Traders should be aware of the reasons to invest in binary options. Investing in binary options is the best alternative for those who want to make quick and smart money, if they’re willing to learn the tricks of the trade. One of the biggest advantages of investing in binary options is that traders do not need a vast financial knowledge to work.
The main reason to invest in binary options is that the system is easily accessible. Most binary options platforms are really friendly and simple to understand, so any person (over 18) can use it. It is also very easy to access a broker’s platform, in fact, all that is needed is a computer connected to the Internet. The operation of binary options is very simple, in short, traders should only decide the direction of the financial asset price change. That is, the trader must decide whether the asset’s price will rise or fall. Investing in binary options is ideal for everyone. Another big advantage of binary options is that traders can make most important decisions, and therefore maintain full control over their operations: the freedom resides in choosing a broker of personal preference, the preferred trading tool or method, the timeout that the trader may consider relevant, among other decisions.
Unlike other online investment systems, traders that manage to earn money with binary options will have a 100% claim on the cash; binary options brokers do not charge commissions or fees. Unless the trader is operating in a fraudulent broker, rest can be assured that cheating is a very slight possibility. The most recognized binary options platforms have regulations and quality certifications that guarantee privacy and security in each of their transactions.
To invest in binary options only need a computer (although it can also be though an iPhone or similar smartphone). This will allow traders to work from home and be their own boss, and therefore save time and money on travel and operative expenses. Unlike Forex, on binary options traders can control teir operations, they can know in advance the potential risks and gains, and also decide whether the operation will be profitable or not.
There’s a lot of information available thanks to technological advances; traders now can access all financial and economic news involving financial assets. This way, investors will be informed and updated on market developments and therefore will be able to do more accurate and reliable predictions.
High profitability, since binary options offer very high returns. If the operation finishes successfully, the trader can earn up to 80% on its initial investment. Even most brokers offer a fixed return for all operations that end without success of around 15% of the initial investment. Also, there’s no need to buy a physical asset, since traders only negotiate on price. There will be no problem regarding price fluctuations, but they will still be the main source of concern and opportunity for traders; one of the main reasons binary options are profitable is that it’s a speculative market where traders try to “play” and predict whether the price will raise or drop.
Although binary options and gambling can be quite similar, they are not the same. Within the world of binary options, the basic logic of a bet is represented in the sense that if it hits, you win, and otherwise the money is lost; but it is not a mere bet, the loss can come from using an unreliable or faulty strategy. This is where binary options and gambling differ: Binary options have a proven methodology which allows traders to generate profits while using the correct approach. In a bid, the range of probability of success is 50% and losing is 50%, in contrast to investing in binary options, where the probability of winning can raise to 80% or more.
The best way to increase the chances of success for each operation within the world of binary operations versus gambling is through the use of binary strategies; they basically consist of techniques that comprehend the use of correct analysis of charts and trends, the core of all methods regarding binary options forecasts. Within the binary world there are various strategies, each more different than the last, yet they all have the same purpose, to help traders win more money.
When traders decide to invest in binary options, they expect to win from the start. The most common binary option bet is that an asset will rise in value, or lower its value.
The first betting scenario would be “out of money”. This means that the option raises its price if the trader bet on the drop, or the value has dropped while betting on the raise, and so on. Traders lose their investment when they fail to predict the fluctuation, unless their broker provides some sort of refund mechanism, which is not often the case.
When traders have made a good analysis, their predictions were correct and consequentially have known the direction an asset would take at the end of a given period, then the trade is “in the money”. Average earnings will usually range between seventy and eighty percent of the money invested.
Investing in binary options offers a number of opportunities to other types of investment firms so it makes them much more likely to get good benefits for its traders, while functioning as a quick and simple investing alternative.
To start trading or gamblingbinary options, there are simple rules and concepts to understand, especially compared to other markets. While traders should know a little of the stock market and learn how to interpret a graph, everything is quite simple and it’s possible to take an intuitive approach at things, so it is possible to start making investments almost immediately. By investing in binary options time-lines are short, which seek to collect benefits quickly, without any sort of long waits. Traders decide what amount to invest in each asset class, so it is always known how much money is at stake and also exactly how much money can be earned.
Investing in binary options is basically the fastest and safest way to increase exponentially your money. Traders can see their initial investment grow on a daily basis if there’s enough determination to do so. Without long waits, traders can earn money in no time. By spending a few hours a week, you can round off your monthly income and make ends meet comfortably. But there will always be a certain possibility of risk, since it is a highly volatile and liquid market.
Investors who are just starting to play the binary options market quite often fail because they lack experience in this type of transaction. Because of this, it is necessary to test out in the field what has been learned, and then to gain more experience in negotiating financial assets, the best a trader can do is to open a demo account to practice his or her strategies. Without a doubt, this is one of the better actions to take when starting to trade binary options.
If we have the opportunity to gain experience in a safe manner, but in a real scenario, traders may check if the platform chosen for their market operations offers the possibility of creating a new demo account. It really is one of the most useful tools especially for less experienced investors, who can create a good strategy just by trial and error
The possibility of opening a demo account is something that not every online broker offers its users. The demo account is a great opportunity to learn how these trading platforms online work without worries, at your own pace.
Demo accounts also give traders the opportunity to try without obligation different binary option brokers, so it is much easier to know them thoroughly and then decide which broker suits the trader’s long and short-term goals. While it is true that on the Internet, traders can find detailed reviews of different brokers, it is best to try each broker on its own.
