In the beginning of our tutorial we explained what binary options are and we told you why this type of trading is becoming so popular. It isn’t as easy as most of you would want it to be, but it is certainly not as difficult as Forex trading. Unfortunately, binary options trading is not simple at all, so in order to achieve satisfying results, you’ll have to spend a lot of time learning. Nevertheless, you can rest assured that eventually all the hours spent reading and testing different trading strategies will pay off.
When you trade binary options, you’re aware right up front how much you are risking and how much your potential profit will be on its outcome. You’re only risking the amount you choose, no matter how large or small it is. Additionally, there’s no risk of leverage which means you won’t lose more than the amount you risked in the trade, unlike some other types. This way, you’re prepared for incurring potential losses as long as you choose to invest an amount that’s within your means. This prevents you from losing more than what you can afford.
Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
In the world of binary options trading, Russia is starting to get the reputation as a force with which to be reckoned. However, there have recently been some new developments due to recent economic sanctions which have been placed on Russia by the European Union and the US. We will then discuss the overall role of binary options in Russia as well how, if at all, the sanctions have affected the market.It is not illegal per the Russian government to trade binary options so therefore Russian citizen are permitted to do so. Traders in Russia have two options for binary options brokers and they are as follows:
As your account stabilizes you may trade the same amount on every trade, regardless of the fluctuations in your account. For example, the balance in my trading accounts stays the same. I withdraw profits at the end of each month, and any drops in the balance are usually quickly remedied by a few winning trades. Therefore, there isn't the need to make tiny changes to my position size on every trade. If your account value stays around $5000 (because of profit withdrawals, or profits and losses balance each other out), and you risk 2% per trade, then risk $100 per trade.
The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.
The strike price in this case is the price of the commodity you have chosen to trade in at the time you open the trade. In the above mentioned example, the strike price of the trade is $1612.75. This is the price of the asset you are trading in at the time you open the trade. It is the price value that will determine whether you have won or lost the position.
The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver’s license data for unspecified uses. If a binary options Internet-based trading platform requests photocopies of your credit card, driver’s license, or other personal data, do not provide the information.
A good example of a binary options broker that includes the factors mentioned is IQ Option. It’s licensed and regulated by CySec which guarantees its compliance with relevant regulations and jurisdictions. It has a top-notch online trading platform that offers both ease-of-use and functionality to veterans and novice traders. Newcomers can make use of a broad range of educational materials such as tutorials, webinars, e-books, and FAQ sections about the platform and binary options trading.
One of the first things that traders will notice after opening an account with Option Financial Markets is that they offer a uniquely diverse selection of well over 200 global assets. Combined with the three trading methods offered on their SpotOption powered platform, traders can easily make informed and profitable trades on both short term and long term positions. OFM does not charge any fees or commission on these individual trades.
Binary options come in many different flavors, such as “one–touch” options where a trader can anticipate that the price will touch a level. There also are range options, where a trader can take a position on whether the price will stay within a specific range. On some platforms, traders can select their own target strike prices. There are also 60-second expiration options. These are the most difficult to end up in-the-money because the price behavior in these durations is very volatile. Many firms offer binary options that basically are set, which lock in a position until expiration, although some firms allow closing the position before expiration. Yes, binary options are exciting, offering within minutes the result of a win or loss.
Being big online casino fans ourselves, we at 7binaryoptions.com have thought about making recommendations also regarding online casinos, and it’s easy to recommend Casumo Casino, Mr Green Casino and Rizk Casino as the three best online casinos for new players. They have very good first deposit bonuses and awesome free spins offers as well, not to forget good live dealer games.
When trading binary options, you need to keep in mind that every trade has a strict time frame that you need to adhere. They vary in length from 60 seconds or longer. You get to choose which time frame best fits your lifestyle. If you aren’t a fan of waiting around for productive trades, you can opt for 5 minute or even 60 seconds trading. If you have more patience, there are 60 minute trades or longer trading options available as well.
Diary sounds so old-fashioned, but fast-paced trading that is often present in binary trading often creates confusion and makes traders forget how and when they traded. The binary trading diary can be manual or in digital form. You can even use trading history that is available as an interesting feature on many trading platforms. Revisit it every now and then and se what trades are lost. Are you maybe better at trading commodities rather than trading currencies? Without an overview over your trades you will probably never know.
Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U.S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.
In the online binary options industry, where the contracts are sold by a broker to a customer in an OTC manner, a different option pricing model is used. Brokers sell binary options at a fixed price (e.g., $100) and offer some fixed percentage return in case of in-the-money settlement. Some brokers, also offer a sort of out-of-money reward to a losing customer. For example, with a win reward of 80%, out-of-money reward of 5%, and the option price of $100, two scenarios are possible. In-the-money settlement pays back the option price of $100 and the reward of $80. In case of loss, the option price is not returned but the out-of-money reward of $5 is granted to the customer.