Explain binary options usa

A Guide to Trading Binary Options in the U. S. Binary options are based on a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal amongst traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages and disadvantages of these products, and which companies are legally authorized to provide binary options to U. S. residents. Binary options traded outside the U. S. are typically structured differently than binaries available on U. S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these exotic options. (For related reading, see What You Need To Know About Binary Options Outside The U. S. ) U. S. Binary Options Explained. Binary options provide a way to trade markets with capped risk and capped profit potential, based on a 'yes' or 'no' proposition. For example: Will the price of gold be above $1,250 at 1:30 p. m. today? If you believe it will be, you buy the binary option. If think gold will be below $1,250 at 1:30 p. m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p. m. If you buy the binary option right then you will pay $44.50, if you decide to sell right then you'll sell at $42.50. Let's assume you decide to buy at $44.50. If at 1:30 p. m. the the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100 - $44.50 = $55.50 (less fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p. m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money. The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss (compared to letting it expire out of the money). Eventually every option settles at $100 or $0 $100 if the binary option proposition is true, and $0 if it turns out to be false. Thus each binary option has a total value potential of $100, and it is a zero-sum game – what you make someone else loses, and what you lose someone else makes. Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, therefore the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100 ($100 - $44.50 = $55.50). A trader may purchase multiple contracts, if desired. Another example: NASDAQ US Tech 100 index > $3,784 (11 a. m.). The current bid and offer is $74.00 and $80.00, respectively.

If you think the index will be above $3,784 at 11 a. m., you buy the binary option at $80 (or place a bid at a lower price and hope someone sells to you at that price). If you the think the index will be below $3,784 at that time, you sell at $74.00 (or place an offer above that price and hope someone buys it from you). You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a. m. And if you really like the trade, you can sell (or buy) multiple contracts. Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket. Nadex Trade Ticket with Max Profit and Max Loss (Figure 1) The maximum profit on this ticket is $370 ($74 x 5 = $370), and the maximum loss is $130 ($100 - $74 = $26 x 5 = $130) based on five contracts and a sell price of $74.00. (For more on this topic, see Introduction To Binary Options. ) How the Bid and Ask are Determined. The bid and ask are determined by traders themselves as they assess the probability of the proposition being true or not. In simple terms, if the bid and ask on a binary option are at 85 and 89, respectively, then traders are assuming a very high probability that the outcome of the binary option will be yes, and option will expire worth $100. If the bid and ask are near 50, traders are unsure if the binary will expire at $0 or $100 – it's even odds. If the bid and ask are at 10 and 15, respectively, that indicates traders think there is a high likelihood the option outcome will be no, and expire worth $0. The buyers in this area are willing take the small risk for a big gain. While those selling are willing to take a small – but very likely – profit for a large risk (relative to their gain). Where to Trade Binary Options.

Binary options trade on the Nadex exchange, the first legal U. S. exchange focused on binary options. Nadex provides its own browser-based binary options trading platform which traders can access via demo account or live account. The trading platform provides real-time charts along with direct market access to current binary option prices. Binary options are also available through the Chicago Board Options Exchange (CBOE). Anyone with an options-approved brokerage account can trade CBOE binary options through their traditional trading account. Not all brokers provide binary options trading, however. Each Nadex contract traded costs $0.90 to enter and $0.90 to exit. The fee is capped at $9, so purchasing 15 lots will still only cost $9 to enter and $9 to exit. If you hold your trade until settlement and finish in the money, the fee to exit is assessed to you at expiry. If you hold the trade until settlement, but finish out of the money, no trade fee to exit is assessed. CBOE binary options are traded through various option brokers each charge their own commission fee.

Pick Your Binary Market. Multiple asset classes are tradable via binary option. Nadex offers trading in major indices such as the Dow 30 (Wall Street 30), the S&P 500 (US 500), Nasdaq 100 (US TECH 100) and Russell 2000 (US Smallcap 2000). Global indices for the United Kingdom (FTSE 100), Germany (Germany 30) and Japan (Japan 225) are also available. Trades can be placed on forex pairs: EURUSD, GBPUSD, USDJPY, EURJPY, AUDUSD, USDCAD, GBPJPY, USDCHF, EURGBP, as well as AUDJPY. Nadex offers commodity binary options related to the price of crude oil, natural gas, gold, silver, copper, corn and soybeans. Trading news events is also possible with event binary options. Buy or sell options based on whether the Federal Reserve will increase or decrease rates, or whether jobless claims and nonfarm payrolls will come in above or below consensus estimates. (For more on this topic, see Exotic Options: A Getaway From Ordinary Trading. ) The CBOE offers two binary options for trade. An S&P 500 Index option (BSZ) based on the the S&P 500 Index, and a Volatility Index option (BVZ) based on the CBOE Volatility Index (VIX). Pick Your Time Frame. A trader may choose from Nadex binary options (in the above asset classes) that expire hourly, daily or weekly.

