Binary options explained platform

Binary Option. What is a 'Binary Option' A binary option, or asset-or-nothing option, is type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset. BREAKING DOWN 'Binary Option' Difference Between Binary and Plain Vanilla Options. Binary options are significantly different from vanilla options. Plain vanilla options are a normal type of option that does not include any special features. A plain vanilla option gives the holder the right to buy or sell an underlying asset at a specified price on the expiration date, which is also known as a plain vanilla European option. While a binary option has special features and conditions, as stated previously. Binary options are occasionally traded on platforms regulated by the Securities and Exchange Commission (SEC) and other regulatory agencies, but are most likely traded over the Internet on platforms existing outside of regulations. Because these platforms operate outside of regulations, investors are at greater risk of fraud. Conversely, vanilla options are typically regulated and traded on major exchanges.

For example, a binary options trading platform may require the investor to deposit a sum of money to purchase the option. If the option expires out-of-the-money, meaning the investor chose the wrong proposition, the trading platform may take the entire sum of deposited money with no refund provided. Binary Option Real World Example. Assume the futures contracts on the Standard & Poor's 500 Index (S&P 500) is trading at 2,050.50. An investor is bullish and feels that the economic data being released at 8:30 am will push the futures contracts above 2,060 by the close of the current trading day. The binary call options on the S&P 500 Index futures contracts stipulate that the investor would receive $100 if the futures close above 2,060, but nothing if it closes below. The investor purchases one binary call option for $50. Therefore, if the futures close above 2,060, the investor would have a profit of $50, or $100 - $50. What are Binary Options? How Do Binary Options Work? A binary option asks a simple yesno question: If you think yes, you buy the binary option. If you think no, you sell. Either way, your price to buy or sell is between $0 and $100.

Whatever you pay is your maximum risk. You can't lose any more. Hold the option to expiration and if you're right, you get the full $100 and your profit is $100 minus your purchase price. And with Nadex, you can exit before expiration to cut your losses or lock in the profits you already have. That's pretty much how binary options work. Turn up your speakers and follow our interactive guide. Trade Many Markets from One Account. Nadex lets you trade many of the most heavily traded financial markets, all from one account: The Dow ® , S&P 500 ® , Nasdaq-100 ® , Russell 2000 ® , FTSE China A50 ® , Nikkei 225 ® , FTSE-100 ® , DAX ® EURUSD, GBPUSD, USDJPY, EURJPY, AUDUSD, USDCAD, GBPJPY, USDCHF, EURGBP, AUDJPY. Gold, Silver, Copper, Crude Oil, Natural Gas, Corn, Soybeans. Fed Funds Rate, Jobless Claims, Non-farm Payroll.

Linked Desktop & Mobile Platforms. Our fast, secure online trading platform runs on PC, Mac, or Linux. We offer a powerful, full-featured app for Android. Enter a trade on one platform and manage it from another with the security of a reliable, direct connection to the exchange. Open With a Debit Card. Nadex is designed for individuals to trade binary options and spreads on a level playing field. That's why we have a low minimum opening balance. Opening an account is simple and free online. Fund with a debit card and start trading in minutes. Secure, Transparent, Regulated. Nadex is the first and largest US-based, CFTC-regulated binary options exchange.

We hold member funds in segregated accounts in top-tier US banks. Nadex operates with transparency and never takes positions in the markets or trades against members. Fill out our online application in just a few minutes. You’ll get a quick response. Once it’s approved, you can fund your account and be trading within minutes. Trade all the markets you love. US Toll Free: 1 877 776 2339. 311 South Wacker Drive. Chicago, IL 60606. Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Binary Options Platform. All binary options trading is conducted on trading platforms. The trading platforms in the binary options market can be classified in 2 ways: Classification According to Ownership of Platform Software Technology Classification According to Trading Device. It is important to know which type of trading platform you are using because this will ultimately affect the trades that can be performed, ease of use as well as certain trade conditions peculiar to each type of platform. Classification 1: Platform Technology. When it comes to platform technology, platforms can be further subdivided into two. There are platforms which are designed by the broker’s in-house software development team, built uniquely for the brokerage firm to offer its own binary options contracts. In this class, we have brokers such as AnyOption, NADEX and Betonmarkets, as well as the various brokerage firms that offer exchange-traded binary options on the US options exchange. This permits traders to trade some unique binary options contracts as well as be able to customize their expiry times the way they want. On the other hand, we have platforms that are designed as turnkey solutions. They are created by independent software developers and configured for binary options trading operations. Each broker now pays some money to these software developers to have the software customized for them. This creates a situation where there are fixed trade types and fixed expiry times.

You are therefore likely to come across several brokers with the same trade contracts and expiry times. In this class, we have majority of market operators such as Cedar Finance, 24Option, OptionFair, etc. The software developers are SpotOption, Hello Binary, MarketPulse, Tradologic and Tech Financial. Classification 2: Trading Devices. When binary options platforms are classified according to the trading devices that they work on, we are simply referring to the availability of the platforms on mobilehand-held devices, as well as other conventional devices. Binary options platforms are typically web-based, requiring login to a unique URL with a username and password to get access to the trading platform. More recently, the trading platforms have been developed for use on hand-held devices such as tablets and smartphones. Mobile trading platforms can come in the form of trading apps which can be downloaded from the relevant app stores (iTunes store and Google Play store), or they can come as mobile versions of the web-based platforms, which only require signing into the mobile sites using a unique mobile URL. Mobile binary options platforms allow traders to trade on the go. Which Platforms Should a Trader Be Using ? Traders should give careful thought to the kind of platform that they will like to use, because this can radically affect their trading outcomes.

