fascinating new investment instruments. Their history goes back as close as the year 2007 , when they first got a lot of advertising with Option Clearing Corporation proposing to authorize binary options , and in the following year, with the Securities and Exchange Commission approving the listing of cash-or-nothing binary options.
The investor has two possible options: “Call” when the value of the property is expected to rise , and “Put” when the value of the property is expected to decrease. In order to prevent price manipulation ( for example: an investor makes the first binary option trade “Call” with a very large sum of money, and after that, buys a very large amount of stocks of that company, inflating the stock price in order to force a binary option investment to be successful), many brokers use a volume-weighted average of trades at the expiration time. In most cases, price manipulation would not be even possible, because the investment objects are major companies , such as Google and Alibaba Group , whose share prices are almost impossible to be affected by an individual investor .
At some point in our lives, we’ve all been affected by some type of a global financial crisis. The end result is normally devaluation of assets, recession, unemployment which negatively impact global trade and investments.
Banc De Binary observed the aftermath of a financial crisis and decided to make an investment from it. After the 2008 financial meltdown, Banc De Binary founders anticipated for a demand in simpler ways to trade in the financial markets. As a result, they designed a simpler instrument of trading that was both accessible to experienced and disheartened investors. And that is how binary trading began. Today, they are quite a number of binary option platforms that offer on-line trading. What’s more is that you can use a binary robot trading software which will do all the trading for you.
Binary options trading is a fun and exciting way to invest.
Binary Options Defined
So, what is a binary option? A binary option is an investment tool that makes profit from price movement in stocks, currency pairs, among other commodities. This trading investment is so simple in that it gives traders only two possible options: yes or no. It is the dual choice that resulted to the name ‘binary’ or the commonly used term ‘Call’ or ‘Put’.
Now that we have already established that profits in binary trading are derived from price movements, it is important to understand the trends that result to these movements. Trading can be easy but identifying the patterns that lead to a successful trade can prove to be a daunting task.
The global market is never constant, it keeps changing. If you want to make the most out of your trading, you probably should identify strategies that will make use of these changes. Read through to discover some of the strategies that you need to look out for.
1. Look Out for Breakout
A breakout normally occurs when prices trade within a close-fitting range. The main idea behind breakouts is to identify a price range in which the present price will ‘break through’ as it moves towards a trading range. This means that you need to identify a potential break out level and further anticipate for it to prevail in the market. The stronger your breakout level, the more likely you will experience a strong move.
When looking out for a breakout level, you also need to identify a market’s momentum. This means that you need execute your trades in times of low liquidity. This is usually towards the end of the market when the volume is stronger.
Key considerations for a breakout trading strategy
- It is important to adhere to correct timing in order to avoid whipsaws and pullbacks that normally arise from a break.
- Identify the right market for trading. Use currency pairs because they tend to have more breakout opportunities as compared to other binary assets. What’s more is that currency pairs carry the levels volatility required in breakout trading. Breakout requires an asset that shows a considerable amount of movement during a set period of time. As a result currency pairs works best.
- Avoid early anticipation of a break: wait until your breakout level confirms.
- Remember that defining your breakout level will highly depend on the type of asset you’re trading and the time period that has been set.
Beware of fake outs: this is simply a break out that is not real. There are times when the market tends to test a resistance or support line. In such an instance, the price can briefly shoot above or below and right after go down again to generate a spike. Avoiding a fake out largely depends on experience and an authentic trading system. It is important to note that choppy markets are characterized by fake outs. Smoother markets on the other hand are less likely to generate them.
Basic situations in a binary options trade. Tom and Jim are basically “betting “against each other.
2. Watch Out for Retracements
A retracement is defined as a price reversal that usually takes place within a larger trend. A trend is generally seen as the direction of a market or the direction of a price asset. The key point here is that these price reversals are temporary. They do not imply to a change is a larger trend like breakouts.
If you open an asset chart, you are likely to see a retracement. Even in a strongly trending market, you will notice little peaks or dips which counter the general movement before resuming its course.
How can I use a retrace to my advantage? When you have spotted a trend, it is important to wait for the first retracement to complete before entering a trade. A completed retracement tests resistance or support which further acts as a confirmation of a certain price direction.
