Psychology of Trading Binary Options

Nowadays people look for ways of revenue other than their consistent jobs and this is why many people turn to one of the newest financial trading forms, the world of binary options trading.

Many people say that trading generally is not for everyone, but it is also true that if you obtain the essential knowledge and your moves on the market are reasonable enough, binary options can appear to be just the right thing for you.

In this article, the primary topic is the psychological side of trading. This is very significant not only for those who are new to the world of trading, but also for more advanced traders who treat their trading as business, and is also their foremost source of revenue.

The Trader’s Brain

It is a well-known fact that our brains are divided into two hemispheres. The left is responsible for the analytical part such as logic, science and other stuff involving logical reactions, while the right one is responsible for emotions, arts and creativities. Taking into consideration our final target, you as a trader need to use and develop more and more your left hemisphere of your brain.

Humans think in such a way that if they start confronting problems and issues, it is really difficult for us to remain calm and focus on the solution. So we reach the assumption that if something is affecting us emotionally, it is hard to use our analytical part of the brain. This is obviously visible when the traders are always following the profit – loss status bar, which can be troubling for more sensitive and emotional people. In such cases what you need to do is to beat your emotions.

The Way to Beat Your Emotions

Emotions are something that is tough to beat for many people. For an adult, it is hard to yet start changing yourself. That’s why there is a simple action that you can use in order to prevent your worries over the profit-loss status – just remove the bar. It is as simple as that. Almost all platforms have this option so it might be a very wise decision to do so.

In order to be reliable in your trading you need to go for the bottom line and if you are continuously checking what is going on with the price of the underlying asset you have already purchased, you might take a decision to change your primary strategy, and therefore end up with a loss.

As you know in this type of trading binary options, it is very important to stick to your initial idea and don’t be affected by middle results.

Key Point of Being Calm

As many of you may know, one of the most important things during trading is to remain calm and to act rational no matter of the situation. If by any chance, you need to make a change in your strategy, if you do it after rethinking everything carefully and check all possible outcomes first, there is nothing wrong with it.

Sometimes losses are difficult to accept and therefore they can’t move on to the next trade. Everyone needs to learn to accept losses and thus to move on. Use them and learn from them. Just like in sports - analyze what have you done wrong and remember it in the next round.

Being Successful by Obtaining Certain Qualities

Other factor that will be transmitted to your trading, just like the rest of your personal qualities, is your attitude. Of course, in the beginning many of us don’t have the right attitude. Luckily, you can always change that by following some rules of your own, and this way you could boost your profits, or at least reduce losses.

If you were soft in nature, emotional, spontaneous or uncertain when it comes to making decisions, it would be much better if you do not let these qualities in your trading. You should learn yourself patience, discipline, motivation, knowledge of money management, and of course, you need to learn how to enjoy trading itself.

Don’t Make Greed as Your Friend!

All people get greedy at some point. It is in our nature, but you need to be able to control that if you want to be a successful trader. On Wall Street there is an old saying that "pigs get slaughtered" which tries to describe the investors who driven on by their greed play the same position as long as they can trying to get every last drop of success out of it.

This is self-explanatory: it is in our nature to always look for something more, always strives to achieve a little more. But in trading you need to be able to overcome greed, because in the majority of cases it will only bring you down.

Important Characteristics of Binary Brokers

Till you have read some articles above, we surely that you have some basic knowledge of how binary options work. Therefore, it is time to set the basic standard of your trading career. Obviously, the first step towards making your first binary options trade is selecting a binary options broker. This may sound like an easy task, but in fact it will probably take you more time than you have primarily thought it would. It is decisive to you to select the right binary options broker for your needs as making the wrong choice may lead to unproductive results, difficulties with the trading platform, low quality support, etc.

Luckily, we are here to help you and we are sure that you will be able to make a forthright decision that will meet your needs thanks to our help. However, before telling you how to select a binary options broker, we’ll make you familiar with some of the most important qualities and characteristics of binary options brokers.

Signing Up Process and Payment Methods

A good broker is the one who makes your job easier. Find a broker that offers an easy sign up process, so that you can get your account up and running in just a few minutes. Logically, you’d want to review some online recommendations of the broker you’ve chosen in order to find out whether the company is reliable or not. Also, you should pay close attention to the payment methods supported by the broker. Many binary options traders live in countries where certain payments are either unsupported, or not allowed. Make sure that the binary options broker you’ve selected will give you the opportunity to deposit/withdraw money via a payment method that is available in your area.

Broker’s Trading Platform

Since you are a beginner, you are probably not familiar with the types of trading platforms that can be used for trading binary options. However, there are still options you should consider before you register an account and deposit some money. Are you planning to trade via a mobile device such as a tablet or a smartphone? If the answer is positive, then check whether your broker supports a mobile or a web-based trading platform. The best trading platforms are compatible with all kinds of devices and they can be accessed from anywhere. Apart from this, good platforms will provide you with access to educational tools that will make the learning process lighter and easier.

