Monday, June 30, 2014

Stock Trading Binary Options

The popularity of Stock Trading is growing higher and higher within the traditional market and binary options market. More and more binary options traders depend on stocks, because it’s easier than you think to determine their own short-term movements. Needless to say, this doesn’t mean easy money; because you can risk and you will be prepared to lose some profit in case this trade doesn’t close as part of your favor.





One of the simplest strategies of which binary options traders use is finding a stock which has gained some momentum and betting that it will reach a certain price before this expiry. Of course, this sounds way too simple, but it is the most fundamental strategy to win money by trading stock in binary options platform.

Global Stocks Trading
Trading stocks might sound like the simplest way to invest your money in the binary options market, but there are some things you should know before taking this step. First of all, stocks are different from nearly all assets that is usually traded on the binary options market. You should understand that some foreign stocks and shares, for example U.S. stocks, are only available for investing during specific hours. This means that you won’t be able to trade 24/7 and your trading activities will likely be limited to a specific time window.
Another significant fact is that brokers have taken some measures to make sure that trading stock binary options isn’t simple. As we stated earlier, trading stock binary options is available at certain times. However, many brokers won’t enable their clients create a trade at least half an hour before the market opens – in this way the traders are not able to trade stocks during the time in which they may be the most volatile.

Trading Stock Binary Options
Trading stock binary options can be a powerful way to gain your profits, especially if your trading portfolio has room for brand new assets. Of course, you must approach these options very cautiously, because it is essential that you select the right stocks and create a fool-proof-trading plan that you’ll follow closely. There are four principal factors, which have a great impact on the value of the major stocks:

Market Sentiment – if the markets are miserable and the global economic climate is humble, investors won’t spend their money on stocks and therefore their value will fall.

Earning Reports – Good or bad earning reports often cause a rapid movement of the value of certain stocks

Mergers & Acquisitions – These events typically lead to positive results, so you should always expect a stock’s price to increase when one of these two events happens.

Government Policies – Some stocks may be influenced by different government policies.

How you can Trade Stock Binary Options
The 1st step is to identify with what direction the stock will head after a news release affecting the share price on the company in question. Via there, the trader is free to choose any binary options trade type to install his trade profile. As an example, an earnings report can result in a sustained response that lasts for a lot of days. In such a scenario, the trader can decide to trade the Touch/No Touch option, using a correct price barrier while having into cognizance any latest supports or resistance levels. If there is a very strong news release that will cause the share price of any company to spike in different direction, the trader can decide to trade any of the high-yield option varieties. For example, the sudden announcement by the CEO of JP Morgan around the trading losses recently sustained on its positions is the kind of news release that can result in a move so hard which it could breach the price barriers on the high-yield option types. It is ultimately nearly the trader to determine what type of trade will suit this news release he wants to trade.

Final Word of Stock Trading
Trading stock article takes some understanding of how stocks behave in order to profit from it. Stocks constitute one of the asset derivatives that can be traded on the binary options market. Usually, a trader will have access to trade hundreds of stocks, as brokers will list several stocks from the different stock exchanges across the world.
A good spread will include stocks from the three American Exchanges, the London Stock Exchange, and the Stock Exchanges from Germany, Spain, Switzerland, the Eurostoxx Exchange (which contains stocks of companies in the Netherlands, Belgium, and other central European nations) as well as stocks from some selected Middle East exchanges. This gives traders and unbelievable spectrum of stocks to change.

Friday, June 20, 2014

Support and Resistance Strategy for Binary Trading

In which the breakout strategy required you to identify levels of support and resistance and wait for a breakout point, the support/resistance strategy will need you to identify them and then utilize pattern in the levels. How can you are doing that? Read on and discover.

What is the support/resistance strategy?

The support/resistance is a short-term strategy that can help you utilize the levels of support and resistance to your great merit. How is this particular possible? It’s rather simple, really. When the price tests the actual support/resistance, it can go in and the opposite direction. This is where by you enter the actual trade – following the price features tested the levels. Of course, this particular doesn’t guarantee anything, but it leaves you using a nice chance connected with winning.

60-second binary options tend to be fast-paced trades so you should be quick about it but not let yourself fall in a pattern of just waiting and looking at the charts as you might miss as soon as and enter the trade in a very wrong time, when the price is just about to reverse directions again. You need to be really quick so as to utilize this strategy in order to improve your chances of winning. Speed isn’t everything, though. It’s also crucial that you study the chart and establish previous patterns prior to enter a trade. The more information you have, the more likely you can be successful.