Let us say you are interested in buying gold probably because you believe that its price is going to skyrocket. Your immediate reaction is to place a ‘buy’ on the binary option for gold. However, when price retraces you will find yourself loosing. There is also the possibility that you’re misinformed about the trend; the signal you are observing might be a fake out and not a break out.
On the other side, you can wait for the initial retracement to happen and right after enter your gold trade. This way, you stand a better chance of making the right move since the counter movement will have been tested by the market with support being held firm. It is good to understand that you will still be faced with retracements ahead. Even the strongest of trends is usually faced with minor retraces.
3. Identify Support and Resistance Levels
Identifying support and resistance levels is one of the most reliable strategies in binary trading. A support level is defined as that level that keeps the market from attaining lower levels after it has been rejected at least twice. Resistance level on the other hand is defined as that level that prevents the market from attaining high levels after being rejected at least twice.
There are normally three things that happen after a market has hit a resistance or support level:
Knowing what the market is likely to adapt to after attaining these levels makes it easier for one to design a trade strategy based on that information.
You can only identify support and resistance levels through plotting. This allows you to see where the price is hesitating upon current levels. It also allows you to see other future areas where price might likely hesitate at. These levels are commonly termed as “pivot levels”. Pivot points can also help one to figure out the most viable expiry time for a specific trade.
How can one trade by using support and resistance levels?
For an upward trend, the price has to go above the resistance level. If it does not go higher than the resistance level, it will either maintain its position above support level, form a range or take a downward trend. You can go a long way when prices go beyond resistance level. This is because it forms another peak which is usually higher than the previous level.
For a downward trend, the price has break right below the support level. If this does not happen it will maintain its position above the support level, form a range or adopt an uptrend. With a support level you can go short when prices break below this point. When a price breaks below this point, it goes lower to form another support level which is lower than the previous one.
Points to note:
- The more a price is tested at a certain support or resistance level without attaining a breakout, the stronger that resistance or support level is.
- When support levels are broken they become resistance levels and when resistance levels are broken they become support levels.
4. Recognize Market Conditions
One strategy that will take you far while doing binary trading is recognizing and interpreting different market situations. The binary market can be highly compared to the weather, it comes in different patterns. One time it will be smooth sailing, the other time it will be choppy and unpredictable. Listed below are the various examples of a market condition.
- a) Ranging Markets
This is a type of market that keeps moving back and forth between higher highs and higher lows making it difficult to attain a breakout. It can be tough to profit from a ranging market but there are different types of trading that could feasibly help you become profitable. These include:
Boundary or trade ranges: they are designed to help one profit when price is trading within a particular range or channel. When you are range trading, what you’re basically implying is: price won’t go beyond the defined range boundaries. If indeed price does not go beyond the set boundary then you make a profit.
No touch trade: this type of trading implies that price will not touch a specific set value at a given time period. If price touches the set value, too bad because you lose. You win the trade when price does not touch the given value. Payout usually depends on how close the set value is to the current market value for a specific asset.
- b) Trending Markets
This is a type of market that is characterized by prices moving towards an obvious direction through a systematic and well-defined fashion.
The dominant movement in a trending market is upwards and downwards. Profits can be made by spotting trends as they develop.
- c) Chopping Markets
Many people confuse chopping markets with ranging markets. They have some similarities but unlike a well behaved boundary market, choppy markets feature whipsaws, spikes and other various forms of misdirection that can easily trap an unwitting trader.
The easiest way to identify a choppy market is through trading bars. A choppy chart is characterized by lots of bars that are coupled with relatively short bodies and long wicks. When you identify long wicks it means that the market has been testing high and low prices but is still facing too much resistance or support to move anywhere.
Is it possible to profit from a choppy market? In rare cases it is but most people don’t trade on it. The wisest choice is normally to wait until things smoothen again.
5. Use Trend Signals
How can one spot a potential breakout? Through using methods that easily identify breakout signals. Basically, a trading method identifies when to enter trade based on fundamental indicators, events and price changes. A trading method can also help identify the best trade. Listed below are some of the prominent trade methods that can be used to identify trend signals.
