3 Secrets Trading Binary Options

Trading binary options is a new form of investment strategy that is being used by many traders who wish to earn a significant amount of return on their investment. Unlike Foreign Exchange trading or stock trading, binary options do not really need in-depth knowledge and experience to get started with, but that does not mean that you trade them blindly. In fact, there are certain key factors, or secrets, that a trader must take into consideration before starting off with these derivatives.

Selection of a Broker

Never think of starting off with huge amount, because majority of traders who start off with trading – whether binary or forex – they tend to lose at their initial stages. Trading on demo accounts for a while makes a trader understand the platform, entry positions, its types, and numerous other aspects that he may not know before.

Therefore, look up on for the brokers that offer minimum limit for deposit, allow frequent withdrawal with minimal fees, and a familiar platform to trade on. Look for the reviews on different forums and discuss with experienced traders on those forums who would guide you regarding all this. Make sure the broker you are choosing has an efficient customer service where they can answer your queries not only on email, but also on chat and phone.

Selection of the Asset

Knowing your risk appetite and overall boundaries in terms of profit and loss is quite crucial for trading in a disciplined way. Once you have chosen a broker, next thing you should do is to research and choose the asset that you would be trading such as, stocks, commodities, currency pairs, or even stock indices.

One critical factor to consider while choosing your asset is the ‘fundamentals’ or should we say the economic indicators or current news, which shape the movement of the asset accordingly. If you are interested in trading stocks, then acquiring that particular organization’s information would be the key that may include its earnings, losses, management structure, new product launch, etc.

Binary Options for Dummies

Below is a short glossary of terms used in the binary options trading world.

Asset: A financial asset is a security or contract that can generally be transferred or traded (for example on a financial market), and which is likely to produce revenue and/or a capital gain for its holder, in compensation for certain risk-taking. Binary options assets are not restricted to one market. Assets can be held in the form of currency, such as the trading of Euros for Dollars, stock option assets, such as the price of Google stocks, commodity assets such as oil or gold, and market index assets, such as FTSE100 or NASDAQ.

Call Option: By selecting this option, you estimate that the asset price will be higher than its rate when the transaction is made. If your estimation is accurate, you earn benefits instantly.

Put Option: If you select this option, you are estimating that the asset price will be beneath its rate when the transaction is made. If your estimation is accurate, you earn benefits instantly.

PIP: Or “price interest point” – PIP is the unit of measurement used on the currency market to evaluate the spread between two currencies. When the Euro is traded with the US Dollar at 1.2650 and is sold back at 1.2654, the spread of 4 ten-thousandths of this currency is translated in market terms by 4 pips. With binary options, one pip is enough to make the difference and allow you to earn between 70 and 85% profit, contrary to the Forex platforms, where a minimum difference of 4 to 9 pips is required in order to begin earning profits, because 4 or 9 pips represent the brokers’ commissions.

In the money: You are “in the money” when the price of your asset is higher than its price when the transaction is made in the case if you have selected the Call option, and vice-versa if you’ve taken a Put option.

For example: You select a Call option on EUR/USD asset and this asset’s price at the time of your transaction is 1.2345. You are and remain “In the money” from the moment the asset price is higher than 1.2345, such as 1,2346. If, when your contract matures or expires, the rate is higher than 1.2345, you are therefore “In the money” and earn benefits.

Out the money: You are “out the money” when the price of your asset is higher than its price when the transaction is made if you have chosen the Put option, and vice-versa if you’ve taken a Put option.

For example: You select a Call option on the EUR/USD and this asset’s price at the time of your transaction is 1.2345 You are and remain “out the money” from the moment the asset price is beneath 1.2345, such as 1,2344. If, when your contract matures or expires, the rate is beneath 1.2345 are therefore “out the money” and lose the amount of your investment.

Extend: This option allows you to prolong your binary options contract’s expiration time, in the event that you know that the asset will inevitably take the direction you have chosen, but that this might take a little longer than the time you are allowed with your binary options contract. You thus guarantee a profit on your investment.

Close: This option allows you two possibilities:

If you realize that the direction you have taken is the wrong one, you can use this option in order to limit the losses on your investment. Let’s say that you have closed a position for an amount of 100 Euros. Instead of waiting for your binary options contract to expire and lose the entire 100 Euros, you chose to close the binary options contract before its expiration and lose only 20% of your investment.

