Binary Options
What Does Binary Options mean?
you should know that Binary options are also called as digital options, fixed return options, bet options, all or nothing options and one touch options. Binary Options are like regular options in that they allow you to make a bet as to the future price of a stock. However, binary options are different in that if the "strike price" is met by the expiration date, the binary option has a fixed payoff of $150 per contract. It doesn't matter if the stock price is a penny over the "strike price" or if it is $150 over the strike price, they payoff from the binary option is the same--$150.
They are called binary options for this very reason. Binary means two and binary options have only two possible payoffs--all or nothing ($150 or $0). In 2008 the AMEX (American Stock Exchange) and the CBOE started trading binary options on a few stocks and a few indices; trading binary options is NOT allow on very many stocks or indices just yet. The United States has been slow to accept binary option trading, but binary option trading has been quite popular in Europe for a few years, especially as they relate to FOREX. The best way to understand these relatively new type of securities is to look at the example the stock price of Google, the USD/GBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day.
How to Trade step by step?
1) choose a broker
Try to find the best binary trading site for you, No trades are going to be more successful than his or her broker is honest. trading in binary options continues to be not regulated tolerably to be thought-about an established investment various, so there are many dishonest operators attempting to require advantage of naive traders.
2) Select the asset or market to start trading
Assets lists are large, and canopy Commodities, Stocks, Forex or Indices. the price of oil, or the Apple stock price, as an example.The number and variety of assets you'll be able to trade vary from broker to broker. Most brokers offer options on in style assets like major forex pairs as well as the EUR/USD, USD/JPY and GBP/USD, furthermore as major stock indices like the FTSE, S&P 500 or Dow Jones Industrial. Commodities as well as gold, silver, oil also are usually offered.
Individual stocks and equities also are tradable through several binary brokers. Not each stock is offered although, however usually you'll be able to choose between regarding 25 to 100 popular stocks, like Google and Apple. These lists are growing all the time as demand dictates.
The asset lists are perpetually listed clearly on each trading platform, and most brokers create their full asset lists offered on their web site. Full asset list data is additionally offered among our reviews.
3) Expiry Time
Options can expire anywhere and anytime between 30 seconds up to a year.The expiry time is that the purpose at that a trade is closed and settled. the sole exception is wherever a ‘Touch’ option has hit a predetermined level before the end. The expiry for any given trade will vary from thirty seconds, up to a year. whereas binaries at the start started with very short expiries, demand has ensured there's currently a broad vary of expiry times offered. Some brokers even provide traders the flexibleness to set their own specific expiry time.
4) Set the size of the trade
I need you to Remember that 100% of the investment is at very risk.
5) Click Call / Put options or Buy / Sell options
Call and put are merely the terms given to purchasing or selling an option. If a trader thinks the underlying value can go up in price, they will open a call. but wherever they expect the value to go down, they will place a put trade.
Different trading platforms label their mercantilism buttons completely different, some even switch between Buy/Sell and Call/Put. Others drop the phrases put and call altogether. nearly each trading platform can create it fully clear that direction a trader is opening an option in.
A Call Option is security that gives the owner the right to buy 100 shares of a stock or an index at a certain price by a certain date. That "certain price" is called the strike price, and that "certain date" is called the expiration date.
A put option is a security that you buy when you think the price of a stock or index is going to go down. More specifically, a put option is the right to SELL 100 shares of a stock or an index at a certain price by a certain date. That "certain price" is known as the strike price, and that "certain date" is known as the expiry or expiration date.
Binary Option Example:
Suppose GOOG is at $595 a share and you believe GOOG will close at or above $605 this week. You could buy 5 GOOG Binary Options for a price of, say, $0.40. The multiplier on the binary options is also 110 so five of these options would cost 5 contracts x $0.40 * 110 multiplier=$220.
If GOOG closes at $600 or higher by the expiration date then the binary option is worth $100 so five of these GOOG call options would be worth $500, for a profit of $350. It doesn't matter if GOOG closed at $600 or $650, the binary option is still worth $100. If GOOG closes at $599.99 or lower, then the option expires worthless.
