Learn about binary options. Also called fixed-return options, these have an expiration date and time as well as a predetermined potential return. Binary options can be exercised only on the expiration date. If at expiration the option settles above a certain price, the buyer or seller of the option receives a pre-specified amount of money. Similarly, if the option settles below a certain price, the buyer or seller receives nothing. This requires a known upside (gain) or downside (loss) risk assessment. Unlike traditional options, a binary option provides a full payout no matter how far the asset price settles above or below the "strike" (or target) price.
Binary options have become one of the most popular ways of trading, especially when it comes to non-professional traders. High returns, easy to understand rules, user-friendly platforms and alluring features make trading easier than ever. There is also the possibility of using automated trading software when trader only has to set its preferences and make a deposit, and after that a highly advanced trading software developed by experts places trades instead of them. One of the best trading software is Binary Options Robot. You can find more about it here. Most of the brokers offer signal service to their traders as well, which makes decision-making process even easier and gives better and more pleasant trading experience. And yet, some traders fail to make a profit. In order to help existing and potential traders to succeed, we created a list of 8 most common mistakes traders make when it comes to binary options trading. We hope that this overview will make trading more straightforward, but also that it will remind traders that there is more to binary options trading then “put” or “call”. Here are the 8 most common reasons why traders fail. 1. Neglecting the Education Binary options trading seems easy, and that is why some traders neglect the importance of financial education. Education doesn’t have to be formal, and successful traders aren’t always those with a business degree. Trial and error strategy might seem like a great idea to the inexperienced trader, but professionals would disagree. Instead of wasting your time and money on this poor strategy, it is better to spend some time reading educational articles, and e-books, researching brokers, various strategies, graphs and features and following daily financial news etc. Knowledge is power in every aspect of life, and binary options industry is no different. Always be informed and ready to learn something new, even if it means placing fewer trades. To get the most out of your trading experience and make more profit, make sure to visit our Academy that offers plentiful of articles that will help you understand the world of binary options. 2. Ignoring the Demo Account Even experienced traders sometimes ignore the demo account provided by the broker. They know everything there is to know, right? Well, the truth is quite opposite, as every broker is different, has a different trading platform, various features and trading options. Demo account gives the trader the opportunity to research the platform, see how the trades are set, and get some general overview over the platform. Other than that, every broker lets traders invest virtual money in order to develop their strategies and see how it feels to place trades, which means that traders don’t have to spend their real money in order to get accustomed to the interface. If the chosen broker gives its traders the opportunity of a demo account, be sure to use it for your own personal growth as a trader. Many brokers recognized the importance of demo account, so sign up with brokers that offer a demo like 24option, IQoption is a broker especially recommended to the newbies as they offer demo account without the initial deposit. 3. Lack of Discipline One would think that financial world is completely cold and emotionless, but just a simple glance on the average trader will reveal that it’s not always so. As human beings, traders are prone to get under the influence of their feelings, whether good or bad. Losing streak may cause frustration and anger, which usually lead to making bad decisions and forced trades. Winning streak gives traders self-confidence and they tend to neglect some objective factors that may influence their future trades. No matter what your streak looks like, remember that every trade should be thoughtful, with all influences taken into consideration. Be patient, observant, calm and try to develop an investment plan as soon as possible in order not to spend your funds irrationally. To avoid the negative influence of emotions, find out how to control them here. 4. Keeping Investments On the Bare Minimum One of the alluring characteristics of binary options is that they are available to everyone, and not just traders with significant funds. Most brokers require a minimum deposit of $200, which is quite low compared to other types of financial services available on the market. One would think that those $200 will simply multiply as they progress as traders, but they would be wrong. Even if initial deposits are low, required minimum investments can be as high as $50. Now, if we compare that to the minimum deposit, it is easy to see that it enables a trader to place only four trades. Other than that, minimum investments bring minimum profit in all types of trading, and binary options are no exception to the rule. With small investments, it takes longer to accumulate significant funds on the account, which can make traders nervous and impatient, which leads to placing irrational trades in order to achieve more in less time. Besides, traders must always count on possible loss, and knowing that the minimum deposit now seems almost inadequate for serious trading and serious profit. Traders, no matter how experienced, should research various account types offered by various brokers and choose the one that suits their needs best. For all traders who are not sure about how to place trades, we recommend trading by using free Binary Options Robot, the best automated trading software available. 5. Absence of Plan Even if binary options trading sounds simple, don’t be deceived as it is still the type of trading. Many users think there is nothing more to it than registering, making a deposit and placing trades, but a good plan takes responsible trader a long way. Planning is, along with education, one of the most important segments of binary options industry. Be sure to make a plan about how much, when and where to invest the money. Include some risk management strategies, and always count on possible losses. Traders must be ready to revise their plan if they see it is not working for them and losses are simply too high. Traders with more advanced accounts are sometimes assigned a personal advisor who can help them in making a better investment plan. Read more about importance of planning in our Academy. 6. Unrealistic Goals We must admit that there are some irresponsible brokers who use false advertising and promise unrealistic amounts in a short period of time. These brokers make traders believe that binary options trading is an easy way to make a lot of money. In reality, binary options are a profitable way of trading, but only if the trader is responsible, educated and patient. In order to avoid scam brokers, make sure to trade with a broker who is registered by some of the regulatory bodies like CySEC. Traders must be aware of their own greed and false promises, and realize that binary options are still a type of financial trading where no one becomes rich over night. Also, traders must take their invested amount into consideration, as bigger investments make a bigger profit. 7. Overlooking the Changes It is easy to forget how dynamic binary options industry is, and for that reasons traders must be ready to reevaluate their trading plan, chosen strategy and placed trades in every moment. Changes should not be seen as something hostile, but as new opportunities that enable them to make more money if they are ready to adapt to the new environment. Proper education and detailed plan may reduce the risk of unexpected changes, but they are not a guarantee that those won’t happen. Also, the trader should not be scared to use additional features offered by the broker as rollover, double up, early closure and sell in order to adapt to the new circumstances on the market. Find out more about selling feature and how to use it in our article. 8. Inadequate Money Strategies It is impossible to become a successful binary options trader without implementing the strategies, but traders often forget that strategies alone are not enough to succeed. A trader who has a good strategy knows what is going on in every moment of the trade, is aware of all the risks and knows what are the possibilities in case the trade takes an unexpected turn. Successful traders know how to manage all possible risks, and are aware of high-risk trades. They never place all their funds into high-risk trades, but only the smaller amount. That way they protect their funds from high losses, and always have a backup with more conservative trades, because losses, no matter how small, are still affecting their balance. In order to lower your risks, read our article about risk management. Binary options trading can be a great experience if one is aware of the effort that has to be put up in order to make meaningful profits. This type of trading is user-friendly, but that does not mean that it should be taken easily and without prior research and education. Traders must be ready to adapt to the completely new trading environment and to take their time, as forcing trades is not the best strategy.
