Where Can You Trade Binary Options – FAQ

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!

Contents

Binary options trading – Frequently Asked Questions

This page offers you answers to the most frequently asked questions on binary options that I receive every day in my mailbox. I hope you’ll find everything you need and everything that interests you.

I am new to trading and would like to start. Can you give me some advice?

My best advice is: Always be learning something new. Be it more trading patterns, watching videos of successful traders, going to trading workshops. This webpage may serve as your inspiration or source of learning materials. Alse I recommend to have a look at the tips for beginners.

I don’t want to invest just yet, but I would like to try binary options. Can I open a free demo account?

Sure, it is also highly recommended! You should never trade with real money, unless your trading pattern was proven in test conditions at a demo mode. This can be accomplished on our demo account which is available for free and does not require registration. Just open this page and start trading!

Also, a complete list with brokers who offer a demo account is available here: Binary options brokers with demo.

What is MetaTrader and why do you keep talking about it?

Metatrader 4 is a program that shows us nice graphs of price movement in stocks, commodities and currency pairs. This program shows very clear and customizable charts (much better than what the brokers show) and that’s the reason why you’ll be able to recognize and estimate the further development of the prices. More on this program in our MetaTrader 4 Show. In general, it’ll make you a better trader and that’s why I keep talking about it. ��

Where does the money that traders earn come from?

It’s simple: From the people that don’t make it.

A little bit more complicated: Let’s say that a broker has 100 traders. 50 of them will choose the exact same option CALL and 50 choose PUT. Everyone invests $10. Broker then has $1000 all together from his 100 traders. Only 50 will be successful, so then the broker has to give 50*$10* profit (for example 80%) = $900, but they are still left with another $100.

Can I start with binary options even though I don’t know much about stock market or Forex?

Sure, you can, but you’ll need a bit of a practice and study. You can start by reading our tips for beginners and I also suggest reading some ebooks that can be found on our website, including our own articles.

What is the best “binary option strategy”?

If you are looking for a trading pattern, that will guarantee you great results, then you are wrong. There is no super indicator thanks to which we’d be able to win all of the trades (that would be awesome though ��

It is important to learn to analyse the chart and our Technical analysis show can help you with that and always, even though you are sure that your strategy is the best, use your head.

What is the minimum amount of money I can to invest?

Minimum deposit with the broker IQ Option is $10, but the amounts differ within different brokers. Minimal amount to trade is then $1.

So, if you’d like to try binary options trading, you could try our binary options demo completely free of charge. All you need to do is follow the steps on your screen.

I’d like to trade binary options. Do I have to be 18 years old?

Yes, if you want to trade binary options you have to be 18 years old. Without confirming your age (ID, for example) you won’t be able to withdraw any of your earnings. If you’re not old enough but are still keen to trade binary options, you have to trade on somebody else’s account.

How much can I earn with binary options?

I get asked this question quite a lot, but unfortunately there is no answer to that. How much will you earn trading binary options? That depends completely on you. The amount of your earnings depend on how much time have you spent and how much you understood the particular binary options.

What’s the maximum I can earn?

I really don’t know the exact amount and it’s not given anywhere. Let’s say, you’d be getting lucky and earning around $6000 a month, that would be a bit suspicious. It’s a lot of money and brokers wouldn’t possibly like that – as I’ve told you above. It’s all just speculation, but it could make sense.

Binary Options FAQ – Binary Options Frequently Asked Questions

Welcome to my binary Options FAQ section! You still got questions about binary options trading and how to choose the best binary options broker for your needs? Keep on reading to find the frequently asked questions about binary options and how to trade them!

Binary Options Faq´s Answered

What are binary options?

Binary Options are a fixed return financial trading instrument limited to two possible outcomes, In the Money (Won option) or Out of the Money (Lost Option). You can read a detailed explanation here!

When can you trade binary options?

This depends on the asset you are trading, there are currency pairs, stocks, indices and commodities you can trade as binary options. Normally you can trade while the markets are open, this depends on the form of asset you are trading!

Is it legal in my country of residence to trade binary options?

This depends mainly on your broker. In most countries it’s legal, but many brokers don´t accept trades from all countries! If you live in the USA for example, it becomes hard to find a broker accepting clients from the US!

Do I need any software to trade binary options?

Normally not really, but I highly recommend a real-time chart software like the Metatrader 4 or 5 for example! Depending on your Broker its also possible to download a trading desktop application or mobile app, so for example IQ Option!

Where to trade binary options?

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!

This depends on the country you are living on the one hand and what you want to trade exactly. Other points to consider are the amount you want to invest and what assets you want to trade mainly! You can check out my broker tests to find the best binary options broker for your needs!

How much do I need to invest to trade binary options?

This depends mainly on your broker and your money management. Never trade with more than 5% of your overall account balance in a single trade. So if you plan to invest 200 USD into binary Options, you need a broker with a minimum trade amount not higher than 10 USD (200USD * 5% = 10USD)!

Can I make money trading binary options?

Basically yes, but not without the requirements needed to use binary options! Its needed to control your emotions as well as proper money management and knowledge about technical analysis and trading strategies/pattern.