Hourly options provide opportunity for day traders, even in quiet market conditions, to attain an established return if they are correct in choosing the direction of the market over that time frame. Daily options expire at the end of the trading day, and are useful for day traders or those looking to hedge other stock, forex or commodity holdings against that day's movements. Weekly options expire at the end of trading week, and are therefore traded by swing traders throughout the week, and also by day traders as the options' expiry approaches on Friday afternoon. Event-based contracts expire after the official news release associated with the event, and therefore all types of traders take positions well in advance of - and right up to - the expiry. Advantages and Disadvantages. Unlike the actual stock or forex markets where price gaps or slippage can occur, the risk on binary options is capped. It's not possible to lose more than the cost of the trade. Better-than-average returns are also possible in very quiet markets. If a stock index or forex pair is barely moving, it's hard to profit, but with a binary option the payout is known. If you buy a binary option at $20, it will either settle at $100 or $0, making you $80 on your $20 investment or losing you $20. This is a 4:1 reward to risk ratio, an opportunity which is unlikely to be found in the actual market underlying the binary option. The flip side of this is that your gain is always capped. No matter how much the stock or forex pair moves in your favor, the most a binary option option can be worth is $100.

Purchasing multiple options contracts is one way to potentially profit more from an expected price move. Since binary options are worth a maximum of $100, that makes them accessible to traders even with limited trading capital, as traditional stock day trading limits do not apply. Trading can begin with a $100 deposit at Nadex. Binary options are a derivative based on an underlying asset, which you do not own. Therefore, you're not entitled to voting rights or dividends that you'd be entitled to if you owned an actual stock. What You Need To Know About Binary Options Outside the U. S. Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often-misunderstood instruments. Binary options are different from traditional options. If traded, one will find these options have different payouts, fees and risks, not to mention an entirely different liquidity structure and investment process. ( For related reading, see: A Guide To Trading Binary Options In The U. S. ) Binary options traded outside the U. S. are also typically structured differently than binaries available on U. S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these exotic options. In June 2013, the U. S. Securities and Exchange Commission warned investors about the potential risks of investing in binary options and charged a Cyprus-based company with selling them illegally to U. S. investors. What Are Binary Options? Binary options are classed as exotic options, yet binaries are extremely simple to use and understand functionally. The most common binary option is a "high-low" option.

Providing access to stocks, indices, commodities and foreign exchange, a high-low binary option is also called a fixed-return option. This is because the option has an expiry datetime and also what is called a strike price. If a trader wagers correctly on the market's direction and the price at the time of expiry is on the correct side of the strike price, the trader is paid a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the market's direction loses herhis investment. If a trader believes the market is rising, shehe would purchase a call. If the trader believes the market is falling, shehe would buy a put. For a call to make money, the price must be above the strike price at the expiry time. For a put to make money, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed at the trade's outset. For most high-low binary options outside the U. S., the strike price is the current price or rate of the underlying financial product, such as the S&P 500 index, EURUSD currency pair or a particular stock.

Therefore, the trader is wagering whether the future price at expiry will be higher or lower than the current price. (For more, see What is the history of binary options? ) Foreign Versus U. S. Binary Options. Binary options outside the U. S. typically have a fixed payout and risk, and are offered by individual brokers, not on an exchange. These brokers make their money from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades. While there are exceptions, these binary options are meant to be held until expiry in an "all or nothing" payout structure. Most foreign binary options brokers are not legally allowed to solicit U. S. residents for trading purposes, unless that broker is registered with a U. S. regulatory body such as the SEC or Commodities Futures Trading Commission. Starting in 2008, some options exchanges such as the Chicago Board Options Exchange (CBOE) began listing binary options for U. S. residents. The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Nadex is also a binary options exchange in the U. S., subject to oversight by the CFTC. These options can be traded at any time at a rate based on market forces. The rate fluctuates between one and 100 based on the probability of an option finishing in or out of the money. At all times there is full transparency, so a trader can exit with the profit or loss they see on their screen in each moment. They can also enter at any time as the rate fluctuates, thus being able to make trades based on varying risk-to-reward scenarios.

The maximum gain and loss is still known if the trader decides to hold until expiry. Since these options trade through an exchange, each trade requires a willing buyer and seller. The exchanges make money from an exchange fee – to match buyers and sellers – and not from a binary options trade loser. High-Low Binary Option Example. Assume your analysis indicates that the S&P 500 is going to rally for the rest of the afternoon, although you're not sure by how much. You decide to buy a (binary) call option on the S&P 500 index. Suppose the index is currently at 1,800, so by buying a call option you're wagering the price at expiry will be above 1,800. Since binary options are available on all sorts of time frames – from minutes to months away – you choose an expiry time (or date) that aligns with your analysis. You choose an option with an 1,800 strike price that expires 30 minutes from now. The option pays you 70% if the S&P 500 is above 1,800 at expiry (30 minutes from now) if the S&P 500 is below 1,800 in 30 minutes, you'll lose your investment.