There are traders who are very busy and will have to wake up early and get back home late at night, with a lot going on in between. Such traders may benefit from the mobile trading platforms which allow a trader to catch a breath between tight schedules to place trades on the smartphone or tablet. Other traders who do not have such busy schedules may opt for the conventional desktop or laptop computers to do their trading. Then there are traders who prefer flexibility in trade types and expiry settings. For these traders, the turnkey platforms may not be the most ideal. These traders can decide to opt for the proprietary platforms. For traders who may want to trade more conventional contracts, they can use the turnkey platforms. The location of a broker may also be a determinant factor. For many brokers, the cost of developing their own unique software is prohibitive. This is where turnkey platforms come into play. If we look at the areas where binary options is now regulated, we see that many of such brokers use turnkey platforms. Does the trader use an unregulated broker with a proprietary platform, or will it be a better choice to use a regulated broker with a turnkey platform?

In this case, regulatory status and location may be more relevant factors influencing which platform a trader uses rather than the specific type of platform to be used. Ease of use is yet another determining factor for traders. The turnkey platforms are generally easier to use than the proprietary platforms. However, for technical analysts, proprietary platforms may be more suitable because the charting tools they provide are more advanced than what obtains on turnkey platforms. All that can be said here is this. Know your personal preferences, and see which platform types match those preferences to the best degree. This should be the deciding factor which affects the choice of the binary options platform to use for your trading. Binary Options Explained. Welcome to CyberMentors. org. uk I am Collin Tyusm and this is my blog, dedicated to binary options trading and software.

If you are here, that means you are interested in binary options and auto trading. You have reached the place that wants to put an end to malicious practices when it comes to trading with options. The market is flooded with various and different systems that claim legitimacy and promise high profitability, enormous returns and fantastic success rates. But after years of witnessing and in the worst case – falling victims to numerous Ponzi schemes and losing a lot of our investments to fraud, we should know better. A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. I created this blog in order to be of help to newbies as well as experienced traders. I want to provide you with a basic understanding on what binary options are, what is the difference between brokers and robots, and how trading works. If there are more things that interest you and you want explained, do not hesitate to contact me. Table of Contents. Our Recommended Binary Options Signals List. Binary options trading is a very attractive field since it seems very easy and intuitive. But traders should keep in mind that there is always risk involved. Risk, that should not be underestimated and investors need to take into consideration in order to make profits instead of accumulating losses. Having proper insights and understanding of what binary options are and how this unconventional type of trading works, can help one reap the juiciest fruit out of this field. If you are able to grasp the idea and the depth of binary options, you are all set to gain the exotic results that this trading opportunity has to offer.

I have provided you with information on some of the most important things you need to know about the industry in order to get the best results out of your trading decisions. One of the top binary option robots that have been working for years is the brit method system. It has a simple to use design and can be accessed online from desktop and mobile devices. I also recommend Fintech LTD which generated high return ratio of stable 82.3% so far. What are Binary Options? Binary options are also known as mysterious options but at the same time they are extremely simple when it comes to their functions and using them. Through them, you can trade with currencies, stocks, indices and commodities. Unlike traditional investments, in the binary options industry you do not acquire the asset you trade with. There is no transfer of ownership involved. There are numerous binary options types. The most common is the high-low option. It characteristics include type of asset and expiration time.

The return is fixed and is realized at the moment of expiry. All you have to do is guess the direction in which the price of the instrument, influenced by market volatility, different financial indicators and economic changes, will move. The trade can end in on of two ways: In The Money (ITM) – this means that your prediction is accurate and at expiry the price of the asset has gone at the direction of your guess. For example, you trade with Apple stocks and according to you, their price will be higher at the trade’s expiration. You set your investment amount and then wait. The trade ends ITM if the price truly is higher than the one at the beginning. As a result, you make a profit, with a fixed return rate, provided by the broker you trade through. Out The Money (OTM) – this means that your prediction is incorrect and at expiry the price of the asset has gone in the opposite to your guess direction. Let’s consider the same Apple example – according to you, the price of their stocks will be higher at expiry. But the price drops (even if it is with just a little bit) at the moment of expiry. The trade ends OTM and you face a loss.

A very rare situation is for the trade to expire at an asset price that is the same as the one at the beginning of the trade. This situation is called At The Money (ATM) but the chance for this happening is a miniature one. To learn more about binary options, you can visit Investopedia. They have very detailed articles about the industry and the concepts, what are the differences between trading in the U. S. and outside the States, some trading strategies and advice, and lots of other materials. What is a Binary Options Broker? The world of the binary options industry is vast and complicated. Stepping into this world, you will encounter too many to count platform providers and automated traders. Brokers are the ones who provide a medium for trading and the assets at your disposal are also determined by them. Different brokers offer different trading opportunities with different sets of assets. As traders, you can get access to more than 600 brokers, some of which operate worldwide, while others have some geographic limitations. The rapid increase in the number of brokers is very beneficial for investors, since it increases competition and forces platform providers to find innovative ways to enhance user’s experience.