How to predict market movements in order to trade binary options?

There are 1000s of methods to analyze and predict market movements, so-called trading patterns. The main problem is not to find the best, but to learn when to use wich trading pattern for best results! Anyway, you will never win all your trades, loses are a part of trading!

How to choose the right expiry for your trading pattern?

This depends on many factors like the trading pattern, the time frame and the kind of asset you want to trade! Ensure to test new pattern first inside a demo account (Check out my IQ Option review to get one) for a few days at least! After some time you will get some kind of feeling to choose the right expiry!

What does “In The Money (ITM) and Out of the Money (OTM) mean?

In the Money means that the binary options expire in your odds. If you trade a call option, the price needs to rise till the expiration, if you trade a put option the price needs to decrease till the end of the expiry time – In the case, an option ends in the money, you get back your investment as well as the additional profit! Out of the Money means the direct opposite, the option expired against your prediction, and you lost your investment! Read more about ITM and OTM here!

How much can you win if your trade expires “In The Money”?

This depends on your broker, but also on the asset you are trading as well as the expiration time you have chosen! You will know how much you can potentially earn before you enter the trade!

Are there good books for binary options?

There are only a few books about binary options trading, but many books about technical analysis and how to analyze the financial markets! Ensure to check back on this website in the near future for book reviews and more…..

DO I need to invest in order to try out the binary options principle?

No, you can open a free demo account at IQ Option for example in order to test binary options without risking any money – of course, you won´t make money this way!

I am new to trading and would like to start. Can you give me some advice?

Sure, just browse this website and learn more about the basics of binary options trading! Do not miss to search on youtube and Google for additional information about binary options trading!

What is the best “binary options trading pattern/strategy”?

There are too many factors define the best trading pattern for binary options! One reason is that the majority of a trading pattern is designed for a specific market situation. get this wrong and you will lose your money in most cases!

I’d like to trade binary options. Do I have to be 18 years old?

Yes, all regulated and the most un-regulated broker require a trader to be 18 years old or older!

How much can I earn trading binary options?

This depends on various factors! In the case you are an experienced trader it mainly depends on your performance, how much trades are you winning out of 100 on average? The other important aspect is your capital, the more you can invest in one trade, the higher your potential win in the case the option expires in the money!

Shall I lend money to invest in binary options?

No NEVER! Only invest the amount of money you can afford to lose! Even experienced Traders can lose their money!

Questions not answered in my binary options FAQ Section?

No problem! Just use the comment form on this binary options faq page and ask whatever you want related to binary option or trading in general! I will do my best to answer your questions as soon as possible!

7 Binary Options

How can I start trading with binary options?

1. Register to a trading platform/ broker, preferably one or more of our recommended platforms.

2. Select the asset or item to trade. For example, the EUR/ USD.

3. Determine the amount you wish to invest, make your prediction on direction the price of the asset will take. If you predict it will rise, select Call (up), and if you predict it will fall, select Put (down).

4. Collect your winnings.

Which trading platforms do you recommend?

We have collected and critically analyzed the best trading platforms, which are on this website. We recommend these platforms.

Which automatic trading software would you recommend?

We highly recommend Binary Option Robot program, which is the best in the industry. It will help you in trading and in getting the best results to generate more winnings and more money.

Which service do you recommend for buy/sell -signals?

We recommend the services covered by the absolute elite signal tip back and forth service.

What investing strategy do you recommend?

Trend Strategy is the commonly used and most profitable strategy.

What are binary options?

Binary options are options which when traded; one gets the payoff or gets nothing. One can either win or lose and therefore, the word binary which means two. The trader knows the income or loss before investing. Trader may invest in commodities, indices, and currency pairs.

Where can I open a free demo account for testing trading before using real money?

You can open a free demo account on Banc de Binary trading platform for you to practice. You will get $ 50,000 for use.

What do put and call mean?

These are options used in binary options trading / investing.

The Call (Up) option is used if you predict that the value of the asset will rise. If you predict that the value of the asset will reduce, then you select Put (Down).

What does the expiration time mean?

Expiration time is the time in which a particular trading expires. For instance, a 30 seconds trading expires after 30 seconds. It is at this time when you see if you have won or lost.

What does the maximum winning percentage for trading platforms mean?

It is the maximum returns, which you can get on an investment. For instance, in Banc de Binary platform it is 91%. If you invest $100, you get a profit of $91.

Is it possible to invest with a mobile device?

Yes, you can invest using a mobile device in many of our recommended platforms.

Do you have reviews of Forex Brokers too?

Yes, you can find full reviews here.