What do you need to realize to make this strategy work?

The required skill set here is pretty in the same as the one required through the breakout strategy. You need to find out at least basic technical research. You will have to examine charts, so you need to know the type of chart your broker is using. The most popular today are the candlestick and bar charts and they are the ones you should utilize since they show you lots of information and ensure it is easy to establish a support and resistance level. Of course, you also need to determine what support and resistance are and how you can establish them.

When the price can’t go below a certain level, we call that a support level. In order to establish support, the price has to consistently be unable to breach that level. In the case of support, it’s the same, but the price can’t above a certain value. Once more, this phenomenon has to be observed several times in order to establish it.

The best thing about this strategy is that it gives you a great chance of success if you’re quick enough. Usually when the price tests the level of support/resistance (which means reaching it without breaking it), it goes in the opposite direction, which is when you should enter the trade. You need to be quick, though. Enter too early and you may hit it right when it tests the level, which means that it will be at its highest/lowest and you will lose (unless you’ve made the right call, which is not likely if you screwed up your timing). Enter too late and you may hit the reversal when the price had changed direction, gone up or down, and now is reversing it again.

It’s important to note that levels of support/resistance are established when there are relatively small price movements. The price will move between the support/resistance levels and these movements can be quite fast, albeit insignificant in the long scheme (because there is little trading of the underlying asset, the price is stable in the long run which means that these fluctuations aren’t relevant for long-term investors).

What this means is that you need to be precise and make quick decisions, as well as enter trades at the right time. The safest time to enter is right after the support/resistance has been tested. This is when the price is sure to be in the opposite direction at least for a little while. If it’s tested the support, then place a call trade because it’s likely to go up. If it’s tested the resistance, place a put because it’s likely to go down.

In order to minimize the risks, you shouldn’t trade more than 5% of your capital. All in all, there is no such thing as a “sure strategy” so you need to always be prepared for the possibility that you will lose.

Friday, June 6, 2014

Call and Put Options

Binary Options – Win or Lose?

As we have already mentioned at an earlier stage in our tutorial, the concept of binary option trading is quite simple, because the trader doesn’t have to make many choices. In fact, your job as a trader is to choose whether to play your money on a Call option or on a Put option.

Call Option

Let’s say that you’ve picked an asset that you want to trade and you’ve already read the data provided by the technical tools. You’ve analyzed all the information and recent financial news and you’ve reached to the conclusion that the asset’s price will go up in the next hour. In this case, you’ll have to place a trade on the asset and select the Call option. SelectingBinary Options – Win or Lose?

In fact, your job as a trader is to choose whether to play your money on a Call option or on a Put option.You’ll learn when to play with a Call option and when to play with a Put option just in a few minutes. Call/Put options are some of the simplest ones and they are currently one of the best ways to begin your binary option trading career due to their simplicity and easiness.

Choosing the Call option means that you are predicting that the asset’s price will go up before the expiration time comes. Here’s an example how trading with a Call option works. A trader selects the USD/JPY currency pair which is currently valued at 99.147. The trader predicts that the pair’s price will go up in the next hour, so they places a trade at 12:00 by selecting the Call option and sets an expiration time of 1 hour.

If the price of the USD/JPY currency pair is above 99.147 at 12:59, then the trade will expire in the money and the trader will receive his payout. Respectively, if the price is below 99,147, the trade will expire out of the money and will lose their investment.

Put Option

Remember the scenario we mentioned above? This time we will make the following change – let’s say that after selecting the asset and performing technical analysis, you’ve decided that the asset’s price will go down in the next hour. In this case, if you want to place a trade, you’ll use the Put option. Selecting the Put option means the trader is predicting that the asset’s price will go down before the expiration time.

A trader has selected the USD/CHF currency pair for their next binary option trade. Currently, the pair trades for 0.922. After performing technical analysis, the trader has reached to the conclusion that the price of the currency pair will go down in 2 hours. Due to this reason, the trader places a trade at 14:00 on USD/CHF pair using the Put option.

In this scenario, the trader predicts that the price of the asset at 15:59 will be below the strike price of 0.922. So, if at 15:59, the price of the USD/CHF pair is below 0.922, then the trade will expire in the money and the trader will collect the pre-determined payout. If the price is above 0.922, then the trade expires out of the money and the trader loses their investment.

