How to trade Binary Options? Best trading guide

How to Trade Binary Options? Best Trading Guide

The only question that you need to address with binary options trading is whether the price of a selected asset will rise or drop within a specific time span. If you have the ideology of analysis and pattern recognition, you can definitely predict an asset’s price movement over a certain period of time. But that’s the technique you would possibly implement when you become a master in this trading format. 

The popularity of this easy and simplistic trading form is taking over the globe. The aspiring traders are joining the arena of binary options. In fact, the earning opportunity is beyond a projected scale when you compare it with any of the other trading formats. Binary options trading offers you a fixed payout percentage, which is not the case with stocks, cryptos, and other such investment schemes. 

This guide will help you out with the right set of rules, regulations, advice, tips, and suggestions to commence with binary options trading. This binary options guide will act as your handbook, and you can learn and utilize the basic trading approach when you sign-up to any broker platform. Moreover, this article also intends to bring to your notice the best brokers in play. So, follow this post till the end, and give your urge to learn binary options trading a progressive satisfaction. 

Overview of Binary Options

Everything begins with a basic idea of what the entity is all about! Therefore, before you head straight to the business, it is better to revise and take a re-glimpse at what is binary options trading. Binary options are a form of derivatives or contracts that allows you to trade with any asset or financial instrument that exists in the market. The only condition is that your broker platform should have them on their list. 

Various resources available over the internet claim to guide you with the best strategies for leveraging the earning potential of binary options trading. But, before you implement the strategies, the first-hand approach should always be to learn the trading technique. A right beginning is what will direct your attention towards streamlining the efforts to achieve the end goal. And that is what this guide is all about. 

Binary options trading stands out in the crowd for its straightforward technique. You check the payout, prepare your mind for the investment amount, and place the trade. This trading format doesn’t let you use any calculators to total up the investment, calculate the rising percentage, analyze the loss & profit potential, and others. The straightforward mindset for this trading form also brings in a considerable risk, which is basic in all forms of trading. 

Binary options trading is also known as ‘All or Nothing’ trades! The best thing about binary options trading is that you have access to important resources that will help you determine the utmost accuracy of your prediction. Every binary options expert instructs beginners or newcomers to check out news announcements, global trends, and quarterly reviews. These insights have the scale of assisting you in terms of making accurate predictions. 

An announcement or update related to the asset’s functionality can help you analyze whether the price is about to rise or drop. The choice of options is pretty much diverse, as you can pick the asset that you are aware of. The best part is that the brokers take prime concern of making almost all types of financial instruments available for the trader. You can trade on indices, cryptos, commodities, currencies, and others. 

Today, the brokers are offering different types of trading options within this format. You can go with high/low, in/out, touch/no-touch, and ladder trading under binary options. So, with such a vast arena of rising profit potential, it is evident for the new traders to be keen on learning and utilizing this binary options guide. Make sure you have the basic knowledge of capital investment and expected returns, as it will help you grab the conceptual idea of binary options trading.  

How to trade Binary Options for beginners?

All beginners in binary options trading have entered this arena with either some influence from friends or family or some money-earning motivation from various resources. But irrespective of the reason, the fact is that you need to get an idea about the basic approach towards this trading format. 

Even though binary options trading is an easy-to-learn format, but its elements still need some understanding. And beginners tend to ignore all of it, as they are only concerned about the profit payout on successful trades. With binary options trading, your aim should always be to minimize the risks. If you manage to do that, your profits will flow in automatically! 

The professionals are well-versed with what they have to do with every new broker platform they want to explore. They have the strategies, techniques, and knowledge to direct their trading efforts into maximum profits. The beginners need to take up this journey! And with substantial dedication and effort, this journey from rookie to expert will eventually be short. 

Here is a step-by-step explanation of how to trade binary options for beginners. Keep in mind to follow them all without skipping even a single bit. Your investments should always payout with successful profits. So, here you go:

How to Trade Binary Options? Best Trading Guide

Step 1: Find the right broker platform

The first and the most important job for aspiring binary options traders is to look for genuine and reliable brokers. A broker platform plays a major role in boosting your trading portfolio. The features, resources, and all the essential tools have a great impact on what predictions you make. So, let’s learn about how you can pick the right broker and what considerations you need to make. 

  • Licensing & Regulation 

This aspect needs the utmost attention from the traders. Every legal binary options broker has attained a form of license and regulation from respective country-wise authorities. Moreover, these regulations permit them to operate with international traders, with ideal rules & regulations. Some of the most command and reliable regulatory bodies are CySEC, MiFID, IFMRRC, FCA, CFTC, and others. 