Currently, all binary options are traded as European style, which means they can only be exercised or settled at expiration. In the U.S., the CBOE offers binary contracts on 2 indices, the SandP 500 Index (SPX) and the CBOE Volatility Index (VIX). The tickers for these binary contracts are BSZ and BVZ.
If you want to trade them, there are not many popular brokers that have added them to their platform. The ETRADEs, TD Ameritrades, Schwabs, and Scottrades have not added them to their platform yet. If you follow some of the ads on the web, the brokers that trade them are not commonly known so there is great risk.
Are Binary Options a Scam?
As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest.The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up.
No trader will be more successful than his or her broker is honest. Trading in binary options is still not regulated well enough to be considered an established investment alternative, and so there are plenty of dishonest operators trying to take advantage of naive traders.
Simple Binary Options Strategies
I am going to say and explain some useful and simple strategies for newbies.If you do your research out there you will find so many strategies which promise fast and sure profit. Their creators describe them as the “holy grail” and many times it needs to subscribe to take a strategy with its indicators without knowing if this strategy really works.Many of them don’t work or they work for short term periods and they don’t have added value in the long term run.From my experience,you can find all these paid strategies for free and finally there isn’t something special about them.Now, I am going to explain you some solid and simple strategies which are based in logic and in reality.
Support and Resistance for puts and calls
The most popular strategy especially for the new traders is “Support and resistance”. You should identify the right spot and you can take call trades in a support area and put trades in a resistance area. How can you identify these areas? There are several ways.One of them is to notice how the price acts in older areas and trying to predict the price movement when the price comes back to these areas.This is the whole value of technical analysis.Predict the future by studying the price behaviour in the past.
In the chart above you can see trading opportunities, puts in the previous resistance and calls in the previous support when the price comes back to test again this area. The best market for this strategy is a ranging market in which S&R keep the price into a channel.In a trending market we have many S&R breaks and this means that here these levels can’t keep the price down or up.
Fibonacci Bounces
With simple fibonacci levels you can find trading opportunities.The most important fibonacci levels for me is 161.8 , 127 , 61.8 and 78.6. Many times in these levels we have bounces of the price. Also, many harmonic patterns are created by these levels.
Fibonacci Bounces
With simple fibonacci levels you can find trading opportunities.The most important fibonacci levels for me is 161.8 , 127 , 61.8 and 78.6. Many times in these levels we have bounces of the price. Also, many harmonic patterns are created by these levels.
Look at this chart. We have leg 1-2 , a down movement of the market.After that we have leg 2-3 an up movement of the market.Many times like this chart, the price makes bounces in levels 161.8 and 127. These are good physical levels for S&R.You can combine them with an Overbought area for puts and an oversold area for calls (with RSI or a value chart) or with previous S&R in these fibonacci levels and you a high probability setup.
How to draw fibonacci?Drag the fibo drawing tool from spot 1 to spot 2 and wait for the price to hit these levels.(spot 3 in this chart)
Bounces in a trend
This is a simple solid strategy and give you the opportunity to trade with the trend.You don’t have to identify when a trend begins. You have to wait for a trend and find the right time to jump in.For this you can use EMAs.
How to draw fibonacci?Drag the fibo drawing tool from spot 1 to spot 2 and wait for the price to hit these levels.(spot 3 in this chart)
Bounces in a trend
This is a simple solid strategy and give you the opportunity to trade with the trend.You don’t have to identify when a trend begins. You have to wait for a trend and find the right time to jump in.For this you can use EMAs.
Look at this chart. It’s from EUR to USD currency pair with a 5 minutes timeframe. In the blue rectangle we have a good up trend.The up trend is strong.All that you have to do is to wait for the price to hit the EMAs.In the chart I use two EMAs. A 13 period (the green one) and a 26 period (the red one).The price makes a down movement in an uptrend and the EMAs can give you a spots in which the price will stop the down movement and it will continue with the general up trend. Notice the call arrow in the chart.The price is moving down and when it hits the red EMA(26 period) we have a bounce and after that the price is moving with the general up trend.For this strategy you can also use Tenkan and Kijun of Ichomoku Kinko Hyo.