Broker’s Trading Assets

No matter how good a binary options broker seems to be, you won’t be satisfied if the broker doesn’t give you the opportunity to trade with a wide range of assets. Check the assets that brokers offer and make sure they allow you to trade the most popular currencies, indices, stocks and commodities.

Rate of Returns

This is one of the most significant points to check, since it will determine the amount of money you win from your trades. Of course, the rate of returns isn’t always a decisive factor for your final choice, because the other characteristics are important as well. Keep in mind that usually binary options brokers offer a rate of returns between 65% and 85%, but in some cases the number can be higher. Some special types of binary options can offer returns up to 500%, but these are not regular options and we’ll talk about them at a later stage. In short, you should always check the rate of returns offered for Call/Put, One touch, Digital and Range options before registering an account.

Technical Tools

Technical tools are essential for every binary options trader because they could help you execute your strategies and perform proper technical and fundamental analysis of different assets. It is rare to find a binary options broker that doesn’t provide access to the most important technical tools, but it is always a good idea to stay safe and check whether the broker you’ve selected will allow you to use the tools needed for technical analysis.

Demo Account

Demo accounts are an important part of your education and you should never use the services of a binary options broker that doesn’t give you the opportunity to trade via a demo account. Demo accounts are a great way to try different strategies, to get familiar with the interface of the trading platform and to learn more about binary options trading without risking your money.

Customer Support

Since you are a beginner, it is very likely that you’ll need to use the services of the support team at least 2-3 times a week. This is why you should make sure your broker’s employees are skilled, experienced, helpful and polite enough in order to answer your questions and help you improve your trading skills.

All in all, selecting a broker can take some time, but we guarantee that the time you spend reading reviews and characteristics of different brokers won’t be lost in vain! Making the right decision in such a situation is one of the keys to start a successful binary options trading career. In the next article, we’ll teach you how to use the information above in order to choose a trustworthy and convenient binary options broker.

Expiration Out of the Money

The Term That Traders Hate to Use

In the next part of our tutorial we’ll talk about another popular term which is, however, despised by most traders. Expiration out of the money is the situation in which the asset’s price goes into the wrong direction when the expiration time comes, and you end up losing your investment. We have already explained what it means for a trade to expire in the money and we sincerely hope that throughout your entire trading career you’ll use this term more often than the expiration out of the money. Let’s get back to the topic what expiration out of the money is and why traders hate it so much.

When Does a Trade Expire Out of The Money?

As you already know, when trading binary options there are only two possible outcomes of the trade – you either win or lose. In the last article of our tutorial, we explained the concept behind expiration in of the money as well as the meaning of this term, but now it is time to take a closer look at what happens when you lose a trade.

You already know that some of the main characteristics of a binary options trade are the strike time, the strike price and the expiration time, so it shouldn’t be a problem for you to understand what expiration out of the money is. Let’s say that you are planning to place a put option at 14:00 on the EUR/USD currency pair which has a current value of 1.335.

Therefore, the strike price is 1.335 and the strike time is 14:00. The next step is to choose the expiry time of your trade – in this case we’ll assume that you’ve selected “1 hour”. This means that your trade will expire at 14:59 and you’ll find out if you’re prediction was right or wrong. At 14:59 you see that the current price of the EUR/USD currency pair is 1.336 which means that the asset’s price went up. Since you placed a Put option, this means that you predicted that the price will go down after one hour. However, it is not unusual for the price to go up, so the trade expires out of the money and you end up losing the money you placed on this bet.

Conclusion

In short, when a trade expires out of the money you are on the losing side. This is why most traders hate using this term, because it usually means that their prediction didn’t turn out to be correct. Now you are aware of some of the binary option trades’ main characteristics, so it is time to move further with your education. In the next two parts of our tutorial we’ll tell you about binary options trading hours and make you familiar with the most important qualities and characteristics of binary options brokers.

Expiration In the Money

This tutorial continues with the part where we pay more detailed attention to some of the terms you will often encounter while trading binary options. It is always better to be prepared and know what a certain term means, rather than just looking at it and wondering whether it is important, or not. Remember that everything in binary options is important and the greater your knowledge is, the better. As a matter of fact, there are many traders, who lack any trading skills and this is why they have been on a “black” row. This term is used when a loss after loss is coming and sooner or later your initially invested funds will come to an end.

Of course, there is hardly a person, who would want this to happen; so, in order to make everything right and be sure that you have everything it takes to become a successful binary options trader, you must make sure that you've learned and mastered every single one of those terms. Then, and only then, you will have what it takes to start with your first trade – otherwise, your binary options trading will be nothing more than pure gambling; and since binary options trading is an art and there are lots of strategies, it is everything else, but not a gambling!

