Binary Options – here you will find everything you need to know about them!

Binary Options’ main strategies

When asked how to make money on Binary Options, it is worth noting that it is practically impossible to make a large profit without using a certain strategy. Any trader is free to choose his/her trading strategy and brokerage company depending on his/her demands and wishes. Someone just uses “trendy” strategies with these instruments, someone acts under long-term or, on the contrary, short-term strategies, and some users aim to get their profits by any method. As of today, the financial market is full of various BO trading strategies, and it would be virtually impossible to list all of them. Among other things, we should also keep in mind that the financial market constantly changes being influenced by the different political and economic factors, so it is not always easy to find the right trading strategy that would work permanently and smoothly under such conditions. Let’s speak about the most suitable strategies for beginners:

1. Options’ strategy – Three in a row

   This strategy is based on the three most popular trade indicators – Moving Average (moving average price on a chart, which helps to determine the trading trend and to time its ending), Stochastic (helps in determining the price deviation at the moment from its previous values) and RSI (relative strength index – measures a trend’s strength and determines the spots for chart changes). Simultaneous use of all three instruments gives traders a possibility to perform the correct assessment of the situation on the market and to make a bid. All too often, there are situations in which every indicator (separately from other indicators) may give an imprecise signal, however, while using these indicators simultaneously, they can “filter out” each other’s values, thus making it possible for traders to perform proper analysis of the current market situation and take benefits from this BO trading strategy.

2. “Reverse” strategy for Binary Options trading

   The strategy’s main idea is to define on a chart those moments, when the price enters a trend and to forecast the next most appropriate moment to make your bid and get some profit. The following indicators should be used to analyze a chart under this strategy: Bollinger Bands, MACD and MA. When using this strategy it is important to make bids in the timeframe that shows steady up-trend.

3. “Spring” strategy for Binary Options trading

   This reversal strategy in fact lies in bidding against the main trend. This may not always be easy, and to work under this trading strategy it’s recommended to use three indicator types: CCI (market prices analyzing indicator), Bollinger Bands (channel indicator), and Stochastic (as mentioned before, it serves to determine the price deviations at the given moment from its previous values). With this strategy you can use any time frame you want – from 5-minute interval and more.

4. “Martingale” strategy for Binary Options trading

   This is one of the most popular BO trading strategies. Its system is based on the theory of probability. There are only two directions that the price may take during the trading process: either up or down – and the probability of each direction is equal to 50%. A trader puts a certain amount on the selected option, and in case he/she wins – then he/she repeats this transaction, and in the event of failed transaction – he/she doubles the amount in order to cover his/her losses from the previous bad transaction in case of success. The experienced traders point out that, even with frequent losses, this BO trading strategy really works great – because large number of bad transactions in a row is quite a rare thing on BO field, and sooner or later, your winnings will cover your losses. This strategy is excellent for the experienced traders, who already have a certain amount of money on their accounts, and who are able to understand and analyze the market’s conditions.

5. “New Martingale” strategy for Binary Options trading

   “New Martingale” strategy was originally developed and practiced by the well-known trader and trainer Mr. Nikolay Kokar. “New Martingale” strategy is based on its predecessor – “Martingale” strategy, but at the same time it boasts some improved features. The main idea is that when trading with “New Martingale” strategy you enter the market only at the time that this strategy is ready to pan out. “New Martingale” strategy has two key rules you should follow while trading: it’s necessary to determine the trend precisely and correctly, and to be able to analyze 30-minute charts – when the price on this chart begins its sharp falling, it is the right moment to enter the market.

Binary Options’ charts

Binary Options’ live chart

In more recent times, live charts gain the increasing popularity among traders. Besides that, beginners like them very much – when using live charts you don’t have to register with brokers, and it becomes even simpler to set indicators and test strategies.

Live charts are quite user-friendly also because unlike Forex trading, BO trading is much easier and requires lower number of the instruments. Therefore, live charts are easy-to-use, have no lags and allow traders to monitor trading on a real-time basis.

Binary Options’ bonuses for beginners

Very often brokers offer their beginners various bonuses. These extra amounts can be used during the trading process in addition to the trader’s main funds, but users can withdraw them out of their accounts only subject to certain conditions of a broker. Such bonuses are of several types:

1. Binary Options’ bonuses at registration

   This type of a bonus is granted as a deposit amount for registration. It is often charged after the first deposit placement. It can be equal to 100% of the amount! The percentage is different from trader to trader, and the bonus’ highest amount almost always has its limitations. To withdraw the obtained bonus funds the trader has to perform the requisite quantity (specified by broker) of transactions with the bonus amount.

2. Binary Options’ bonuses on additional deposit

   These are additional trading funds that are charged by a broker depending on the sum invested by a trader. The quantity of such bonuses is a bit lower than the one of registration bonuses, but they also make some positive contributions to the beneficial trading.

3. Risk-free options’ bonuses

   The idea of this bonus is as follows: a broker insures trader’s first transactions. If in performing his/her first transactions the trader loses money, the broker can charge him/her with additional funds to cover those losses. The advantage of such bonus is that the trader takes no risks during the trading process – if he/she loses money, then this loss is covered by the broker, and if he/she reaches profitability – he/she keeps his/her earnings.

4. No deposit bonus – Binary Options without investments

   These bonuses are charged to a trader’s account during the registration and require no first deposition. Such bonuses usually have stricter withdrawal conditions, but at the same time allow a new user to come to grips with the working principle of the platform and provide safe opportunity to learn how to trade. Often, such bonuses are charged automatically, but in some cases special application may be required to get them.