John Miller

Latest posts by John Miller (see all)

  • Interview of Daria Glazko from IQ Option – July 20, 2020
  • IQoption Adds New Deposit Feature and Forms New Partnership – July 5, 2020
  • How Binary Options Changed My Life and Got Me Out of Debt – June 7, 2020

2 comments

Very informative, t hanks

Leave a Reply Cancel reply

  • Average return in our test: 92%
  • Price: free
  • Compatible brokers: 5
  • Accepts US customers
  • 7BO Award 2020 winner – Best Robot

Best Auto Trading Robot

  • Average return in our test: 92%
  • Price: free
  • Compatible brokers: 5
  • Accepts US customers
  • 7BO Award 2020 winner – Best Robot

Best Robots and Signal Services

Recent Comments

  • Junus on OlympTrade
  • Fausto on IQ Option
  • MikeStock on IQ Option
  • Harry on Binary Option Robot
  • Thomas on ExpertOption
  • Xutos on IQ Option
  • RocketX on IQ Option

7 Binary Options News

Education

Newsletter

  • Average return in our test: 92%
  • Price: free
  • Compatible brokers: 5
  • Accepts US customers
  • 7BO Award 2020 winner – Best Robot

7BinaryOptions.com Worldwide

About Us & Disclaimer

Disclaimer: 7 Binary Options will not be held liable for any loss or damage resulting from reliance on the information contained within this website. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author. 7binaryoptions.com is only a website offering information – not a regulated broker or investment adviser, and none of the information is intended to guarantee future results.

Binary option trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade binary options or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

In accordance with FTC guidelines, 7BinaryOptions.com has financial relationships with some of the products and services mentioned on this website, and 7BinaryOptions.com may be compensated if consumers choose to click these links in our content and ultimately sign up for them.

By using this website you agree with the limitations and exclusions of liability set out in this disclaimer and the separate disclaimer page. If you do not agree with them, you must not use this website.

* Risk warning: Your capital might be at risk.

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

FAQs about Binary Options

In this article we try to answer some important questions you might ask about binary options trading. All questions come from interested readers or platforms such as forums where traders find answers. We hope that we can answer some of your most important questions and ensure a safe start into binary options trading.

First of all, you should choose the right broker and the broker that we recommend is IQ Option, the market leader with a superior trading platform that is very easy to use.

Can you make money with binary options?

It is obvious that you can make money with binary options trading. The question is how much and for what time frames? When you just buy one option for $25, you can earn $20 when the option is in the money, but is this already making money? It’s true that you make more money than your initial investment but not necessarily over the long term. But when you can earn $100 each month with a $1,000 investment over a long period of time than you definitely can make money. Just finishing a few options in the money is nothing special but making money over a longer period of time is. There are many traders that make a living with binary options but they put a lot of effort into it and they know the market very well. If you think you can make a living after reading a book or following a few trading tips then you’re wrong.

Are there good books for binary options?

Yes, there are a couple of great books that teach the fundamentals of binary options trading: Binary Options (click here for more details) and Trading Binary Options (more details through this link)

Do you have to pay taxes on earnings?

This is a very tough question that is impossible to answer with confidence. If you’re a non-US trader you have to check your country’s tax law. For US traders, it’s not clear because binary options trading is fairly new. Common sense is that it belongs to capital gain/loss and you can deduct losses from other capital income. But it might be possible that binary options is classified as betting/gambling like horse races or the lottery. In this case, you can’t deduct your net losses. If you’re serious about making money long term you should hire a tax consultant.

What are the best platforms for novice traders?

All major binary option platforms (like SpotOption and Tradologic) are great platforms for beginners since they are very easy to use and navigate. Binary options trading is fairly simple and so are binary options platforms. If you choose one of our listed brokers we’re confident that you won’t have any trouble handling the trading platform.

Are there demo accounts?

Generally speaking, there are demo accounts for binary options traders but the offering is poor. Some brokers allow you to use their demo platform when you make your first deposit. Others limit it to a few hours of use and others don’t even offer demo accounts. Other brokers just offer trading simulations. Read our article about demo accounts for more details.

Many new traders are searching for demo accounts without registration such as is possible with Forex trading. With binary options trading, this kind of demo account can’t be found anywhere at the moment. It is possible that brokers may offer it in the near future.

What’s the difference between brokers and traders?

Some newcomers mix up traders with brokers. A broker is someone that gives you the opportunity to trade with binary options. A trader is someone that is trading (selling and buying options) and needs a broker that offers a platform for these trades.

Is it possible to trade Facebook options?

After Facebook’s IPO, many traders spotted the opportunity to make money with going short because they thought that Facebook stocks were overrated and that the price would drop soon. A couple of weeks later (in August 2020), it was clear that they were right and the question is whether the stock will drop further or consolidate. You can trade Facebook stock options at Traderush for example.

What bonus conditions are available?

Many brokers offer their new traders a welcome bonus to make their stay more comfortable. Bonus conditions and rules vary between brokers. One broker may let you withdraw the bonus money after buying or selling options for 15 times the bonus amount and other brokers for 25 times. This is a huge difference and you should study all terms and conditions before you make your deposit and then compare brokers before you decide to take advantage of a certain bonus offer.

Trade with the worlds leading broker and join 15 million other traders!

IQ Option is one of the most reliable and secure brokers and a safe haven for all traders. This broker is regulated by CySEC and offers options for as low as $1, plenty of stock options and a great trading platform!

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!

Like this post? Please share to your friends:
Binary Options Trading Wiki
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: