The basic knowledge that every trader of binary options must know

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

The basic knowledge that every trader of binary options must know

Foreword

In online trading binary options today there is a rather interesting situation – many beginning investors believe that option trading is so simple that it starts working without any knowledge. This, of course, leads to a negative result in the form of the pattern of commercial capital. Against this background, we decided to analyze the question – what basic knowledge should a beginner trader have for successful work in the market. We hope that such recommendations will protect many newcomers from financial losses and allow them to become successful participants in exchange trading by binary options.

Do you want to become successful and get a stable result from the first trade contracts? Then you need to have a set of basic knowledge

– For the beginning of each potential investor it is necessary to understand the mechanism of operation of the binary option. Thus, a beginner will not only receive senior theoretical knowledge in binary trading, but also can assess the effectiveness of trade and own forces in exchange trading. And, of course, as you understand, without knowing the basic principles of the tool, it is absolutely impossible to use it effectively in the work on the market.

– The second important point of self-education of a novice investor is the study of the principles of market analysis. The market, despite the chaos and unpredictability, is subject to various technical laws and economic laws, which allows for this to effectively predict the quotations. To become successful, you need to have the widest possible knowledge in technical analysis. This format of market valuation has a large range of measurements and high efficiency of advertising and trading signals. The study of technical analysis allows you to understand the work of special automatic forecasting tools – indicators; It will give an opportunity to work in the market, using graphic patterns of movement in the form of Japanese candles. In general, speaking globally, technical analysis can be used in trading. Thus, technical analysis refers to a mandatory set of basic knowledge.

– As the third position of the mandatory list of basic knowledge, we propose to study the issue of money management and trade risks. Of course, no investor wants to lose his capital and achieve the most stable result. But option trading, as well as everything related to risks, refers to risky methods of making a profit. Therefore, losses here are quite natural. The issue in the aggregate of losses and the extent of their impact on the total amount of trading funds. Simply put, the final trading result, but its volume will not be critical for operating funds and will have a minimal impact on the final trading result. For this there is such a thing as money management. This is a set of rules for managing capital in the process of trading and the level of risks in each area. A set of these rules allows you to receive valuable profits in relatively safe conditions for a deposit.

– To get a basic set of knowledge in option trading, you do not need to exert much effort and spend money and time. All the subtleties of binary trading processes can be found on the websites of brokers. For example, Binomo, one of the market leaders, offers a very effective trading training system that allows you to get all the necessary knowledge for a successful start on the market for free and as quickly as possible.

Let’s sum up the results

A simple set of knowledge in the issues of the operation of options, technical analysis and approaches to capital management, which allows you to gain access to profit in the binary market in the most professional mode, which will logically give a stable financial result.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

What should a trader know about trading binary options?

Thanks to the profitability and simplicity of the algorithm for the operation of binary options, this line of online trading is gaining momentum in popularity among ordinary investors. But many potential traders can not at the beginning of their career determine the most important aspects of the tool, which allow you to get the maximum and stable profits. Against this background, we offer you a list of important aspects of working with binary options, which every successful trader should know.

A reliable broker is the key to success and security of investments

Considering that all technical processes of trading and making profit on binary options are held online, with the help of specialized trading services, the problem of choosing a partner comes to the fore. Work in the market with the help of a broker is a technical necessity, which is conditioned by the requirements and rules of market regulators. Without the intermediation of a brokerage company, you simply can not open a trading position in the market. And here a lot of problems arise. First, there are a lot of companies on the market that offer a wide range of products and services, which makes the process of choosing a partner difficult. But most importantly, among the variety of brokers often there are scammers, whose task is to steal your funds with a large set of receptions. Secondly, to achieve real success in the binary market, we need a professional technical tool in the form of a trading terminal with good functionality and a set of technical services. And, thirdly, choosing the right partner is first and foremost the safety of your funds. To choose a reliable and professional broker, we recommend paying attention to such parameters of its operation:

– availability of the marketing license of the regulator;

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

– professional level of the company’s trading platform;

– financial terms of cooperation;

– the regime and terms of monetization of funds received from trading;

– economic performance of the operator of the market;

– the overall reputation and characteristics of the company in the network.

As an example of an effective partner with the optimal technical and financial conditions of trading and maximum safety for investments, companies that today meet all the requirements of regulators can be offered. These operators of the market now occupy a large segment of the market for these services and provide the most favorable conditions for traders to the partnership.

The effectiveness of trade depends on knowledge and experience

Most potential traders consider option trading a simple occupation that does not require special knowledge. But this is not so: it is impossible to earn here, relying on chance and guessing! Only professional technical analysis, a clear understanding of the market and technical processes of trading will give you a stable indicator of capital growth. For this there is no need to study in a college or university – you can get the necessary amount of knowledge and skills on brokerage sites where the learning process is offered on a free basis. When you completely understand the theory and can effectively apply your knowledge in practice, your trading on the market will give good results.

Trading system: the main tool of the trader

To get the most stable result in the option market, each trader needs a strategy! Using certain rules of work and a set of special tools and approaches for technical analysis of asset quotes, a trader takes precedence over the market. It is expressed in the formatting of profitable trading statistics. On binary options it is enough to make out 60% of productive contracts in order to constantly increase capital. For this, there is a wide variety of specialized technical strategies. With the classic methods of trading in the binary market, you can get acquainted with the service of many companies, which offer a set of the most effective methods of trading.