Our Recommended Binary Options Brokers. Probably the most important decision you will make as a binary options trader is with which broker to open a trading account with. This can give a direction to your future trading endeavors and lead you on the path to success or failure. That is why it is extremely important to make thorough research before signing up. Traders, especially experienced ones, tend to open multiple accounts with multiple brokers, so that they can reap the rewards from diversification and to exploit more and different special features, offered by the different platform providers. Regulation of Binary Options Brokers. Like I said, choosing the right binary options broker is crucial for your success. The most reputable and trustworthy platform providers are the ones which are regulated. Regulation is an essential feature of every profitable broker. It is also a very complicated job. Countries have a set of regulators who are assigned the job of regulating binary options brokers, stock brokers, commodity exchanges and everything you can think of that allows you to practice some sort of financial investment activity. For example, the member states of the European Union accept only those brokers that are listed with a country’s supervisory agency. The binary options world has been hugely affected by the emergence of scams which are looking to make some profits at the expense of the traders they lure.

It is no surprise that scam brokers are advertising themselves as licensed and regulated. You can check with your country’s financial authorities to see if they are regulating a certain broker. One of the most well-known regulatory agency is – The Cyprus Securities and Exchange Commission. You can learn more about it here. Even though regulation is a characteristic that can attest to the broker’s reliability, some are still in the process of acquiring a license or do not have one at all, but are still a very good choice for your investments. One should keep an open mind and explore all possibilities. Special features, bonus schemes and guarantee of funds can play an important role when choosing a broker. You can check some the providers I really like here. In my experience as a trader, I have opened accounts with non-regulated brokers on multiple occasions and I have gain some insights on what is the plus side of using such a broker. What is a Binary Options Robot? Binary options robots are the so-called automated traders. Their purpose is to help you maximize your profits and are of great use especially for inexperienced traders, who are making their first steps in the field of binary options.

How come? It is in their name – they work automatically and trade in your stead. Trading bots are in essence software which runs in the background, analyzing and summarizing enormous amounts of data, either available or gathered through observing market trends and movements. How will the system work depends on the algorithms created and set by the developers of the software. They use sophisticated mathematical algorithms and cutting-edge technology for the best results. The software is usually available for free. You can always upgrade to a VIP version, which will either cost something or will depend on the referral condition. This is up to the robot’s policy. Most programs do not require downloads, everything is web-based and runs on every known operating machine. Some binary options trading bots offer a mobile applications so that investors can trade on the go. Of course, using the desktop version is always a much better choice and guarantees the best experience you can get out of using the robot.

There is also auto trading software that is only available for investment via online streaming. This is not that uncommon. Different solutions usually offer different special features. They are something very important. Users should always be weary of them when trying to invest on the web. The more specific characteristics a binary robot software possesses, the more reliable it is. Like for instance providing 247 support. There is always a possibility that traders have not understood the certain specifics of a particular bot. So, there is a constant need for guidance and advice. Especially, if it is available in several languages. For instance, the best binary option robot would offer it in that many languages as to satisfy the needs of people from at least 5 countries. In general, auto binary robots are a fine opportunity for regular people to increase their profits. But one should proceed with great caution when choosing a software.

How to Work with a Binary Options Robot. After you choose the binary option trading software you want to work with, you have to open an account with a recommended broker. Reliable binary trading systems provide the opportunity to sign up with a reliable broker. When you get to that step, make sure you choose the best possibility. Like I said twice already – the choice of a broker is crucial. In order to start trading, you have to make an initial deposit to your account. The amount of the required funds is determined by the broker’s policy. It will be used exclusively for trading purposes. After that, you are free to begin trading – either automatically or manually. In the first case , you have to tune the binary trading software’s settings to your preferences, activate the special features you want to use, and leave everything else to the system. It will generate signals, which include profitability levels and reliability, and will automatically execute trades. In the second case , you place the trades yourself, but you can use the information from the generated signals and base your trading decisions on them. The usual accuracy is up to 75% – 80%, with some exceptions.

In very rare cases a bigger claim can turn out to be true. There is a huge difference between legitimate and scam binary robot software. The second type is one that you would want to avoid at all costs. On this blog, I will provide you with detailed reviews on best binary trading software, too. This way you are going to be informed and succeed in recognizing the legit ones from the scams, which will open holes in your budget. What are Binary Options Signals? The aforementioned signals you can use to make investments and according to which the robot executes trades, are a summary of all the information needed to make a decision. No matter the market – for commodities, for stocks, currency or indices, you can get a signal on a certain asset. This alert specifies the direction in which a trade should be made so that you can reach the maximum profit. The signal’s most important characteristic is its reliability – the percent shows with what level of certainty a given outcome will be reached.

Let’s take for example a commodity – oil. You have to choose whether its price will go up or down. The signal you get shows an 87% certainty of it going up at the time of expiry. This means that the chance of you guessing right if you trust the signal is 87%. Different systems provide different types of signal services. There are those that do not even offer alerts. You can receive signals via e-mail or directly through the software in real time. Of course, different trading bots offer different ways for you to get access to those alerts. Remember, you will lose your whole investment if outcome of your trade is different from the predicted by the robot. That is why it is so important to choose a reliable binary options software. The reliability and authenticity of a system’s signals is crucial to your trading results, especially if you let the robot trade automatically. If want to place your own trades, you can decide on the spot whether or not to trust the predictions. Learn to Avoid Binary Scam.