In the event that you realize the you have chosen the right direction, you are “In the money.” You can use this option in order to cash in on the profits from your investment. Let’s say that you have closed a position for an amount of 100 Euros Instead of waiting for your binary options contract to expire and take the risk of being “out the money,” you chose to close you binary options contract and cash in directly on a profit not between 70 and 85%, but a little less, such as 30%.

Binary Options Tips and Tactics

Are binary options accessible to everyone?

Yes, binary options are accessible to all. This is the main secret of their success. However, it is important to note that even if binary options offer you the possibility of working with a minimal investment, we recommend starting with 200 Euros.

Why? Simply and more particularly for beginners, binary options are financial trading. To increase your chances for success and your potential for making the right decisions, a certain number of transactions should be conducted in order to refine your trading.

Furthermore, if you start with a capital of 100 Euros, given that the minimum required to open a binary options account is 10 Euros, this leaves you with a maximum 10 transactions, which I believe you will agree is not much, in case you make an error in judgment.

Therefore, first and foremost, do not invest less than 200 Euros if you can afford it. Otherwise, be prudent during your first transactions. Avoid believing in absurd techniques that guarantee you a profit by following the trader’s intuitions.

Choosing the binary option platform:

Choosing a binary option broker is the second most significant factor. Depending on your choice, you will have different possibilities:

24Option - Earn up to 89% on each trade. Start Now!
BancDeBinary - Make up max. 500% easily. Start Now!
BancDeSwiss - Swiss Precision in trading. Start Now!
Cedar - Up to 81% return. Start Now!
Cititrader - Make up to 75% in Binary Options in less than15 minutes! Start Now!
EasyXP - You can become a pro trader. Start Now!
Ioption - Earn extra paycheck. Start Now!
Traderxp - Upgrade your income. Start Now!

Other than rapid payments, the variety of assets offered is essential because it is important to be able to trade on binary options assets you know and on which you can easily obtain news that will allow you to define the market’s direction.

Binary Options Secrets & Tips

No Experience with Binary Options ?

Our articles focus on a range of binary options related subjects including simple but important trading tips that we have picked up during our own years of trading binary options online. We also like to focus on strategies that are easy to learn and implemenent even for someone with absolutely no trading experience.

Discover the Best Binary Options Brokers

When you read through our website you will note that in a number of articles we stress the importance of trading binary options at the best binary options broker. There are a number of reasons why this is so vital but one of the foremost is that you want to be trading on a platform that is state of the art, secure and that offers instant executions of trades.

Since you only need your binary option to be in the money by 1 pip in order to win you want to be 100% that the rates and trades are both instant and in realtime. Our Binary Options Brokers section list all the brokers where we trade ourselves, these brokers in our opinion offer the best trading platform and experience in the industry.

Get Free Binary Options Trading Tips

We provide a extensive selection of articles related to Binary Options Trading Tips. These are all tips that we have found to be very useful to consider when trading binary options. Additionally following us on social media is a great way to be informed of upcoming economic events and what effects they can have on the markets, essential information that we provide free of charge to help you make more profitable trades.

Should you have a question about Binary Options or a suggestions for Binary Options Secrets.com please contacts us through these channels and/or using the contact form on the website.

Binary Options Secrets

As stated in the introduction at the top of this page Binary Options Secrets.com has been around since 2011 when we decided there was a real need for a quality binary options website with simple to understand yet factual information about binary options. Back then there were many terrible websites pretending to inform you about binary options and since this time unfortunately the quality of binary options websites has continued to disappoint.

Each day we find more sites that offer little or no real content and very often the content that they do offer has been copied from one of the few quality binary options resources such this one. When it comes to binary options brokers as well the market continues to offer little new and the only broker that are worth trading at are the ones that have firmly established themselves as leaders in the industry. Needless to say we only list these binary options brokers and no others.

What is Binary Options

You’re probably wondering what binary options are. As far as you and I are concerned, they’re a highly effective way to make money quickly as long as you know the secrets.

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usuallyEuropean-style options.

When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 5–30 minutes in the future, an hour ahead or at the close of the trading day. Binary options once bought cannot be resold before the expiry time is reached.

For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.

In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function. Due to the difficulty in hedging binary options that are ATM near expiry, they are much less traded than vanilla options, but can be approximated with vertical spreads.

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