Binary options: is it possible to make money on them?

Trading binary options is considered as one of the most profitable directions in trading. But along with the high profitability, this type of trading also carries high risks. Let's see what is binary optionsI'm not sure if it's profitable to trade them and how to make money for a beginner.

Binary options

What are binary options?

Binary options are a bet on the rise or fall of the price. In this type of trading, the trader does not buy a specific asset, but only makes a prediction on the rise or fall of its price over a certain time interval.

Top 5 Best BO Brokers

BO trading is available at Binary options brokers. It is the broker who accepts the bet and closes it, after a set time. The bets are made between the broker's clients. Example:

  • Trader 1 put $100 on growth of USD in the pair USD/EUR. Forecast time 60 min.
  • Trader 2 also bet $100 on the fall of the USD price in the same pair for 60 min.

The broker accepted the bets. After 60 minutes the broker evaluates the result. When the price rises, trader "1" wins the bid and he makes a profit. Trader "2" loses his bid. The broker charges a service fee (approximately 20%). The remaining 80% from the bid of trader "2" is transferred to the account of trader "1".

"Binary options are probably the fastest and easiest method for making money online known to mankind.". Sam Collins (Chief Technical Analyst, Investor Place)

Binary options come in several varieties:

  • Above/below. This is the most popular type of binary options. A bet is made on the rise or fall in the price of a particular asset. A bet is made for a certain period of time. If the trader is sure that the price will rise, he presses the "Buy" button and makes a bet. If the trader thinks the price will fall, he presses the "Sell" button and places a bet. It does not matter how much the price rises or falls in order to make a profit.
  • Touching. This type of option involves betting on a touch of one of the two price range lines. If the bid touches or exceeds the rise line, the up bid wins. If the price falls below or touches the fall line, the down bid wins.
  • Range. A range bet is a prediction of price fluctuations within a set range. If the trader is confident that the price will not move out of the range, he buys an option. If the price is outside the range (above or below), the trader loses the bet. If the trader predicts that the price will move out of the range, he executes a sell trade.
  • Spread. Spread betting is similar to touch betting. The chart shows a price corridor, and the trader needs to predict which mark the price will touch. Ideally, the range should be equal to the real spread of the cryptocurrency pair. But, it is not uncommon for brokers to have a spread that exceeds the spread several times over.
  • Express. This type involves betting on several instruments at once. The profit is the sum of the won bets. Bets and forecasts on each instrument are exposed separately.
  • Turbo. This is a bet on the rise or fall of the price in five ticks. The ticks are measurements of the price on the chart. If after five measurements the price is below the initial level, the winning bid is to go down, if higher - to go up. Intermediate results are not important.

Trading terminal for BOO

Is trading options profitable?

Is it profitable to trade binary options, this is one of the first questions that beginners in trading ask (binary trading for beginners). Experienced traders declare, yes, trading BO is profitable, but only if trading is based on a thorough analysis of the market and not a guessing game. The percentage of profit when trading binary options depends on the type of bet and the broker's conditions. Most often it is possible to earn from 60 to 90% of the bet amount. A real profit can be made by closing 60 trades out of 100 in profit. Approximate calculation of profit per month with 1000 USD deposit and 85% broker's profit (3% of the deposit risk is taken as the basis).

Calculation of profits for trading

This is only an approximate calculation of profit. Each trader's calculations may vary. The real figures depend on the size of the deposit, the number of bets, the number of profitable and losing trades, as well as the amount of risk.

"It doesn't matter at all whether you're right or wrong. All that matters is how much money you make when you're right, and how much money you lose when you're wrong.. George Soros (American trader, financier, investor)

Risks and cheating in options trading

Trading binary options carries rather high risks. The risks increase if the trader does not have a strategy, does not analyze the market, trades with unverified brokers. The main risks when trading binary options:

  • The loss of the deposit for non-compliance with manimanagement.
  • Losses associated with changes in win rate.
  • Deception on the part of the broker.

To minimize the first two risks it is enough to develop a working trading strategy. A trader should strictly follow the established money management and not raise bets. For successful trading it is necessary to analyze market carefully, filter signals and not to bet on emotions. Precise control will help not to lose deposit and get profit.

