Binary options explanation 80 scheme Binary options trading is gaining more and more popularity. This is because it’s a form of trading where you potentially earn maximum profits with a minimum investment of time and money. Binary trading is a quick way of trading which is easy to learn and accessible for everyone. Besides that, it has a very high profit potential. The steps of binary options trading: ● Choose which asset you want to trade. ● Choose the direction Will the trade drop or rise? ● Choose the Expiry time. ● Chooste the Amount you would like to invest. "we trade with confidence" As a binary options trader, you are fully in control of your trades. With binary options trading, you don’t need to learn 6 years or pay high fees for broker “guru’s”. Binary option trading let you choose how much to invest, no min deposits of thousands of Pounds, Euro’s or dollars… This is how binary options opened up the financial world for everyone. Why would you invest in stocks and markets that even the experts don’t understand? Why wouldn’t you take a much more simplified way of trading where you just tell if the market price will drop or rise?
Binary options gives it to you, a transparent and clear way of trading! WHAT'S THE DIFFERENCE? The main difference between trading forex on a regular market or on a binary market is the fact that you know exactly how much you are risking and how much you can earn. Don’t ever think off stop losses or take profit points anymore. With binary options, you can invest with confidence. POPULARITY OF BINARY OPTIONS. Binary options trading is gaining more and more popularity. Many traders are increasingly seeing the benefits of this way of trading , instead of the long - seen disadvantages. When trading binary, you know exactly in advance how much you invest , how much you can win and how much you can lose. All these benefits provide for the growing popularity of binary trading. BINARY TRADING IN THE NEWS. To our great disappointment , binary trading is often brought out negatively. This is due to the accessibility of this form of trading. Many people start here without proper guidance, which ensures that these people often lose their money within a few days.
Which in turn creates negative reviews. Always have a good guidance , see our possibilities! REQUEST A FREE TRIAL. We're currently offline. Send us an email and we'll get back to you, asap. Despite the fact that the success ratio of the signals is measured about an average, IT does happen that clients make misuse of our instructions and signals. This is why we apply strict risk conditions. Trading leveraged products such as forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or you are uncertain of the risks involved, please seek independent advice.
ITC Trading Group do not guarantees any profits. We will not be held responsible for any poor market conditions, judges or losses incurred upon the acknowledgement of our recommendations and technical analyses. Results shown are only actually placed trades. Success ratios and the like are an average. ITC Trading Group maintains a strict no refund policy. ITC Trading Group gives to act solely tips and ways on the currency market. We are committed, therefore, not down like financial institution or investment consulting firm. Everyone who uses our advice has been informed of the above fact. 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. BinaryoptionstradingITM. com. Is free really free when it comes to a binary options signal provider? Usually not and that is what I found when I was checking into BinaryoptionstradingITM. com. This is a supposedly 100% free binary options indicator service, I say supposedly because there is a catch. In order to get the free service you must sign up for the email list. I suppose this is OK because they have to get in touch with you somehow. Of course, as with any great marketing scheme one catch leads to another with the tiniest of steps until you find yourself deeply entrenched. Once I got over the fact they wanted to collect my email for their 100% free service I learned it was only free for 30 days.
What Is The GCAD 1.0 Indicator. The GCAD indicator is an oscillator that tracks the price action of any asset. This one was developed primarily for the CADJPY but as I said they claim it will work on any asset and it probably does. The indicator can be displayed on the “sponsoring brokers” platform or you can buy it out right for MetaTrader. Signals are a combination of crossovers and divergences and taken in the one minute time frame supposedly have a success rate of over 80%. Yes they have records that show their successes but can you really trust information that they themselves are providing? This website is advertising more than an indicator, it’s advertising a system. A question I always have to ask is how does the system work? Even the scammiest services have to have some illusion of reality. This one is an automated system for trading the CADJPY using the GCAD oscillator. Of course to really find out how it works you have to sign up for emails, they won’t tell you on the website. The automated part is really what makes it something to be wary of. Trading 60 seconds is super risky if you know what you are doing and not something I like to do using only one indicator. Adding an automated signal that newbies have to act on can only lead to disaster. I see losses ahead for anyone using it as indicated, not just newbies. One bonus is that the indicator, at least according to the website administrator, can be used in any time frame and on any asset provide it has enough liquidity.
