What is Binary Options Trading?
As explained in the intro, binary options trading is the investment on the future movement of certain assets. The value of an asset can only move into two directions that are either up or down. This means that even if traders aren’t using any basic strategy whatsoever, their overall long term winning rate will still be 50%.
In order to trade financial instruments, traders will have to register at so-called binary options brokers. Here, they will have to make a real money deposit. This deposit will of course not be a payment to the broker. The money deposited will remain the trader’s property and can be used to purchase contracts.
After making a deposit, traders can choose various assets to trade on. The most common assets in financial betting trading are stocks (like Apple, Microsoft, Google, etc.), commodities (like gold, silver, oil, etc.), forex currency pairs (like, USD/EUR, USD/GBP, etc.) and indices (like the DOW Jones, NASDAQ, etc.).
After selecting an asset, traders will have to predict if the current value of the asset will either decrease or increase during a certain time frame. The result of the contract will be decided based on the value of the asset when the established time frame in question will expire.
If the prediction made will come true, the trader will receive his or her investment back plus a certain commission that represents the profits. If, however, the prediction will not come true, then the trader will lose his or her investment. Investments as low as $10 are permitted by most brokers.
The profits will be calculated taking in consideration the initial investment multiplied by the promised payout percentage of a financial trading contract. In binary options trading, before investing money on a contract, traders will in advance know the payout percentage and as such the amount of the potential profits too.
Consider the following example:
– Trader invests $100
– The payout percentage is 90%
If the trader will manage to accurately predict the outcome of the option, he or she will win a total of $190, from which $90 represents the profit made. And this is all really. It’s really this simple to trade binary options online.
Can anyone trade binary options?
Unlike other types of financial trading such as stock and forex trading, financial betting doesn’t require any advanced economics training. However, successful binary options trading does require some patience and attention to detail.
The movement of the value most assets that are being offered in trading on financial assets can actually be predicted with great accuracy. However, traders will have to pay attention to the latest developments in the financial and business world.
For example, if a major company such as Google is just about to release something big, then you can know with a very larger certainty that the value of Microsoft’s stocks will increase in the future. Most brokers offer hundreds of assets, so you can almost always find companies that are about to release something new the coming days and make pretty accurate predictions.
Can you really make money with financial betting?
Yes, if you pay attention to news and understand the fundamentals of binary options trading then you most definitely can make consistent revenues. The most significant advice is never to place random bets for no apparent reason. You should always make sure that you know what you’re doing.
And really, you don’t have to conduct research 24/7 in order to be able to accurately predict the movement of certain assets. Just opening your eyes to what’s happening around you and having some common sense are most of the time enough in order to be able to make very accurate predictions.
Are Binary Options Legal?
To our knowledge, financial betting are not illegal in any country at this moment. There might however be some countries that do no allow domestic companies to offer binary options services to people. This however does not disallow citizens of those countries to register at legal binary options brokers operating from other countries.
Betting on financial assets is in fact government approved and regulated in a number of countries such as the United States, the United Kingdom, Japan, South Africa, Cyprus and Malta. All these countries are giving out financial trading licenses to online trading service provider that provide legitimate services.
It’s OK if you’re not living in one of these countries. Unless financial betting is not explicitly illegal in your country (and as far as we know it’s not illegal anywhere at this moment) you are perfectly fine if you register at financial trading service providers that are licensed elsewhere.
Is it safe to trade binary options?
Trading financial instruments is less risky that trading forex and stocks. This is because in online financial betting you’ll always know in advance how much money you can win and how much you can lose on every single investment. In traditional trading however you’ll never be able to know in advance how much you can win and how much you can use.
You should still trade financial assets carefully. If you are a newcomer, then it might make more sense to invest lower amounts of money in case you aren’t sure about your actions yet. Once you gain more experience, you can invest much larger sums that will promise much larger returns.
Where to Trade Binary Options?
You can trade on financial instruments at binary options brokers. Binary brokers are financial service providers that have an official license that allows them to offer financial trading services. As said above, in order to trade you’ll have to register and deposit money at such brokers.
Not all brokers are created equal, however. You have to make sure that you register at the best binary options brokers only. The best brokers are those that have a very large selection of assets, only offer legitimate services, and have very large payout rates.
We believe that the brokers we have listed on this page and all over our website are the best companies that offer financial betting services. They are all legitimate brokers offering safe and fair online trading services.
They also provide so-called bonuses to newly registering and depositing traders. Bonuses are free money gifts given to newcomers who make a deposit. A bonus will naturally be real money that can be traded on real contracts that give out real money payouts. Register at these brokers by clicking on one of the red sign up buttons present on our website. This will unlock a special bonus deal that is not available for traders who register by going directly to the website of these brokers.
Also, we highly recommend you read our additional financial trading strategy guides in order to learn to trade binary options successfully and be able to generate consistent winnings all the time.