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What are binary options?

 

Binary options are a convenient, effective, and highly profitable financial tool.

A single point difference in the asset’s price is enough to get results that will be visible in real time, right after the transaction is completed. At that, the in-the-money option payout percentage varies from 65% to 95% depending on the broker you deal with. While fixed amount deals allow to trade with less risk and control the investment portfolio much more efficiently.

The Advantages of Options:

 

  1. Limited risks: the traider’s risks are always limited to the price of the asset.
  2. Leaving a trade: a binary option is closed without the trader’s participation, when the option expires.
  3. Efficiency: the price difference of the asset doesn’t influence the outcome. The only thing that matters is the direction of the price change.

The ease of earning on binary options is the very reason they’ve become so popular on the Internet. Study the materials on our website, and you’ll learn how binary options trading can bring considerable earnings without taking much of your time.

It often happens that beginner traders fail because of inexperience, that is why here we will devote much attention to typical mistakes. Our website allows you to learn about binary options and trading techniques, moving step-by-step to making the trading system work for you.

What do You Need to Know?

 

First, let’s debunk a popular myth of binary options being a kind of a casino. That’s entirely incorrect. Their first and most obvious advantage is the fact that the trader always knows the exact amount of the possible loss or gain.

Unlike on the traditional stock exchange, all you have to do here is predict if the price will be above or below the current price in a given period. In fact, the trader has to “catch” a single-point difference in the asset’s price on a given time interval. Learn about trading signals on our website, choose the best binary options online, and start earning decent money very soon.

 

I’m lucky!

 

As a rule, the first mistake of a beginner trader is opening a huge number of spontaneous trades, without making analysis of the market information.

This way a trader turns trading into a game, and considerably increases the number of personal risks. Without a doubt, if technical and fundamental analysis are applied, the positive results will soon follow.

That’s why you will find detailed descriptions and advice on each type of analysis on this site.

Please don’t think that unreasonable trades chosen at random will bring you experience and profits. More often than not the results are quite opposite.

Martingale Strategy

 

The use of Martingale strategy for binary options was mimicked from the world of gambling. In essence, it is about increasing stakes after each loss, and it requires an amount 1024 higher than the initial stake for a series of 10 trades.

Please remember!!! The increase of the trade amounts also increases the risks, which means you should be backed up with reliable market estimates, and follow all the risk management rules. Tracing your losses is a very important skill, especially when you are taking your first steps. You shouldn’t forget that trading is different from passive investments, and the risk of a loss is its inseparable part. Be ready for that, take every possible measure to avoid losses, and never be seduced into winning your losses back using Martingale strategy.

Short-time options

The lure of earning 80% of one’s initial investment in a matter of minutes has to do with gambler’s excitement much more than with balanced approach to trading. It is important to understand that working capital required for trading this kind of options should be big enough to distribute risks correctly. Why is it so? The possibilities of capitalizing on the so-called market noise in short time intervals are very limited. If you see binary options not as an income source rather than gambling, we advice you to begin with long term options. Yes, they will take hours, not mere minutes, to generate income, but you will have much higher chances of winning and gradually improving your skills.

 

Trader’s Psychology

The psychological factor, or the ability to trade rationally, is one of the most important elements of trading. A calm trader is the best trader. Your emotions can directly influence your account. The trading operations are quite simple technically, but not psychologically. The complexity has to do with taking decisions, which do not necessarily seem logical at first glance. Optimal actions are usually the ones that are carefully separated from emotions. Since the results directly depend on your emotional state, you have to be careful; the moment your emotions become unruly, stop trading and use some relaxation methods.

Don’t let your emotions mislead you and distort your strategy.

How to Choose the Right Broker and Get Profits?

 

Earning money is surely the main reason that attracts people to binary options. But how can one choose an honest broker, which will assure timely profits withdrawal? Few are the companies that can boast good reputation in this regard, so do your best to follow these simple hints:

1. Carefully check the brokers’ reputation before choosing one to work with.

2. Don’t open accounts in another person’s name – this can make withdrawals complicated.

3. Read the broker’s Terms of Service very carefully.

4. Carefully check the terms of bonus offerings.

What Information Should Be Checked?

Before choosing a broker you need to check the following:

1. Who provides the quotes for this particular broker?

2. Does it offer demo accounts?

3. Does it offer any training and/or educational materials?

4. Does it have customer support?

We are constantly following the situation on the binary options markets and provide up-to-date information on the market and its players for our readers. Follow the link to find our binary options rating.

 Practicalbinary – the web portal where you’ll find the best binary options online!