The choice of a broker and a trading bot will chart the course of your investments. You can make a solid amount of money by trading with binary options or you can lose every last penny you invest. Scammers will do everything in their power to lure you into opening an account with them. They make flashy promises and huge claims, with the sole purpose of creating an atmosphere of exclusivity and reliability. In this way they outshine the brokers and robots that do not really need such a noisy advertisement and draw victims into their nets. Here are some useful suggestions to follow when choosing a system and a broker, that could keep you from signing up with a scam: Make thorough investigations before signing up. The Internet is full of reviews. You just have to be careful what you read, because a lot of affiliates will send you in the wrong direction. Join binary options trading forums and do not be afraid to openly discuss experience and voice your opinions. Ask for feedback from people who have tested the software you have concerns about. If possible – open a trading account with a regulated broker or make sure that users are satisfied with using the one that is recommended by your trading bot. Scam Binary Options List.

When choosing your binary options automated trading software, you should take a careful look at the special features it offers. This is the thing that gives one system an advantage over another. Many useful features come free of charge when signing up. Even better ones are provided upon upgrading to a VIP account. What you should remember as well is that brokers also offer special functionalities. You should take this into consideration when opening a trading account with the recommended platform provider. The special features are another very important aspect of systems’ characteristics. They can give you an advantage while trading and help you get ahead. Last, but not least, some binary options automated trading systems as well as brokers offer special bonus schemes that can increase your trading capital and give a starting boost. When you sign up and open an account, take the time to read carefully through the Terms and Conditions that are provided. You should be cautious when accepting welcoming bonuses and other similar “gifts”, because sometimes the consequences are not to the trader’s advantage. Something From the Author. There is a rule of thumb that you should never forget if you decide to enter the binary options industry: Profits and Losses go hand in hand. The higher the risk of a trade, the higher the return, but so is the possibility for a loss.

Success rate of a 100% is impossible to achieve and binary options brokers or robots that make that claim, are most certainly lying. But if you accept the possibility for a loss as part of the trading process, you will be able to play the game in a better way and with a calmer mind. This blog was created with the sole purpose of giving you some insights and information on systems you might have questions about. I conduct thorough investigations and then summarize my findings in the form of reviews. I really hope that you will find the information on the blog helpful and that it will make your choosing task easier. A Guide to Trading Binary Options in the U. S. Binary options are based on a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal amongst traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages and disadvantages of these products, and which companies are legally authorized to provide binary options to U. S. residents. Binary options traded outside the U. S. are typically structured differently than binaries available on U. S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these exotic options. (For related reading, see What You Need To Know About Binary Options Outside The U. S. ) U. S. Binary Options Explained. Binary options provide a way to trade markets with capped risk and capped profit potential, based on a 'yes' or 'no' proposition.

For example: Will the price of gold be above $1,250 at 1:30 p. m. today? If you believe it will be, you buy the binary option. If think gold will be below $1,250 at 1:30 p. m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price. The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p. m. If you buy the binary option right then you will pay $44.50, if you decide to sell right then you'll sell at $42.50. Let's assume you decide to buy at $44.50. If at 1:30 p. m. the the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100 - $44.50 = $55.50 (less fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p. m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money. The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss (compared to letting it expire out of the money). Eventually every option settles at $100 or $0 $100 if the binary option proposition is true, and $0 if it turns out to be false.

Thus each binary option has a total value potential of $100, and it is a zero-sum game – what you make someone else loses, and what you lose someone else makes. Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, therefore the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100 ($100 - $44.50 = $55.50). A trader may purchase multiple contracts, if desired. Another example: NASDAQ US Tech 100 index > $3,784 (11 a. m.). The current bid and offer is $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a. m., you buy the binary option at $80 (or place a bid at a lower price and hope someone sells to you at that price). If you the think the index will be below $3,784 at that time, you sell at $74.00 (or place an offer above that price and hope someone buys it from you). You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a. m. And if you really like the trade, you can sell (or buy) multiple contracts. Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket. Nadex Trade Ticket with Max Profit and Max Loss (Figure 1) The maximum profit on this ticket is $370 ($74 x 5 = $370), and the maximum loss is $130 ($100 - $74 = $26 x 5 = $130) based on five contracts and a sell price of $74.00. (For more on this topic, see Introduction To Binary Options. ) How the Bid and Ask are Determined. The bid and ask are determined by traders themselves as they assess the probability of the proposition being true or not. In simple terms, if the bid and ask on a binary option are at 85 and 89, respectively, then traders are assuming a very high probability that the outcome of the binary option will be yes, and option will expire worth $100.

If the bid and ask are near 50, traders are unsure if the binary will expire at $0 or $100 – it's even odds. If the bid and ask are at 10 and 15, respectively, that indicates traders think there is a high likelihood the option outcome will be no, and expire worth $0. The buyers in this area are willing take the small risk for a big gain. While those selling are willing to take a small – but very likely – profit for a large risk (relative to their gain). Where to Trade Binary Options. Binary options trade on the Nadex exchange, the first legal U. S. exchange focused on binary options. Nadex provides its own browser-based binary options trading platform which traders can access via demo account or live account. The trading platform provides real-time charts along with direct market access to current binary option prices. Binary options are also available through the Chicago Board Options Exchange (CBOE). Anyone with an options-approved brokerage account can trade CBOE binary options through their traditional trading account. Not all brokers provide binary options trading, however. Each Nadex contract traded costs $0.90 to enter and $0.90 to exit. The fee is capped at $9, so purchasing 15 lots will still only cost $9 to enter and $9 to exit. If you hold your trade until settlement and finish in the money, the fee to exit is assessed to you at expiry. If you hold the trade until settlement, but finish out of the money, no trade fee to exit is assessed.