This is good because it means traders can practice in a longer, and slower, time frames until they get good enough to move down to 60 second options. Traders can download this indicator and a few others offered by the website to use with the Metatrader platform and, here comes another catch, their preferred broker. I knew there would be a recommended or preferred broker, affiliate marketing is how these free services make money. What I discovered when reviewing the broker may makes this website more than a simple affiliate marketer. Of course this is another affiliate marketing scheme. In order to get the “free” software package you must deposit money with what they call the sponsoring broker. This is another potentially shady broker I have never heard of, BinaryInternational. com. I wouldn’t be surprised to find out that the broker was in fact the the owner of this indicator service. BinaryInternational. com is headquartered in Anguila, West Indies, is owned and operated by Neuro Tech International and is not regulated by . This of course means that U. S. traders are welcomed but I would watch out. The broker is obviously working with the SSP because they advertise free trading software for all new clients. Free software that turns out to be the very indicator I am talking about today. Can You Trust This Indicator?
I believe you can trust this indicator if you use it properly. The thing is, I don’t believe any indicator, no matter how good it is, can be used to successfully trade 60 second options over the long term. 60 second options are a losing proposition for most who chose to trade that way. That is why brokers want to use them, so they can make money and that is why this is a scam. The broker is using the indicator to increase 60 second binary options trading. Here is my caveat the indicator may be good to use but I don’t think this website service is on the up and up. It is most likely being operated by the very broker who happens to be the only broker whose platform supports this technology, BinaryInternational. They are using this so-called third party soft ware to lure you, my binary trading brothers and sisters, into risking your hard won capital on 60 second binary options. My advice to you is that if you are interested in the GCAD 1.0 indicator for binary options you should get the free trial, if you like it then buy it but I’d be very wary of the broker behind this scam. Oh, and if you doubt that the broker and the SSP are in bed together, notice in the screen shot above how the company name NeuroTech is prominently displayed on an ad for the system. AUTISM TREATMENT EXPERTS. TEACH DIFFICULT SKILLS. TRAINING FOR PARENTS & PROFESSIONALS.
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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. How to Succeed with Binary Options Trading in Germany. Welcome to the largest expert guide to binary options and binary trading online. BinaryOptions. net has educated traders globally since 2011 and all our articles are written by professionals who make a living in the finance industry. We have close to a thousand articles and reviews to guide you to be a more profitable trader no matter what your current experience level is. If you wish to discuss trading or brokers with other traders, we also have the world’s largest forum with over 20 000 members and lots of daily activity. Read on to get started trading today! Top Brokers in Germany. What is a Binary Option and How Do You Make Money? A binary option is a fast and extremely simple financial product which allows investors to bet on whether the price of an asset will go up or down in the future, for example the stock price of Google, the USDGBP exchange rate, or the price of gold.
The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day. Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you bet $100 you will receive $170 – $195 on a successful trade. This makes risk management and trading decisions much more simple. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “ binary ” option. To get started trading you first need a broker account. Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders. If you are completely new to binary options you can open a “demo account” with most brokers, to try out their platform and see what it’s like to trade before you deposit real money. Introduction Video – How to Trade Binary Options. These videos will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic you can educate yourself to be an expert and perfect your skills.
The most common type of binary option is the simple “UpDown” trade. There are however, different types of option. The one common factor, is that the outcome will have a “binary” result (Yes or No). Here are some of the types available: UpDown or HighLow – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry. InOut, Range or Boundary – This option sets a “high” figure and “low” figure. Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’). TouchNo Touch – These have set levels, higher or lower than the current price. The trader has to predict whether the actual price will ‘touch’ those levels at any point between the time of the trade an expiry. Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterwards. Ladder – These options behave like a normal UpDown trade, but rather than using the current strike price, the ladder will have preset price levels (‘laddered’ progressively up or down).
These can often be some way from the current strike price. As these options generally need a significant price move, payouts will often go beyond 100% – but both sides of the trade may not be available. How to Trade – Step by Step Guide. Below is a step by step guide to placing a binary trade: Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you. Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Forex or Indices. The price of oil, or the Apple stock price, for example. Select the expiry time – Options can expire anywhere between 30 seconds up to a year. Set the size of the trade – Remember 100% of the investment is at risk Click Call Put or Buy Sell – Will the asset value rise or fall? Some broker label buttons differently. Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade. No trader will be more successful than his or her broker is honest. Trading in binary options is still not regulated well enough to be considered an established investment alternative, and so there are plenty of dishonest operators trying to take advantage of naive traders. Note!
