Trading Binary Options Online

The trade of binary options is one that has elicited heated debate. Some say it is a simple way to make some extra money while others have written it off altogether as a new-age scam or a sophisticated type of online gambling. Whatever your opinion may be, there is no denying that the trade of binary options will be with us for quite some time to come.

The ‘what’

If you’ve never heard of binary option trading, it’s a form of trade of financial assets where the payoff is either a fixed amount of an asset or nothing at all. This basically entails making a prediction on a particular asset’s movement up or down. If at the end of a pre-determined period of time the asset moves in the direction you predicted, then you win a percentage of the amount you had initially bid (typically 50-70% of the bid amount). If you’re prediction was wrong, then you get nothing, hence the term ‘binary’. It’s all or nothing.

You determine the time within which the bid will operate before expiry and the amount you will make once the bid has expired as you make the bid.The time frame is usually between sixty seconds and 150 days for long-term bids.

Do your research before you start

For novices, it is highly recommended that you research carefully before selecting a broker that you will use to make your trades, especially if you will be doing this online. Look for a broker that is being regulated by the relevant authorities whichever country they are registered in.

Learning by doing

Once you’ve found your registered broker, start by opening a binary option demo account. This will help you put what you’ve learned from the training materials into practice. Your demo account will help you understand how the trading platforms operate, what each icon is for, the payment options and they’ll help you understand the jargon associated with binary option trading. Shop around for these as well, as they don’t all offer the same benefits. Once you’ve practiced and have got an understanding of how the bids work, then you can start trading with real money.

Strategy, strategy,strategy…

As with any form of financial trading, whether you’re a novice or an experienced investor, the best way to go about it is by having a binary option trading strategy. This strategy could mean either having a steady streak of wins or of losses. Deciding the best option strategy will not be easy. There is no quick or simple way to come up with this. Most new traders try out a number of different strategies before they settle on one. Patience is key.

You can now start making some money

You’ve practiced on your binary option demo account, you’ve read the literature, you understand how toanalyze charts and place bid. All that’s left is for you to start making some money. Once you find the best option strategy for you, nothing can hold you back.

Binary Options Training

You might hate every minute of binary options training, but despite that, if you choose not to quit, and if you go through the tedious training process, then, you will be able to trade for the rest of your life like a champion.  Training is indeed a disciplining process.  If you do not take the pain of discipline, you will often regret. 

Understand that binary options training is not just a bunch of facts fed in to your head via You Tube Videos, Articles, Blogs, Market News, Market Data, Indicators, and more.  It is about making you to think right to strategize every move in the trading process. 

Just like Rome was not built in a day, a brilliant trader evolves through years of trading and trial-by-the-fire experiences.  The training program offered by the binary options trading sites is just the beginning to help you get your feet wet.  Real-time trading experiences train you by minutes and seconds, and you finally evolve to be a trader with excellent investment and risk management skills.

What does binary options training offer?

A good quality binary options training provides the trader with everything that is required to help a prospective trader with zero experience in the trading process to kick start with the binary options trading process.  It is likely to contain:

·         Introduction to binary options

·         A knowledge base center

·         A video library

·         E-book review

·         FAQ

·         Asset index list

·         Expiry rate rules

·         Knowledge library

·         How to trade demo

·         Glossary

·         Disclaimer

·         And more…

While a basic training program can train you with every basic detail like meanings of basic terminologies used in trading and how to move around in the platform and how to choose to trade between the different trading platforms, an advanced trading training is a real need.

Advanced training in the binary trading process will help you read indicators, will help you choose between signal providers, deal with market news and market data, deal with highly volatile trading decisions and more.

Trading includes a wide variety of things like trading with the right list of asset types that you are confident with.  It is not easy to predict the market direction of every asset type regardless of whether it is profitable or not.  You should have your hands on experience in understanding the market response for a specific asset type. It is always safe to gain enough experience dealing with one asset type before moving on to another.