If your broker platform has these licensing logos over their platform heads, then you can count on trusting them. But don’t be so sure right after you witness the logo. It is because some un-regulated brokers put up fake licensing proofs to con the traders and loot their money. Therefore, always take the license number from the website or platform, and tally it with the directory available at the official website of those regulatory bodies. 

If the license number and the platform name match, then you can count on relying on them. But if they don’t, then report them and choose some other binary options broker. Some of the top broker platforms that are proven genuine with legal regulations and licenses are Pocket Option, Quotex.io, and IQ Option. You will learn more about them later in this article!

How to Trade Binary Options? Best Trading Guide
  • Deposit & Withdrawal

The next thing you need to consider is the amount of minimum deposit and minimum withdrawal for the platform. Most of the top platforms intend to keep the minimum deposit amounts low for drawing the attention of beginners. In addition to that, the trade amounts are mostly $1 for beginners to conduct trial & error trades. 

So, if you are a beginner and are strict on a certain budget that you want to invest in binary options trading, this might be an important consideration. Refer to the terms & conditions of your broker platform to get an idea of their rules for minimum deposits. Similarly, check for the minimum withdrawal amount as well, as you don’t want a hassle in transferring your profit funds to your main account. 

  • Availability of Trading Tools

Today, the count of broker platforms for binary options trading is uncountable. Therefore, it becomes pretty much important to have an element of choice. And the availability of trading tools, market signals, and other such resources makes a difference. You need to check the official website of your selected broker platform to get insight into what tools you have access to. 

With some brokers, you need to access their premium account types in order to gain access to their trading tools. But some offer it uniformly for all account types! So, if you want to have the best without spending much, run a rigorous search for the broker platforms that offer you such tools and resources with the minimum deposit itself. It will ultimately help you make accurate predictions to maximize your profit. 

How to Trade Binary Options? Best Trading Guide
  • Demo Account

For all beginners, a demo account is a truly important aspect of consideration. Demo accounts are replicas of live accounts but are operated with virtual funds. You will be using the given virtual funds to trade with selected assets over the demo account. In fact, it will help you learn the steps of investing with binary options and will lead you to get used to the interface. 

Beginners are prone to make mistakes, and a demo account is the best place to make those mistakes. It is an important inclusion for the newbies before they invest their real funds in the live trading account. Most of the broker platforms demand no deposit for giving you the accessibility to a demo account. Get along with your practice trades right after you pick your broker!

The best 3 broker platforms that offer Binary Options trading services

Before heading to the second step, it is important to give you some shortlisted options for the best brokers in play. These broker platforms that are listed below are validated for all of the above-mentioned factors. In addition to that, they are the top names across the globe for binary options trading. So, you can rely on their specifications without any worries.

How to Trade Binary Options? Best Trading Guide

#1 Quotex.io

Quotex.io is one of the best brokers of all time! It has been live since 2020 and is worth checking into. The company is offering more than 400 assets for the traders to pick from. Apart from that, they are also offering one-click trading and multiple banking methods. Quotex.io is the by-product of Awesomo Ltd. It operates under the regulations of IFMRRC, which is a third-party dispute resolution service. 

The services offered by Quotex.io are available for most of the countries across the globe. But the aspiring traders below the age of 18 cannot access the services of this platform. There are certain payment method restrictions, especially for Canada, Germany, and the US traders. But the traders of this country can make their deposits with the help of cryptocurrency. 

The minimum deposit amount for Quotex.io is $10, whereas the minimum trade amount is $1. The maximum payout that you can get from the assets of this platform is 98%. But it varies depending upon the assets and their liquidity factors. You get a deposit bonus as well to get some additional funds to invest in initial trades. 

This platform has a demo account for beginners to learn the techniques and tactics of this trading format. Apart from that, you will also get some trading tools to determine accurate predictions. The platform charges no additional fees for withdrawal or deposits. But some third-party payment providers do implement their charges on the transactions. 

How to Trade Binary Options? Best Trading Guide

#2 IQ Option

IQ Option is a 2013 broker platform that is widely known for its prominent trading features. It is ideal for traders that are looking for a seamless sign-up and trading experience. IQ Option is operating under the regulation of CySEC, which proves its genuineness in the industry. You get a plethora of assets to trade over this platform. For instance, you can go with Forex, stock CFDs, commodities, cryptocurrencies, and other such assets. 