While there are very few brokers based in the country itself, the traders from the Philippines can also expand their search for licensed brokers that will suit their needs licensed by foreign regulatory bodies, such as Financial Conduct Authority (FCA) in the UK or CySEC (Cyprus Securities and Exchange Commission) in Cyprus. These brokers have earned excellent reputation all around the world and proved to be worthy of their reviews. Fortunately, they all accept the traders from the Philippines. Because of this, binary options trading is becoming a popular and exciting part of the life in the region.
In total, you will get $180 from this trade. However, traders need to note that the magnitude by which the price of the commodity move will not determine the payout amount. If you had predicted that the price of the asset will go up and drops instead of going up, by the time the contract expires, you will have lost the trade and consequentially the money you staked on the position.
Many binary options and Forex brokers have enticing trading platforms in addition to a horde of fabulous attractions for their traders. With this in mind, many traders are wondering whether it is okay to just invest in any binary options or Forex broker. The truth is that not all brokers in the market today are reputable, just like in the online poker market. In the U.S.A, for instance, there are strict regulations that have been imposed for the brokers in the region to be in a position to accept US-based traders.
It is impossible to become a successful binary options trader without implementing the strategies, but traders often forget that strategies alone are not enough to succeed. A trader who has a good strategy knows what is going on in every moment of the trade, is aware of all the risks and knows what are the possibilities in case the trade takes an unexpected turn. Successful traders know how to manage all possible risks, and are aware of high-risk trades. They never place all their funds into high-risk trades, but only the smaller amount. That way they protect their funds from high losses, and always have a backup with more conservative trades, because losses, no matter how small, are still affecting their balance.
Only recently has the framework to regulate binary options been constructed. As a matter of fact, Cyprus is one of the first Eurozone members to in fact have a legal standard for binary options. With this legal definition, the regulatory authorities such as the Cyprus Securities and Exchange Commission (CySEC) is now empowered to act under the financial regulatory framework.
I deposited $700 in Close option via Payza and with 30-second binary options trades, made $600. I made a withdrawal request of $400 and it was processed within one day. My next withdrawal was $500 which was consist of a part of my money and a part of my profit which took 2 days. At first, I was worried and contacted online chat and they told me it takes 1-3 working days and it is not related to the amount.
No matter what you do, learning is a part of life, and human beings have to keep up with different innovations, global changes and new developments in their fields of specialty. As an options trader, you have to be aware that it is one of the fastest changing markets and that it requires upgrading and updates on a regular basis. If you are a beginner, then you have to study even harder to catch up with binary options pros, so hit the books first before you engage in trading. If you want trading to be your only source of income, then, prepare yourself mentally that you have to achieve the pro level. Of course, with the learning, try to get experience as well, combine theory and practice, until you come to the point to apply theoretical knowledge in the actual market.
A software review is not the place to explain how these market indicators work. We assume that if you’re thinking of using an automated trading program of this sort, you understand them and that, if you don’t, you’ll carry out your own research before starting to use them to initiate trades. You can use indicators separately and in a vacuum, or you can combine two or more of them. Automated Binary will understand what you are trying to achieve and will produce trading signals accordingly. We recommend that approach because no indicator is entirely satisfactory on its own. The most dependable and profitable trading will come from combining most of the indicators or all of them.
You will have to contact Option Robot’s customer support department if the FAQ section doesn’t provide the information you need. Unfortunately, there is only one way of contacting them – by email. The address is [email protected] Our experience is that they can sometimes be on the slow side to respond, but they always do respond and the information is helpful. As the platform continues to mature we expect additional contact and customer service options might be added.
Without proper education, binary trading can be a very difficult endeavor. With no guidance, support, and feedback, success in the binary trading market is nearly impossible. However, with Bullish University’s system of training, which offers daily webinars, a vast library of videos and article, and the chance to interact with some of the most successful experts in the industry, students are well-equipped to make binary trading a full-time career.
Pape observed that binary options are poor from a gambling standpoint as well because of the excessive "house edge". One online binary options site paid $71 for each successful $100 trade. "If you lose, you get back $15. Let's say you make 1,000 "trades" and win 545 of them. Your profit is $38,695. But your 455 losses will cost you $38,675. In other words, you must win 54.5% of the time just to break even".