Money management is one of the crucial aspects in binary trading like in any other trading process.  It is always best to trade with the money that you can afford to lose.  While the return rates from some asset types and trading platforms can be quite coaxing, it is important to understand the fact that, higher the returns, the higher the risk.  There is an infamous proverb “We can only take the horse to water, we cannot make it drink.”   Training teaches you the facts and methods to deal with figures.  Smart trade is about using common sense in a way to match the right strategy with the right situation.  Interestingly, there are binary options coaches who know how to think smartly as well.  Thanks to technology and information overload. 

How to Choose a Binary Options Broker?

Trading in the binary options market is becoming popular than ever.  Binary options market is a highly volatile market and it is becoming increasingly difficult to keep track of the reliability and sustainability of the product offered in this market.  Binary options brokers are mushrooming virtually in different domain names.  The asset list in this market is evolving pretty quickly.  Those who are new to the binary options trading market face the confusion of having to choose between brokers.  They seem to be quite unsure of how to differentiate between regulated and unregulated brokers.  If you are one such prospective trader, read on…

There are some basic questions that you should confront with before you decide on the platform in which you should be trading.  When you are deciding between brokers, you are likely to come across information and misinformation from dissatisfied clients and competitors of the prospective broker you might be analyzing about.  Understanding what really matters will clear the cloud for you to decide for yourself.

The major factors to be considered before signing up with a trader includes but is not limited to:

The Regulatory Body

The licensing information provided in the footer section of the binary options broker’s website will tell about the regulatory body, the headquarters, and the management of the broker.  The quality of the regulatory body governing the broker will determine the quality standards of the broker as well.

The Capital Strength of the Company

The financial strength and the business rapport of the founding company that is managing the brokering services will provide an insight in to the reliability and sustainability of the trading platform.

The Types of Brokers

Some brokers are regulated brokers, some are yet to be regulated, and some are unregulated brokers.  It is always safe to deal with regulated brokers. While there are unregulated brokers who might be reliable, the lack of regulation factor forever keeps the reliability factor questionable.

The Different Types of Trading Platforms Offered

The types of trading platforms provided by the broker will be based on the products offered by the trading platform provider who is powering the broker’s site.  The trading experience is directly related to the quality of the trading software in which the site is installed.  Some platforms also provide with mobile and tablet trading and the respective apps.  Check in to comfort zone in dealing with the different platforms.

Number of Asset Types

The number of asset types normally spread across stocks, currencies, commodities, and indices.  In some cases, the asset type that you are comfortable trading with might not be available with the broker.  You do not want to be forced to trade an asset type that you are not confident about.  Therefore, check in to the asset index before you make your payment.

Mode of Payment

Most binary trading platforms provide wide varieties of deposit and withdrawal options via, debit cards, credit cards, and online payment gateways.  It is important to check in to the terms and conditions applicable for deposits and withdrawal along with conversion rate norms.

Payoffs

The payoffs provided for the same asset type might differ between broker sites.  There might be a slight difference in the percentage of payments offered.  Beware of the percentage difference and the risk you are signing up with.

Quality of Trading Education

Almost every reliable binary options broker provides their clients with training and tips for trading.  Even clients with zero experience in trading might do well in dealing with underlying asset types when they are exposed to high quality training.  Therefore, it is important to check in to the quality of trading education.

Market News and Market Data

Apart from regular training for beginner traders, intermediate and advanced level traders might require help and high level training to deal with reliable indicators and signals.  You might want to check in to the future prospects and training that you can expect after you gain some reasonable amount of basic trading skills.  This is important for you to be able to trade in the same platform for a long term.

The Quality of the Customer Service

Check in to the response quality of the customer service, by posting a few queries via the contact form, the e-mail address, the contact numbers provided there in. 

While it is a good idea to learn about the reliability of options brokers from different broker review sites, nothing works like personal experience and investigation.  It is your money going in to the trade, dare the extra mile.  Do a bit of extra work to learn the pros and cons about the broker you are contemplating about.  Good Luck Trading Binary Options!