The best thing about IQ Option is that it offers you the potential for mobile trading! It offers you a mobile application to carry your pocket trading platform anywhere. The maximum payout that you get over the platform is 95%, which is a commendable amount. But the payout for an asset is variable, depending upon its market performance. In fact, the minimum deposit to sign-up to the platform of IQ Option is $10, and the minimum trade amount is $1. 

You get a plethora of trading tools and market signals in order to streamline your predictions. In this way, you can be sure of what you expect and what you don’t. IQ Option is available in most of the countries, but it has its own exceptions as well. You can refer to their official website to get the details of available countries. The withdrawals over this platform are processed within one business day. No other platform can assure you of faster withdrawal than that of IQ Option! 

You get a standard account and a VIP account with IQ Option. The catch is that the standard account only demands you to deposit $10 for sign-up, whereas the VIP account demands you to deposit a total of a minimum of $1900 in two days. 

VIP account opens up your accessibility to all of the features within the platform. Moreover, the VIP account gives you a 3% more return on every successful trade. Apart from that, you will have a personal manager for handling your accounts, and you will be getting monthly investment, return, and loss reports. 

How to Trade Binary Options? Best Trading Guide

#3 Pocket Option

Pocket Option is also operating under the regulation of CySEC and IFMRRC. Hence, it is yet another genuine and legit broker platform to support you with your binary options trading. The best part about this broker platform is that it doesn’t compromise on deposit bonuses. You will get a deposit bonus of 50% for all deposits above $50. You can use those bonus funds immediately for your trades. 

Also, you get a mobile application with it as well that will help you place your trades anytime and anywhere. Social trading is a powerful feature of this platform. Even though the minimum deposit requirement is high, the minimum trade amount is $1. Hence, you are not mandatorily asked to invest all of the earned bonus funds at once. You need to fulfill the platform requirements to be able to withdraw the bonus funds. 

Pocket Option has been in play since 2017 and is favorable for its immense bonus rewards. There are over 100 assets available for you to trade with. You just need to keep in mind that you should pick the asset you are confident enough to trade with. Pocket Option doesn’t charge any commission for its services or fee for its deposits/withdrawals. But some payment providers do charge a nominal fee for the transactions, which is unavoidable! 

In addition to that, Pocket Option has a very responsive customer support team. They offer service 24/7, and the traders can connect to them through phone calls, addresses, or emails. Their web page has all of the info. If you have some general queries and don’t want to chat with them, you can just fill out the contact form, and the team will connect with you later with the solution. 

How to Trade Binary Options? Best Trading Guide

Step 2: Choose any market asset or financial instrument

After you have chosen the broker as per your suitability, the next step is to pick the right asset or financial instrument. It isn’t really a tough task to do. But, some consideration is even important in this aspect of binary options trading. You can trade with almost everything that gets invested in the market. But the only condition is that your brokers should have them in their collection. 

You can choose to trade with stocks, indices, commodities, Forex, and even cryptos. The catch or trick is to trade or bet on only the assets you know a little better. For instance, if you are good with analyzing crypto price movements, then you should stick to that for the initial period. Even though you are choosing any diverse asset, than the ones you have interest in, you should get some idea about its market stature. 

Investing in the assets that you know better will increase your chances of making profits. And binary options trading is all about looking for promising outcomes. So, get over with this step, and take some time to do a better study about your selected asset if you need it. 

Step 3: Choose the expiry duration

It is an element of binary options trading that decides whether you win or lose the trade. It doesn’t matter whether your prediction is right/wrong, before or after the expiry. Your prediction should be true or false within this expiry window. This will give a verdict of whether you lost or won the trade. Therefore, neglecting this aspect is also a crucial cut down on your potential to win more. 

Short-term binary options traders are very much keen to choose expiry windows of 30 seconds or 1 minute. There are brokers that offer expiry durations to last for even a day or more. It depends upon the trader to choose the time span, as per their patience and strategies. But, the core fundamentals of binary options trading are that the more you trade, the better are your chances to make profits. 

So, go ahead and pick the right window for your trade to perform well. If you are aware of the asset’s price movement pattern, use it to decide your expiry window! The chances of success increase simultaneously! 

How to Trade Binary Options? Best Trading Guide

Step 4: Pick the trade amount that you want to invest

The next thing you need to decide upon is the comfortable capital you are ready to invest in for a trade session. You can either go with the minimum amount or an amount your desire. The beginners should preferably start with the minimum amount until they gain confidence in the price movements of an asset. But the professionals can go with their own set of strategies for the purpose. 