Creating a demo account does not have any additional cost and can give the trader the push he or she needs to dive into the world of binary options without taking unnecessary risks. These types of accounts are useful to practice binary operations and to improve any method or strategy, which in turn will make it possible to achieve better results and safer investments when playing the market in a serious manner. As traders practice with a demo account, they get more experience for their operations in real accounts in the future. The free demo account allows them to operate within the binary options market with real data but with by using virtual money, so it is possible to get acquainted with market trends, indicators and other signals that are useful for traders to understand.
Operating the market without the experience would be the most frustrating experience, especially in the first moments of trade; because it is practically impossible to learn overnight how and why the binary options market operates like it does (or any market). Professional traders are learning new techniques and strategies to use in the future; it is a process that involves constant education and a willingness to submit to all the useful information that is out there.
Thanks to the Internet, traders can gather all the necessary information easily. To analyze the market and then try a demo account so traders make their forecasts safely, is the best way to see if their trades are going in the right direction and if they will get benefits in the investments contained in their strategy.
Oil is a favorite among binary options investors; it is one of the main financial assets and is usually included in diversified investment portfolios that earn higher rates of return. It is essential that traders use a strategy to invest in oil with binary options to ensure maximum profit on their investment options.
Oil, like other commodities, is an asset that currently suffers large increases and movements due to economic crises affecting several countries which directly impact the financial market. Gold along with oil are the most volatile assets, and it is easy to appreciate when traditional assets such as currencies experience a period of instability or decay. Because of this, these assets are called safe havens and are very safe to invest while playing binary options.
Almost every binary options platforms include oil as a main asset, with times of expiration of mainly few minutes or hours. This reinforces the idea that it is essential to have a strategy for investing in oil with binary options and ensure profitability. To increase the chances of successfully investing in oil with binary options, traders should conduct a thorough and accurate analysis of the financial market in order to detect clear trends.
The basic form of binary options Call / Put is still used as a strategy to invest in oil based on global financial announcements. The main objective of the investor is to study the market so it can identify trends and invest according to the resulting analysis. To begin, the trader shall apply the values of fundamental analysis and review the economic calendar to find when reports are published which on their own are directly related to the fluctuation of oil prices, such as inventory of oil, the manufacturing index or currency swings; these are all published within certain periods of time, just like other financial events that affect their value under the principle of asset correlation.
In the case of oil, it is important for example that the trader is attentive to the economy of Canada, one of the largest producers of oil in the whole world and, secondly, the United States, one of the largest consumers of raw material. For example, if the price of Canadian currency is falling in conjunction with the USD, so will the value of oil. For this reason it is so important to constantly study the global financial market and analyze how different factors affect the assets with which we are operating.
After analyzing the financial report and economic events calendar, every binary options investor must interpret its value in order to recognize the direction of the trend and invest properly. If a “-” accompanies the published amount, it refers to a negative value; it will also appear in red on the economic calendar. The binary options investor must interpret this value as a sign of an uptrend, since after this point, it is likely that the value will start to rise again. Therefore, the Call / Put strategy to invest in oil through binary options, the investor must wait a few minutes until the value begins to rise, then open a Call position. If the trader is faced with a positive value of oil when the economic calendar is presented, it is interpreted as a downtrend, so after a few minutes the value should start to drop.
There are many brokers and therefore, many traders; so newcomers must consider that they have a lot of brokers at their disposal. But if a trader arbitrarily picks a broker, a big risk is being take. In this case, it is highly possible to choose an unreliable broker which doesn’t have a good relationship with its traders or any sort of guarantee in terms of security of payment and deposit. It is recommended to get acquainted with whichever are the most trusted brokers at the time.
Some of the most trusted brokers are 24Option, OptionBit and OptionFair. They require a minimum deposit of $250, $200 and $250 respectively. Also, all three of them offer demo accounts for newcomers.
If a trader selects one of the brokers recommended above there’s little room for mistake. These brokers have been established for years and have repeatedly shown to be of quality regarding their traders. They can be considered some of the most trustworthy brokers at the time; but just like everything on the binary options market, variables are very volatile and a broker might declare bankruptcy overnight. This is why traders must be aware of any sort of suspicious movement made by their broker. The already-mentioned most trusted brokers have no interest in deceiving customers whatsoever.
It is important to be able to maintain a streak of successful transactions while trading binary options. And that is not possible if a broker offers an awfully bad payment rate. Imagine that the trader receives only 50% return of the trade in their account, and 0% if the option is out of the money. Would it be possible to succeed in trading in this manner in the long run? It is quite obvious that this would not be the case. Traders have to be successful in 70% of their trades just to get even. If, on the other hand, a fair payment of 85% and 0%, things would be much easier if trading is done correctly, also it could generate high payment rates.
Overall, what’s important is that the broker has a good position when compared with other brokers. In this market, traders should not compare, for example, a NASDAQ stock with an EUR / USD stock, it would be just like comparing dogs and cats. If traders want to know how good of a pay the broker is offering, then they should compare EUR / USD on a broker with EUR / USD in another broker.
Customer service is also becoming increasingly important to determine whether a broker is trustworthy or not. In this area, the quality parameters stand in whichever language is available, speed of service and potential helpfulness provided by the customer service employee. There are employees who can solve problems within minutes and there are those who postpone the issue until the customer gets tired. It can also happen that the trader gets a certain amount of emails for several days stating that the problem is being processed, and that the client will be contacted when there’s some progress on the issue.