You can invest almost any amount, although this will vary from broker to broker. Often there is a minimum such as $10 and a maximum such as $10,000 (check with the broker for specific investment amounts). Continuing with the example, you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiry determines whether you make or lose money. The price at expiry may be the last quoted price, or the (bid+ask)2. Each broker specifies their own expiry price rules. In this case, assume the last quote on the S&P 500 before expiry was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. Had the price finished below 1,800, you would lose your $100 investment. If the price had expired exactly on the strike price, it is common for the trader to receive herhis money back with no profit or loss, although each broker may have different rules as it is an over-the-counter (OTC) market. The broker transfers profits and losses into and out of the trader's account automatically. Other Types of Binary Options. The example above is for a typical high-low binary option – the most common type of binary option – outside the U. S. International brokers will typically offer several other types of binaries as well. These include "one touch" binary options, where the price only needs to touch a specified target level once before expiry for the trader to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before expiry.

A "range" binary option allows traders to select a price range the asset will trade within until expiry. If the price stays within the range selected, a payout is received. If the price moves out of the specified range, then the investment is lost. As competition in the binary options space ramps up, brokers are offering more and more binary option products. While the structure of the product may change, risk and reward is always known at the trade's outset. Binary option innovation has led to options that offer 50% to 500% fixed payouts. This allows traders to potentially make more on a trade than they lose - a better reward:risk ratio – though if an option is offering a 500% payout, it is likely structured in such a way that the probability of winning that payout is quite low. Some foreign brokers allow traders to exit trades before the binary option expires, but most do not. Exiting a trade before expiry typically results in a lower payout (specified by broker) or small loss, but the trader won't lose his or her entire investment. The Upside and Downside. There is an upside to these trading instruments, but it requires some perspective. A major advantage is that the risk and reward are known. It does not matter how much the market moves in favor or against the trader. There are only two outcomes: win a fixed amount or lose a fixed amount.

Also, there are generally no fees, such as commissions, with these trading instruments (brokers may vary). The options are simple to use, and there is only one decision to make: is the underlying asset going up or down? There are also no liquidity concerns, because the trader never actually owns the underlying asset, and therefore brokers can offer innumerable strike prices and expiration timesdates, which is attractive to a trader. A final benefit is that a trader can access multiple asset classes in global markets generally anytime a market is open somewhere in the world. The major drawback of high-low binary options is that the reward is always less than the risk. This means a trader must be right a high percentage of the time to cover losses. While payout and risk will fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades will cost the trader more than shehe can make on winning trades. Other types of binary options (not high-low) may provide payouts where the reward is potentially greater than the risk. Top 10 Binary Options Brokers. If you are looking for the best binary options brokers in the business, you’ve certainly landed on the right page.

Here you will find the most reliable brokers that make it to the top of the list based on a variety of factors. The industry has grown significantly in the last 8 years with over 400 trading platforms and brokers to choose from. This means that traders can take full advantage of the competition and avail of higher returns and better bonuses. In order to maximize your potential to succeed in the binary options market you need to choose a credible broker. You need a broker who will be in a position to give you sound advice since they are the ones who know which direction options take during particular periods of the day or week. Binary Options Broker Reviews. Getting started with brokers and platforms. There is much more to binary options trading that merely predicting the direction of an underlying asset’s value over a period of time. It is important to make sure to pick a qualified and experienced broker familiar with the ins and outs of this type of investment. His major role is to help determine the best binary option to invest in. So, let’s look at a few ways to choose one who will work in your best interests. It all begins with a bit of comparison shopping.

You need to compare reviews of different brokers and their platforms so that you are aware what each one has to offer. You will find a list of reviews on trading forums although we do all the hard work so that you can start trading right away with one of the binary options broker listed here on our site. Always work with a licensed broker although you ought to be aware that the laws of some countries do not mandate licensing. It is really easy to get started. Simply choose a broker from our list. Register for a broker account. (Our experts recommend that to make the most of trading it is important to open accounts with a few different brokers. This helps gain access to a variety of assets.) Once you open an account you can start trading in a just a few steps. Pick an asset such as stocks, currencies, commodities or indices to trade. Decide on the amount to invest on a trade Select CallUp if you predict the asset price will rise or Put(Down) if you predict the asset price will fall over the specified period Place the trade and collect your winnings if you predict correctly. How To Compare And Choose The Best Binary Options Broker.

Our experts recommend that you must never make the mistake of signing up with a binary options broker before weighing the pros and cons. Offers demo account : It would be prudent to register for a demo account to get an ideal of how intuitive and friendly the broker’s site really is. You can do this with several sites and then choose on that suits your style. Returns : Look for sites that guarantee payouts between 70% and 90% on wins and 10% and 15% on losses. This is standard with most brokers so don’t fall prey to anyone that offers less. Asset variety : Not all brokers trade in a variety of assets. Therefore, if you wish to widen your investment base look carefully at the list of assets offered. Many reliable brokers offer a variety of assets which includes indices, stocks, commodities, forex, and more. It would be prudent to select one that offers the chance to invest in all of the available market assets so that you can earn the maximum profits. The more the options, the better the opportunity you have to place winning trades. Customer support : It is always a pleasure to deal with a broker that provides excellent customer service. Pay special attention to this aspect when you compare brokers. Secure trading platform : All of your transactions will be performed online, which calls for the highest standard of security.