CBOE binary options are traded through various option brokers each charge their own commission fee. Pick Your Binary Market. Multiple asset classes are tradable via binary option. Nadex offers trading in major indices such as the Dow 30 (Wall Street 30), the S&P 500 (US 500), Nasdaq 100 (US TECH 100) and Russell 2000 (US Smallcap 2000). Global indices for the United Kingdom (FTSE 100), Germany (Germany 30) and Japan (Japan 225) are also available. Trades can be placed on forex pairs: EURUSD, GBPUSD, USDJPY, EURJPY, AUDUSD, USDCAD, GBPJPY, USDCHF, EURGBP, as well as AUDJPY. Nadex offers commodity binary options related to the price of crude oil, natural gas, gold, silver, copper, corn and soybeans. Trading news events is also possible with event binary options. Buy or sell options based on whether the Federal Reserve will increase or decrease rates, or whether jobless claims and nonfarm payrolls will come in above or below consensus estimates. (For more on this topic, see Exotic Options: A Getaway From Ordinary Trading.

) The CBOE offers two binary options for trade. An S&P 500 Index option (BSZ) based on the the S&P 500 Index, and a Volatility Index option (BVZ) based on the CBOE Volatility Index (VIX). Pick Your Time Frame. A trader may choose from Nadex binary options (in the above asset classes) that expire hourly, daily or weekly. Hourly options provide opportunity for day traders, even in quiet market conditions, to attain an established return if they are correct in choosing the direction of the market over that time frame. Daily options expire at the end of the trading day, and are useful for day traders or those looking to hedge other stock, forex or commodity holdings against that day's movements. Weekly options expire at the end of trading week, and are therefore traded by swing traders throughout the week, and also by day traders as the options' expiry approaches on Friday afternoon. Event-based contracts expire after the official news release associated with the event, and therefore all types of traders take positions well in advance of - and right up to - the expiry. Advantages and Disadvantages. Unlike the actual stock or forex markets where price gaps or slippage can occur, the risk on binary options is capped. It's not possible to lose more than the cost of the trade. Better-than-average returns are also possible in very quiet markets. If a stock index or forex pair is barely moving, it's hard to profit, but with a binary option the payout is known.

If you buy a binary option at $20, it will either settle at $100 or $0, making you $80 on your $20 investment or losing you $20. This is a 4:1 reward to risk ratio, an opportunity which is unlikely to be found in the actual market underlying the binary option. The flip side of this is that your gain is always capped. No matter how much the stock or forex pair moves in your favor, the most a binary option option can be worth is $100. Purchasing multiple options contracts is one way to potentially profit more from an expected price move. Since binary options are worth a maximum of $100, that makes them accessible to traders even with limited trading capital, as traditional stock day trading limits do not apply. Trading can begin with a $100 deposit at Nadex. Binary options are a derivative based on an underlying asset, which you do not own. Therefore, you're not entitled to voting rights or dividends that you'd be entitled to if you owned an actual stock. Learn To Maximize Profits With Binary Options Explained. Welcome to Binary Options Explained, your one stop source for everything you need to know about an innovative way to trade the markets. We believe that information is power and if you are looking for the power to trade binary options smartly, you’ve certainly landed at the right place. Our site is loaded with all the information you need to trade binary options with simple, down to earth explanations minus any high tech jargon.

This is where you will not only learn the fundamentals of binary options trading but find credible brokers, get access to loads of tips and free strategies, and lots more. Binary Options Broker Reviews. Binary Options Trading – A safe and easy trading option. It is important to understand what binary options is all about and how it works before you begin trading. Many people shy away from this type of investment because they are misinformed or lack knowledge about it. However, they could be missing out on some profitable trades. So let’s begin with a brief on what is binary options trading. Have a look at How to Trade Binary Options section to learn how to trade options. It is an investment vehicle that is the easiest to learn and understand. It’s that simple. The goal is to determine whether the value of a particular asset such as stocks, gold, silver, currencies, commodities and more will rise or fall within a specific period, which could be 60-seconds, 30-minutes, hourly, daily, weekly or monthly. If you don’t determine correctly you lose your investment while you stand to gain between 60% and 130% or more if you make the right call. For this reason, it is also known as All or Nothing options. Easy Steps To Binary Options Trading. Binary options trading is one of the easiest ways to trade online, whether you are a beginner or an experienced investor.

There are three steps to each trade, which you can learn to follow and turn in a profit. The first step is to choose a good broker that trades in a variety of assets such as stocks, Forex, commodities, indices and more. Next is to select the expiry time (duration) of the contract. This can range from 60 seconds to an hour, a day or a week. The third step is to determine whether the value of the asset will move above or below a specified value and select the Call or Put option. If it is your first time it would be prudent to start small with $100 until you get a feel of the market. Choosing the direction an asset’s value will take is all you need to do in this type of trading. If you make the right choice you have the opportunity to earn returns of 70% to 95% and more, depending on the type of trade. Why You Need To Find The Best Trading Account. Binary options trading opens you to a whole new world of fast paced trading. Most importantly, it can be used in various ways across a huge spectrum of markets and commodities. Therefore, it is prudent to find the best trading account to suit your needs as an investor.

