Making quick returns of 75% or higher isn’t the sole province of Wall Street traders and hedge fund hotshots anymore. Binary options trading has given the average person the same opportunity. You can now generate huge profits by making informed decisions about the price movements of various assets.
There’s no need to memorize esoteric equations like the Black–Scholes model. Nor do you need to spend hours each day watching the financial news. Making money with binary options is simpler than you might imagine. The key is to minimize your risk and develop a reliable trading strategy. Check out the Bullish vs. Bearish strategy to see if that’s up your alley.
Binary options trading is relatively new. It’s been around since 2008, but has only recently started to gain momentum as more traders have learned about it. Why has it become so popular? Because it removes much of the complexity and uncertainty inherent in conventional options trading.
We’ll explain how binary options work below. You’ll learn about the pros and cons of trading them as well as how to make money doing so. The purpose of this site is to give you the tools you need to start trading binaries profitably. One word of caution: realize upfront that there is a high degree of risk involved. But also realize that enormous returns await traders who learn to manage that risk effectively.
We’ll show you how. Ready to get started?
| REVIEW | MIN DEPOSIT | AVG RETURNS | VISIT BROKER |
|---|---|---|---|
 | $10 | 80% | VISIT SITE |
 | $50 | 160% - 180% | VISIT SITE |
 | $250 | 95% | VISIT SITE |
 | $250 | 80% - 90% | VISIT SITE |
Basics Of Binary Options Trading
First things first… what are binary options?
They are contracts based on the prices of their underlying assets. Whether they are profitable or not depends on whether you accurately predict the direction in which the asset’s price moves before your contract expires.
Let’s take a look at an example.
Suppose a contract is available for gold. Further suppose you have a reasonably good hunch that the price of gold is going to move upward. So, you execute the contract based on that hunch. If the price does indeed go up before the option expires, you’ll make a profit. If the price does not go up, the option will expire “out of the money.” That means you’ll lose your investment.
How much profit can you earn and what is your potential downside? You’ll know both upfront, before you even decide to execute the contract. The percentage return will be posted. In other words, there’s no ambiguity about the profit you’ll receive if your option expires “in the money.” And unlike conventional options trading, where leverage can quickly broaden your losses, your potential downside is limited to the amount of the contract.
It’s very simple, which is one of the reasons binary options trading has become so popular with traders. Let’s take a look at some of the pros and cons of trading them.
Binary Options Trading: Advantages And Drawbacks
Knowing your potential upside and potential loss ahead of time is, of course, a huge advantage compared to typical options trading. But there are plenty of other reasons to love binary options.
To begin, they allow you to trade assets that would otherwise be nearly impossible to trade without substantial capital. For example, you can trade a gold contract for as little as $100. If you wanted to buy an ounce of gold, you would need to pay $1,700 or more (based on the current spot price). Even budget-conscious traders with limited capital can trade dozens of commodities, currency pairs, and stocks.
Also, binary options trading is quick-paced. It’s the antithesis of buying a mutual fund and holding it for years, hoping to eke out a 6% annual return. Some binary contracts expire in 60 seconds, producing returns of 75% to 80%. This allows you to move your cash into other contracts instead of waiting weeks, months, or even longer for a given contract to expire. Click here for more on 60 second trades
There are also different types of binary options. In addition to “up and down” contracts, you can trade range options and touch/no touch options. You’ll have a wider variety of instruments, along with more opportunities to make money, at your fingertips.
To be fair, there are also downsides to trading binaries. For example, some brokers neglect to make demo accounts available to their customers. This is not an industry-wide problem since a lot of brokers do give their customers demo accounts. But it’s worth mentioning nonetheless.
Also, binary options trading is not tightly regulated. As in any market that is largely unregulated, there are a few bad actors. That makes it more important than ever to find legitimate binary options brokers you can trust. A good place to start is with the brokers we recommend on this site. Follow http://www.fastbinaryoptions.com/binary-options-brokers/ for those trust-worthy brokers.
Binary Options Betting Vs. Making Informed Trades
One of the criticisms that trading binaries has attracted over the last few years is that it is similar to gambling. Executing a trade, according to detractors, is like betting on black or red on roulette. But is that actually the case or does the criticism reflect a lack of understanding about how binaries work?
As noted earlier, there is a substantial degree of risk that comes with the territory when you trade these instruments. Profit is not guaranteed. You can lose money, just like you can lose money trading stocks. But few informed investors would call stock trading “gambling.” Moreover, how is it possible that many traders make a consistent profit if their actions are little more than guesses?
The fact is, trading binary options is gambling to those who treat it as such. If you’re merely guessing that the price of gold is going to rise, you may as well bet on black (using our roulette analogy). However, if you learn to read candlestick charts and create a trading strategy based on pivot points analysis, then you can make informed trades. And unsurprisingly, your trades are more likely to result in a profit. This page gives you tips & strategies you need to be profitable
Fundamentals Of Making Profitable Binary Options Trades
Making money with binary options doesn’t happen by accident – at least, not on a consistent basis. It results from taking a number of steps to become an informed trader. You don’t need a degree in finance. Nor do you need years of experience at the Goldman Sachs trading desk. You just need to learn a few basic skills.
We mentioned learning how to reach candlestick charts and plotting pivot points. This is an important part of identifying support and resistance levels for future prices based on the previous period’s trading activity. If that sounds complex, rest assured it is not. We’ve put together some great resources on the subject that you can put to use very quickly.
A lot of traders subscribe to one or more binary options signal services. These services send out buy and sell recommendations each day (in many cases, multiple times per day). That doesn’t mean the provider’s signals are infallible. But providers with good track records can help you to place profitable trades on a regular basis.
Another key aspect of trading binary options profitably is to avoid overextending yourself. Don’t put 25% of your capital into a single contract. That’s silly, and a fantastic way to lose money. Instead, limit each trade to 2% or 3% of your capital. That minimizes your losses, which makes it easier to stay in the black.
How To Choose Reputable Binary Options Brokers
One of the most important lessons to learn before getting involved with these instruments is how to identify legitimate binary options brokers. It goes without saying that some are less reliable than others. Some are less trustworthy. It obviously does little good to learn how to make money trading binary options if the broker you’re using disappears with your profits. Here are a few things to focus on…
- Variety of assets – make sure the brokers you use offer an extensive list of stocks, indices, commodities, and currency pairs.
- Customer support – even if you never experience a snag with your account, it’s good to know you can reach someone with a quick email or phone call.
- Competitive returns – Look for returns in excess of 65%.
- Timely payouts – Use brokers with a solid track record for sending payouts on time, every time.
- Generous bonuses – A lot of reputable brokers offer big bonuses to those who register accounts and deposit money. Keep in mind, there are usually numerous conditions involved with earning the bonuses. Be sure to read the fine print.
- Solid platform and helpful trading tools – Look for brokers that host intuitive trading platforms. Also, look for special features, such as Option Builder and Option+.
We currently recommend 24Option, Banc de Binary, Traderush, AnyOption, and MarketsWorld. Each one has built a solid reputation in the industry. We’ve found them to be trustworthy and reliable. If you’re just getting started with binary options, we highly suggest starting with these 5 brokers.