Choose a site that offers a secure payment system to prevent any identify theft. Flexibility : Choose a broker that is flexible in terms of asset offerings and variety of contract expiry dates from 60-seconds to a day, week, a month or more. You may want to explore the possibility of working with a broker who offers early exit options for greater trading flexibility. Information driven : If you are a novice you may want a broker’s platform with plenty of information on the market. Deposit bonus : While this should not influence your decision when it comes to choosing a credible binary options broker, look for a broker who offers a decent welcome bonus of around 25% in addition to reload bonuses as well. This is a great way to boost your bankroll. Deposit and withdrawal options : Most brokers support a variety of banking methods that include creditdebit cards, eWallets, prepaid cards, wire transfers, and more. Make sure to pick a suitable option so that you can deposit funds in your binary options account and withdraw winnings comfortably without any hidden fee. Trading tools : Whether you are a novice or an experienced trader some trading platforms feature a variety of tools to make trading more simplified and also allow you to make well informed trade decisions. This includes trading signals such as Bollinger Bands, oscillators, and oscillators, to name a few. Deposit options : If you are new to trading it is always wise to select a binary options broker that allows new members to begin trading with deposits as low as $10 and minimum positions as low as $1. Language support : If you want to trade in a language other than English you ought to choose a platform that offers multi-language support. Choose a proactive broker : There are many brokers to provide you with sound advice and assistance in making the most of your investment. Types of Assets Available in Binary Options Trading. Most binary options brokers offer an array of trading options.

The most common include forex pairs such as the USDEUR, USDGBP, and GBPEUR, to name a few. Other trading options include commodities, stocks, and indices in the international markets including USA, Europe, and Asia. All trades can be conducted from one platform. Length of Average Trades. The period of binary options contracts ranges from as little as 60-seconds to 5 minutes, a week, month, or more. Your choice will depend on your trading style and budget. If you aren’t the patient kind then you may even opt for 60-second trade although our experts encourage this type of trading only for more experienced traders. Once you authorize a trade the period of the contract cannot be changed. Common Types of Binary Options. Binary options open traders to a whole new world of trading types. HighLow or PutCall binary option. In this type of trading you predict whether the price of the underlying assets will rise or fall lower than the predetermined value. The payout is determined in advance and allows for greater transparency. One TouchNo Touch binary option.

A target price is set at the start of the trade. If your underlying asset reaches the price at the time of expiry of the contract, the broker will pay you the profit. No Touch is just the reverse of One Touch where you predict that the price of the underlying asset will not reach the determined level. Boundary Binary Option. In this type of trade you need to determine if the price of the underlying assets will stay within range or fall outside the range. The broker will issue a variety of prices in this type of trade while you define two levels of the asset price. Binary Options Broker FAQ. Now that you are aware of the broker’s role in binary trading it is time to discuss a few common queries that traders have when it comes to binary options brokers. All the brokers listed on our site are licensed and regulated. It is important to be aware of the regulatory authorities based on the relevant jurisdiction and country you reside in. Brokers in the USA : Brokers in the country are regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Brokers in the UK : Traders in the United Kingdom can chose from brokers regulated by the Financial Conduct Authority () and Cyprus Securities and Exchange Commission (). They are the two most reputed regulatory authorities in the country.

Brokers in Canada : The Investment Industry Regulatory Organisation of Canada (IIROC) regulates the Canadian trading markets although online trading does not fall within its purview. Brokers in Europe : Like UK licensed brokers, the Cyprus Securities and Exchange Commission () is the licensing and regulatory authority in Europe. While you can trade on almost every asset with binary options, it is important to understand that some brokers focus on specific assets while some may limit the number of options such as currency pairs or trading types. Forex is the most commonly traded in the binary options market. It is a good start for new investors looking to understand the currency market, which is the most volatile and suits binary options trading where expiry times are as short as 60 seconds. Commonly traded currency pairs include USDEUR, USDGBP, GBPEUR, and USDJPY, to name a few. Some brokers offer a wide range of commodities that include oil, gold, and silver. These are among the low risk trades that are most suited to those new to binary options trading. You can add commodities to diversify your portfolio and overall risk as well. Most brokers offer an extensive range of stocks which you will find at regular stock exchanges. From Apple to Coca Cola, HP, and Tesla, you will find an array of stocks to trade with binary options brokers. Indices such as the Dow Jones, S&P 500 and Nasdaq, are among the most traded indices in the binary options market.