Don’t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site. Here are some shortcuts to pages that can help you determine which broker is right for you: Compare all brokers – if you want to compare the features and offers of all recommended brokers. Bonuses and Offers – if you want to make sure you get extra money to trade with, or other promotions and offers. Low minimum deposit brokers – if you want to trade for real without having to deposit large sums of money. Demo Accounts – if you want to try a trading platform “for real” without depositing money at all. Halal Brokers – if you are one of the growing number of Muslim traders. The number and diversity of assets you can trade varies from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EURUSD, USDJPY and GBPUSD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered. Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple.
These lists are growing all the time as demand dictates. The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. Full asset list information is also available within our reviews. The expiry time is the point at which a trade is closed and settled. The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time. Expiries are generally grouped into three categories: Short Term Turbo – These are normally classed as any expiry under 5 minutes Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes. Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months. While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include: Financial Conduct Authority ( ) – UK regulator Cyprus Securities and Exchange Commission ( ) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID Commodity Futures Trading Commission ( CFTC ) – US regulator. There are also regulators operating in Malta and the Isle of Man.
Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the regulation. Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers. Strategies and Guides. We have a lot of detailed guides and method articles for both general education and specialized trading techniques. Below are a few to get you started if you want to learn the basic before you start trading. From Martingale to Rainbow, you can find plenty more on the method page. Signals and Other Services. For further reading on signals and reviews of different services go to the signals page. If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options: Education for beginners: How to Set Up a Trade. The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, and expiration date. All trades have dates at which they expire. When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types.
There are three types of trades. Each of these has different variations. These are: Let us take them one after the other. Also called the UpDown binary trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes. Please note: some brokers classify UpDown as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a RiseFall type on some trading platforms. The InOut type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range.
He then purchases an option to predict if the price will stay within the price rangetunnel until expiration (In) or if the price will breakout of the price range in either direction (Out). The best way to use the tunnel binaries is to use the pivot points of the asset. If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss. A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch).
Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels. Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set. Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version. Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are. What Does Binary Options Mean? “Binary options” means, put very simply, a trade where the outcome is a ‘binary’ YesNo answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses.
So, in short, they are a form of fixed return financial options. How Does a Stock Trade Work? Steps to trade a stock via a binary option Select the stock or equity. Identify the desired expiry time (The time the option will end). Enter the size of the trade or investment Decide if the value will rise or fall and place a put or call. The steps above will be the same at every single broker. More layers of complexity can be added, but when trading equities the simple UpDown trade type remains the most popular. Put and Call Options. Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade. Different trading platforms label their trading buttons different, some even switch between BuySell and CallPut.
Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in. Are Binary Options a Scam? As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing. These simple checks can help anyone avoid the scams: Marketing promising huge returns . This is clear warning sign. Binaries are a high risk high reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy. Know the broker . Some operators will ‘funnel’ new customer to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier.
Cold Calls . Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue. Terms and Conditions . When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades have been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading. Some brokers also offer the option of cancelling a bonus if it does not fit the needs of the trader. Do not let anyone trade for you .
Avoid allowing any “account manager” to trade for you. There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits, and take greater risks . Traders should not let anyone trade on their behalf. Which Are The Best Trading Strategies? Binary trading strategies are unique to each trade. We have a method section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts and price action research. Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change. There is no single “best” method.
Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. Are Binary Options Gambling? This will depend entirely on the habits of the trader. With no method or research, then any investment is going to win or lose based only on luck. Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the trader. Advantages of Binary Trading. The world is filled with a plethora of financial markets, and advances in technology has made it possible for each of these markets to be accessible to the average Joe who has an internet connection and a computer or mobile device. As such, there may be some confusion as to what financial market to participate in. Forex has caught a lot of attention because the promises seen on the sales pages of forex brokers and vendors seem to point to it as a way of easy money. However, because this market has some peculiarities which traders must be thoroughly at home with, many unprepared traders have seen themselves at the wrong end of the market. This is where binary options come to the rescue with its unique set of advantages over other forms of market trading.
Minimal Financial Risk. If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: these markets carry a lot of risk and it is very easy to be blown off the market. Too many parameters affect trade outcomes that traders have to battle with. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. This is why trading the currency and commodities markets is a risky venture. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum. Unlike what obtains in other markets, many brokers return a fraction of the amount used in purchasing contracts when the trade is a losing one. The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. A binary trade outcome is based on just one parameter: direction.
The trader is essentially betting on whether a financial asset will end up in a particular direction. In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets. Greater Control of Trades. Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money.
This is not the case with other markets. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss. The payouts per trade are usually higher in binaries than with other forms of trading. Some brokers offer payouts of up to 80% on a trade. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout (which never occurs in most cases). In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital. For instance, trading gold, a commodity with an intra-day volatility of up to 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. This restricts the access of everyday people to such markets. However, binary options has much lower entry requirements, as some brokers allow people to start trading with as low as $10. Disadvantages of Binary Trading. Reduced Trading Odds for Sure-Banker Trades.