EMAs crossovers with Heiken Ashi
In this strategy you can wait for EMAs crossovers and trade in the beginning of a new trend.How to do this? Use two EMAs. I use 13,26 period EMAs for 5 minutes and 15 minutes timeframes.Find in your metatrader platform Heiken Ashi indicator and drop it to your chart.Why Heiken Ashi?Because they can reduce the noise of the price.In this case we want a trader with a longer expiry like 15- 30 minutes because the price maybe will move sideways in the beginning.Look at this chart.
EMAs crossovers with Heiken Ashi
In this strategy you can wait for EMAs crossovers and trade in the beginning of a new trend.How to do this? Use two EMAs. I use 13,26 period EMAs for 5 minutes and 15 minutes timeframes.Find in your metatrader platform Heiken Ashi indicator and drop it to your chart.Why Heiken Ashi?Because they can reduce the noise of the price.In this case we want a trader with a longer expiry like 15- 30 minutes because the price maybe will move sideways in the beginning.Look at this chart.
As you can see I use the EMAs I said above and I wait for crossovers.In the two blue rectangles we have crossovers.I use Heiken Ashi bars in this chart.When I see a crossover and the Heiken Ashi bar has the right color (red for puts , white for calls) I take trades with 15-30 minutes expiry.On the first crossover you can take a put and in the second crossover you can take a call.
IQ Option Review
IQ Option Binary Options Broker is becoming a well-known platform throughout the world nowadays. More and more traders prefer this particular platform for trading binary options. But is there a risk that IQ Option would appear to be any kind of scam? It is quite easy to reveal that, but nowadays it is also that easy to cheat as there are many different brokers and many inexperienced traders. Scammers are, unfortunately, present on the market and every broker should be checked thoroughly before any step towards depositing is taken. Because of that, it is vital to perform an IQ Option scam inspection.
In this IQ Option Review You will know everything about IQ Option history. IQ Option has been in the market for a long time now – it is even older than some of the most popular binary brokers. But perhaps since it was originally more successful in Russia, people from all around the world came to notice it only later. No matter what, it is among the most successful brokers, developed in 2008, and providing excellent services since then. IQ Option accepts deposits from all over the world and in different currencies. It is one of the most popular platforms due to its large versatility and excellent customer service. Traders from around the world have tried and tested its withdrawal methods and are quite satisfied. We will now extend the review we did and focus on the IQ Option withdrawal process.
let's take a small IQ Option review in this small video.
In this IQ Option Review You will know everything about IQ Option history. IQ Option has been in the market for a long time now – it is even older than some of the most popular binary brokers. But perhaps since it was originally more successful in Russia, people from all around the world came to notice it only later. No matter what, it is among the most successful brokers, developed in 2008, and providing excellent services since then. IQ Option accepts deposits from all over the world and in different currencies. It is one of the most popular platforms due to its large versatility and excellent customer service. Traders from around the world have tried and tested its withdrawal methods and are quite satisfied. We will now extend the review we did and focus on the IQ Option withdrawal process.
let's take a small IQ Option review in this small video.
IQ Option is a European-spec binary options broker that has concentrated on providing a wide range of binary options products to traders from all over the globe. IQ Option is a verified and reliable binary options trading company that is prominently featured in the markets due to its exposure to the market and its market penetration. Countless new companies and even existing binary options brokers hope to replicate the success enjoyed by IQ Option. Nevertheless, IQ Option continues to innovate and evolve to keep abreast of the market changes and the ever-changing requirements of traders.