Some brokers focus on currency pairs (Forex) or commodities options or may limit the number of markets. Payouts may vary between asset classes to as much as 25% or more, which is another factor to consider when selecting a trading account. Investment limits also vary from as little as $1 per trade to thousands of dollars. So make sure to consider your budget and trading needs before you open an account. The good news is that most brokers allow traders to open demo trading accounts. This is a great way to check if the range of markets and commodities and investment potential suits your style. Find a list of credible binary options brokers with demo trading accounts right HERE. Compare The Best Brokers At Binary Options Explained. Our experts are always hard at work sorting out the best binary options brokers that offer an array of services across the USA, UK, Europe and Asian markets. They touch upon a number of key comparison points that include and are not limited to: Licensing and regulation Trading platform reliability Payout percentages Minimum deposit permitted Variety of assets offered Available expiry times (60-second, 30-minute, hour, day, week, month etc) Bonus offers Minimum and maximum trade limits Types of options (CallPut, TouchNo Touch etc) Availability of demo accounts Tutorials Banking methods, and lots more.

Benefits Of Binary Options Trading. If you are looking for a good start to trading there is no better way to gain an understanding of the markets than with binary options trading. To begin with, it’s a simple and easy way to trade. You only need to predict the direction of an underlying asset over a specific period and wait for the expiry of the contract to determine if you have won or not. Transparency : Binary options is one of the most transparent forms of trading where you know exactly how much you win or lose right at the beginning. The maximum you lose is only your initial investment. Fast trading : The major feature of this type of trading is the pace at which trades are transacted. Short term trades range from 3060-seconds to an hour, a day or more. Significant payouts with high reward to risk ratio : The returns between 70% and 130% or more make it one of the most lucrative short-term trading options. If you invest $100 on a trade and the broker offers 90% returns, a winning trade will result in you getting your initial investment of $100 back in addition to $90 more. Limited risk : The risk is limited to the amount you invest. However, most brokers offer a rebate between 10% and 15% on losing trades. We at Binary Options Explained are truly humbled by our ever increasing list of traders that keep coming back for more.

Here are few reasons why you ought to stick around with us. Get unbiased reviews on binary options brokers Access to FREE binary trade signals Learn trading techniques to improve your win rate Learn tried and tested binary options strategies that work Find reputed and reliable brokers Get regular tips and advice from our experts. Binary Options Explained. Binary options is one of the most recent investment vehicles to hit the financial markets. A binary option is a type of option where the payoff is either a fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. Things changed over the years and by 2008 binary option trading platforms began offering a simplified version of exchange-traded binary options. These platforms offered standardized short-term binary options with a pre-determined profitloss, that could not be liquidated (buy or sell to close) before expiry. Articles on binary options reported that by the end of 2011, there were an estimated 90 such platforms (including white label products) in operation, offering options on some 125 underlying assets. Binary options brokers today offer even more than this number and compete vigorously for the position of the broker offering the most assets to option buyers. Most binary option brokers offer detailed explanations about how this instrument works. Binary options articles provide additional information. Binary options are actually easy to understand and are often referred to as a fixed-return option.

They provide access to stocks, indices, commodities and foreign exchange, and have an expiry date, a time and a strike price. If a trader wagers correctly on the market’s direction and the price at the time of expiry is on the correct side of the strike price, the trader receives a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the market’s direction ends up losing a fixed amount of herhis investment or all of it. If a trader believes the market is going higher, she can purchase a “call.” If she believes the market is going lower, she can buy a “put.” For a call to be profitable, the price must be above the strike price at the expiry time. For a put to be a money maker, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed up front. The payout and risk may fluctuate as the market moves. A call that is “in the money” by an extreme degree has a good chance of finishing in the money if there is only a short interval before expiration. However, the pay rate out and the risk locked in by the trader when the trade was originally made will hold strong at expiration. This means different traders, depending on when they enter, may have different payouts. Binary Options Explained. Binary Options Explained.

If you are just getting started in the field of Binary options and are looking to learn about them, then here are Binary Options Explained in the simplest form to help you. If you are trading for the first time ever then you need to know some basics. When you trade in a traditional market and invest some money then you are buying a product while when you are trading in Binary Options, then all that you buy is a contract with an option of yes or no and the payoff will either be all or nothing at all. Binary Options Explained. Welcome to CyberMentors. org. uk I am Collin Tyusm and this is my blog, dedicated to binary options trading and software. If you are here, that means you are interested in binary options and auto trading. You have reached the place that wants to put an end to malicious practices when it comes to trading with options. The market is flooded with various and different systems that claim legitimacy and promise high profitability, enormous returns and fantastic success rates. But after years of witnessing and in the worst case – falling victims to numerous Ponzi schemes and losing a lot of our investments to fraud, we should know better.