They allow for greater diversification of risk and offer reasonable returns. It is important to choose a broker that offers multiple pairs of currency combinations since the Forex market is most volatile. In addition, choose a broker that offers the option to switch to commodities or indices when currency pairs become too unstable. The fee on transactions is usually not more than 10% to 15%, and can be a transaction based fee or a percentage on losses. In terms of payouts, make sure to check for brokers that offer returns of at least 65% to 95% and more based on the underlying asset and its risk quotient. In addition, the broker must offer a rebate of at least 10% on losing or ‘out-of - the-money’ trades. Being well versed with binary options is important and the more the learning tools a broker offers, the better. This goes well beyond how to trade binary options. You will find a wealth of information on binary option strategies, binary signals, Bollinger bands, trading charts, and much more. Don’t forget to check out all the information on binary signals and strategies that work right here on our site. One of the first features that makes a broker stand out from the rest is their trading platform. The best platforms are those that are easy to navigate, user-friendly, and allow for easy trading. It is important make sure the platform has marginal downtown as well as minimum time between placing and implementing a trade. If you like to trade on the go then choose a broker with a mobile trading platform.

Learn To Maximize Profits With Binary Options Explained. Welcome to Binary Options Explained, your one stop source for everything you need to know about an innovative way to trade the markets. We believe that information is power and if you are looking for the power to trade binary options smartly, you’ve certainly landed at the right place. Our site is loaded with all the information you need to trade binary options with simple, down to earth explanations minus any high tech jargon. This is where you will not only learn the fundamentals of binary options trading but find credible brokers, get access to loads of tips and free strategies, and lots more. Binary Options Broker Reviews. Binary Options Trading – A safe and easy trading option. It is important to understand what binary options is all about and how it works before you begin trading. Many people shy away from this type of investment because they are misinformed or lack knowledge about it. However, they could be missing out on some profitable trades. So let’s begin with a brief on what is binary options trading. Have a look at How to Trade Binary Options section to learn how to trade options.

It is an investment vehicle that is the easiest to learn and understand. It’s that simple. The goal is to determine whether the value of a particular asset such as stocks, gold, silver, currencies, commodities and more will rise or fall within a specific period, which could be 60-seconds, 30-minutes, hourly, daily, weekly or monthly. If you don’t determine correctly you lose your investment while you stand to gain between 60% and 130% or more if you make the right call. For this reason, it is also known as All or Nothing options. Easy Steps To Binary Options Trading. Binary options trading is one of the easiest ways to trade online, whether you are a beginner or an experienced investor. There are three steps to each trade, which you can learn to follow and turn in a profit. The first step is to choose a good broker that trades in a variety of assets such as stocks, Forex, commodities, indices and more. Next is to select the expiry time (duration) of the contract.

This can range from 60 seconds to an hour, a day or a week. The third step is to determine whether the value of the asset will move above or below a specified value and select the Call or Put option. If it is your first time it would be prudent to start small with $100 until you get a feel of the market. Choosing the direction an asset’s value will take is all you need to do in this type of trading. If you make the right choice you have the opportunity to earn returns of 70% to 95% and more, depending on the type of trade. Why You Need To Find The Best Trading Account. Binary options trading opens you to a whole new world of fast paced trading. Most importantly, it can be used in various ways across a huge spectrum of markets and commodities. Therefore, it is prudent to find the best trading account to suit your needs as an investor. Some brokers focus on currency pairs (Forex) or commodities options or may limit the number of markets. Payouts may vary between asset classes to as much as 25% or more, which is another factor to consider when selecting a trading account. Investment limits also vary from as little as $1 per trade to thousands of dollars.

So make sure to consider your budget and trading needs before you open an account. The good news is that most brokers allow traders to open demo trading accounts. This is a great way to check if the range of markets and commodities and investment potential suits your style. Find a list of credible binary options brokers with demo trading accounts right HERE. Compare The Best Brokers At Binary Options Explained. Our experts are always hard at work sorting out the best binary options brokers that offer an array of services across the USA, UK, Europe and Asian markets. They touch upon a number of key comparison points that include and are not limited to: Licensing and regulation Trading platform reliability Payout percentages Minimum deposit permitted Variety of assets offered Available expiry times (60-second, 30-minute, hour, day, week, month etc) Bonus offers Minimum and maximum trade limits Types of options (CallPut, TouchNo Touch etc) Availability of demo accounts Tutorials Banking methods, and lots more. Benefits Of Binary Options Trading. If you are looking for a good start to trading there is no better way to gain an understanding of the markets than with binary options trading. To begin with, it’s a simple and easy way to trade. You only need to predict the direction of an underlying asset over a specific period and wait for the expiry of the contract to determine if you have won or not. Transparency : Binary options is one of the most transparent forms of trading where you know exactly how much you win or lose right at the beginning.

The maximum you lose is only your initial investment. Fast trading : The major feature of this type of trading is the pace at which trades are transacted. Short term trades range from 3060-seconds to an hour, a day or more. Significant payouts with high reward to risk ratio : The returns between 70% and 130% or more make it one of the most lucrative short-term trading options. If you invest $100 on a trade and the broker offers 90% returns, a winning trade will result in you getting your initial investment of $100 back in addition to $90 more. Limited risk : The risk is limited to the amount you invest. However, most brokers offer a rebate between 10% and 15% on losing trades. We at Binary Options Explained are truly humbled by our ever increasing list of traders that keep coming back for more. Here are few reasons why you ought to stick around with us. Get unbiased reviews on binary options brokers Access to FREE binary trade signals Learn trading techniques to improve your win rate Learn tried and tested binary options strategies that work Find reputed and reliable brokers Get regular tips and advice from our experts. 10 Step Guide to Binary Options Trading.