Is IQ Option capable of continuing its dominance in the market to give its competition a run for its money? Are there any IQ Option trading pitfalls that may affect the integrity of its customers? Read our IQ Option broker analysis that not only covers the platform evaluation, assessing payouts, and trading features, but also takes a look at the different aspects of investing in the markets.
Is IQ Option capable of continuing its dominance in the market to give its competition a run for its money? Are there any IQ Option trading pitfalls that may affect the integrity of its customers? Read our IQ Option broker analysis that not only covers the platform evaluation, assessing payouts, and trading features, but also takes a look at the different aspects of investing in the markets.
IQ Option Mobile Apps
The primary shortcoming of an installable desktop-based trading interface is that it cannot be scaled down for mobile devices. Normally, binary options brokers offer web-based trading interfaces that can be accessed on all types of devices, including desktop and mobile operating systems. Smartphone and tablet users sometimes access their binary options accounts through their device’s web browser and can enjoy all the features and functions at a single place.
However, IQ Option has chosen to take the more expensive route of providing dedicated trading platforms for individual devices. Therefore, IQ Option mobile trading is facilitated through the dedicated apps developed for iOS and Android operating systems. IQ Option recognises the importance of mobile trading apps and its significance in the modern world of investing, which is why the company has moved ahead with providing excellent mobile trading interfaces that offer comprehensive market access for binary options trading.
However, IQ Option has chosen to take the more expensive route of providing dedicated trading platforms for individual devices. Therefore, IQ Option mobile trading is facilitated through the dedicated apps developed for iOS and Android operating systems. IQ Option recognises the importance of mobile trading apps and its significance in the modern world of investing, which is why the company has moved ahead with providing excellent mobile trading interfaces that offer comprehensive market access for binary options trading.
IQ Option Platforms & Trading Conditions
IQ Option’s trading conditions are not far off from what is offered as standard for most binary options traders. For instance, IQ Option follows the classic high/low trading concept, which is divided into regular and Turbo options. There might not be as many binary options products and trading options at IQ Option as one might expect from a large broker, as other competitors offer a wide range of options to increase the flexibility of trading. Regardless, IQ Option has offered a wide array of financial instruments to choose from, which may be one of the reasons why IQ Option has limited its trading options to the classic trading systems.
To make matters easier for traders, and to ensure a full range of customizable options, IQ Option has designed and developed an installable binary options trading platform. The IQ Option desktop trading interfaces are available for Mac OS, Linux, and Windows operating systems, thereby covering the entire desktop trading market. However, the company has not provided any information on the availability of a Web Trader interface, which might have offered convenient trading options for traders while on the move.
The binary options trading platform for desktop offers advanced charting options, custom-tailored trading dashboard, and a wide suite of trading tools to help traders make the best use of the available resources for investing successfully. The IQ Option trading platform offers a premium feel and is one of the most advanced trading interfaces that are available in the market.
IQ Option’s trading conditions are not far off from what is offered as standard for most binary options traders. For instance, IQ Option follows the classic high/low trading concept, which is divided into regular and Turbo options. There might not be as many binary options products and trading options at IQ Option as one might expect from a large broker, as other competitors offer a wide range of options to increase the flexibility of trading. Regardless, IQ Option has offered a wide array of financial instruments to choose from, which may be one of the reasons why IQ Option has limited its trading options to the classic trading systems.
To make matters easier for traders, and to ensure a full range of customizable options, IQ Option has designed and developed an installable binary options trading platform. The IQ Option desktop trading interfaces are available for Mac OS, Linux, and Windows operating systems, thereby covering the entire desktop trading market. However, the company has not provided any information on the availability of a Web Trader interface, which might have offered convenient trading options for traders while on the move.
The binary options trading platform for desktop offers advanced charting options, custom-tailored trading dashboard, and a wide suite of trading tools to help traders make the best use of the available resources for investing successfully. The IQ Option trading platform offers a premium feel and is one of the most advanced trading interfaces that are available in the market.