New horizons for trading

The next term we would like to explain is expiration in-the-money. We guess that those two – the words “expiration” and “in-the-money”, are terms you already know, but in case you can’t remember, let us refresh your memory. The expiration time is the time when the asset will close, and it is one of the key factors because it determines your outcome. You win, if you have guessed the right moment of the asset when the expiration comes and the bid is closed. Respectively, you lose if you haven’t done that. The “in-the-money” term is used in binary options trading pretty often, and it means a win, while “out-of-the-money” means a loss. Now let’s see what the combination of those two factors means.

The flexibility of binary options trading provides numerous opportunities for trading, because there are always markets open, no matter what your local time is. By having such a range of options you also have the chance to generate huge profits and respectively, to have expiration in-the-money.

When you trade binary options, there are only two possible outcomes. In this scenario, your part as a trader is to predict whether the asset’s price will fall or rise by the predetermined time, which is also known as expiry time. For example, if you think that the price will go higher by the time of the expiry and you turn out to be right, then the option will achieve “expiration in-the-money”, because you will win. Respectively, if you assume that the price will go lower, the option will get “expiration out of the money”, but we will provide you with more information on that topic later.

We know that theory might be found a bit hard to understand by beginners and this is exactly why we would like to give you a brief example. It will make things easier and you will get an idea how things are done with binary options trading. Let’s say you want to place a bid and after analyzing the situation you have decided to pick up the Nike stock (NYSE:NKE).

Its current price is 75$, but you think that after 1 hour (your expiration time), it will close above its current value. In such case, you will want to place a call option. The call option is a strategy in binary options when the investor believes the price will go higher. If you are right and if the price is actually higher after 1 hour (your expiration time), your outcome will naturally be expiration in-the-money.

Simple and yet, effective

This is how simple it is! You might encounter some slight difficulties until you master the techniques of analyze, but once you do so, you will not have any problems with binary options trading. Keep in mind that it is always recommended for new traders to invest as much time as possible in learning more about binary options. This will give you the knowledge necessary to help you gain enough confidence and start trading with real money. Is it possible to trade without making an investment of real money? Yes – it is! This topic will also be covered later. All you need to know at the time being is how you are supposed to tell when your expiration is in-the-money and when out-of-the-money. Remember that by having good background knowledge you are making the first step towards becoming a successful binary options trader. After all, this is exactly why you are here, right?

Expiration Time in Binary Options

Introduction

Expiration time is not complicated to follow and in fact it is one of the simplest things you’ll have to learn as a binary options trader. Basically, the expiration time determines how long after you've placed the trade, you’ll learn the outcome of your bet. Depending on the type of binary options you are trading and the type of your binary option broker, you may see different expiration times when placing a trade. After you place your bet and pick the expiration time, the only thing you can do is wait for that time to arrive. When the expiration time comes, the trading platform will assess the value of the asset and determine whether your trade will expire in or out of the money.

Strike Time, Strike Price and Expiry Time Alternatives

There are several other terms that are closely related to expiration time. For example, when a trader places a bet, the hour at which the trade was placed is often referred to as strike time. The exact price of the asset at the execution time of a certain trade is called strike price.

At this moment, the trader is supposed to predict both the direction of the asset’s price and pick the expiration time. For example, if the trader thinks that the asset’s price will rise, then they have to select the Call option. Meanwhile, if they think the price will go down, then they have to execute a put option.

Don’t forget that your broker may offer different expiry times for different types of assets. In most cases brokers will give you the opportunity to choose between hourly, daily and weekly expires, but there are also things such as 60-second options which allow you to quickly execute trades with an expiration time of just one minute.

Expiry time is one of the most important aspects of executing a trade, because making the right choice is very likely to determine whether you trade will be successful or not. The larger the expiration time, the more likely it is for the asset’s price to drastically change under the influence of market changes. Of course, this doesn't necessarily mean that shorter expiration times are preferred – this entirely depends on the trader’s trading style and and their choice of analysis methods.

Example

The best way to explain why you should understand the concept behind expiration time, strike time and strike price is to give you an example. Let’s say that a trader has just placed a put option on the USD/JPY currency pair. The strike time is 13:30, the strike price is 99.147 and the expiration time the trader picked is two hours. This means that the trade will close at exactly 15:29 and the trader will find out if their trade will expire in the money or out of the money. If at 15:29, the price of USD/JPY currency pair is lower than the strike price, then the option will expire in the money and the trader will collect their winnings.

Expiration Rate in Binary Options

It is now time to start paying detailed attention to every single one of those terms we've briefly mentioned in the previous article, which can be considered as a really good dictionary for binary options terms for beginners. As you know, in order to become a really successful trader, you must aware of every single term in order to be confident enough that your knowledge is not just sufficient to generate profits, but is superior to the knowledge of other traders. In that way you will be able to beat them and of course, beat the system and become the binary options trader you have always wanted to be.