Money management is the security of your funds

In the work of each trader, there are many psychological factors that always influence the final trading result. First and foremost, this is greed, which forces investors to take unreasonable financial risks. The result of such trading is the loss of operating capital. To consistently earn and keep your money safe, follow the rules of money management clearly. These rules are simple and are available for each trader to execute binary options. Only using the optimal financial indicators of the value of contracts, you can earn income in a stable mode and with full protection of investments.

Let’s sum up. As you can see, binary options are a simple tool for earning money and for its effective use there is a rather small list of recommendations. But their importance and the degree of influence on the result are invaluable!

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Things Every Trader Should Know About Binary Options

If you are looking for an article about trading techniques or tactics this is not it. This is an article unveiling many of the truths, or half truths, surrounding the binary options industry. Am I talking about scams, affiliate marketers, tipsters or gurus? No, I am talking about the industry itself, where it came from, where it is, where it is going and why you need to know. The industry exists on the internet, largely outside the lines of international boundaries and utilizing the digital marketplace in a way that allows average traders access that would otherwise not be possible. Some of the benefits of binary options includes simplified trading, fixed pricing/returns, no need for margin accounts and access to assets otherwise prohibited by account size or type. The main reason binary is so popular is because of this unprecedented access, easy to trade format and fixed returns.

Where Did Binary Options Come From?

Binary options have always existed. They originated as a gentleman’s bet between market participants and existed on the sidelines of legitimate trading. That is until the CFTC, along with the SEC, began to change the rules and allow for over-the-counter binary options trading. This change to rule, although misguidedly, led to the rise of the modern binary options industry. The thing is, 99.9% of binary options brokers on the internet today are not what the CFTC intended, are not CFTC compliant and therefore not acceptable for US citizens. This however did not stop many brokers from building platforms and offering what are now termed European or CySEC style binary options. Now there are several categories of binary including CFTC, CySEC, Japan FSA, “off shore” and few others. This means that there are a number of options, no pun intended, for traders to choose from.

Binary Options Regulation Is Not Regular

As I mentioned above the US CFTC, Commodities and Futures Trading Commission, is in charge of the rules and regulations surrounding the trading of binary options in the US. They have set forth a number of regulations that resulted in a unique form of binary trading known as 0-100 binary. These options have different strike prices and can be bought or sold at any time. NADEX and Cantor Exchange are the two most notable sources of binary in the US. For many years everything else was simply referred to as “off shore” binary. Off-shore binary is based on spot prices, you trade or bet the amount of your choosing on whether or not the asset will move higher or lower from the current, or “spot” price. These brokers were set up in banking havens like the Virgin Islands, The Seychelles and on Cyprus, where the first true non-US binary regulation took place. CySEC, the Cyprus Securities and Exchange Commission, began to regulate binary in 2020 and has made some real progress in terms of standardizing broker operations and ensuring the safety of trader money. Since then Japan has also entered the fray enforcing a style of trading that encompasses parts of both styles. To this day there is still no international standard or regulation for binary so traders often must choose to trade at their own risk with an unapproved or unregulated broker.

What Is The Difference Between A Platform and A Binary Options Broker?

A binary options platform is the software that enables trading. For the user it is what appears on the screen when you open your account to trade. The thing to keep in mind that the platform is not neccesarily the same thing as a broker. There are several white label platforms on the market that a business can buy or subscribe to in order to set up a binary options brokerage. SpotOption is perhaps the most well known of the white label platforms. There are several hundred binary option brands based on the SpotOption or Spot2 platforms. These brokers also share a central cashier system as well as other features. Some notable brokers using this platform are Banc De Binary, OptionTrade and Titantrade.

Now, there is also a big big difference between brokers, and not just between different regulatory types although that is a big difference as well. As mentioned previously US CFTC options at NADEX are based on the 0-100 method whereas CySEC options are based on the spot price. The thing is, not all CySEC, or CySEC style brokers, use the same math to determine the “spot” price. It is based on their own formulas and includes risk mitigating factors to help the broker maintain positive cash flow. In the end each CySEC style broker sells options at the rate at which they “feel comfortable selling options”, not the true market price. On top of that they do not all have the same assets, the same expiry types or even the same options. All will have a form of high/low, over/under or call/put trading and most will offer something else that may include range, boundary, one touch or speed trading. Regulation only adds to the confusion instead of helping it. A broker or platform regulated in one arena may not be regulated in another in which operates.

The Bottom Line

The bottom line is that binary options are here to stay. The state of regulation only proves it, if it were a passing fad then the practice would get squashed and fade away. Of course, there is still a long way to go before there is an international standard which will allow binary to be traded like forex but we are on the way. Until then education is the key for successful trading. Not only do you have to be a savvy trader you must know everything you can about binary option regulation, the platforms, the brokers and how it all relates to you and where you live. Choosing the wrong broker is more than having the right assets or expiry available, it means choosing the right broker and platform for you and where you live.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

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