Binary Options are a way to see the movement in value of a large and dynamic range of commodities, assets, stocks and shares or even Forex. The reason why these types of financial trades have become so hugely popular is that traders have to make just one of two possible decisions when placing them, that being yes or no decision which in Binary Options trading are known as Put or Call trades. There is no requirement to actually purchase for example gold bullion if you wish to place a Binary Options trade on the value of gold, you need to decide whether the value of gold will rise in value or fall in value over any given time period. One major advantage of placing Binary Options trades is that you will find a range of different expiry times are available which can be as short as just 60 seconds or as long as one month. If you are new to the world of Binary Options trading then below is our 10 step guide (infographic) which will enlighten you on all there is to know about placing Binary Options trades at any of our featured Brokers. What Trades to Place The first decision you need to make when you are thinking of placing any type of Binary Options trade is just what asset, commodity or stock exchange you wish to place your trades on. Once you have made an educated decision on just which type of asset, commodity or stock exchange you are interested in placing your trade or trades on you will need to decide just which way you think the value of that trade will move. If you think for example the value of let’s say oil will fall in value then you will need to place a Put option, however if you think that the value of oil will increase in value then you will need to place a Call option. Choosing a Broker You will of course need to select a Binary Options Broker to place your trades at, and with that in mind we would advise you to take some time taking a look through each of our reviewed Binary Options Brokers. Each Broker on this website is fully licensed and regulated, and each of them offer a very wide range of tradable assets and many of them are also additionally offering new traders an offer which will massively increase the value of your initial deposit. Each Broker will also have a range of different account types, and it is important that you choose to open an account that will give you access to the maximum benefits and extras based on the level and volume of trades you place.

Ideally consider opening up accounts at each of our featured Brokers, for there will be many benefits of doing so as you will find out in step four. Choosing an Expiry Time One you have chosen the type of asset you wish to base your Binary Options trades around and have selected a Broker at which to place your trades at, then you next need to decide an expiry time for your trades. You will find that you can place trades which last for just 60 seconds or can place much longer term trades which will expire in one month. It is important that you select the expiry time you would prefer as there are lots of different events that could affect the value of any financial assets that you place your trades upon. Understanding Potential Gains When you are considering making a purchase of a large ticket price item, you will always shop around to ensure you get the best deal possible. This is something that you should consider doing when a Binary Options trader, as the financial gains you can make out of every single trade you do decide to place can and often will vary from Broker to Broker. So your next step should be to take a look at what the potential gains will be on your chosen trades at several of our featured Binary Options Brokers, as by comparing them you will be able to select a Broker offering you the maximum returns on your investment. Trending Options Whilst you will have made something of a concerted effort when selecting just which trades are likely to result in a financial gain, you should always make use of all tools at your disposal. Whilst many Brokers offer the latest financial news stories which are often found scrolling on their news feeds, some traders also allow you to see which trades are currently popular with other traders. As such be on the lookout for Brokers which offer some form of Trending Options feature, as by making use of the tool you will be able to spot which trades are currently attracting the highest volumes of trades from other real money traders. Increasing Your Trading Budget Competition between Binary Options Brokers is of course something you should always keep in mind as a trader. For you will often find you can make use of a range of promotional offers to help you increase the value of your trading budget. Instantly Placing Trades You are never going to know in advance when a potentially profitable trading opportunity will suddenly become available, and that is something you do need to keep in mind. As such you are best advised to have access to both an online trading account and also a mobile trading account at each Broker you sign up to. By having access to a mobile trading account you will of course be able to place your trades at any time and from anywhere.

Hedging Your Trades Many traders will look into the possibility of hedging any live and active trades they have open or they may place a range of trades on which both sides of the trades are covered in two completely separate trades. Roll Forward Feature You will find another feature has started to become available at many Binary Options Brokers and this is something known as a Roll Forward feature. This type of additional trading opportunity will only become available to you when you have a live trade placed. A Roll Forward option is a way of extending the expiry time on any live trades you have placed, and when you take this option the expiry time will then be extended to the next available one. Early Exit Whilst many traders will be more than prepared to wait until the expiry time has been achieved on all trades they have placed, if you become aware of any potential events that could see the value of your chosen trades swing in the opposite direction that you have chosen, whilst you trades are currently in line for a payout, then consider taking an early exit. Many Brokers will offer you an early exit option, and whilst you will have to pay a fee to end your trades before they are due to expire, by doing so you will have at least locked in a trading profit from those trades. However, only ever consider taking an early exit if you are convinced any potential gains you will make once you trade naturally expires are going to become losing trades due to current events that you may have suddenly become aware of. How to Trade Binary Options. Chapter 1 : How to Trade Binary Options. There is one major advantage of trading Binary Options and that is you never have to actually purchase the shares, commodities or currencies that you will be hoping increase or decrease in value during any given time period! If trading Binary Options online has sparked an interest in you then it can be, at first, rather confusing, however once you have mastered the way Binary Options work, which will only take an hour or so, you will be able to master trading them.