Binary options are not only a simple and effective method of investment, but they are also profitable and if you know how to play them, you will know how to generate huge profits without making any serious efforts. The first term that we will pay attention to is the so-called expiration rate. This element is considered to be one of the most important for investors, so make sure you read carefully and learn everything you can – this will only help you and improve your trading skills.

Get to know the expiration rate better

The market price of the underlying asset at the exact time when the respective option will expire is what binary options expiration rate represents. As you can guess, since we assume you've already been through the previous articles making yourself familiar with the mechanism of binary options trading, the expiration rate is considered to be the determining factor that will help you find out whether your bid is successful or not, and whether you are in-the-money or out-of-the-money, and respectively winning or losing.

The trader will be paid a predetermined, fixed amount, or maybe nothing upon expiration, if the movement of the asset’s price is the opposite to their suggestion. The very fact that the sum is a fixed amount and is already known by the investor means only one thing – you will be able to manage your risk, which is a really great advantage compared to other trading mechanisms you can use.

In order to clearify, here is an example. Let’s assume you want to trade using the index Dow 30. The binary options expiration rate is definitely a critical factor here in case you want to achieve success. Firstly, if Dow’s value is 12,13,144 and there is a 5-hour expiration rate, you have to analyze the recent price movements of the index and make your suggestion based on them. If you see that the index has been on decline with a higher of 12,14,144, then you might want to execute a call option. The logic here is that since the current rate is 12,13,144 and the daily higher was the previously mentioned one, the investor thinks that the current is fairly low compared to the market and this is why they believes the price is likely to rise above the current price.

The expiration rate plays a significant role in the binary options trading outcome as it is a key factor of determining the final result of your bid. Remember, to take a good look and decide what the movement of the asset during your expiration rate will be. This decision is a critical one, so spare no effort and time in order to make it right!

Importance of Expiration Rate

Most importantly, the binary options expiration rate will influence your payout. The reason for this is because it influences you – the trader – to select whether the price will fall (and place a put option) or whether it will rise (and place a put option). Once you predict the movement, then you can consider yourself a winner and “in-the-money”), because there is nothing better than experiencing positive financial results.

When placing a bid, there are a couple of important things you have to keep a close eye on. For example, you should always pay attention to the expiration rates listed on past expires of the asset you have chosen. This will help you analyze the movement and predict more accurately what the next movement might be. Invest as many time as possible to do so, because this might be considered as one of the greatest helpful tools you can use – the market movements are your helpers, so pay the needed attention needed in order to make sure you know anything about them.

The expiration rate should not be underestimated, because your profit depends on it. This is why, once again, you have to make sure you have analyzed the previous expiration times of the asset you have chosen. You will notice this will only help you, simply because you will be able to make up your mind and see whether the price is going to rise or fall, which will let you place the proper bid and generate profit.

Turn Your Knowledge into Profit

Binary Options Aren't Always Stress-free

Novice traders ask themselves one simple question – “Can I essentially make money from trading binary options?” Unluckily, it is difficult to give an accurate answer to this question, because this is something that fully depends on you! Binary trading has been around for decades, but it became available online just a few of years ago, and nowadays it is one of the fastest growing trends on the net. Though we can’t tell you whether you will or will not make money from binary options, we can provide you with more information about this type of trading and hopefully, by the end of this article you’ll be able to determine whether you are ready to become a binary options trader, or not.

If you've been reading about binary options in other websites on the Internet you've probably notices that there are many opinions about this type of trading. We are very sure that most of them are trying to persuade you that binary trading is a simple and stress-free way to make money. Unluckily for you, this isn't the truth, but don’t despair yet, because binary options are certainly a great way of earning money. However, becoming a lucrative trader is a long process and sometimes it may take you months to master the art of binary options trading. But one thing is for sure – if you are keen enough and you actually want to learn binary options trading, then sooner or later you’ll definitely turn your knowledge into profit.

Trust on Trusty Sources

There are some things you should know since you are reading out article about binary options trading. Initially, forget about the things you've read on other websites about binary options. Our experience shows that most websites that promote binary options trading are just looking for a way of making you sign up through an affiliate link. In order to do this, these websites’ owners will give you false promises for making some stress-free money in no time, but they won’t tell you that binary options trading is also an easy way to lose a lot of money in a short period of time. Before starting to trade binary options, you need to prepare yourself by reading enough about this type of trading, about its specific characteristics and some of the trading strategies that have verified to be resourceful and trustworthy.

Thankfully for you, all the information you need about binary options is listed in our Binary Options Review section, so you have a good place to start your trading career. Here you’ll find all the information you need in order to start-up your binary options trading career and develop it in the accurate direction. Our articles contain thorough explanations of every step of the trading process and you can rest assured that none of your questions will be left unanswered, because we've taken into consideration every aspect of the trading process.

