How to Trade on Binary Options?

Published: 28 November 2016 Updated: 14 May 2023

Today Binary Options Trading is gaining unprecedented popularity, becoming the most effective tool of private exchange trading. That is why the number of beginners who want to earn online is actively growing today. But the problem is that in most cases people who have no experience in trading on the financial market and do not know how to use this financial instrument correctly come to options trading. To help newbies properly start trading Binary options and continue your successful development as an options trader, we have prepared a series of recommendations that will give a comprehensive answer to the question - how to trade in binary options?

First, let's get to the bottom of it binary optionsas a financial instrument. So, binary options are created as another type of contract concluded on the exchange. This contract works on the principle of trade bets with a certain prediction of the future trend of the asset price, and the player has to solve only one problem for profit - up or down.

Thus, having correctly predicted the future direction of quotations and having made a deal, the trader receives profit within the limits of 65% -90%. Whereas an erroneous forecast results in the loss of the entire amount of investment.

Nevertheless, effectiveness Binary options depends on several indicators, which mainly affect the final performance:

  • Brokerage company and its trading conditions, including the technical equipment of the trading platform
  • Profitability of the strategy used in trading

In fact, the main success of the player on the binary market depends on the broker that provides option trading services to the trader. This is especially important considering that today many binary trading brokers can influence the trading results of their players by illegal actions. The fact is that today there are a lot of fraudstersThe main goal of these brokers is to take over your investments. Therefore, in order to trade profitably, first of all, you need to choose a professional and safe broker who will not have to worry about the safety of your investments. Despite the huge number of brokerage companies, it is quite easy to find the best option among them.

It is enough to be guided in your search by the following criteria:

  • The broker has a license from the regulatory authority
  • Professionalism of the trading terminal - this indicator is determined by the technical equipment of the trading platform and the availability of tools for market analysis. The more advanced is the technical functionality of the terminal, the more possibilities for successful trading it has
  • Availability of free high-quality training and professional analytics
  • Trading conditions with minimum parameters
  • High-speed and convenient service for profit withdrawal

As an example of a company that fully meets the above parameters, consider a broker Binomo (bonus 100% to deposit by promo code REVIEWEEK100 - Activate), which not only ensures the safety of its traders' investments and security of their trade, but also provides a high-quality set of trading and related services. Judge for yourself:

  • License .
  • Platform for option trading of professional level, which is equipped with a set of technical indicators, graphical tools for market analysis, as well as multifunctional graph of quotes
  • A professional program is offered for training, and qualified analysts are available as support
  • Trading conditions have minimum values - from 10$ initial deposit, from 1$ initial bet
    Withdrawal of funds is carried out in 24 hours

Thus, the Binomo trading platform not only has no prerequisites for fraudulent actions, but also offers the most favorable conditions for profitable and stable binary options trading. Besides, as this broker puts up the lowest trading conditions, its clients can start trading with the minimum investment and trade in accordance with the rules of money management, which will surely ensure success in option trading.

How to trade on binary options - choose a profitable strategy

The second indicator of the profitability of trading on the binary market is the correctly chosen trading strategywhich is used to accurately predict the market and obtain trading signals. If you calculate the necessary ratio of profitable positions, which should ensure the efficiency of trading, it turns out that the growth of working capital is possible only in case of positive closing of not less than 65% trades. Thus, a trader, in fact, needs a strategy that will ensure a profitable closing of at least 65% trades. For this, the trader has quite a wide choice, and all existing strategies can be divided into three groups:

  • News Trading
  • Technical analysis
  • Indicator systems

The profitability of the above strategies can be within 75%-90% positively closed options. Trading on the trading strategy with this level of profitability, you can not only steadily receive income, but also rapidly increase the amount of trading capital.

For example, if you trade a strategy with an efficiency of 85%, this strategy will provide 250% of capital gain in a week. Let's look at an example of such a strategy, which is built on the principle of using a price fluctuation channel to make trades, which is formed of support and resistance levels (these asset price levels are used to make reversals). Concluding transactions in short-term options with an expiration time of 4 minutes in the direction of the rebound of the asset price from the channel boundary, you can get about 20 trading signals for an hour of trading:

Get acquainted with other trading systems can be found on the website of the broker Binomo in a specialized section, where trading strategies are presented with a detailed description of their use:

How to trade binary options correctly is of course a complicated question, but it is easily solved by traders who are aiming for success. The main thing is not to give up at the first failures, and persistently develop their skills. We have already written here that cooperation with the right and reliable broker (actual broker rating here) is one of the reasons for your success in trading. Carefully study the rules of work with any platform, on what terms you are provided with bonus funds. If you are working with AlpariIt is worth examining its features in detail to know exactly how to trade on Alpari binary options (Alpari review here). If you trade with other trusted brokers, here is an example Olymptrade, Binarium etc., study their platforms, the features of your account, personal account.

Having decided on a brokerage company, of course, any beginner wants to know everything about how to trade in binary options on the plus side, how to work so that it makes you successful and brings you a substantial income. Financial markets - It's a tough road, and if you really intend to join the ranks of the few successful options players, it's worth preparing. Strategies, of which there are many on the net today, will help you here: these include tips on how to trade by volume on binary options, how to work with express options, get earnings with long-term investments, analysis of complex trading systems for professionals with significant experience of cooperation with the financial markets.

In the process of preparing for real trading, a novice player must be aware of the fact, How to trade by trend on binary options, - at the moment it is one of the successful working strategies, which is able to predict the mood of market participants more expected, will guarantee you stable earnings. If you have already seen the expression on the net that the trend is the speculator's friend, so know this - it is true, it is your reliable friend. For such trading you do not need to do much, just wait for the trend to appear, it can be a bullish or bearish trend, confirm it with an indicator and make a bet in the direction of the trend movement. Still, for those who want to know how to trade profitably on binary options using such a strategy, you need to keep in mind the following recommendations:

  • It is worth using additional tools to double-check the strength of the emerging trend.
  • Carefully study the behavior of the price chart.
  • Be careful with abnormal market sentiment.
  • If the trend is not accompanied by a pullback, it is not worth buying an option because there is a high probability that a correction will occur when the trade is opened.

If you are ready to try your hand at trading, ready to learn, read books, blogs of market players, you should know how to trade in binary options (trading strategies are available to here), find the time to demo trading, testing of the author's methods. In this case, success awaits you.

5.00 / 1
Leave a review