Also, experienced traders advise to withdraw earnings regularly, so that there is no desire to bet more than the put in, and when you increase/decrease the deposit, you need to recalculate the maximum bet. To exclude the third risk, it is necessary to understand that not everyone can earn on trading БО. To avoid becoming a victim of scammers, follow these rules:

  • Don't believe flashy advertisements and amazing stories about getting rich in 5 minutes. This is the main deception of brokers, who attract gullible users to their sites, who in 99% cases simply lose their deposits, bringing profit only to the broker.
  • Do not fully trust managers, signals and trading robots - their goal is to lure money out of you and get their profits.
  • Check the quotes at any suspicion of fraud. Put a "live" chart next to the broker's chart at the same timeframe, if the broker "draws" quotes, you will immediately see it.
  • Do not invest money without training on a demo account. Never give your money to managers to manage.
  • Learn everything yourself, check every step, consult on forums with successful traders, learn market analysis, follow the news.
  • Trust only licensed brokers who have a regulator.

Following these rules will help you keep a sober head and teach you to trust only yourself.

Where do I start as a beginner?

A beginner should start with Binary options trading training. It is not necessary to buy an expensive training course, enroll in an online school or hire a personal teacher. All the information you need is freely available on the Internet. To begin with, learn what binary options are, what strategies there are, what signals there are. After studying these questions, choose the asset you will be trading. This can be a popular currency pair, stocks, indices, commodities, etc.

Once you have chosen an asset, choose a broker. It should be a reliable broker with a license. It is important that the chosen platform has a demo account, on which you can learn the terminal and master the basic principles of trading. It is also good if the broker has a cent account. It will help you learn how to trade in real conditions, without the risk of serious losses. Do not hurry to replenish the deposit for a large sum. Always trade only with free funds.

Study, visit forums, follow the strategies of experienced traders, don't hesitate to ask advice from seasoned traders. Deposit a minimum amount on your account during training. Take your first steps in trading. Make sure you keep a journal of your profits and losses, and record all your actions there. When you make a profit, it is better to immediately withdraw it to your card or e-wallet.

How do I withdraw my earnings from binary options?

The procedure for withdrawing money earned on binary options is almost identical at all brokers. The only differences may be only in the withdrawal limits, as well as in the available destinations. To withdraw funds, go to your account. In your personal cabinet, find the "Withdrawal" tab. Specify the currency and amount of the withdrawal. Select the direction of the transaction. Confirm the transaction. Pay attention to the fact that each broker sets the withdrawal commission and the period of time for transferring the money. If money did not reach your account in due time, contact the support service. Usually withdrawal takes from three to fourteen working days.

Rating of binary options brokers

Our website has collected a rating of the best binary options brokers, which have licenses and positive reviews on the Internet.

PocketOption (pocketoption.com)

One of the most reliable brokers on the market. The company has a certificate of compliance and is regulated .. For those who are new to trading, there is a demo account, training and free signals. The minimum deposit is 50 USD, and the minimum withdrawal amount is 10 USD. New clients are offered a 50% bonus to the deposit when depositing 100 USD and more. From the disadvantages, users highlight the mandatory verification of identity.

PocketOption broker BOO

INTRADE.BAR (intrade2.bar)

This is one of the largest brokers. The company offers options, instant payouts and deposits from 10 USD. With a correct forecast here you can get up to 85% of profit, and the withdrawal is available to a bank card, cryptocurrencies and digital wallets. For beginners there is a demo account.

Broker BÎ INTRADE.BAR

Binarium (to the broker's website)

One of the most stable brokers. The company has been working since 2012 and during its work has proved to be a reliable partner. The company offers profits up to 90%, deposits from 5 USD, accounts for new traders, training and 130+ assets. A 100% deposit bonus is available to new users. All clients of the platform can participate in draws and tournaments and receive valuable prizes. The only disadvantage of the company is the lack of a regulator.

Broker BO Binarium

Quotex (quotex.market)

One of the most generous brokers of BO. Payouts here are up to 98% and the broker does not charge commissions. The company specializes in Digital Options with a low entry threshold. The broker is regulated by the CFTC. New clients of the service can get a deposit bonus up to 35%. Beginners have access to a demo account and training in the form of personal consultations and training in the school of finance. Of the disadvantages we can highlight the conversion through the dollar with the payment of commissions.

Quotex binary options trading

You will find more reliable binary options brokers in our rating. Choose a company, open a demo account and start learning. Remember, trading binary options can bring money to those who are not afraid to learn and move forward despite the failures.

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