Mental Challenge in Binary Options Trading

Trading skills aren’t the only thing you need in order to become a successful trader. The mental aspect of trading is also a significant part of our articles, but tragically we can’t teach you how to control your emotions. It is up to you to take duty for your actions and control your trades. Sometimes it is best to stop trading for a while if you’ve lost too much money in a short period of time, because most people find it difficult to make the right decisions in such situations due to the fact that they are influenced by the recent loss. Of course, we’ll talk more about the trader’s psychology in another part of our articles, so this information should be sufficient for now.

Assumption

In assumption, making money from binary options isn’t stress-free, but it isn’t so hard as well. Of course, don’t expect it to be child's play – there will be some disappointments for sure, but there will also be many happy moments when you’ll make more money than you’ve expected. Logically, it depends on you who conduct moments occur more often – the disappointing ones or the happy ones. The key to being a successful trader is to never stop improving yourself – so, make sure you are always in touch with the latest innovations in the binary options market and never stop reading about this type of trading. This is the only way to keep up with the latest trends and to make sure your trading skills don’t get worse. There are many ways to turn your knowledge into profit, but binary options trading is certainly one of the simplest ways to do this – all you need is some free time, access to a computer, the Internet, and at least $100 - $200 for an initial investment. These four things are all you need to read our articles, choose a binary options broker, invest money and start making profit from trading. Good luck with your trading! 

Simplified Ways of Trading

In the previous article we discussed why now is the right time to start with binary options trading, and we guess we have made some really strong points. However, now we want to help you realize why binary options trading is one of the best options you have, in case you want to generate profits and increase the income of your household. This might sound too good to be true, but believe us, with the right trading strategies and technique you will become a winner.

Basically every person who is involved in online trading to some extent will tell you that forex, is not that easy and you will not be able to master it that fast, especially if you are not willing to invest huge sums into your accounts. The first couple of months it is completely normal to lose all your money, but remember – practice makes perfect. On the other hand, binary options is a bit different because of some facts. For starters, you don’t have to fund your accounts with thousands of dollars and you don’t have to learn lots of complicated strategies just to generate a small profit.

Learn how to combine your skills, risk management and knowledge

Binary options is a composed mixture of knowledge, skills and risk management and the whole idea that stands behind the trading technique is truly simplified. This is why, according to us and lots of specialists involved in this type of trading, binary options trading is a revolutionary new way of simplified trading. It offers a really accessible version of trading, ideal for novice traders while at the same time the experienced traders are not left aside – they can use variety of tools that will help them capitalize their trades in the best way possible.

Naturally, the simplicity that stands behind the word “binary” means only one thing – it is either the one or the other and this philosophy is one of the major reasons this type of trading to be so popular among people who want to become traders. It doesn’t matter whether or not you have financial background or have no trading experience at all – there are levels for any type of trader on the field of binary options – your background is not going to be considered here.

If we have to sum up everything said so far, it would add to saying: every binary options trader tries to forecast the future direction of currencies, everyday stocks or commodities (it is a matter of personal choice, but more on that topic later). Explained in its simplest form everything is about going up or down, and if you want to be considered as winning trader, you will have to predict whether the price is going to go upwards or backwards. Therefore, as the name “binary options” suggest, have only two possible outcomes – win (in-the-money) or lose (out-of-the-money).

In “in-the-money” scenario if the trader is correct and the price of the asset goes higher/lower, the trader will receive a return varying between 60-90% on top of the original investment.

In “out-of-the-money” scenario if the trader is incorrect and the price goes opposite to the suggestion, then most of the initial investment will be lost.

Binary options approach provides really interesting advantages over the investment vehicles. For example, the removal of ask/bid spreads, hidden fees and leverage makes it extremely easy for beginners to master the way of trading and keep track of their risk capital. Also, since you have only two possible positions in any given binary trade, there is no easier way to take your knowledge to markets.

Accurate forecasting

Essentially, there are 2 important questions that every new binary options trader should keep in his mind. First, how much to invest in a certain position, and second whether the asset will fall or rise in a given period of time.

Once you master the ability to make those choices and lock the trades there is nothing more to consider. You will just have to wait and see whether your forecast is going to be right. The best part is there are no stop-losses to manage and no way for an open position to leave you over exposed because all the information a trader needs is simply available before any trade is being committed.

One of the most attractive and important aspects of binary trading is the transparency they offer. Thanks to the pre-calculated risk levels a person can choose exactly how much to invest and for how long. By having this knowledge you, as an experienced broker, will be able to implement robust money management, which is also one of the most important aspects of binary trading. Thanks to the simplicity of trading traders have more time to focus on the trade itself rather than the details of every open trade.