A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. I created this blog in order to be of help to newbies as well as experienced traders. I want to provide you with a basic understanding on what binary options are, what is the difference between brokers and robots, and how trading works. If there are more things that interest you and you want explained, do not hesitate to contact me. Table of Contents. Our Recommended Binary Options Signals List. Binary options trading is a very attractive field since it seems very easy and intuitive. But traders should keep in mind that there is always risk involved. Risk, that should not be underestimated and investors need to take into consideration in order to make profits instead of accumulating losses. Having proper insights and understanding of what binary options are and how this unconventional type of trading works, can help one reap the juiciest fruit out of this field. If you are able to grasp the idea and the depth of binary options, you are all set to gain the exotic results that this trading opportunity has to offer. I have provided you with information on some of the most important things you need to know about the industry in order to get the best results out of your trading decisions. One of the top binary option robots that have been working for years is the brit method system. It has a simple to use design and can be accessed online from desktop and mobile devices.

I also recommend Fintech LTD which generated high return ratio of stable 82.3% so far. What are Binary Options? Binary options are also known as mysterious options but at the same time they are extremely simple when it comes to their functions and using them. Through them, you can trade with currencies, stocks, indices and commodities. Unlike traditional investments, in the binary options industry you do not acquire the asset you trade with. There is no transfer of ownership involved. There are numerous binary options types. The most common is the high-low option. It characteristics include type of asset and expiration time. The return is fixed and is realized at the moment of expiry. All you have to do is guess the direction in which the price of the instrument, influenced by market volatility, different financial indicators and economic changes, will move.

The trade can end in on of two ways: In The Money (ITM) – this means that your prediction is accurate and at expiry the price of the asset has gone at the direction of your guess. For example, you trade with Apple stocks and according to you, their price will be higher at the trade’s expiration. You set your investment amount and then wait. The trade ends ITM if the price truly is higher than the one at the beginning. As a result, you make a profit, with a fixed return rate, provided by the broker you trade through. Out The Money (OTM) – this means that your prediction is incorrect and at expiry the price of the asset has gone in the opposite to your guess direction. Let’s consider the same Apple example – according to you, the price of their stocks will be higher at expiry. But the price drops (even if it is with just a little bit) at the moment of expiry. The trade ends OTM and you face a loss. A very rare situation is for the trade to expire at an asset price that is the same as the one at the beginning of the trade. This situation is called At The Money (ATM) but the chance for this happening is a miniature one.

To learn more about binary options, you can visit Investopedia. They have very detailed articles about the industry and the concepts, what are the differences between trading in the U. S. and outside the States, some trading strategies and advice, and lots of other materials. What is a Binary Options Broker? The world of the binary options industry is vast and complicated. Stepping into this world, you will encounter too many to count platform providers and automated traders. Brokers are the ones who provide a medium for trading and the assets at your disposal are also determined by them. Different brokers offer different trading opportunities with different sets of assets. As traders, you can get access to more than 600 brokers, some of which operate worldwide, while others have some geographic limitations. The rapid increase in the number of brokers is very beneficial for investors, since it increases competition and forces platform providers to find innovative ways to enhance user’s experience. Our Recommended Binary Options Brokers. Probably the most important decision you will make as a binary options trader is with which broker to open a trading account with. This can give a direction to your future trading endeavors and lead you on the path to success or failure. That is why it is extremely important to make thorough research before signing up. Traders, especially experienced ones, tend to open multiple accounts with multiple brokers, so that they can reap the rewards from diversification and to exploit more and different special features, offered by the different platform providers. Regulation of Binary Options Brokers.

Like I said, choosing the right binary options broker is crucial for your success. The most reputable and trustworthy platform providers are the ones which are regulated. Regulation is an essential feature of every profitable broker. It is also a very complicated job. Countries have a set of regulators who are assigned the job of regulating binary options brokers, stock brokers, commodity exchanges and everything you can think of that allows you to practice some sort of financial investment activity. For example, the member states of the European Union accept only those brokers that are listed with a country’s supervisory agency. The binary options world has been hugely affected by the emergence of scams which are looking to make some profits at the expense of the traders they lure. It is no surprise that scam brokers are advertising themselves as licensed and regulated. You can check with your country’s financial authorities to see if they are regulating a certain broker. One of the most well-known regulatory agency is – The Cyprus Securities and Exchange Commission. You can learn more about it here. Even though regulation is a characteristic that can attest to the broker’s reliability, some are still in the process of acquiring a license or do not have one at all, but are still a very good choice for your investments. One should keep an open mind and explore all possibilities.

Special features, bonus schemes and guarantee of funds can play an important role when choosing a broker. You can check some the providers I really like here. In my experience as a trader, I have opened accounts with non-regulated brokers on multiple occasions and I have gain some insights on what is the plus side of using such a broker. What is a Binary Options Robot? Binary options robots are the so-called automated traders. Their purpose is to help you maximize your profits and are of great use especially for inexperienced traders, who are making their first steps in the field of binary options. How come? It is in their name – they work automatically and trade in your stead. Trading bots are in essence software which runs in the background, analyzing and summarizing enormous amounts of data, either available or gathered through observing market trends and movements. How will the system work depends on the algorithms created and set by the developers of the software. They use sophisticated mathematical algorithms and cutting-edge technology for the best results. The software is usually available for free.

