Since they first appeared in 2008, the binary options have measured immense grow across the globe. The main thing that contributed to this fact is that they became available through the internet and provided traders to trades assets in real time, without living their houses. With the help of computer and the internet, it is possible in just a few clicks to conduct a trade. It saves traders a lot of time on their way to acquire a financial gain.
With all of the innovations, traders have the ability to calculate the exact amount of money they expect to gain, as well as the losses. All binary options have fixed time, and that gives the traders a flexibility and better management of their wealth. Binary options are known to decrease the investment, regardless of that they are extremely popular because people look on them as a fast way to earn money. On the other hand, traders must be careful when choosing a certain asset, they wish to invest in, there are many risks, and each of these options has its methods, strategies, but also disadvantages. Traders must be informed well.
Some brokers offer significant assistance to new traders, by providing them video tutorials, training programs, and e-books, while others only brag and in the end they only give you one e-book, which you can hardly use.
Binary options have proven to be a less risky way to invest your money because a lot of outside factors can influence on the investment and whether it will be successful or not. Since the most binary options are short term, people don’t need to think a lot about them and their outcome. Long-term economic factors can influence the outcome of binary options. Of course, every trader needs to understand which tools are the best for short term investment and apply appropriate strategies. The good and reliable broker will supply you with such a tools and provide you necessary abstinence.
This type of investment has much lower costs than the standard one, especially when you begin. Most binary options brokers have a standard policy of $250 of minimum deposit. With the help of educational tools and if you know what you are doing, you can multiply that amount in no time. With binary options, you can expect the return of your investment quickly.
Only verified and reliable brokers have an outstanding customer support. You have to be able to contact them through live chat, email, and land line. They must be able to assist you in multiple languages. Otherwise, you won’t be able to understand their platform. Minimum amount per trade is usually $10.
Before making every trade, it is recommended to browse the educational tools, to get to know with a certain type of an asset and option.
One thing is for sure, binary options are a great way to make money in short period, but they won’t make you a millionaire in one day. For more information about binary options, you can visit a page http://top10binarysignals.com.
Even though the binary options became an integral part of the financial market, people are still skeptical towards them. But, what needs to change in the future so the traders can trust them fully?
Scams need to stop
This is the main reason why people don’t trust in binary options. A significant number of binary options trader enter this type of business through various partner online. They usually appear as banners on a computer screen and have an appealing title, for example, “make money online”. Instead of helping you make money, they will send you to scam broker, and after you lose your deposit, they will split the money. It is a very appealing type of advertisement and scam broker use it to attract a large number of inexperienced traders, and they will use any means to succeed in their goal.
The face signals need to stop
It is closely connected with the subject above. Fake signals are the main resource to attract a large number of clients to join at brokers they advertise. Traders need to undertint that no signal or use of any robot will bring them promised money. Some signals might work, but not any of them will make you a millionaire in one day. There’s been a lot of talk about binary options robot scam, but this robot is only designed for traders that are experts in this field.
Binary options need to be regulated by the law
The more countries apply this method; it will be much easier for future traders. These regulations need to be conducted properly so that many binary options brokers can have a fair opportunity to compete in the market. The regulations need to be the same for each country so that they don’t lose time and effort in correcting contradictions. If there are many conflicts among the regulations, the small companies won’t survive, which will result in having only one or two large company holding the monopoly. The most contradictory question would be; why there are so many scam brokers in the U.S. since is so hard to get a license? Regular brokers decided to leave the market because they couldn’t get a license and shady broker continued to receive U.S. traders, and they weren’t concerned about the law.
Terms and conditions of the bonuses need to be more transparent
Bonuses are a great addition to your deposit, but traders who are beginners and those who make small deposit never end up receiving that bonus. Usually, traders are required to meet certain types of conditions and terms before they can withdraw that bonus and that is never usually said in the beginning. Most broker houses make traders invest that deposit, multiple times about 30 before they can withdraw the funds.
The U.S. need to have more broker friendly regulatory policy
If the U.S. had less strict conditions when registering new brokers, there aren’t be so many shady brokers in this business.
There are various traps inexperienced trader might fall into, in this article we are going to explain some of them and advise you how to proceed with binary options, to have a more successful trade.
Avoid using the services of unknown broker
Today’s market is full of binary options brokers, and we can hardly decide which one is right. However, there are few of them that operate in this line of business for many years and have proven their reliability. Very trader should pay attention to old and reputable brokers because there is no point in choosing the new one, who are still to prove their services and you don’t need to be their test subject.
Don’t accept bonuses before you know how they work
Bonuses can be an excellent addition to your initial investment, and many binary options broker have them. But, what most brokers don’t tell you is that they all have hidden conditions and terms. If you accept some bonus, it can greatly affect your future trading. For example, you won’t be able to collect them before you make a certain number of trades.
Don’t give access to your account to an account manager
Under any conditions you mustn’t allow this, this is usually a way how shady brokers operate, by tricking the trader to give them access, under a falls promise to help them win a larger amount of trades. As a trader you need to understand, why would broker want to help you, when he is earning money on your losses. Account manager usually makes you win few traders to encourage you to invest a large amount of money before they rip you off.