Below you will find a brief example that will help you realize why binary options trading is so simplified, especially compared to forex trading. Let’s assume that a trader wants to place a bet on the EUR/USD currency pair via spread betting and binary options trading and see what the main differences are. For this example, let’s also assume that the Euro is going to strengthen its position against the US dollar. The trader bets 20$ on per pip, meaning if the difference is 10 pips, the profit will be 200$. (10 pips x 20$ per pip).

The first disadvantage in spread betting comes from the fact that the trader has to buy 1 pip above the market rate and sell it 1 value below the current rate. So if the pips have increased by 10, this means your profit will be actually 8 (buying 1 pip above the current price, selling 1 pip below the future price). Even if you win, this might be considered as 20% loss.

On the other hand, in binary options trading – there is no spread. It doesn’t matter if you are right by 10 or 100 pips – as long as you predict the right movement – you win. Usually the returns are fixed and the percentage is approximately 75%. With binary options, all the trader has to do is to place “up” or “down” option on the currency pair, chose the sum he wants to invest and select expiry time. If you win and you have invested 2000$, then you will generate a profit of 1500$.

We hope that you have understood the above scenario because it explains why binary options trading is so simple and considered to be revolutionary – the sooner you get into this trading – the better, because there are lots of things you have to learn!

Differences between Forex and Options Trading

Traders will always argue which type of trading is better – Forex or binary options. Each one of these financial instruments is used by millions of people and each person who trades them, knows that they have certain advantages and disadvantages. If you haven’t taken a closer look at the specifics of Forex trading and binary option trading, then you are probably not aware of the major differences between these two types of trading. Don’t worry if you don’t have any knowledge in this topic, because this tutorial part’s goal is to make you familiar with the differences between Forex and options trading, and help you decide which type of trading is the right choice for you.

Risk Factor

Every trader knows that both Forex and binary option trading are risky, especially if you are inexperienced. However, if we take a closer look at both types of trading, we’ll see that binary option trading is less risky due to the fact that the trader knows how much money they’ll win or lose before they place the trade. This may not seem like a big deal to you, but in fact it gives you a huge advantage over Forex trading. This way you have better control over your money and you can limit your losses.

Another great advantage of trading binary options is that you won’t be so dependent on leverage. Every Forex trader knows that you must take advantage of the leverage offered by your broker in order to be able to trade with decent amounts of the asset you’ve chosen. Although leveraged trades will bring you a larger profit, they’ll also multiply your losses in case your trade goes the wrong way, so there is greater possibility for the novice traders to lose their money quicker while working with the Forex market.

Trading binary options has another advantage– you have the opportunity to refund a portion of your traders if you feel that your prediction won’t turn out to be accurate. However, this option isn't offered by all brokers, so don’t expect to see it from every broker.

Easiness

Participating in the binary options market is fairly simple, because the trading operations aren't as complex as they are in the Forex market. Of course, you may need to set several parameters of the trade, but in most cases you’ll be able to place a trade in just 3-4 simple steps. On the other hand, executing a trade on the Forex market is a bit more complicated, because you have to add several parameters of the trade in order to limit your losses, manage risk levels, etc. The reason why trading binary options is so easy is that the trader can only make their choice between two types of order – Call or Put. In the meantime, Forex traders face a more difficult and a riskier choice.

Profitability Factor

Simple logic leads us to the conclusion that the less riskier the market is, the more profitable it could be. So, it is safe to say that you are more likely to make money by trading binary options than by trading the Forex market. Naturally, the amount of money you make will depend on your investment, knowledge, experience and mainly – on the profit percentages offered by your broker.

In most cases the profit percentage your broker offers will vary between 60-80%. Of course, the percentage entirely depends on the type of options you are trading, because the payout for certain types of options can be up to 300-400%. The fixed payout percentage gives you accurate information on how much money you’ll make from the trade; so, as a binary option trader you can control your money better and quickly calculate how much money you are going to win, and how much you are ready to lose.

Binary traders are more active on the market and they often make over 10 deals a day. If you are one of the traders who deal with 60-second binaries, then it is very likely that you’ll make over 40 trades on a daily basis. In the meantime, Forex traders have to be more careful while placing trades and they often end up making just 2-3 trades in a single day.

Accessibility

Binary options have quickly gained popularity among retail traders, because they don’t require huge investments and are a great way of generating a decent amount of passive income. On the other hand, Forex traders need to invest larger amounts of money, especially if the leverage offered by their broker is lower. Don’t forget that leverage is a great way to multiply your profits, but it is also the quickest way to lose all your money; so, don’t be tempted by the opportunity to quickly make large amounts of money.

