Binary Options Trading is an interesting and novel method in financial markets. It has the term binary in it because as a trader, you are left with only two options in binary trading. Though as this may seem like a risky business, it’s predictable and with a certain amount of planning you can achieve a lot through this particular trading method. Fortunes can be made if you play your cards carefully, that is the main reason why binary options trading is popular right now. The hassle of buying stocks and waiting for the price trend to rise is eliminated when you start trading Binary options. In this post, we’ll try to explain the very basics Binary options and understand some of the binary options trading strategies and illustrations.
Introduction to Binary Options
The reason for the ‘Binary‘ term being coined into the trading methodology is that when you do a binary trading, either you win them all or you completely lose what you have invested. The way the system works is by giving you an option or a commodity to bet on. You win if the commodity sees a price hike, no matter the magnitude of the price hike. But you will lose if the price goes down no matter even if it’s by 1%. The factor that makes this process so attractive is that if you win or let’s say if you were right in judgment, then you will get back the amount you have invested plus you will make out a certain percentage of your invested money. In most cases, the values come in between 75% to 85% of your invested money.
For example, if you bet for a 1000$, if your prediction goes right in the specified time frame you will be walking out with 1800$ if the return value is 80%. But keep in mind that you will lose all your money if you are wrong about the price trend.
Here is an illustration from live Binary Options trading platform:
The Time frame makes it all the more interesting
The process is made all the more alluring when you consider the time frame of a deal. A deal can have a time frame that ranges from a minute to a couple of months. This means that deals on short periods of time can earn you large amounts if you do things right. Every deal will have an expiry time. As a trader, it’s up to you to determine the time frame you want to bet for.
Is this Gambling?
After going through the above introduction of Binary Options, it would have struck in your mind that this is more or less same as gambling.You bet for a particular outcome, and lose all the money if the outcome is against your prediction. However, binary options has a lot more to it. There are 100’s of mathematical and statistical strategies to predict the price movement, same as you do in stock trading. Since the timeframe is low in case of binary trading, you have to be quick. It’s a simple game of risk-reward ratio, you are risking more money but reward is higher than stock trading or investment.
Binary Options Trading System
AutoBinarySignals offer an auto pilot trading system for Binary options. It is purely based on technical analysis and has impressive performance over the last couple of years. This is probably the most trustworthy systems for binary options available online, beware of so many scams going around. This system signals trading opportunities based on following indicators:
– Risk/Reward Stabilizing System.
– MPMIS – Multi-Indicator System.
– Supply/Demand Price Predictor
– Auto-Adaptive Profit-Trade Technology™
– Super-Accurate Leading Signals!
Check out the below video overview of this system:
Few of our readers from UK have tried this system and their feedback is very positive till now. Please check the details and subscription page from the below link:
Binary Options Trading Tips for Beginners
One must understand that binary trading follows a strict rule of risk and reward approach. You can lose all or gain everything in a short span of time. This can lead to some big mishaps when you start off as a beginner. Starting slow and easy is the best way to know the trade. Read extensively about binary options as you should have a clear picture of the tricks of the trade to win big. There are 5- minute rules and 15-minute rules that have proven to lure in big rewards. But the greatest teacher of them all is learning from your past and applying it in future trades.