The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high. While it is true that some trades offer as much as 85% payouts per trade, such high payouts are possible only when a trade is made with the expiry date set at some distance away from the date of the trade. Of course in such situations, the trades are more unpredictable. Lack of Good Trading Tools. Some brokers do not offer truly helpful trading tools such as charts and features for technical analysis to their clients. Experienced traders can get around this by sourcing for these tools elsewhere inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders. Limitations on Risk Management. Unlike in forex where traders can get accounts that allow them to trade mini - and micro-lots on small account sizes, many binary option brokers set a trading floor minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries. As an illustration, a forex broker may allow you to open an account with $200 and trade micro-lots, which allows a trader to expose only acceptable amounts of his capital to the market. However, you will be hard put finding many binary brokers that will allow you to trade below $50, even with a $200 account. In this situation, four losing trades will blow the account.
Cost of Losing Trades. Unlike in other markets where the riskreward ratio can be controlled and set to give an edge to winning trades, the odds of binary options tilt the risk-reward ratio in favour of losing trades. In other words, traders lose more money when their trades end as losses than they can gain when their trades end up as profits. It is estimated that for every 70% profit that end up in profits, the corresponding loss of the same trade if it ends in a loss is 85%. The implication of this is that for a trader to break even, the winning percentage has to be at least 55%. It will therefore take a trader winning 6 trades out of ten to get into profit, but only 4 trades out of ten to end up in the red. When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. This scenario cannot be replicated in binary options – the moment a trader has placed a trade, the value of his equity in the trade drops to reflect the trade commissions taken off by the broker. The payout on the reverse trade is fixed and cannot be used to cover the loss from the wrong trade. Spot Forex vs Binary Trading. These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools. One is more TIME centric and the other is more PRICE centric. They both work in timeprice but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake.
The successful binary trader has a more balanced view of timeprice, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose. Below are some examples of how this works. Above is a trade made on the EURUSD buying in an under 10 minute window of price and time. As a binary trader this focus will naturally make you better than the below example, where a spot forex trader who focuses on price while ignoring the time element ends up in trouble. This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall. The very advantage of spot trading is its very same failure – the expansion of profits exponentially from 1 point in price. This is to say that if you enter a position that you believe will increase in value and the price does not increase yet accelerates to the downside, the normal tendency for most spot traders is to wait it out or worse add to the losing positions as they figure it will come back. The acceleration in time to the opposite desired direction causes most spot traders to be trapped in unfavourable positions, all because they do not plan time into their reasoning, and this leads to a complete lack of trading discipline. The nature of binary options force one to have a more complete mindset of trading off both Y = Price Range and X = Time Range as limits are applied. They will simply make you a better overall trader from the start . Conversely on the flip side, they by their nature require a greater win rate as each bet means a 70-90% gain vs a 100% loss .
So your win rate needs to be on average 54%-58% to break even. This imbalance causes many traders to overtrade or revenge trade which is just as bad as holdingadding to losing positions as a spot forex trader. To successfully trade you need to practice money management and emotional control. In conclusion, when starting out as a trader, binaries might offer a better foundation to learn trading . The simple reasoning is that the focus on TIMEPRICE combined is like looking both ways when crossing the street. The average spot forex trader only looks at price, which means he is only looking in one direction before crossing the street. Learning to trade taking both time and price into consideration should aid in making one a much overall trader. Bitconnect Review – Bitcoin Ponzi Scheme! OFFICIAL SCAM URL: bitconnect. com.
With the drastic rise in the value of Bitcoin, the scams surrounding this highly valuable cryptocurrency are also increasing in number. There is just no denying that and it can be seen with this latest example, the Bitconnect app . Sure, trading in cryptocurrencies like Bitcoin and Ethereum, among others, can be very profitable, if you know what you are doing or if you are using the right software. The Bitconnect trading app alleges that it can generate thousands and thousands of dollars per day with no risk of loss for you. There are very many different factors which contribute to our sound knowledge that this is a scam. There are various telltale signs that we recognize here, all of which point to one single fact, that Bitconnect software is a total rip off. There is still more to it though, because this Bitconnect system is also a Ponzi scheme , a highly illegal and fraudulent money thieving scheme that will leave you penniless. Make no mistake about it folks, the Bitconnect is dangerous, it’s malicious, and it’s coming for you. We are here doing this Bitconnect scam review to give you fair warning about the very real threat posed to you by this pile of trash that has the nerve and audacity to call itself a legit trading solution. Who Is In Charge Of The Bitconnect Scam App? We actually do not have a single clue as to who is at the helm of this ridiculous Bitcoin trading scam. The whole presentation video features only a voice narrator who neglects to share his name with us or even make up a fake name.