You can always upgrade to a VIP version, which will either cost something or will depend on the referral condition. This is up to the robot’s policy. Most programs do not require downloads, everything is web-based and runs on every known operating machine. Some binary options trading bots offer a mobile applications so that investors can trade on the go. Of course, using the desktop version is always a much better choice and guarantees the best experience you can get out of using the robot. There is also auto trading software that is only available for investment via online streaming. This is not that uncommon. Different solutions usually offer different special features. They are something very important. Users should always be weary of them when trying to invest on the web. The more specific characteristics a binary robot software possesses, the more reliable it is. Like for instance providing 247 support. There is always a possibility that traders have not understood the certain specifics of a particular bot. So, there is a constant need for guidance and advice.

Especially, if it is available in several languages. For instance, the best binary option robot would offer it in that many languages as to satisfy the needs of people from at least 5 countries. In general, auto binary robots are a fine opportunity for regular people to increase their profits. But one should proceed with great caution when choosing a software. How to Work with a Binary Options Robot. After you choose the binary option trading software you want to work with, you have to open an account with a recommended broker. Reliable binary trading systems provide the opportunity to sign up with a reliable broker. When you get to that step, make sure you choose the best possibility. Like I said twice already – the choice of a broker is crucial. In order to start trading, you have to make an initial deposit to your account. The amount of the required funds is determined by the broker’s policy. It will be used exclusively for trading purposes. After that, you are free to begin trading – either automatically or manually.

In the first case , you have to tune the binary trading software’s settings to your preferences, activate the special features you want to use, and leave everything else to the system. It will generate signals, which include profitability levels and reliability, and will automatically execute trades. In the second case , you place the trades yourself, but you can use the information from the generated signals and base your trading decisions on them. The usual accuracy is up to 75% – 80%, with some exceptions. In very rare cases a bigger claim can turn out to be true. There is a huge difference between legitimate and scam binary robot software. The second type is one that you would want to avoid at all costs. On this blog, I will provide you with detailed reviews on best binary trading software, too. This way you are going to be informed and succeed in recognizing the legit ones from the scams, which will open holes in your budget. What are Binary Options Signals? The aforementioned signals you can use to make investments and according to which the robot executes trades, are a summary of all the information needed to make a decision. No matter the market – for commodities, for stocks, currency or indices, you can get a signal on a certain asset.

This alert specifies the direction in which a trade should be made so that you can reach the maximum profit. The signal’s most important characteristic is its reliability – the percent shows with what level of certainty a given outcome will be reached. Let’s take for example a commodity – oil. You have to choose whether its price will go up or down. The signal you get shows an 87% certainty of it going up at the time of expiry. This means that the chance of you guessing right if you trust the signal is 87%. Different systems provide different types of signal services. There are those that do not even offer alerts. You can receive signals via e-mail or directly through the software in real time. Of course, different trading bots offer different ways for you to get access to those alerts. Remember, you will lose your whole investment if outcome of your trade is different from the predicted by the robot. That is why it is so important to choose a reliable binary options software.

The reliability and authenticity of a system’s signals is crucial to your trading results, especially if you let the robot trade automatically. If want to place your own trades, you can decide on the spot whether or not to trust the predictions. Learn to Avoid Binary Scam. The choice of a broker and a trading bot will chart the course of your investments. You can make a solid amount of money by trading with binary options or you can lose every last penny you invest. Scammers will do everything in their power to lure you into opening an account with them. They make flashy promises and huge claims, with the sole purpose of creating an atmosphere of exclusivity and reliability. In this way they outshine the brokers and robots that do not really need such a noisy advertisement and draw victims into their nets. Here are some useful suggestions to follow when choosing a system and a broker, that could keep you from signing up with a scam: Make thorough investigations before signing up. The Internet is full of reviews. You just have to be careful what you read, because a lot of affiliates will send you in the wrong direction. Join binary options trading forums and do not be afraid to openly discuss experience and voice your opinions. Ask for feedback from people who have tested the software you have concerns about.

If possible – open a trading account with a regulated broker or make sure that users are satisfied with using the one that is recommended by your trading bot. Scam Binary Options List. When choosing your binary options automated trading software, you should take a careful look at the special features it offers. This is the thing that gives one system an advantage over another. Many useful features come free of charge when signing up. Even better ones are provided upon upgrading to a VIP account. What you should remember as well is that brokers also offer special functionalities. You should take this into consideration when opening a trading account with the recommended platform provider. The special features are another very important aspect of systems’ characteristics. They can give you an advantage while trading and help you get ahead. Last, but not least, some binary options automated trading systems as well as brokers offer special bonus schemes that can increase your trading capital and give a starting boost. When you sign up and open an account, take the time to read carefully through the Terms and Conditions that are provided. You should be cautious when accepting welcoming bonuses and other similar “gifts”, because sometimes the consequences are not to the trader’s advantage.

Something From the Author. There is a rule of thumb that you should never forget if you decide to enter the binary options industry: Profits and Losses go hand in hand. The higher the risk of a trade, the higher the return, but so is the possibility for a loss. Success rate of a 100% is impossible to achieve and binary options brokers or robots that make that claim, are most certainly lying. But if you accept the possibility for a loss as part of the trading process, you will be able to play the game in a better way and with a calmer mind. This blog was created with the sole purpose of giving you some insights and information on systems you might have questions about. I conduct thorough investigations and then summarize my findings in the form of reviews. I really hope that you will find the information on the blog helpful and that it will make your choosing task easier.