Conclusion

Call/Put options are some of the simplest ones when it comes to binary options. They are also the best way to make your first steps in the world of binary options trading. We suggest you to stick to this type of binary options until you gain some experience and confidence in your skills. When you feel you are ready to make the next step, you can try trading other types of options by using real money. Don’t forget to always use a demo account when trying out new types of options!

Creating a Real Money Account

If you think you already have sufficient knowledge to start trading binary options using real money, then it is time to teach you how to register a real money account. Some brokers have combined accounts which allow you to trade with both fake and real money, but some binary options operators will require you to register separate accounts.

If this is the case with your broker, then you probably know that registering a demo account is an easy process that doesn’t require much information. However, registering a real money account can be a bit more complicated, because you’ll be asked to input additional information about yourself, as well as some extra payment details, etc.

Requirements: 

- Username
- Password
- Email
- First & Last Name
- Country
- City/State
- Postcode
- Preferred payment method
- Account currency
- Phone number

Payment Methods & Payment Details

Some brokers will require more information than others, but in most cases you’ll be asked to provide the following information:

When you register a real money account, you’ll have to choose what the primary currency of your account will be. Usually, you can choose between EUR and USD, but some brokers will allow you to choose from other currencies as well. Make sure all the information you fil in is correct, because you may be asked to verify your identity or the information may needed for other purposes such as phone support, email support, recovering a lost password, etc.

One of the main things you should keep in mind when choosing a broker is the payment methods accepted by the binary options operator. Make sure there is at least one payment method, which is available in your county. Almost all brokers accept withdrawals and deposits via credit/debit card and wire transfer. Of course, the most reputable ones also provide their customers with additional choices such as depositing/withdrawing money via check, Skrill, Neteller, WebMoney, etc.

Another thing you should always check is whether your broker has any fees for withdrawing and depositing money. The best brokers won’t charge you anything when you deposit and withdraw money, but in some cases you may find yourself using the services of a broker which will charge you $10-$15 for withdrawing money.

Don’t be worried if your broker has a fee for money withdrawal – this isn’t a major problem, especially if you are trading with large amounts of money. Of course, if your bank balance is smaller and you are working on a tight budget and every dollar is important for you, then it is probably a good idea to choose a broker that has smaller or no fees at all.

In most cases your money will be instantly deposited in your account, but depending on the payment method you use, the broker may need a few days or even a few weeks to validate the transaction and to make the money available in your account. For example, depositing money by check can sometimes take 3-4 days. In the meantime, depositing money via credit/debit card will almost always result in an instant transaction.

Opening Binary Options Account

I’ve Chosen a Forex Broker, What’s Next?

We hope the previous two articles were helpful enough and you’ve managed to choose a binary options broker that offers a good rate of returns, a wide list of technical tools and a flexible trading platform that is accessible from any device. Now that you are finished with this task, it is time to register your account. Registering an account is usually a pretty simple process, but it make take you some time to complete the process depending on the requirements and security measures of the broker.

Account Requirements

The details you’ll have to type in during the registration are usually pretty simple and quite common, because they are usually required by most websites. They include your first and last name, country of residence, preferred currency, password, email and preferred payment method. In some cases you’ll also be asked to leave your phone number which will be used to either confirm your identity, or get support over the phone when needed. Support over the phone has become a rather popular thing among binary options brokers and nowadays many operators take advantage of it in order to provide the traders that use their services with a quick, convenient and easy way to contact the support staff. Some brokers will ask you to input payment information when you sign up, but this is not so common due to the fact that many traders prefer to use a demo account first.

Account Type

Most brokers allow you to register two types of accounts – one with real money and one with fake money. The one using fake money is the so-called demo account. We strongly suggest registering such an account, because it is the most convenient and safe way to learn binary options trading, to get familiar with the trading platform and test your first trading strategies. If you opt for a demo account, then you won’t be asked to input any payment information and you’ll be most likely redirected to a page where you’ll be able to access the trading platform either by download or via your browser.

Verifying Your Account

Most brokers have very strict security measures when it comes to account registration, because they need to prevent several things:

- Money fraud
- Prohibit people under 18 years of age from trading
- Identity theft

This is why some brokers will require you to verify your account via one of the following methods:

Call back

Sending a picture or a scanned image of a personal document (driver’s license, passport, etc.)

Many traders hate the long verification process, but it is currently the best way to improve the safety of both the traders and the broker. Naturally, there are some brokers who offer a much easier sign-up process where you’ll only need to verify your account via email.