This is the first sign that something fishy is afoot here. We don’t even get to see his face. Next, there is also no official company name or listing given for this app, which is odd because somebody has to be in charge and somebody has to own it too. Moreover, the location of the headquarters of the Bitconnect system is not provided either, nor are any contact details given to us. In other words, the Bitconnect app is totally anonymous and without a real visible leader. This is of course a big problem for various different reasons which we will discuss shortly. The biggest problem here is obviously that there is no one you can blame once your money inevitably goes missing. Using a guise of anonymity is a great way for the scumbags behind this ludicrous system to keep themselves from going to prison. They know that the Bitconnect system is totally fraudulent and illegal. They are just looking to cover their own butts. Bitconnect Trading Scam & The Problem Of Anonymity. As we mentioned before, being anonymous is a big problem for the Bitconnect app. Legitimate trading programs, whether for binary options or Bitcoin, needs to be fully licensed, registered, and strictly regulated.
However, because this scamming trading system is 100% anonymous, with no clear person or company at the helm, it cannot possible have any kind of licensing. Providing signals, Bitcoin mining, and all forms of trading require various licenses. Since the Bitconnect app obviously does not have these licensed, it is either trading illegally, or more likely, it doesn’t ever make any trades at all. It’s just a Ponzi scheme meant to get you to fork over your hard earned cash. Another important issue related with the Bitconnect app being anonymous is that there is also no reliable broker involved. Reliable brokers are also licensed and regulated, which means that a really legit one will only allow itself to be associated with an equally trustworthy trading app. Since the Bitconnect system is clearly not legit in any way, you can bet your bottom dollar that the brokers involved are just as bad. Don’t trust these guys because the sole intention of this system is to rob you blind. How Is The Bitconnect System Supposed To Work? This is yet another surefire way of telling that there is a scam afoot here. We have no idea how the Bitconnect works to generate money. There is no mention of any trading strategies or algorithms, no indicators, and nothing else.
We are simply told that this system will turn our investment into a giant pile of cash. This is a classic scam tactic. They hope that some people will fall for this get rich quick scheme without even having to invent a fabricated explanation as to how it really works to put money in your pocket. Trust us when we say that you will never see a single penny in returns here. It’s a scam, it’s a Ponzi scheme, and it’s meant to empty your bank account. Bitconnect Scam Software – The Ponzi Scheme. There is not a single shadow of a doubt that the Bitconnect app is a Ponzi scheme. In other words, it promises huge payoffs in return for minimal investment. However, the way a Ponzi scheme works is by taking money from you with the promise of an ROI, but then never really paying you anything at all. The crooks behind the scam simply take the majority of the money for themselves. You might get a few bucks in the beginning just to placate you and draw you into a sense of complacency, but this is just a trick to buy time. There are various investment packages with the Bitconnect app, each of which cost more and promise a higher ROI.
There have been hundreds of complaints lodged against this absolute trash pile of a trading app and all of them claim the same thing. Nobody has ever gotten any kind of ROI and everybody has had their money stolen from them. This is what a Ponzi scheme is and how it does it. Don’t fall for these cheap tricks folks! Bitconnect Review – Conclusion. It is painfully obvious that this is just another Bitcoin scam, a huge Ponzi scheme meant to take you for everything you own. Stay away from the Bitconnect app because it will cost you dearly! BEST BO TRADER: Maximus Edge Autobot. CLICK HERE: READ OUR MAXIMUS EDGE AUTOBOT REVIEW. IMPORTANT : If you have any questions, issues or you experience any problems please email us and we will be glad to assist you. Our contact customer support email is: bin email protected If you register with this service from our website then you will always have our full free support in case you run into any issues or problems.
Remember that you are not alone, with us you will always be safe! To date, we have settled close to 2,000 trading disputes and we will not stop until we put every last scam out of business! If you have been cheated out of money or scammed by any fraudulent trading service, we encourage you to reach out to our complaint center for free help. If you need help, we will provide it for you! Thank you very much for reading this detailed review. Subscribe to our blog in order to be fully protected and to be up to date with all binary options services out there. Additionally please share and follow us on Facebook, Twitter, Google+ and Pinterest . See you next time!
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