Binary options are the latest and most profitable instrument that can be played the financial market for profit. Profits are in a range of 60% to a stunning 600% using the right binary option broker.

Binary Options Reviews

This website is sponsored by GOptions, Interactive Option and 24Option. They both have their advantages, Interactive Option for instance offers a one-on-one trading expert advise by phone to guide the new or professional trader through the trading system. 24Option has a maximum of $20,000 investment amount per trade. This is also risky of course! GOptions offer payouts up to 1250% with their unique Ladder Options system.

Binary Option Strategies

Just like trading traditional options or stocks, in binary options trading you also need to have a strategy. This is a strategy I use:

  1. Fund the acound by depositing $500 (or €, GBP, etc)
  2. In the first week trade with only $125, which is one fourth of the $500 you deposited.
  3. If you run out of the $125, stop trading. If you gain up to let’s say $200, stop trading when you have invested $125. This will make you preserve the revenue you made.
  4. Second week: start over with $125 to trade with. Again, stop when you have traded the $125, which was the maximum playing money.
  5. Third and fourth week: both weeks are traded with $125

At the end of the example month you have been trading $500 at most. Hopefully you have made some profit and this $500 has increased.

In this example of a binary option strategy I used an amount of $500, you are free to upgrade this to $750 or $1000 or whatever you can afford to miss. Just remember: only trade with money you wouldn’t miss if you lose it!

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Forex Binary Options

Trading the binary options system is perfect if you are familiar with trading the forex market, or currency market, FX market. Since forex rates are given with four decimals, it is not so difficult to get in the money. Let me explain why:

  • The current price for EURUSD is € 1,3500
  • You think the rate will go up and invest €100 (or $) and hit the up-button against say 70% pay-out.
  • All the rate has to do is to go to at least € 1,3501 to make you a profit of € 100 + 70% = € 170.

All it took was one pip to be “in the money”!!

Reasons to trade Binary Options

Binary options offer numerous advantages that make them a preferred platform for traders anywhere in the world. Options can be traded as a modern form of trading and can only be traded online, which is really convenient.

Second, the binary options market never closes. With enough energy drinks you could trade around the clock since the markets are open 24 hours a day, seven days a week. I wouldn’t recommend though.

Traders who are new to investing can use this platform to build confidence in trading and to study the market before making a move with a trade. Almost every binary options broker offers trading advisories and market updates to help making a trading decision.

The downside to learning to trade market with the normal stock trading brokers is that it will take months to understand what happens with the underlying assets since the rates are usually moving very slowly up or down. Binary options have an advantage here because of the fast expiry time, ranging from 60 seconds to one month. When learning the market I would recommend an expiry time of 15 minutes up to one hour. This timeframes make it possible to learn and understand the technical analysis and simple moving average strategies.

Binary Option Risk

Binary options are not a scam. Still you are able to lose the money you deposited.

The possible risks arising from binary options trading on the global financial markets are rather considerable. For that reason you must be perfectly aware of your financial potentiality to take part in that kind of trade operations. Please consider the following information before you start:

  • You can lose the initial capital deposited to your trading account (however, the level of your possible profits is not limited in any way).
  • High degree of volatility within the financial market together with low margin requirements can bring you either considerable profit or significant loss, i.e. volatility can be both profitable and unprofitable.
  • You must be clear of that both the broker and I are not responsible for the losses directly or indirectly caused by restrictions imposed by the government, currency and market laws, suspension of trade operations, military operations and other unforeseen circumstances, which we cannot prevent or control.

End of the binary options article.

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Binary Options For Dummies
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