Conclusion

Depending on the broker you’ve chosen, the registration process may range from several minutes to a couple of hours or even a couple of days. Keep in mind that if a broker doesn’t require specific verification method, this doesn’t necessarily mean that the operator isn’t trustworthy enough. In fact, most binary options brokers are very reliable, so it isn’t likely that you’ll register an account with an inimical binary options broker.

Choose the Best Broker

As you know, trading on the financial markets is becoming increasingly popular, and it is completely normal for products, involved in this business, to evolve. Every day new virtual markets are being created and that is why it is hard to keep track on the reliability and sustainability of those products. Such market is the binary options market, which is so huge, that it actually looks a lot like the Forex phenomenon. Believe it or not, binary options have been here for 5 years now (they were publicly introduced in 2008) and they managed to become truly popular for a short period of time.

It goes without saying that when there are so many different assets that can be traded, new brokers should occur on the horizon. Actually, there is no official number of the brokers known on the binary options market and this comes here to prove how huge it is. If you are sure that you want to start with your binary options career, then sooner or later you will face the problem of choosing the most appropriate broker, to meet your needs.

Of course, there are many more basic questions that you will have to confront and answer to but we will try to give you a brief idea about how to make the right choice. This guide will be divided into a few sections pointing out some of the important features you should be looking for, while choosing your broker.

Company capitalization

The market capitalization is an important factor every future trader looking for a broker should take under consideration. You better make sure the broker you are going to choose is well capitalized simply because this will decrease the risk of bankruptcy, which automatically means you will lose all the money you have invested. The easiest way to find out whether a company is well capitalized is to check if it is regulated, or not. If yes, then you can be sure the company has millions of dollars, because this is one of the conditions you must meet if you want to apply for regulation. The requirements are monitored by the NFA (National Futures Association), so you can be sure everything is legal. However, you should know that many binary options firms are having problems meeting all the requirements for regulation, even if they have the necessary amount of money.

It is a good idea to ask the broker you have chosen about their capitalization and whether they hedge themselves. Making sure that the capitalization of the company is good is the first step that will make you closer to your goal – choosing the right broker.

Payouts

The offered payouts are also an important feature you should bear in mind, especially if you are about to invest lots of money into your account. Right from the start you must check for the sufficient returns on the money invested. As you know, the binary options trading is all about predicting whether the asset’s price will go higher or lower in a certain expiry time. If you make the correct determination – you win, if not – you lose. It is that simple. However, the return percentage might vary depending on the broker. Some brokers calculate this return based on the current market situation. If we have to speak in numbers, then we recommend a return of at least 70%. The highest returns you can make can go as high as 85%.

There are payouts offered for “out-of-the-money” situations, which means that you can be compensated, even if you lose. As you know, one of the biggest disadvantages of the binary options is the fact that you lose, even if you are one cent below/above your forecast – you lose. So, apart from looking at returns it is always a good idea to also look at the payout rate, when the trades are not successful. Some brokers might offer you a 15%-payout of the sum originally invested.

Assets

When it comes to binary options, it is important to try everything. This is why, you must make sure that there is a great variety of offered assets when choosing broker. Perhaps you might want to try trading currency pair or commodities, or even indices? In such case, this is one of the most important requirements you should look for.

Customer Service

This is also a key factor. For starters, you need to check the number of languages, which the broker chosen by you offers. Then see what the available ways to contact a customer service representative are and check how quick their response time is!
The customer support level is probably one of the most important key indicators, because if something happens during the trade, you will need to know who to contact. After all, there are money at stake and you need to make sure there is someone, who can help you, on the other side of the line. You can get an overall idea how serious the current broker is, judging from your interaction with the support.

Deposit Bonuses and Conditions

Often, you will probably be tempted to join a certain broker because of the sign-up bonus. There might also be some trading promotions. In order to find out more relevant information to this topic, you might want to contact the support once again. However, don’t rush into hasty decisions and to sign up for a certain broker only because their bonuses and trading promotion are great.

Trading Platform

There are several different types of trading platforms on the market. Most of them are web-based, which is great to some extent, because you don’t have to install any software on your computer. Internet connection and a browser is all you need. Basically the binary options brokers offer different types of tools on their platforms. And since the user interface might vary a lot, it is better to try a couple of them and see whether they meet your needs, or not. If yes, then you can be sure this is a big plus, because you will be using the platform on a daily basis.