IQ Option Bonus
Once again, the problems of regulation bring to fore the issue of bonuses and free promotions. IQ Option does not support any type of bonus or offers on deposits, as it is illegal for EU companies to indulge in any type of bonus program or promotional campaign. It is further difficult for the company to bypass these restrictions through its Seychelles operations, as almost all traders who opt for an IQ Option account does so to enjoy the protection offered by CySEC and EU regulation. If you are concerned about the unavailability of a bonus, you should consider some of the other brokers listed on our recommendations page.
Nevertheless, if you are confident of your trading ability, and if you have been consistently in the profits, IQ Option offers a chance for traders to compete with each other through their proprietary tournaments. These tournaments offer a cash prize, which can either be used for trading or can be withdrawn completely without any restrictions. Therefore, it is possible to enjoy a cash bonus at IQ Option, provided you are talented and skilled enough to beat the competition.
Once again, the problems of regulation bring to fore the issue of bonuses and free promotions. IQ Option does not support any type of bonus or offers on deposits, as it is illegal for EU companies to indulge in any type of bonus program or promotional campaign. It is further difficult for the company to bypass these restrictions through its Seychelles operations, as almost all traders who opt for an IQ Option account does so to enjoy the protection offered by CySEC and EU regulation. If you are concerned about the unavailability of a bonus, you should consider some of the other brokers listed on our recommendations page.
Nevertheless, if you are confident of your trading ability, and if you have been consistently in the profits, IQ Option offers a chance for traders to compete with each other through their proprietary tournaments. These tournaments offer a cash prize, which can either be used for trading or can be withdrawn completely without any restrictions. Therefore, it is possible to enjoy a cash bonus at IQ Option, provided you are talented and skilled enough to beat the competition.
Account Funding Options
IQ Option has catered to the basic requirements of the traders by understanding their needs perfectly. Typically, binary options brokers may require its clients to make larger investments, to the tune of $100 to $500 for a binary options trading account. Although such an amount is not a hefty investment by any means, it may still be a considerable investment for many traders. Therefore, to ensure that IQ Option covers a large part of the market, the broker has specified a minimum deposit of only $10. Of course, there are brokers that offer trading accounts for as low as $1, but IQ Option has certainly made the job easier for traders to open a binary options account at a regulated broker.
The broker has also specified a minimum withdrawal limit of $2, which is certainly the lowest amount of money that you can withdraw from a broker. In order to support such low payment options, the broker allows its traders to fund and withdraw using online payment processors such as Skrill, Webmoney, and Neteller. Of course, you can also make a deposit and withdrawal using a Visa and MasterCard, but the transactions may involve additional costs for payments.
IQ Option has made it a priority to process all withdrawal requests and has successfully paid more than $5.7 million a month in profits alone in 2016. It is indeed a staggering amount of money, especially when brokers these days try very hard to hold on to their clients’ investments by stating bogus reasons. IQ Option has also been successful in lowering its withdrawal time to within 24 hours, and the trend seems to suggest that the company will decrease it further in the coming years. Together with EU regulation, you don’t have to worry about the safety of your funds at IQ Option.
IQ Option has catered to the basic requirements of the traders by understanding their needs perfectly. Typically, binary options brokers may require its clients to make larger investments, to the tune of $100 to $500 for a binary options trading account. Although such an amount is not a hefty investment by any means, it may still be a considerable investment for many traders. Therefore, to ensure that IQ Option covers a large part of the market, the broker has specified a minimum deposit of only $10. Of course, there are brokers that offer trading accounts for as low as $1, but IQ Option has certainly made the job easier for traders to open a binary options account at a regulated broker.
The broker has also specified a minimum withdrawal limit of $2, which is certainly the lowest amount of money that you can withdraw from a broker. In order to support such low payment options, the broker allows its traders to fund and withdraw using online payment processors such as Skrill, Webmoney, and Neteller. Of course, you can also make a deposit and withdrawal using a Visa and MasterCard, but the transactions may involve additional costs for payments.