With this in mind we have put together the most comprehensive Binary Options trading guides found anywhere online, and via a step by step range of guides we will explain how you can be online and trading Binary Options in no time. First step of trading is to choose a broker. Have a look at the recommended brokers from here. We invite you to have a look through each of the following guides, for when you do you will probably wish to start trading yourself! Binary Options Robots. There are now many different robots available for trading binary options. The hard part is figuring out which robot actually works, and which robots are a scam. 1. What Are The Real Results? Many robot providers like to brag about results of 90% accuracy. The truth is, 90% results can happen when the robot is on a winning streak, but a losing streak of only 40% success rates will wipe out your trading account quickly. Different brokers offer different returns (see here), so that also effects the performance. As you have already realized from our discussion on broker complaints, it is not smart to use a robot that only works with unlicensed brokers, or brokers with a bad reputation.

Also, never deposit money into a brokerage account until you see the robot’s settings page. 3. The Problems Using Auto Trading Robots. The terms high frequency trading, algorithms, and automated trading are thrown around Wall Street like they are no big deal. When a Wall Street firm builds a trading system, it is designed by stock market analysts and then back tested to near perfection before it goes live. The majority of binary option robots give us no idea what the robot is programmed to do. For all we know, it could be just randomly generating trades. 4. Can You Customize the Robot? You watched a video, or received an email. They told you to just open an account and the robot automatically trades for you. But where are the controls? Can you pick which assets are traded? Can you choose where the signals come from?

Did you know that different brokers have different returns? Look at the many options available for traders using this robot. Which Robot Do You Think Traders Choose? This Robot That You Can Customize. or This Robot With No Options. We constantly get letters from visitors to ScamBroker. com that look like this: Thank you so much for explaining how binary option robots work, and how the scams rip you off. Please do your part and share this information with your friends! Binary Options Robots. There are now many different robots available for trading binary options. The hard part is figuring out which robot actually works, and which robots are a scam. 1. What Are The Real Results?

Many robot providers like to brag about results of 90% accuracy. The truth is, 90% results can happen when the robot is on a winning streak, but a losing streak of only 40% success rates will wipe out your trading account quickly. Different brokers offer different returns (see here), so that also effects the performance. As you have already realized from our discussion on broker complaints, it is not smart to use a robot that only works with unlicensed brokers, or brokers with a bad reputation. Also, never deposit money into a brokerage account until you see the robot’s settings page. 3. The Problems Using Auto Trading Robots. The terms high frequency trading, algorithms, and automated trading are thrown around Wall Street like they are no big deal. When a Wall Street firm builds a trading system, it is designed by stock market analysts and then back tested to near perfection before it goes live. The majority of binary option robots give us no idea what the robot is programmed to do. For all we know, it could be just randomly generating trades. 4. Can You Customize the Robot? You watched a video, or received an email.

They told you to just open an account and the robot automatically trades for you. But where are the controls? Can you pick which assets are traded? Can you choose where the signals come from? Did you know that different brokers have different returns? Look at the many options available for traders using this robot. Which Robot Do You Think Traders Choose? This Robot That You Can Customize. or This Robot With No Options. We constantly get letters from visitors to ScamBroker. com that look like this: Thank you so much for explaining how binary option robots work, and how the scams rip you off. Please do your part and share this information with your friends!

Forex Investing Scams. Automated Trading Software. Best Forex Brokers. Exposé: How Brokers Steal Money. Getting Your Money Back. Best Automated Trading Software. Best Forex Brokers. Exposé: How Brokers Steal Money. Smart Investors Use Licensed Brokers. Complaints About Online Brokers. Popular Broker Reviews. CM Trading Review.

Pepperstone Review. TradeFred Review. Watch 15 Second Video! Copyright © 2013 - 2017 Scam Broker - Information about Investing Scams and Reviews of Over 300 Forex, Crypto and Binary Options Brokers. Disclosure: The website does not offer investment advice. The information on this website is not directed at residents of any country, where such distribution is against local laws or regulation. ScamBroker. com is a review website, and is not responsible for any losses you may incur by investing with a company mentioned on this website. We may receive compensation from the companies we write about. Nothing on this website should be considered a recommendation or endorsement. Forex, Bitcoin & CFD Trading is very risky, and you can lose your entire investment.

Always verify that the company you choose to invest with, is licensed and regulated by your local financial regulator. How to Expiry Times Work in Binary Options. October Special Offer: Get started with only €50 at HighLow #1 Ranked regulated broker: Get Started Here! Expiry times are one of the most important elements of binary options trading. In case you didn’t know already, you’ll win in binary options trading if you’ll manage to accurately predict the movement of an asset during a certain time frame. Your prediction will have to come true by the time of the so-called expiry of the options contract. Understanding how binary options expiration times work is imperative in becoming an experienced binary options trader. There are expiry times with various lengths in the binary options business. Some offer much better winning odds and probabilities than others. Likewise, the binary options expiry times you should choose also depend on the type of asset and the option selected. If you know which expiries work best with certain assets, you’ll be able to purchase those contracts that offer the best winning probabilities.

