Binary Options Strategies

When working with binary options, it is imperative that you plan your course carefully. Hard-earned money is usually difficult to risk. Unless you can afford it, it is important to have money-smarts. Like many new binary options traders, you need to have correct money management if you want to come out successful. Many who reap the great benefits of binary options trading have employed systems or strategies that give the payout that they are happy with.

If you are relatively new to binary options, then chances are you do not know enough about financials or options trading to get you started trading binary options. Usually, what new traders do is purchase contracts without any knowledge or basis for the option. No market trends, charting reference, or business news analysis was performed to back the trade. As traders get the hang of binary options trading through the interface of their choice, they usually employ more complex strategies using tools that they learn on the way. Binary options is a learning process.

Call/Put Binary Options Strategy

Call/Put are a common types of binary options that beginners use. This binary options type is also called High/Low or Rise/Low and is offered by all binary options brokers. Here, the trader purchases a “Call” option if he expects the price to go beyond the current price, which is also known as striking price for some brokers, or the trader purchases a “Put” option if he expects the price to fall below the current or striking price. The Call/Put is very easy to strategize. New traders are usually introduced to this type of binary options trading just because of the simplicity of some of the strategies involved.

If no market analysis is done, how can you ensure success? Well, the simple answer is you can’t. Your trades may succeed, but there is greater risk involved just because the decision to purchase a binary option is not an informed one. However, it does pay if you at least know how to use the tools in the platform of your choice. You can develop your own strategies while you work on their demo accounts.

If you want to try Call/Put, you can use this simple starter’s strategy. This strategy requires little to no knowledge in financial trading. All you need to do is open a free account where you can practice the strategy that follows. However, take note that this strategy, while it may be easy to use, is also very risky. Again, knowing how to trade in the market is very important. But this strategy has helped many experienced binary options traders when they first started trading.

By simply looking at an asset’s chart and seeing the upper and lower limits of the chart, you can click on “Purchase” or “Buy” a High or Low option depending on the position of the striking price relative to the graph. If the point or strike is a the bottom-most part of the graph, and their is no way to go but up, you can select High for the next 5 minutes. Conversely, if the strike point is at the topmost part, you can select Low for the next 5 minutes.

Many have done this strategy with some of the top binary options brokers who offer a free account. All you need to do is to sign up and you are able to practice this strategy. See if it pays out for you, then you can try it live with one of the top binary options brokers listed on our site. However, some binary options brokers require you to make a deposit. Conveniently cross-reference these kinds of information about binary options brokers from our list.

Binary Options Requirements

You would not want to have great risks when you trade binary options. This is the reason why you should know to trade in markets to understand what’s going on. Many criticize binary options to be a scam or as a form of gambling. But it is usually those who fail to use the right strategy and ends up losing who say that binary options is a gamble. Those who make sound decisions based on tested systems are those who usually succeed.

Here are some preliminaries that will contribute much to your strategy:

Filter Your Niche

In any business, the first step to becoming a leader in your field is finding the right field in the market. Financial, Mining, Automotive, Real Estate or I.T., any field of your choice should be the one you are already good at, or at least have interest in. This is also called a niche. Not even the big investors became trading geniuses overnight. Practice makes perfect. As you mold this niche you can concentrate on a specific brand or asset that you must monitor. This allows you to lower your risks by upping your information.

Regardless of your level of financial knowledge, your niche is important. Advanced investors all agree that even inexperienced investors can easily be successful in the beginning stages of trading binary options if they are able to find their niche. It will be easier and more rewarding in the long run.

Know General Trading Concepts

When we first defined binary options, we mentioned that this type of trading is a derivative of options trading, where underlying assets such as currencies, stocks and indices directly affect your trade. Trends in Forex trading, and stock and index markets have aided many traders and brokers in helping them make the right decisions and earn from trades. There are thousands of signals to be considered. Some of them include world markets, economic affairs, and societal trends. But all of these are factored in to tested investment formulas that have given rise to financial greats.

But if binary options is a direct derivative of the market, and factual earnings have been made successfully in the market, shouldn’t traders be able to succeed in binary options, too? They can. This is the importance of having enough knowledge with general trading. After learning and expanding your knowledge about trading, you may even venture from binary options to other options trading.

Choose Your Platform

Being comfortable with your work area is human nature. Thanks to technology, many traders are able to perform their tasks from anywhere in the world. There are many binary options brokers who offer their services. You should choose one that you are most comfortable with. One of the most vital elements in trading binary options successfully is finding the right binary options platform that will let you work efficiently.

You can begin your search with us. Our list of binary options brokers offer a variety of platforms for you to choose from. Some of these platforms can even provide you with insider tips on the financial markets and tips on how to trade binary options. More importantly, platform should be able to provide you with a good selection of assets to trade. There should also be a good choice of expiry times to allow either short or long term investments.

Almost all of the best binary options brokers have an online platform. The platform should require no downloads and provide you with a simple and user-friendly experience. Outstanding customer service is also important in your choice of platform. Questions regarding your money should be readily addressed.

Choose Your Asset

Selecting the best asset allows you to make more informed decisions. There are a number of assets to choose from: currency, stocks, commodities and/or indices. Trade binary options with different assets also entail different methods. The most effective one will help you decide which asset you would like to invest in. Comfort levels are best addressed in choosing your asset. Choose one that makes you feel most comfortable with your prediction.

The secret to choosing an asset is starting with the one you are most familiar with. The more you know about an asset, the better your prediction will be. For example, learning from world news reports that the price of gas is going down and having some advice from gas station owners can let you estimate that the commodity oil will drop. You then purchase a “Put” Option for Oil during your trade.

Choose Your Expiration

Many experienced investors consider their selection of expiry time carefully. Expiration is another key element in being able to create the course of your binary options strategy. Knowing the right expiration for the right circumstances is the trademark of trading binary options skillfully. Expiry times of different binary options brokers differ, you should choose one that fits your style and need.

Expiry times includes 60-seconds to 5 minutes, half hour, 1 hour, 24 hours, 7 days, or even end of the month. Some even let you choose your own expiry time. Depending on whether you are seeking a short term or long term gain, you should be able to decide what works best for you. If you feel you need more time for the asset to reach the underlying price, then you may need a longer period. But if you are hoping to gain on a short term trade, 5 minutes or end-of-hour may suit your trading strategy better. Those who want the rush can try the 60-second trade.

When binary option strategies are used simultaneously, they often yield the best results. More often, buying or selling of one or more mixed options can differ in one or more of many of the options’ variables. Gaining exposure with binary options trading give you the specific opportunity to ride with the right knowledge of options trading and apply them to the binary options derivative. It is you job to learn from your own knowledge of a number of things including money management, niche assessment, and sometimes, just plain instinct.