5. BO trading cash back bonuses

   This is the simplest bonus type. The basic idea is that the broker compensates a part of the trader’s losses – normally 15-20%. This bonus should be used only when trader is at a loss; however, there is no need to return bonus if trading with profit.

6. Referral bonuses

   Referral bonuses are charged to a traders’ account for every “friend” attracted. Moreover, a certain percentage is charged to a trader’s account for every deposition of the account of another broker’s customer who registered on a platform through the referral link of a trader. Click this link to check out bonuses presented in our system.
   

Binary Options – Demo account

Demo-account – is an account with virtual funds, through which brokers’ new customers can evaluate the quality of work of a certain platform. Aside from that, demo-accounts are frequently used by the beginners in order to practice, and by experienced users – to test some new BO trading strategies. It is very important when the broker has such account type on its platform, thus giving its customers a possibility to use it for free.

Demo-account is very easy to use, and the basis of such simplicity lies in the principle that you cannot lose your real money. But if you take demo-account trading as a real one, it can teach you a lot. When the time comes to enter the real market, you will be well informed about all instruments and strategies and your trading will be much easier with such great experience!

IAFT recommends that beginners to try trading Binary Options by using demo-accounts of the flowing brokers:

Broker	Link
Verum Option	Open demo-account
Binary.com	Open demo-account
Olymp Trade	Open demo-account

Binary Options – The professional’s opinion

When starting with binary options traders may often have numerous questions, and they usually express a desire to know some professional opinion of the expert that deals with this sector of the market. One of the biggest professionals in this area is Mr. Nikolay Kokar – the experienced trader and trainer. His expert’s opinion expresses the idea that BO trading – is one of the most profitable activities, but only if you have the right approach to it.

Mr. Nikolay Kokar recommends using his trading strategy called “New Martingale”. This strategy was created on the basis of already existing and highly regarded “Martingale” strategy, and by taking ideas from some other strategies targeting long-term rates on global trends. This BO specialist believes that “New Martingale” strategy protects traders against bad investments and reduces risks.

Videos about Binary Options

You can get more information by watching our topic-oriented video package. It provides a good overview of all the peculiarities of working with binary options and focuses on how to make money on binary options.

Полезная литература о бинарных опционах

• 101 Option Trading Secrets Kenneth R. Trester
Mr. Trester wrote this 336-page outstanding book trying to combine all his financial secrets and 30-year trading experience. Any market practitioner can use this book as a support to enhance their earnings. The remarkable book has undergone many revisions and its fourth edition has now become a real bestseller among comparable works. In the past, Mr. Ken Trester was a computer scientist and conducted many popular training courses on options trading. Beyond that, nowadays he organizes some intensive options seminars for a limited number of people. Many of students he prepared succeeded using his trading strategies. Mr. Kenneth R. Trester holds an MBA and has some experience working as a manager of investments. Aside from that, he developed his own economical software for PC – it is called “Option Master” and allows small investors to simply determine an option’s true value.    Download
• Advanced Strategies And Trading Techniques - (1994) Sheldon Natenberg
Option traders from pole to pole are sure that this progressive work is one of the world’s most practical publications with a great potential. Its hypothesis corresponds to the financial realities and reflects all current trends in the field of the option contracts.    Download
• Options, futures and other derivatives John C. Hull
Practicing traders believe that it is the big-seller on the whole marketplace, and students label it as “THE BIBLE OF TRADING”. After several revisions and updates it now answers the most burning questions of this area and contains all modern statements. Mr. John Hull wrote the unique book that erases all boundaries between the financial theory and trading practice. The book’s key advantage lies in the excellent representation of mathematical and financial terminology in layperson terms, which opens it up for a wide audience. Mr. Hull brings up such hot-spot issues as the credit stagnation, the raw materials price modeling, the securitization and the overnight indexed swap. This book is intended to assist traders in understanding all new tendencies of the derivatives markets.    Download
• Options made easy Guy Cohen
“Options Made Easy” is a self-explanatory title – the book explains the way to facilitate options via diagrams and charts. It takes you to a financial journey created to help you come to grips with options trading and feel self-confident about this market. Mr. Cohen applies straightforward method to describe theory and practice. He brings some facts and unveils many myths related to fundamental and technical analysis, he also renders an advisory opinion on how to work out your personal trading strategy and use it under the different financial conditions. Beyond that, he unlocks some trading psychology secrets that will teach you how to stay cold-blooded and don’t let your emotions bring any effect to your trading process.    Download
• Simple Steps to Option Trading Success Jim Graham, Steve Lentz
Regardless of the experience level you have, Dr. J. Najarian invites you to read this top-class trading guide. In their book, the author and his expert team tried to explain why they see options as a perfect possibility to invest money in – it doesn’t matter whether you are a trader or investor. This unique and flexible guide gives step-by-step instructions on how to deal with options. Get profits by speculating on the market and make beneficial investments, secure your account against potential drawdowns and other financial risks. This powerful publication provides high-efficiency investment solutions and strategies.    Download
• The Bible of Options Strategies The Definitive Guide for Practical Trading Strategies Guy Cohen
This is the second edition of a legendary book by the iconic trader – Mr. Guy Cohen, where he methodizes today’s most efficient trading strategies for options: the nature of options work, conditions to use them and many other things.    Download
• Candlestick Charting for Dummies Russell Rhoads
No need to expect that this work will become a panacea for beneficial trading. It won’t tell you a secret to make a quick financial success. It was written to express some ideas on how candlesticks are built, and what the practical benefit from their use is during the trading sessions.    Download

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