Advanced Tools and Features. Always Read Brokers’ Terms and Conditions. Benefits of Binary Trading. Complete Guide on Online Trading. Everything about Expiration Times. How are binary options taxed? How do Brokers Make Money. Learn about Assets in Binary Trading. Options Vs. Traditional Trading. Payout Rates – The Ultimate Guide. What Are Expiry Times in Binary Options Trading. Expiry times in online trading are the time limits until which the prediction made by the trader will have to come true in order for the trader to win the purchased binary options contract. Expiry times are basically the deadline of an options contract. If the prediction made by a trader will not come true by the time of the expiry, the trader will lose the investment.

If the prediction will come true after the time of the expiry, the trader will still lose his or her investment. Only what happens at the moment of the expiry matters. Binary options expiration times are displayed on a countdown clock format related to every option. Here, players will be able to watch the time remaining until the options contract expires. Once the contract expires, the trader is not able to perform any more actions related to the expired contract. How are expiry times established? Most binary options brokers offer fixed expiry times that were previously established. However, some other brokers will allow traders to choose the expiry times that fit their trading style and trading strategies the most. There are basically two types of expiries. Short expiries – Short binary options expiration times are those expiry rate that range only in a few minutes. The most common range for these expiries is 1 minute to 5 minutes.

Medium expiries – Contracts that expire between 5 minutes to 1 or 2 hours are contracts with medium expiration times. These contracts may some times pay put better than the ones with shorter expiries. Long expiries – Some brokers offer online trading contracts with expiration rates of 2 hours to even 24 hours. These are the contracts with the long expiries in the financial trading business. These are also the ones that can be predicted the easiest. Most optimal expiry times. The most optimal expiry time depends on multiple factors such as traders’ expectations, desired payout rate risk factor and more. Below you’ll find a description about the most advantageous expiry times in online trading. Binary options with short expiry times are a bit harder to predict than contracts with longer expiration times. This is because it’s much harder to predict the movement of certain assets within a time frame of just a few minutes. However, these are also the best paying contracts and also the ones that are in our opinion the most exciting. Having to wait a full day for the expiration of a contract is not that exciting to be honest, however, if the contract expires in a few minutes then you’ll enjoy trading much more. Contracts with medium expiry times are a bit easier to predict than the ones with shorter expiry dates.

However, these contracts usually pay out worse than the ones with shorter expiries and in our opinion are less exciting as well. Contracts with longer expiries can be predicted easier because it’s much easier to predict the movement of an asset during a longer time frame. These contracts are safer indeed but they are also a bit boring to be honest and offer lower payout rates than other options. Most optimal expiry times for various assets. Something that perhaps most traders are unaware of is that it does matter what expiry times you choose while using different assets. This is one of the few small things that considerably enhance the winning odds of those traders who are aware of them. In case of commodities and indices , traders are advised to choose short expiry times. This is because commodities and indices are known to be those assets that fluctuate less. As such, making accurate predictions in the short term is very possible. This will allow traders to purchase more contracts in a shorter time frame and as such, make more money than the usual. In case of forex options it’s recommended to choose medium to long expiries. This is because the exchange rate of currencies usually experiences very small changes very frequently and abruptly. However predicting the overall change in the exchange rate of a currency pair over a longer time frame is actually quite easy.

In case of stocks you traders should choose medium to long expiries. Subtitle changes in the movement of pretty much all stocks are being experienced at almost at a constant basis. However, the movement of most stocks can be predicted with a very great accuracy over a longer time frame such as a few hours. Binary Options Brokers with the Most Flexible Expiry Times. When it comes to binary options expiration dates, traders should choose those brokers that have the most flexible expiries. If you’ve read the paragraphs below, then by now you’ll know that the correct usage of expiration times is a very important factor in developing a winning online trading method. If only a very limited selection of online trading expiration rates are offered, then traders won’t be able to use the strategies and tips described above. Some fraudulent brokers intentionally don’t offer a flexible selection of expiries in order to prevent traders from winning. However, all serious brokers offer multiple binary options expiries in order to enable traders to develop their strategies. Only register at these kinds of brokers.

Binary options trading isn’t the same as gambling in the sense that in binary trading you can actually increase the winning odds into your favor. However, this can only be achieved at a legitimate broker. The brokers we list on our website are all legitimate companies that offer a very large variation of expiry times. Register at these brokers and you’ll be able to use all the strategies and tips that we’re teaching you on our website. Latest Binary Options Articles & Guides. Do I have to pay taxes on binary options winnings? - This is the question we get asked almost every day. In this comprehensive article we will explain how binary options taxation works in various countries. In this article I will explain why it is absolutely necessary for you to read a broker's Terms and Conditions before you register and make a real money deposit. Many binary options brokers have various advanced tools and features such as closing options before expiration, double down and sell option.

Learn how you can use these tools to your advantage.