If you are new to binary options please read on for a quick-start guide to binary options trading (I highly recommend joining our free course).
For more advanced traders I recommend checking our binary strategies.
Step 1Join our free binary options course
Who is this course for?
This course is for beginner stock traders, professional stock traders, traditional options traders and Forex Traders.
Up Trend (Bullish)
Down Trend (Bearish)
Neutral Trend (Sideways)
- The "candle sticks" in the graphs represent a “time” period. However you can change the time period to 1 min, 5 min, 1 hour, 4 hours and so on, depending on what expiry you choose.
Step 2Investment Amount
The goal is to win more trades than you lose. Accept that no system is perfect and its normal to lose some positions you open.
Here is my strict rules of investment size on each trade – each position should not represent more than 5% of your account balance.
Step 3register a broker account
|Banc De Binary||$250||Join Review|
I personally have over 5 registered accounts which covers all the available assets especially if one asset is not available you can access it via another broker.
Having multiple binary option brokers is a must for serious traders.
Step 4Best times to trade binary options
|Sydney||8:00 am to 4:00 pm AEST|
|Tokyo||10:00 am to 6:00 pm AEST|
|London||7:00 pm to 3:00 am AEST|
|New York||12:00 am to 8:00 am AEST|
|Sydney and Tokyo||Between 10:00 am and 5:00 pm AEST|
|London and Tokyo||Between 7:00 pm and 8:00 pm AEST|
|New York and London||Between 12:00 am and 4:00 am AEST|
|GBP/USD||Between 0:00 pm AEST and 3:00 am AEST|
|EUR/USD||Between 0:00 pm AEST and 3:00 am AEST|
|AUD/JPY||Between 11:00 am AEST and 6:00 pm AEST|
About Binary Options Trading
Binary options, also referred to as "digital" or "all-or-nothing" options, provide the investor with either a fixed payout if the criteria of the option are met or nothing at all. The options are therefore binary in nature because there are only two possible outcomes.
Binary options are defined in terms of a strike price (payout threshold), a maturity date, and an underlying reference unit, commodity, instrument or security price (the underlying). Binaries are sold in exchange for an up front premium payment and both calls and puts are available.
Types of binary options
The two main types are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays a fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security.
In a one-touch option, the contract ends as soon as the asset prices reaches a predetermined level. In this case, an investor has to decide whether or not the asset price will ever reach that level during the duration of the contract, not whether or not it will actually finish at that level.
A no-touch binary option is the inverse of the one-touch binary option. Rather than the contract ending if the asset price reaches a certain level, the contract is paid out if it expires without that certain level ever having been reached.
In the double-one-touch and double-no-touch binary options, instead of there being just one predetermined level, there are two. In the case of a double-one-touch binary option the asset price must touch on both of those values for the contract to pay out. In the case of a double-no-touch binary option, the asset price must avoid touching either of those levels to pay out.
Where Binary Options are used
Binaries are widely used where the underlying instrument is a commodity, currency, rate, event, or index. The Option buyer can achieve a significant payout based on a small move in a financial instrument as opposed to standard options where the market usually has to shift markedly for there to be a payout.
A binary option is usually priced at the current market and a potential return based on the short-term movement of the financial markets. Options traders have to assess the strike price, the underlying price of the financial instrument and the implied volatility of the underlying financial instrument and decide if there is value in the call or put that they are intending to purchase.
Short-term binary options eliminate most of the issues related to standard options with the only basis for a successful trade being whether the option is above or below your price after a specific expiry time.