- Technical analysis: this is a trading method that revolves around technical analysis. You are simply required to plot indicators on an identified chart. This will help to spot breakouts.
- Fundamental analysis: it involves looking at important events, new releases which can drive price movement towards a particular direction.
- Price action: this is simply the process of identifying certain formations in bars or candlesticks that signal the ability of price to break out from its range.
Tips and Tricks that will get you Ahead in Binary Trading
Apart from binary strategies, there are a few tricks and tips you can add up to your sleeves to make sure you always make the right trading choice.
Find a working strategy
There are numerous strategies out there. Finding one that personally suits you can prove to be a daunting task. It will involve the process of testing numerous systems and strategies. When you identify one that works, stick to it as you continue learning all the ins and outs of it.
Stick to longer expiry dates
It is normal to want everything to happen “now”. Have you ever heard of the saying that ‘good things happen to those that wait.” This is more true when it comes to binary trading. Markets have a lot of noise and it can be easy to get tempted to trade on smaller time frames.
This can work but in most times, the trade usually goes right for a while then it takes a turn towards a downward trend..This happens all the time and it can be very frustrating.
Trading with longer expiry dates cancel out the option of listening to market noise. However, this is not to say that you should never use short expiry dates. With experience and the right strategy, a short expiry time can have its moments.
Put your Emotions in Check
Statics indicate that the biggest reason why most traders fail is because they never take charge of their emotions. Trading psychology is a difficult aspect to overcome and it might take years before you can fully function out of emotions.One tip that will help you is to always
go with what you know rather than that gut feeling.This means submerging yourself more in the learning process in order to make decisions on facts rather than intuition.
Identify the right broker
Identifying the right broker is essential in making a successful trade. There are numerous traders in the market and it is up to you to identify a legitimate, reputable, trustworthy and professional broker.
Some of the things you need to look out for when identifying a broker include: withdrawal times, customer support, tradable assets, payout percentages, regulation among others. At the end of the day, a broker should fit within your needs and preference.
Practice makes perfect
If you want to become a master in binary trading, it boils down to three things; practice, practice and more practice. You don’t have to use real money when practicing. With demo accounts you can trade without spending a dime. Try back testing by using various historical charts while identifying different assets and at the same time looking for trading opportunities. Try and find out what will happen if you followed particular entry rules within different market situations.
In order to achieve success, it is recommended that you present yourself at a trading market for at least one hour a day. During that time you can make up to three or more trades. In the first few months it is important to dedicate yourself to learning.
Don’t fall in love with just one asset or strategy
The market is never constant, it keeps changing. So is the assets behavior. Committing yourself to just one strategy or asset is setting yourself up for a pitfall. For you to succeed, you have to be dynamic and rational. When a market change occurs be ready to adjust it to your trading performance. Make sure you do your homework right by looking out for all the adjustments needed for your daily trading routine.
Binary options trading is sometimes extremely fast paced.
The Future of Binary Options Trading
It has been seven years since the platform for retail binary option trading first rolled out. What does the future hold? Knowing what the future holds will help you get ahead of time and in return experience greater success.
According to experts, the future appears to be bright and fully loaded with opportunities for growth. Some of these opportunities include:
New Asset Types
Technology and innovation is continually resulting to the existence of new trading assets. The number of assets that can be traded is expanding. There are brokers who have started to offer crypto-currency Bitcoin as an item for trading.
Today, traders are demanding more asset ratios from their brokers such as gold verses silver or oil verses gold. One thing that many brokers will never tell you is that you can succeed by scrambling for these new asset ratios. Make sure you watch out for them.
Experts are also foreseeing the probability of new binary option contracts which are based on economic data releases. For example it may soon be possible to bet on high impact news release. These include building permits, consumer sentiment surveys, among many others. These releases can cause specific assets to hit or not hit specific price targets.
New Trading Types
The advent of new trading types is one thing that savvy traders should look forward to. Japan has taken the front line and has already set the ball rolling by launching a new trade platform that features exciting trade types that conform to regulatory conditions set by FFAJ. An example is the introduction of 0-100 binaries
Use of software and technology
Existence of new software has made trading to be easier than it used to be. The market is already faced with trading robots which have an automated software attached to browsers, This allows them to communicate with trading platforms and in return execute trade for traders operating on an automated basis.