IQ Option has made it a priority to process all withdrawal requests and has successfully paid more than $5.7 million a month in profits alone in 2016. It is indeed a staggering amount of money, especially when brokers these days try very hard to hold on to their clients’ investments by stating bogus reasons. IQ Option has also been successful in lowering its withdrawal time to within 24 hours, and the trend seems to suggest that the company will decrease it further in the coming years. Together with EU regulation, you don’t have to worry about the safety of your funds at IQ Option.
IQ Option Demo Trading
Trading with a virtual account is imperative for evaluating the performance of a platform and for getting familiar with the concept of binary options trading. In this regard, some binary options broker may fail to provide a demo account, while some companies limit the demo features. IQ Option, on the other hand, offers a free and unlimited demo trading account, which offers up to $1000 in virtual balance. The demo account is an accurate representation of the trading conditions offered to real traders and should act as a perfect test bed for potential customers before opening a real account at IQ Option.
IQ Option Customer Service
Contacting the IQ Option customer support department is possible through online live chat, email, web contact form, and country-specific numbers in Europe, Africa, and Asia-Pacific. IQ Option offers a reliable platform for customer interaction, where almost all problems are solved within an hour at the maximum. The company has more than 39 specialists that work around the clock to provide expert assistances to its clients and has brought down its chat responsiveness to less than 46 seconds, all the while improving its efficiency. The company also claims to have closed its customers’ tickets in under 24 minutes, making it one of the most responsive and reliable customer service departments in the entire binary options market.
Trading with a virtual account is imperative for evaluating the performance of a platform and for getting familiar with the concept of binary options trading. In this regard, some binary options broker may fail to provide a demo account, while some companies limit the demo features. IQ Option, on the other hand, offers a free and unlimited demo trading account, which offers up to $1000 in virtual balance. The demo account is an accurate representation of the trading conditions offered to real traders and should act as a perfect test bed for potential customers before opening a real account at IQ Option.
IQ Option Customer Service
Contacting the IQ Option customer support department is possible through online live chat, email, web contact form, and country-specific numbers in Europe, Africa, and Asia-Pacific. IQ Option offers a reliable platform for customer interaction, where almost all problems are solved within an hour at the maximum. The company has more than 39 specialists that work around the clock to provide expert assistances to its clients and has brought down its chat responsiveness to less than 46 seconds, all the while improving its efficiency. The company also claims to have closed its customers’ tickets in under 24 minutes, making it one of the most responsive and reliable customer service departments in the entire binary options market.
Is IQ Option suitable for smaller traders?
IQ Option specifies only $10 as the minimum deposit for its account holders, and traders can start trading from $1. The broker also approves smaller withdrawals from $2.
How long will it take for IQ Option to process my withdrawal?
A majority of withdrawals are processed within a day, but offline withdrawals such as bank wire and checks may take longer. Nevertheless, 75% of withdrawals are guaranteed to be processed within 24 hours.
Is IQ Option a scam broker?
No, IQ Option is a fully regulated broker that is EU authorised under the EEA agreement and MiFID derivatives. IQ Option is regulated by the CySEC regulatory authority of Cyprus.
Does IQ Option provide mobile trading support?
Yes, IQ Option provides complete mobile trading support through its dedicated mobile trading apps designed for both iOS and Android operating systems.
IQ Option specifies only $10 as the minimum deposit for its account holders, and traders can start trading from $1. The broker also approves smaller withdrawals from $2.
How long will it take for IQ Option to process my withdrawal?
A majority of withdrawals are processed within a day, but offline withdrawals such as bank wire and checks may take longer. Nevertheless, 75% of withdrawals are guaranteed to be processed within 24 hours.
Is IQ Option a scam broker?
No, IQ Option is a fully regulated broker that is EU authorised under the EEA agreement and MiFID derivatives. IQ Option is regulated by the CySEC regulatory authority of Cyprus.
Does IQ Option provide mobile trading support?
Yes, IQ Option provides complete mobile trading support through its dedicated mobile trading apps designed for both iOS and Android operating systems.
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