About binary options

About binary optionsIf you are looking for the best binary options broker, you probably already know what are binary options and how to trade them. But let us still cover some basics.

Binary options were created probably to simplify options trading, because classic vanilla options tend to be complicated for ordinary traders. With binary options you have only two possibilities, either you make full profit a you lose the price of the option. In exceptional cases, when the price does not move at all from you entry, you are given back the price of the option, so you stay at zero.

There are several types of binary options, but the basic one asks you a very simple question: will the price be higher or lower, when the option expires? It does not matter how big the price movement will be and that is the biggest advantage of binary options.

You can try it now on a free demo here

This basic binary option is called High/Low and will often give you a profit of about 85 % of your investment. The expiration time varies, you can choose between 1, 2, 5, 15, 30 minutes or longer, some binary options expire after days or even weeks.

Then you have other types of binary options, Boundary and Touch/No Touch. With Boundary options you are saying that the price will stay inside or go outside certain boundaries, it is as simple as that. When trading Touch/No Touch options, you are basically betting that the price will or won’t reach a certain level before the option expires.

The biggest disadvantage of options is that they are limited by time. There is always an expiration time which represent the moment when the price has to do what you thought. It does not matter what it did before or what will it do later. But then you have several advantages that make up for it.

The best thing about binary options is that you need only a small movement of the price and that you cannot get stopped out on a stop loss. Because when you trade a binary option, you pay its price and you can never lose more than this amount you paid, no matter how big the movement of the price will be. You don’t have to worry about stop losses, you just buy your option and wait for it to expire.

This also means that you don’t have to worry too much about your trading platform, because if it should have a short downtime when you are trading, it will have zero effect on the result of your binary options trade.

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42 thoughts on “About binary options

  1. I like the helpful information you provide to your articles.

    I’ll bookmark your blog and take a look at again right here
    regularly. I’m quite certain I’ll learn lots of new stuff right right here!

    Good luck for the following!

  2. Dear Admin,

    I am new to this business so don,t know much about it. There are some software like option navigator , makemoneyrobot etc. who are claiming to give profit in binary trading. Is this true!!!

    Kindly let me know.

    Regards,
    Ajit Singh

  3. how do you trade?

    are there any websites that you recommend? Are there any sites which don’t have such high deposits required?

  4. How do you trade flips on support and resistance levels? Any website that you recommend to learn your technique?

  5. Thanks for the information. I listened to the video and got lots of signals that it’s not real, and then google lead me to you. You saved me bucks! I want to trade and earn. I am teachable but the scams are costly.

  6. Hi, i am very new to this kind of trade, can i trade from anywhere in the world or should i register with local traders only. i want to understand how will i be able to deposit and withdraw money if i’m registered with a global trader.

    1. Hi, you should register with a broker that has a licence for your country. It can be a foreign broker, but it should be authorised by authorities in your country.

  7. Great site, you have a recommended broker for USA clients that meet the criteria you state should be required for safety of assets?

  8. Any thoughts on OptionKing based in the Grenadines? I stumbled across them when I got snookered into the FastCash.biz scam. Thanks.

    1. Hi, I recommend using regulated brokers only. And regulated in countries with a strong financial regulation, like the EU, Australia or the US for example.

  9. Hi, I know nadex is a legit binary broker in the U.S. What about Markets World and Porter Finance ? How good are they? Would you recommend using them? Thanks!

    1. Hi, none of them is regulated anywhere as a broker (Marketsworld is regulated as a gambling company only). So I would not recommend using them.

        1. Yes it is. You said you knew it is, so I was talking about Porter Finance and Markets World. From these two I cannot recommend any. But Nadex is regulated, so Nadex is good.

      1. You are right these guys always get this fantastic results .But when you try it its not that way. Also there is never no support on this auto traders.I had problems with more than one. 50 emails later nothing. I am a client of option Expert that’s bullshit too most of it is luck also. Very costly the program.They promise you 81 % when you pay to unlock the software. The trends turn a 180 after you put a trade in.The success for me is 40% Things change in the last 30 seconds sometimes on the trade.

  10. Really pleased I’ve found this website amongst the huge mass of scam sites. I have been looking at a lot of these sites but I could tell they were part of the binary options scam game because of their affiliate links, moderated comments etc. The fact that you don’t recommend ANY auto-traders and don’t use affiliate links made me realise that yours is the only genuine website I’ve found so far so thank you and well done for not being a greedy, corrupt scumbag.

    One question for you; have you seen the Tradeo “Social Trading” platform and if so what is your opinion on it? It appears to be a properly licensed and regulated broker (by CySEC) but beyond that I can’t tell if it is a safe broker to start trading with?

      1. Wow thanks for the quick response. Very smart, I believe they do require a minimum deposit of $200 so looks like another one to be avoided! Thanks again

  11. Hi, I wonder if you can recommend where I can learn strategies for trading binaries. You mention ‘flipping on support and resistance levels’. Where can I go to learn more?
    Thanks

  12. Hi,
    It’s me again. The newest software being promoted for trading binary options is called Code Fibo. All the review sites are giving this software 5 star rating! Have you had an opportunity to check it out yet? The review sites all have links to Code Fibo. One or two sites now have Code Fibo listed as the #1 software for trading binary options, even superior to Copy Buffett, they claim.

  13. hi admin thx for your helpful site.

    you said that there is not any bnary option robot that can make money for you.

    But what about those claims like cofee buffet, code fibo or virnext or neo2. those are not good and scams robots?
    They all are presented on Jasmine Steeve blog claiming that she is for the good of saving people being scam.
    You can see all these reviews on Qiumtup Binary Option Signal

    Thankx for your reply.

    Dominique

    1. Hi, Quintup is a scam website, Jasmine gets paid for promoting scams. She expose some of them to make her site look legit, meanwhile she promotes some other scams with affiliate links.

  14. HI John,

    Your time and research is greatly appreciated, thank you for your hard work to help bring out the truth.

    I recently came across one company and software call Altredo, and it appears they have an auto trading software that is compatible with Nadex, which is the first of its kind that I have come across. They also appear to have a number of other professional trading programs all of which you have to actually purchase. It seems like this might actually be legitimate, I would appreciate your thorough review and investigation.

    Thank you for your time,
    Spencer

    1. Altredo offers:
      – Binary Options Auto Trader with 300% profit per month
      – Binary Options Prediction Indicator with a 90% accuracy
      – Forex Trading Robot with 250 % profit per month

      This is all I need to see to know that Altredo is a scam.

      Just one of these apps would make you a millionaire within 7 months with a starting capital of $1,000. And the price of the app is $360. I mean seriously…

  15. Hi John. Thank you for your honest review about trading systems. I have finally accepted there are no auto trading systems that work. However I am still intrigued to give any trading signals ago. Have you found any that are worth checking out? I will use them on a demo account to see how they do. Thanks.
    Gavin

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