Making money with Binary Options is very easy, it is based on a simple “Yes” or “No” proposition. For example: Will the price of Platinium be above $1,400 at 3:30 a.m. today?
If you think or believe it will be, you go ahead and buy the Binary Option. But If you think or believe that Platinium will be below $1,400 at 3:30 a.m., then you go ahead and sell the Binary Option.
Traders dealing with Binary Options place trades based on whether they think or believe the answer is yes or no, this simplicity makes Binary Options one of the easiest financial assets to trade.
Just like the title of the article suggests, making money with Binary Options is very straight forward, it’s a matter knowing when to go for a yes or no proposition. Here is an outline of some of the information contained in this article.
- How to make money with binary options.
- 3 simple steps for making your money work for you with Binary Options.
- Making money with Binary Options – Learn which tools to use.
How To Make Money With Binary Options
There are many ways for binary options traders to make money. A trader will make a trade based on what direction he thinks the price of the underlying asset will go, the choice is either up or down.
If he makes the correct decision, then he earns a return on his investment. But if he is wrong then he loses his investment.
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However, it is important to keep in mind that many Binary Options platforms offer an “insurance” against a bad trade. If you make a bad trade, you may receive a fixed amount or a percentage of the trade amount in return.
Trading binary options at its most basic level is really very simple and that’s why Binary Options is growing exponentially in popularity among experienced and novice traders alike.
Here is a practical example of how a binary trade works:
After reviewing Apple’s stock chart, you notice a trend. The price trend can be upward or downward, for Binary Options the direction doesn’t matter.
All that matters is the following question, will Apple’s stocks continue on the same trend? Then you decide if it is a Yes or No and that’s it. If you are right and Apple’s stock continues to go up or down, you make a return on your trade, but if the trend reverses direction, you lose the investment.
The above example describes a basic CALL or PUT option. This type of option is the simplest Binary Option with the lowest return (depending on the platform you chose, you will get a return of approximately 80%) and this type of option also has the lowest risk.
Many Binary Options platforms offer a variety of options with greater returns and greater risk. For example, there is a One Touch option which can give you a return of hundreds of percent.
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To win this option, the underlying asset needs to reach a specified price, which is much harder to anticipate than a trend.
3 Simple Steps For Making Your Money Work For You With Binary Options
Strategies:
Like anything in life, you’ll get a lot further and accomplish more at achieving your set goals if you have a clear idea of what you are trying to do, that is to say.
If you have an explicit strategy or a working template that will serve as a guide, then certainly you will achieve more at a faster rate and with less effort.
Binary Option is no different. Traders who approach Binary Options with a clear strategy are generally much more successful than traders who consistently take a shot in the dark.
There are many types of macro strategies and micro strategies. Strategies that incorporate fundamental analysis i.e. what is happening in politics etc. and strategies that follow only market sentiment respectively.
Each trader needs to decide for himself which strategy to apply. Generally, all traders come to the conclusion that a mix of both fundamental analysis and technical analysis is the most appropriate way forward.
A great strategy for the GBPUSD currency pair is the Big Ben Strategy. This strategy provides a methodology for taking advantage of the inherent volatility in the GBPUSD relationship. It even comes with a setup for when to make a winning trade.
The Daily News:
As mentioned above, the most successful traders use a mix of fundamental analysis and technical analysis to make successful trades.
The daily financial news is a great way to get an understanding of how current events are affecting price trends for commodities, indexes, stocks, and currency pairs.
It is important to follow the daily news regularly so you have the most up to date information with which you can take action in the market.
Demo Accounts:
Practice makes perfect. The more opportunities you get to trade with Binary Options the faster you’ll recognize relevant setups, and the more successful your trades will be.
However, if you are a newbie trader this can get expensive. Luckily most Binary Options trading platforms offer free demo accounts for traders. A trader can use a demo account to trade on real-time market data without having to invest a dime.
This gives every trader the opportunity to perfect old strategies and test new ones with no risk involved.
A demo trading account should be the first requirement on the wish list of any trader looking to open an account with a Binary Options trading platform.
Making Money With Binary Options – Learn Which Tools To Use
There are a plethora of tools in the marketplace and online that help traders interpret market data in a way that is actionable and can generate the highest return on any trade.
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The simplest tool is a technical analysis chart, which is provided by most binary options platforms. There are many types of charts, but the best chart for understanding the general market sentiment is a candlestick chart.
You can use that chart as a foundation for adding additional tools and indicators such as Bollinger bands.
Finally, you can get trading signals from professional traders. This service sends you real-time information either to your desktop or mobile phone when a great setup for a trade is about to open.
For any trader, whether part time or professional, Binary Options trading signals are a must have asset for finding the best trades.
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Making money with Binary Options is as simple as the Binary Options proposition itself – yes or no? If you want to make money use the right industry tools and follow the 3 simple steps outlined above.
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