Binary trading is still a fairly new investment tool and many may shy away from it. The truth is that binary option trading is an investment just like any other. It possess its unique advantages and disadvantages. However unlike many other investment vehicles, binary options:
- Have fast returns: for many investments you have to wait for at least six months before you start experiencing high levels of profits. With binary options it is possible to see returns right after 60 seconds. Most have an expiry date of one day or shorter.
- It’s the easiest form of investment: all you need to do is learn a few tricks and you are good to go. What’s more is that you will be trading only on a dual basis. It doesn’t get any easier than that.
- Have high returns: it is possible to experience a return of 70% and above.
With that said, it is time to learn how binary trading actually works. If you play close attention to the strategies mentioned above, you may be surprised with the amount of money you will be able to earn. What’s more is that we’ve provided you with some tricks and tips that will help you get ahead.
If you want to know the main differences between binary options and forex trading, I recommend you to read the following article:
- Binary Options vs. Forex (Differences explained . You will also learn which one fits you better and why . )
How to trade with binary options? A simple four-step guide.
Step 1: Choose the trading asset. First, you have to choose your preferred trading asset. You have hundreds of different options at your disposal, such as stocks, currencies, commodities and indices .
Step 2: Choose the direction. Next, you need to select a direction. If you believe that the price will increase, select “call,” but if you believe it will decrease, select “put.”
Step 3: Choose the desired investment amount. You need to choose the amount you wish to invest. This can be anything from a few dollars to tens of thousands of dollars.
Step 4: Choose the expiration time. Select the time when you want your investment to expire. This can be anything between 30 seconds and several months.
After this, you just need to wait and see if your investment went right.
Example of a binary options trade
The starting price of gold is $1,167 at 12:30 p.m., with an expiration time of 60 minutes.
If a trader thinks that the price of gold will close at or above $1,167 at 1:30 p.m. , he/she can buy a “call” option contract on that outcome. If a trader thinks that the gold price will close at or below $1,167 at 1:30 p.m. , he can buy a “put” option contract. If the value is more than $1,167 at the expiration time, the “call” investment will win , but if the value is less than $1,167, the “put” investment will win .
How do I earn money using Binary Options?
Earning with binary options is easier than you may initially believe. You just need to know if the value of the trading asset is more likely to move up or down. Remember that not every trade needs to go right; it is sufficient that you make a profit in the long term. Please check out the following simple example of how to make money with Binary Options.
Step 1: Choose the right trading asset
This is the main point of Binary Options trading. You should start thinking about what trading asset could be the most suitable for you. Do you have first-hand knowledge of some asset? Do you have a strong view on what direction the value of a particular trading asset will change? Do you have friends or relatives who have strong knowledge of some trading asset? If so, can you use it in your investment?
If you answered yes to any of the above questions, you know where you should start. However, if your answer to all questions is no, then you have in front of you a little bit bigger task, but the reward is also in the best case really good.
How do I find the right trading asset without prior investment knowledge?
One of the most important factors is to follow the financial news . Is there something happening in the world now which you could benefit from in your binary options investments? You can also explore what trading assets brokers are offering and which would be fastest for you to learn. Alternatively, are there any trading assets that you are particularly interested to learn better?
One of the advantages of binary options is that you can make big profits from the mere fluctuations in the value of assets. For example, if the value of gold rises and falls back and forth from one day to the other , but it remains within a few percent of the same range in what it was a year ago, you will still have the opportunity to earn large sums of money, if you have correctly anticipated the direction of the change. On the other hand, if you had invested directly in gold , the value would be close to the same one that existed a year ago .
Step 2: Choose the right trading strategy
Binary Options Strategy Articles:
As a binary option investor, you have a number of different strategies and options at your disposal . I recommend trying several different strategies and use the most profitable . Once you have learned how to productively use one of the strategies, you can gradually increase other ones into your repertoire. This way , you will always have several different options for obtaining as high yields as possible. Next, we will discuss the ten most popular and profitable strategies.
