Let’s not beat around the bush! Over the last several years you & I have been bombarded with adverts left, right & center promoting all sorts of binary options companies from the likes of 24Option to IQ Option and many others.
The reality is that binary options is a popular industry across the globe & don’t just take my word for it, take a look at the volume of monthly searches below and you decide 😉
Figures like those should come at no surprise to you. I mean 99% of us humans have a common trait, we want to explore more options, we want to explore our trading journey.
Binary Options Trading is an opportunity that fulfill these needs. After all who wouldn’t be seduced by the idea of turning $100 into $190 in less than 60 Seconds? Invest should keep in mind that they could loose the full amount invested.
I hope you enjoy my Ultimate Guide to Binary Options Trading. You can click on any of the links below to skip to the corresponding section.
- What is Binary Options Trading?
- How to Trade Binary Options?
- Are Binary Options a Scam?
- Free Demo Account
What is Binary Options Trading?
Binary Options Trading is a popular way to trade the Financial Markets.The most popular binary option trade is a HIGH/LOW trade.
You as a trader must pick whether the price of an asset will be higher or lower within a give time-frame.
Scenario #1 – Will the price of the Euro be higher or lower against the Dollar in the next 60 seconds? The asset in Scenario #1 is known as EURUSD which is a currency pair. The time frame is 60 seconds.
With binary options the risk & return of investments are fixed. Going into the trade you can decide exactly how much money you are prepared to risk (loose), also knowing exactly how much money you can earn in return.
Binary Options Brokers generally offer returns of up-to 90% per successful trade.
Let’s say you call $100 that the EURO would in actual fact be higher than the dollar at the close of 60-seconds. 60 Seconds later the trade closes, if you were correct you’d generate a profit of $190. However if you were incorrect you’d loose the full amount of $100.
It is up to you as a binary options trader to select the underlying asset you’d like to trade, the time frame & the amount of money you are willing to risk on the trade.
A wide variety of underlying assets are available to trade on the binary options market – including Commodities, Equities, Financial Indices and Forex Pairs.
These underlying assets can be traded at a range of time-frames from 60-Seconds to 5-Minutes or even a couple of days depending on your binary options broker.
Two other popular alternative to the high low trade are:
You’re predicting that the price of an underlying asset won’t touch a certain price level.
You’re prediting that the price underlying asset will touch a certain price level.
Well Done! You now know more about binary options trading than 99% of all South Africans.
How to Trade Binary Options?
If you’re reading this, I’m assuming you’ve understood the basics of binary trading and you’re ready to take the next step into the binary options world.
So once again, let’s not beat around the bush. The only logical step is to open a FREE DEMO account and practice the in’s & out’s of binary trading with virtual money until you grasp the concept.
Pick a Trusted Binary Options Broker
You can click on any of the brokers above to open you’re free demo account. If you’re opening a real account, pick one based on your budget.
Select the Underlying Asset to Trade
Trading platforms have underlying assets such as currencies, indices, commodities and stocks.
Predict the Price Movement
If you predict the price of the underlying asset to rise, select Call (up), If your prediction is that the price will fall, select Put (down).
Decide on the Amount to Invest
Decide how much you want to invest and the expiry time of the option.
Collect the Payout
Collect payout up to 90% of correct predictions. Investors should avoid investing money that they cannot afford to loose. Trading binary options carries a high level of risk & might lead to 100% lose of all invested capital.
Is Binary Trading a Scam?
Binary trading is definitely not a scam, nor is it necessarily an investment vehicle either. Once you understand how binary brokers make money you will have a clearer picture of how this industry works.
Scenario #2 – Will the price of the Pound be higher or lower against the Dollar in the next 60 seconds?
As you know there can only be only one of two outcomes at the end of the 60-second trade.
Let’s say 10 Traders each trade $100 for the price to rise.
Let’s say 10 Traders each trade $100 for the price to lower.
Let’s say the Broker pays out 90% on correct trades.
The Broker now has $2,000 worth of trades.
Let’s say the Pound rose & the trade closed.
The Broker Pays 10 Winners each $190 = $1,900.
Broker Makes $100 Profit.
*Trading binary options carries higher level of risk and might result in full capital loss.
To further avoid scams be sure to only trade with binary brokers who are 100% regulated. The brokers I mentioned above IQ Option & 24Option are both regulated by the Cyprus Securities & Exchange Commission.
Binary Options Demo Account
Demo accounts are great way to test the waters of binary trading before risking real money. You trade on a 100% live market, it’s like the real thing except for virtual money. You can fill in the form below to create a Free Binary Options Demo Account with IQ Option.
Why I recommend IQ Option?
- Minimum Deposit – Start trading with only $10
- Minimum Investment – $1 Per Trade
Binary Options Trading is a very risky business you can get rich quick or broke, so before you speed off & invest your life savings, I HIGHLY recommend you only risk money that you can afford to loose.