Five Binary Trading Essentials
1. Binary options trading involves FAST reward and FAST risk. The speed of which binary trading occurs is paced much quicker than traditional investing. Trades happen literally as fast as 60 seconds (we explain later). Just know that the pace of trades is far quicker than traditional trading. This poses psychological challenges to traders because the allure of huge returns literally only moments away are extremely tempting. This leads traders into making some rash decsions and bad trades that end up costing them money.
2. Binary trading is more like placing a “one or the other” bet on an assets price movement than the actual buying or shorting of an assets stock. You never take any ownership of the underlying asset. You just predict it’s price movement. That’s why you will hear binary trading referred to binary betting interchangeably. As the trader, you ‘bet’ up or down and make your trade accordingly.
3. Magnitude of price movement is not a factor in your return. If you win by 1 pip or 20 pips it matters not with binaries. What does matter is price movement. As far as determining if your trade finishs in the money our out of the money. Magnitude of movement does not change your return / payout. Win by a little or win by a lot, with binaries it matters not.
4. Beware Of Bonuses – Binary brokers fiercly compete for your business and they offer very attractive looking deposit bonus offers. Beware. They come with terms and conditions that many traders blindly accept without reading the fine print. Read it. Most bonuses require the traders to roll over, or trade their investment and bonus amount a certain amount of time before any withdrawal will be processed. If you take a bonus know that you will not be able to withdraw until you meet the t’s and c’s.
5. Trading with a legit broker is critical. I can not stress this enough. There are dozens upon dozens of binary options brokers, and I use the word ‘brokers’ loosely, these are really more like binary trading websites. The history of trading binary options online is littered with stories of rogue brokers, cheating, stealing and right out fraud. The good news is that today, in the latter part of 2012 there are a small handful of legit binary brokers you can trade with without getting ripped off.
These five rules of binary options are essential to your understanding of binary options trading.
Ready To Get Started?
If you are ready to give binary options betting a try then get out your credit card and make a deposit at one of our select brokers. You can try an industry leader like 24option.com and know you are trading at a site you will still be trading a year from now. If you want to learn more about binaries, check out our comprehensive guide to understanding binary options trading here.
Discover Our Top Binary Option Brokers
If you want to put your new binary knowledge to good use, why not register with one of our top brokers? Our experts have tested these brokers to ensure they’re safe, fair, and rewarding. Below, you can learn more about each binary broker. Once you’ve found the right one for you, register for a demo or live trading account to practice your skills.
- IQ Option:
IQ Option is a well-respected broker with top-tier regulation from CySEC. They offer a diverse range of binary options, with potential returns of up to 95%. You can start trading these options for as little as $1 or open a free demo account with $10,000 of virtual funds. Besides binary options, IQ Option also offers FX options, digital options, forex currency pairs and over 250 other CFDs ranging from commodities to cryptocurrencies.
Register with IQ Options to trade binary options safely now, or visit our IQ Option review
A popular international binary broker, RaceOption stands out from the crowd by having one of the best trading platforms around. With state-of-the-art technology, you can expect non-stop trading, super quick withdrawals, and instant execution. RaceOption has a reasonable minimum deposit requirement of $250 and a $1 minimum trade size, which makes it perfect for beginners. You can also take advantage of multiple bonuses, contests and promotions.
Sign up to RaceOption to experience speedy trading today.
Binarycent gives you access to options, forex and CFDs via an easy-to-use trading platform. You can select from three account types with a minimum deposit of just $250. Each account comes with a rewarding deposit bonus, quick withdrawals, 24/7 support, and a demo account too. Binary trades start from just $0.10 and the broker boasts a potential returns rate of up to 95%.
Visit Binarycent to claim a bonus of up to 100% now.
ExpertOption is a global binary broker, serving customers from 48 different countries. With a trading platform that works on all devices, you can easily access over 100 assets whenever and wherever you want. ExpertOption offers six different account types, including a Micro account that only requires $10 to get started. You can also take advantage of the broker’s social trading platform, which enables you to study the trades of VIP clients.
Join over 50,000,000 loyal clients at ExpertOption