In binary options trading, the size does matter! So, the bigger your trade amount is, the maximum your profit will be! But the condition is that you need to invest with the right strategy and analysis. A successful trade is what will give you a profitable return, while a lost trade will cost you the complete traded money. Either you win profit or lose everything you traded. There is nothing in between! 

You need to attain that confidence in your prediction to be able to invest big. Look for and eradicate all of the factors that might jeopardize the invested amount. You need to choose an option that will potentially ensure your chances of success. If possible, you must get hold of a proficient money management system that will give you access to invest in enough trades to help preserve your capital funds. 

How to Trade Binary Options? Best Trading Guide

Step 5: Choose the desired option/prediction

The final step is to pick one of the two predictions. You need to select the tab that you think is best suitable as per your analysis of the asset market. You can bet either for the hike in the price of the asset or for its downfall. Unlike other trading platforms, here you can win even if the price of the asset drops! So, if you are trading big, make sure your base analysis is perfect and is not just the guesswork.

The beginners have the liberty to put some initial guesswork trades to try out the trading format. Don’t go with some random ladder trade options over the platform. It motivates you to attain higher returns, but the risks are more as well. Therefore, you should go with the option that is quite safe for you to bet on. Once you are final with your decision, just go with the confirmation of your trade. 

Now, you just have to sit back and wait for the expiry duration to run out. Some brokers intend to exit the trades early if they find the graph moving in their favor. But early closing of the trade will reduce the payout returns by some amounts. Similarly, if you feel like you are losing the trade and want to exit it early, the platform will deduct a small amount from your traded money. 

Hence, this is the entire process of how to trade binary options for beginners. These steps are precisely explained and are easy to follow. You need to put stress on hiring the best brokers at first. A regulated broker can help you trade for free with several bonus funds. But unregulated ones will steal away your capital fund and log you out of your accounts. Therefore, you need to invest your time and efforts in Step 1 on priority! And rest everything will follow accordingly! 

How to Trade Binary Options? Best Trading Guide

How to invest into Binary Options?

Now that the basic trading approach is cleared for beginners, it is time to direct your attention towards investment tactics. Beginners won’t stay new to this trading format forever! Once they get hold of the basic strategy of research & analysis, they can just increase their bets and win impeccable profits. 

And to enhance that profit potential, it is important for beginners and experts to implement certain productive investment strategies. There are numerable strategies shared by various binary options experts. But you have the power to choose & adopt the strategy that best suits your trading habits. Strategies are important in order to help the traders put up better success-oriented predictions. 

Apart from that, there should not be any kind of emotional intervention while trading binary options. In fact, a trading plan can help make investment ideas easy to choose! Therefore, here are some of the strategies that are shortlisted with strict functional analysis. 

Strategy #1 Binary Options trading using the signal

A market signal is a form of indication that determines whether the price of an asset will go up or down than the current price. Every strategy that you adopt in order to implement binary options trading involves recognizing a signal or at least involves creating one. This Signal is for the traders to decide whether they should buy or sell any asset or option. 

You can do that by following up with the current news related to the asset. In case you are not an experienced trader, you can just check with the news and observe the signals. Now, you need to pay attention to all of the public information available over the internet or on television media. Check for the industry announcements or the decisions made by some CEOs. Then only, the decisions with the analysis of these signals turn out to be more accurate & succeeding. 

In another way, you can implement technical analysis for trading binary options with the use of a market signal strategy. While implementing this approach, you need to examine all the information you get about the asset without noticing the market movements. Technical analysis demands you to do a manual pattern analysis of the asset’s price graph. It is complex when compared to staying updated with the news. 

With technical analysis, you will be observing and analyzing the price movement in the past, which in turn, will help you predict the movement in the future. As a result, it will help you increase the percentage of your prediction accuracy. 

The beginners might find it difficult to implement technical analysis, but the professionals can move ahead without second thoughts. The individuals need to learn using the charting tools and understand a few binary options trading concepts before moving ahead with this strategy. 

How to Trade Binary Options? Best Trading Guide

Strategy #2 Money management strategy

Considering the investment plans to earn profits is not sufficient for you to be a proficient trader. You also need to consider the capital management aspects as a high priority. Irrespective of the trading approach that you adopt, you should always follow a money management strategy. The most common approaches for the traders to implement this are Martingale and Percentage-based strategies. 