Strategy number one: Binary option pairs
In binary option pairs trading , you have two different trading assets and you need to know if either value will increase compared to the other within a desired period . This is a particularly good strategy in situations in which you think that a specific event will raise the value of another trading asset and decline the value of another . Even if your guess would go a little bit wrong, and the value of both declines, you can still win if that which you originally though would decline actually declines even more .
Gold vs. Silver is one of the most popular trading pairs
Strategy number two: Long-term binary options
Long-term binary options are similar to stock investing. The expiration time may vary from a few hours to several days and even months. This is my personal favorite strategy. It is ideal for individuals who invest larger amounts of money and want to carefully analyze the trading assets before investing.
Strategy number three: Sixty-second binary options
Sixty-second binary options are the precise opposite of the long-term binary options. They are a short-term form of investment in which the risks are considerable , but if you learn how to make profit with them, only the sky is the limit for how much money you can earn with them. Sixty-second options are suitable for investors who are able to accept the fact that if they want to win a lot of money , they have to be willing to lose a lot from time to time.
Strategy number four: One touch binary options
When you are trading with one touch binary options, you make profit when the rate goes above or below the set target price. On the plus side is the fact that once you hit the target price, your investment cannot go wrong , even if the value of the asset changes in the other direction strongly thereafter.
Strategy number five: Binary options ladder trading
Ladder trading means what the name suggests: you have many different levels, each of which are paid a certain percentage of yield. This form of investment is suitable for those cases in which the investor believes he knows which direction the trading assets value will follow , but it is not sure at all of how much value eventually will change and in what time frame.
Ladder trading is an excellent strategy for skilled investors. You can get very high returns in a short time.
Strategy number six: Pinocchio strategy
This is one of the clearest and simplest strategies. When the value of the trading asset rises, it is expected to fall next , and when value of asset falls , it is expected to rise. The investor always invests in the opposite direction of the market trend. It operates under the assumption that markets often overreact to certain news, and because of this, value changes momentarily more than it should change, correcting itself, sooner or later.
Candelstick charts are an excellent tool for for those that uses pinocchio strategy
Strategy number seven: Support and resistance lines strategy
Support line is the point of which value does not change lower and the resistance line is the point of what higher value does not rise. These often apply particularly in certain commodities, such as the value of coffee or sugar. When values are sawing a certain range within the framework, it is easy for the investor to benefit, when he discovers that the value is approaching one of the two levels and will most likely will go in the other direction very soon.
Strategy number eight: Trend strategy
Trend strategy is also a very simple strategy, and something that both novices and experienced traders often use, considering it is really good and functional. In trend strategy , you invest in the market trend ; if it is rising, you place a “call” investment, but if it is descending , you place a “put” investment . You can use support and resistance lines for help to assess when the trend direction changes.
Strategy number nine: Martingale & anti-martingale strategy
Martingale is a strategy especially and frequently used in gambling . In martingale , you always double the bet when the investment goes wrong. This way , you make profit even if you just get one of those investments to go right. Martingale is really a high-risk strategy ; you rarely lose when you use it, but when you lose, the amounts tend to be big . The reversed version of this strategy is anti-martingale. Through it, the stakes are only doubled when the investment is correct ; wins are rare, but the sums tend to be big . Please read more about the Martingale strategy on the following article:
- Binary Options Martingale Strategy (Can you earn tens of thousands of dollars using it? All the secrets of this strategy are now being revealed for the first time.)
Strategy number ten: Fundamental analysis
Fundamental analysis is often used in stock trading ; it focuses on the determination of the real value of the investment object , based on various economic indicators , such as : the overall economic picture, the profitability of the industry , and future growth prospects. Making fundamental analysis requires a lot of time and effort, but the end results obtained can be generally utilized in various ways.
You can also mix the strategies as desired . For best results, I recommend you to first study a single strategy properly.
Step 3: Choose the right broker
Choosing the right broker is extremely important, as there are some dishonest operators on the market who are trying to ruin the reputation of honest ones by acting unethically. We only mention the most honest and reliable binary option brokers on our recommendations . If you only invest on our recommended brokers and open accounts through our links , you can have peace of mind and more time to focus on the most important thing : making money by investing. Our number one recommendation is IQ Option , as they have the smallest minimum deposit ($10), the best trading platform and the best bonuses.Best Binary Options Brokers 2020:
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