Familiarize with terms and conditions of a broker
It is one of the most important things and no one does it? To have a successful trader, you must understand how the platform works. You need to know how to deposit the money and how to withdraw it. How much you need to pay for your deposit and how much is the minimum amount per trade?
Verify if the broker is reputable
Before opening an account and making a deposit, you need to check if the broker is legit. How can you do that? With the help of internet and positive review traders before you left. If some broker has too many negative reviews, run away!
Learn how binary options work and find out about new strategies
Before you even consider a trading binary options, you need to have detailed research about binary options and how do they work. You need to know terms and conditions of different strategies to have a positive outcome.
There a few various binary options, which you can use for trading, such as indices, stocks, commodities and currency pairs. On the web page http://top10binarysignals.com, you can find about new trends in binary options world, as well as develop new strategies.
The binary options trading, sometimes even called digital options, is a type of trading where a trader places a yes and no prepositions on the certain price of an underlying asset, which can result in substantial payoff or lose of everything. The binary options are much easier to understand and to trade then regular options.
The important part of binary options is expiration time. If a certain option settles above the selected price at the designed time, the buyer or seller will receive a certain amount of money, but if the option settles below the selected price, the buyer or seller will lose everything. It is crucial for every trader to how to estimate the risks with every trade. For more info click here http://www.forbes.com.
If you are going to trade on this market, then you need to know basic terminology. For example, what is an option? When you buy an option in the binary market, you are entirely entitled to that option; you have the ability to sell it in the future, at the certain price and before the certain time. If you think that market is going to rise, you have the ability to buy a “call”; this will give you the opportunity to purchase a security at some price at the specific date in the future. If you think that market will fall, then you buy a “put,” which means that you can sell the security once again at a certain price before the future date. By this, you estimate that price will be lower than in some point in the future.
There are also so-called fixed – return options, they have an expiration date and a “strike price.” Strike price means that owner of the option can purchase or buy a stock under a specific date, and that is presented in the binary option contract. For example, if you bet correctly in a direction of the market and the price of the market is bigger than the strike price at the expiration date, you will get a fixed return, no matter how much the price of the stock rose. But, if a trader estimates were false, he will lose everything.
The contract price is mostly determined by the bid and offer. It is a price that shows that “bid” price, sell, first and offers price, “buy”, the second. For example, you have 4/99; the bid price is $4, and offer price is $99. If a binary option has a payout of $100 and it has the offer price of $99, this means that a large number of the traders in the market thinks that certain underlying asset will accomplish the terms of the option, and maximum payout of $100 will be achieved. It doesn’t matter if the market will go up or down.
When you select a broker, he will set up a minimum amount pre-trade; that is mostly $5 to $10. You will be required to pay a deposit to open an account, and most brokers charge $250.
Binary options consist of yes and no predictions. Will a certain underlying asset be above or below a certain price at the designed time? In this case, traders place their predictions with a simple answer yes or no. Because of this simplicity, binary options market has become on the fasted growing and most appealing among the traders. Even though it may appear simple, trades still need to understand what binary options are and how do they work?
Binary options outside of U.S. have a different structure and operate on completely different level.
The binary options provide trader a way to make money with a certain risk, based on yes and no prepositions. For example, will the price of oil go above $1,000 at the 2:30 p.m. today? If you estimate that price will be bigger, you buy that option, if you think it’s going to go below $1,000, you sell that option. The price of binary option varies between $0 and $100, and it’s similar to any trading market.
Learn About Binary Options
As we mentioned above, an option may be traded at $51 and that a bid and $55, the offer, at 2 p.m. If a trader buys that option right away, he will have to pay $55, but if he decides to sell it right after, the price will be $51.
For example, let’s assume that trader bought an option at $55, and the price of oil is bigger than $1,000 like trader predicted, the option expires, and its total value is $100, then he will make a profit of $45, 100-55=45. This type of trade is called in the money.
On the other hand, if the price of oil is below $1,000 at two p.m. the option will expire at $0 and the trader will lose his investment of $55, this type of transaction is called out of money.
Traders determine bid and offer of a certain asset based on their prediction and whether their proposition is true or false.
The only licensed trader in the U.S. is the Nadex; it has its platform and traders have the opportunity to access it through demo account and live version. The live charts are presented as well as values of underlying assets.
To enter and to exit a trade costs $0,9, and the fee is $9. If a trader keeps his trade until the settlement and finishes the trade with money, the fee will be assigned to him at the expiry of the option, but if he finishes with out of money, he won’t have the exit fee.
The binary options can be traded through currency pair, commodities, indices, and stocks. Nadex offers their clients various expiry time, from one hour, day or week. Hourly options are designed for daily traders, and they expire at the end of the hour, dailies at the end of the day and weeklies at the end of the week. Each of these options is designed for different types of traders and have their advantages.