#1 Martingale Approach

The martingale approach demands you to invest double the amount every time you fail a trade. For instance, if you are investing $10, and you lose the trade, the next immediate trade will be $20. In this way, you will be recovering the past losses with the doubled payouts. But, this is not a proficient strategy for inexperienced traders. 

The point of this approach is to let traders do all of their research for each trade and then invest with an intention to win. Random predictions with doubled investments might lead you to lose all of your money. If you are a beginner and are learning the basic rules of investing, then do not start with the martingale approach for your money management aspects. 

#2 Percentage-Based Approach

The percentage-based approach is the best money management strategy for binary options traders. It is the best action that one can implement while starting out their trading journey. In fact, it is less risky than that of the martingale approach and will help you determine the amount you need to trade by referring to your broker account. 

The steps that you need to follow in order to carry out this approach are:

  1. You must first reflect or decide upon the capital percentage that you intend to risk. 
  2. Most of the beginners prefer to choose just 1 or 2% of their capital. But the experienced traders go up to reflecting 5% of their capital. 
  3. For this instance, consider $1 as the risking capital. You can then count on trading 1% of your capital for each trade. Suppose you have $1000 in your broker account. You can trade $10 for each trade by adopting this strategy. 
  4. In case you lose the trade and your money, then you will eventually be investing less than earlier, as 1% of reduced capital will be less. 
  5. But, you need to keep in mind that with this strategy, you might also have to keep on increasing your trade with every win. 

Hence, this approach gives a better chance to traders to make consistent profits. It is a better approach than that of the martingale. 

Strategy #3 Straddle strategy

The news or market signal strategy should be blended with this Straddle strategy for better outcomes. The implementation of the Straddle strategy should be made before any important news announcement about selected assets. It is because there might be a sudden peak after any possible announcement. But your prediction should always be based on the fact that the price will come down after a certain while. 

In the meanwhile, when the price starts to drop, you can then call your bet for the other option with an expectation of price rise. Hence, this strategy is more like swinging around the trend line. It assures that you will be earning some money, irrespective of whether the price goes up or down. Therefore, it is a consistent way of making profits. It doesn’t matter if the market is volatile; your earning potential won’t get hampered. The end-profit might be less, but it is better than consistent losses! 

You must strongly keep the fact in mind that pulling off this strategy demands progressive analytical skills and ideal expertise with the market. 

How to Trade Binary Options? Best Trading Guide

Strategy #4 Pinocchio strategy

The Pinocchio strategy is somehow similar to that of the Straddle strategy. Hence, it calls out the traders to bet against the current trend factors. To be precise, if the asset is set for an upward trend, then the trader must bet on the fall of its price graph. Similarly, if the price is going down, then the trader should bet on its rise. 

One needs to analyze the market movements of an asset in order to move ahead with this strategy. If you are not proficient enough to conduct a deep analysis of your selected asset’s price chart, you will eventually fail to adopt this strategy. As a result, it will do more damage than good! You need to learn to analyze the candlestick charts with the utmost expertise to ensure that the Pinocchio strategy is well-implemented.  

Choose your desired strategy to invest in binary options trading! You can blend your tactics and skills in order to leverage the potential of all of these strategies. You just need to give in your time and mind to analyze what is best for you! And with this, you are now completely aware of how to invest into binary options

Conclusion

This guide is a complete elaboration of how you can start your journey and how you can hold onto this industry without many losses. When there is some form of investment, there is some form of risk along with it at all times. So, it is important for beginners to understand the fact that risk analysis deserves equal attention as that of the profit analysis. 

Make sure you do not cut your livelihood expenses in order to invest in binary options. It is better for you to save a certain amount of money over time and use it specifically to trade with binary options. You are your own mentor! Hence, you can choose your own feasible time to enter the world of binary options trading. 

Despite the strategy you adopt, it is important for you to put up fundamental analysis at all times. Choosing the financial instrument is a big task, and you have the steps in this guide in order to help you with that. The financial instrument you pick should have a good payout percentage over the platform to help you attain good profits on successful trades. 

So, if you were holding yourself back from entering this trading world, then it is time to break the barriers and make an approach. Everything seems complex until you try it! And binary options trading is the easiest mode of trading and earning profits out of all the other available formats. This guide is your personal handbook to learn and recall every minute step or strategy associated with binary options trading. 

All the steps and guidance tips mentioned in this article are verified and suggested by professionals and experts. You can easily rely on them! 

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