Conclusion

As you can see, both markets have their pros and cons, so is up to every trader to determine which market best suits best their needs. In our opinion, each one of these markets is meant for different types of traders – on one hand, there is the Forex market, which is a dominant market at the moment and it is the full-time job of millions of people. On the other hand, you are provided with binary options, which are a relatively new trend among the Internet users and at the moment there aren't so many people that make a living by trading binaries. Of course, many people quickly multiply their investments thanks to binary options, so you should certainly give this type of trading a try if you want to make some money on the side and have an option to turn binary trading into your full-time job someday.

What is a Binary Options Demo Account?

The hottest new way to trade over the short term is called binary options trading. Many people have been asking the same question – what makes binary options so popular? The most probable answer is – their simplicity. It is extremely easy to start your trading career with binary options because, after all, it is not rocket science. Unlike some other types of trading, this will not take so much time in order to mater its basics. However, binary options trading is a bit risky, because you know what you need to risk in order to gain profit.

If you want to start your binary options trading career, then you’d better learn a couple of things regarding demo accounts, because this is the fastest way you can master what you have learnt learned so far. For starters, the money you will be operating with will be virtual, so you don’t have to worry about losing them, because they are not real. On second thought, you better spend all of them on single bids, because the main purpose of demo accounts is to master your way of trading and try new strategies.

Demo account to the rescue

Remember – practice makes perfect – and your biggest helper is the demo account. The demo accounts work in a really simple way. Basically, the platform is the same as the real-time platform traders use, which is a great advantage because later, when you proceed with the real trading you will not have to learn how to operate with the platform. The only thing that will differ is the emotional side. Sometimes, when trading with real money, people feel sadness, guilt or regret, but if you are dealing with virtual money, you will not have to deal with any of those feelings because these are not money you have worked for, they have just been given to you and most of all – they have no value in the real world.

Demo accounts are often used by expert traders as well, because they give them a chance to have a new outlook on trading and try new tactics, strategies and so on. The better your skills with the fake money are, the better your confidence will be when you start trading with the real sums.

That’s great, but how to get a demo account?

Getting a demo account is another issue you will need to consider. Lucky for you nowadays this is really easy! All you have to do is finding the most appropriate type of broker that will meet your needs and considering the fact If the broker in question supports demo accounts. Most popular brokers don’t have a problem with this, because most people will not risk their money if they haven’t traded before.

Logging in your demo account can be done in the same way you are logging into your real account; the only difference here comes from the fact that you will have to choose the type of system – a demo or a real-time. That’s all.

In conclusion, we should say that the demo trading is really important – remember this! Many people underestimate the power this trading has, which is a serious mistake you should not do. If you want to take your binary options trading skills to the next level, then we suggest starting with demo accounts in several brokers. The purpose of doing this is getting familiar with their trading platforms, regulations, etc.

Reasons to Trade Binary Options

If you want to become a successful trader in the field of binary options trading, then you have to start from the very beginning. Within the next few lines I will try to give you a brief idea of all the important moments you need to know about this type of trading and make you familiar with the reason why many people choosing binary believe that is a really good decision options that you can Help you gain huge profits. The question that many people have been asking about this exciting new Trade POSSIBILITY is - " Why binary options? ". Just in case you haven't found the answer yet, then read sensibly. First of all, every binary options trader doesn't have to spend all their time and attentiveness on keeping track of leverage, spreads, stop- loss strategies, deposit margins or hidden transaction fees. What binary options trading is going to give you is the power to solely focus on making the right predictions that will generate profits and of course, enjoy your money.

Let’s Start Making Money Right Now

For beginners, you can begin making Money DESPITE that MOST Markets are volatile; in fact, in many cases you will be able to make the right decision exactly because of the Volatility of Those Markets those are one of the conditions. Should do main factors that your nosiness when it comes to binary Options trading and deciding whether or not choosing them was the right solution for you. 

Another advantage of the binary options is the FACT that it allows people to have full mechanism of their portfolio, because this type of trading will let you handle your own risk levels. Fundamentally, if you are more of a risky player, then you can start such a trading. Of course, the hardworking traders enjoy higher success levels because they have the opportunity to handle their Own Risk Exposure. Most importantly, binary Options trading are easy! This means that even people who are lacking computer skills are going to be able to start their career as traders. If there are lots of traditional assets, it is normal for traders to lose the track of their exposure. This will not happen with binary options because the nature of this type of trading is "all-or-nothing". As a result, every binary options trader will be able to make better decisions about account and money management. According to some specialists, binary Options are really SUITABLE for trading at this Moment, because there is a really High Instability in the Financial Markets and this has been spotted in the last couple of years. The increased need of investments combined with the rising volatility has made ​​the position of binary Options trading more than attractive. Complete in contrast with the current financial and economic situation, the binary options have accomplished to focus on forthrightness and the ability of making profits out of volatile markets. The good news is that if you start with binary options now, there is a really high chance for you to become a really successful trader in the future, because this type of trade is gaining huge popularity. The community has been growing ever since binary options started becoming popular.

Trade Simple

As a matter of FACT, the binary Options are really simple one way, which can help you trade price fluctuations in the global markets. However, no matter that all of this sounds really great, there is also a risk. This is why you have to act really wisely, particularly if you lack experience What we are trying to say here is that many people are tempted by the fact they can gain huge profits in no time, but such a thing can happen once in a lifetime; and if you don't consider yourself that lucky, you'd better learn the basics, practice a lot, use demo accounts and once you have felt you own the abilities and the right attitude towards risk management in order to handle the binary options trading - you can go ahead and start. Risks and rewards are often misunderstood facts. The main idea that you should always keep bare in mind is that binary Options are not as complicated as Forex trading. So, if you want to start your Career right away, then waste no time and go for it, but keep in mind that in 90% of the cases people, who lack experience and who have never been dealing with online trading, could lose. On the other hand, if you don't feel like losing your money, then we suggest you to spend some time educating yourself and finding the pros and cons of this type of trading. Binary options are absolutely a great way of earning money, especially if you are prepared for it. Just follow the tutorial and I guarantee that you will become a professional by getting to its end!

Definition of Binary Options

Introduction

People have been trading binary Options for Decades, but this unique type of trading Became Available to the Public Thanks to the Internet's Development. Nowadays, anyone who has enough Knowledge and Money to invest can start trading binary Options in Order to Turn Their Knowledge into profit. Many of you have probably not heard of the term 'binary options trading', but this article's main goal is to make you familiar with the basics of binary options, what are they used for and why they are the right choice for you. First of all, don't be misled into thinking that binary option trading is easier than Forex trading. This is a difficult job and, you must be prepared to spend a lot of time reading, developing your skills, mastering your strategies and most importantly - learning how to control your money and emotions in order to make money out of it Thankfully, you'll learn everything about these things thanks to our well-developed tutorial section..

A Simple Way to Trade

Binary Options are a unique tool that depends on Asset-price Traded Forex Prediction If you have, Then you know that the Forex Market is all about Precision -. you must predict the direction in which the price will Change, but you must Also predict the Amplitude of the Change. On the Other hand, when you Trade binary Options, all you need to do is predict the direction of the price's movement. This makes the Task much Easier and the best Part is that the Amplitude of the Change does not matter, so you Take the Risk is Slightly Reduced. Although many people say that Forex trading and binary option trading is very much are Alike, you Should know that there are Major Differences Between them and we'll in this Article Tell you about some of These Differences First of all, binary Options are Transparent -. you get Detailed Information about your eventual profits and Losses, so you can make up your mind and Easily Decide WHETHER it is worth placing a Trade or Not. The Opportunity to see the amount of money you'll make from the trade is very attractive and many people prefer binary option trading exactly because of this reason. When you choose a binary option broker, you'll see what the profit percentage that broker offers is. Depending on the type of binary options you'll trade, the percentage will vary between 60-80%, but in some cases it may go up to 600%. However, this only applies to certain types of binary options.

Time Is an Important Factor

One of the Advantages of binary option trading is that your deals Are not Open-ended -. every Trader has to Carefully calculate Their Predictions in Order to choose the expiry time of Their Deal In Order to expire for a Trade in the money, the trader has to predict in which way the price will go at a specific time. This may seem as a difficult job, but as soon as you get to know binary options better and get familiar with fundamental and technical analysis, you 'LL see that this Is not as Difficult as you think. Keep in mind that binary Options are very flexible, so the Trader can choose the expiry time of Their Deal. The Number of choices you get depends on the Broker you've chosen , because some brokers offer the so-called 60-second binary options, which are a great way to quickly open and close trades. However, if you are using regular Call / Put binary options, you are most likely to have the opportunity of making . a Choice Between minutes, hours and even days binary Trade Options When you, you'll have all the Access to Assets that are Available on the regular trading Markets -. Stocks, indices, Commodities and Currencies Naturally, you have the Number of Assets access to may be slightly limited by your broker, but such cases are pretty rare and we are sure that as soon as you read our post about choosing the best binary broker, you'll choose the one that meets your demands and needs.

Final Words

In Conclusion, binary Options are a great Way of Earning Extra Income, Especially if you are Dedicated to this Task. Of Course, Do not forget that this type of trading is Everything, but easy. In Order to Become a successful binary option trader, you'll have to read a lot of books, study different strategies, spend a lot of time trading with a demo account and hopefully, in several months you'll be ready to start investing real money and generating a sufficient income. If you are not an experienced trader, we recommend you to pay special attention to the 'Fundamental Analysis' and 'Technical Analysis' chapters of our tutorial, because these are two of the key skills that every binary option trader must master. Of course, there are many other things you must pay attention to, such as 'Risk Management', 'Psychology of Trading' and the hundreds of binary option trading strategies you can use.