What is Binary Option ? How to and Strategies to Make Money with it

What Binary options is, types of binary options, how to choose a good binary option broker, initial investment deposite, trading strategy and demo account trading and its benefits

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Are Binary Options a Scam? Not!

It is important to be attentive, decisive and also it is requires a small investment earning money with the help of binary options.

If you make a good deal your profit will grow day after day. To do this you need to find an experienced person who controls it.

BINARY OPTIONS. What is it?

A binary option is a contract within a particular exchange that is used to generate income in the movements of the value of assets (currencies, stocks, commodities) in global economic markets. The participant during the purchase period makes his forecasts for a certain time of change in the value of the asset. This economic mechanism has a fixed price, a previously known expiration time and the amount of possible income. To increase profits and simplify the trading process, experienced traders use trading strategies and signals that increase the chances of a successful outcome of the transaction and maximize financial returns.

How to make money in binary options?

First of all, the use of binary options is the probability of getting income by trading in different markets of the world, through a broker. The point is not to acquire an asset (stock, currency, goods), but to purchase a special contract with a specific expiration date. All actions are performed via the Internet. 

There are a number of types of binary options (derivatives): 

– 60 seconds. It is a kind of conventional option, with an expiration date* one minute. It’s a fairly well-known type of option from among scalpers* and short-term traders*. 


This type is not recommended for beginners due to the high degree of unpredictability. 

  • Expiration. Is ending of the contract (option) duration period. 
  • Scalper. A person working on small changes in the value of the asset, trying to earn extra money on any price change. 
  • Day trader. A person who conducts trading transactions on the exchange usually at a certain time (mainly from one day to three days). 
  • Digital option. A traditional type of derivative that involves the formation of monitoring where the price will be: higher or lower than the current level in a specific time period. 
  • One touch. The option is characterized by a fairly high degree of profitability (about four hundred percent).
  • Range. The principle of operation is simple, whether the price remains within a certain range or not. If it remains – the trader  receives his income.

Complex Binary Options:

– Options Builder. It allows you to fix the ratio of profit/loss;
– Pro Options. It assumes a highly professional type of options, which gives the trader the chance to exit the market at any required time, regardless of the time of expiration.
It is an excellent tool when applying a position hedging strategy.

Is it worth trying to trade binary options?

It is certainly. However, first you need to understand the basic features of trading.
1. Trade is hard. So many times this has already been said. However, this is one of the basic laws and it is not necessary to lose sight of it. Do not trust those who say that trading is easy. If you ask yourself whether it worth trading binary options, you should assume that it is easy only to make transactions. But in order for them to constantly bring income, you will need to work seriously. 
2. The risks are constantly high. No matter how experienced the trader is, he will not be able to protect himself from risks. So what can we say about beginners? We must understand that it won’t be possible to avoid the losses. However, this does not mean that it is impossible to earn here.  The main goal is to make more profitable deals to cover losses and get income.

 3. You cannot trade without losses. Unprofitable operations – this is a normal process. The main thing is that profitable contracts cover losses and bring profit. You shouldn’t be nervous but be focused on strict adherence to the strategy. Do not need to rush to recoup after an unsuccessful series. Additionally, you do not have to indulge in the euphoria.

How much can you earn trading on binary options?

First of all, everyone who dreams to earn extra money must know a number of important concepts: binary option, broker, trader, asset, market movements, which can be ascending and descending. After the market analysis is completed, if the investor’s forecast is accurate, he acquires the selected contract that reduces or increases the value of the asset. 
And it does not cease to implement it until the end of the term of the option contract. And how much do you get on binary options? If the forecast is, the income will be approximately 60% of the initial Deposit amount. If the forecast is not successful, the trader loses 80-85% of the initial Deposit, and the remaining 20-15% will return to the user’s account. Of course, brokers are also people and do not work for nothing. The service takes 15% of various investments. All types of binary options appeared as a result of problems in attracting new users. In this regard, brokers provide a package of services and make concessions. A binary options trading is quite limited, that is, the client predicts a decrease or increase in the value of the asset in a particular period.

The main factors that lead traders to IQ Option, are the convenience of the trading platform, a wide range of bonuses and a Deposit of ten dollars. It is difficult to part with your money at a higher Deposit when you start to try your hand at an unfamiliar platform. You can read our IQ Option review here.

We should understand that it will not be able to trade profitably and confidently with a minimum Deposit. $50-100 will allow you to test the best trading strategies on IQ option for beginners and get invaluable experience. Do not forget about the demo account, you can open it for free, with a balance of $1000 and possibility to replenish.

How to trade on IQ Option

Hedge is perhaps the best trading tactics for beginners. The point of the system is to minimize the risks and losses of the trader. This is achieved by trying to “to cage the course up” in order to maximize profits.

The trader’s tactic is to purchase a pair of looking at each other binary options with a big gap. The size of the gap is important: if it is large, the chance of course disappearance from the cage is minimal.

The trader acquires the asset to increase, then, with the right tear – down. Actions can also be performed in reverse order. It all depends on the current situation in the market (whether is fiat or trend traded now). It can be acted in reverse order. It all depends on the current situation in the market, which is now trading flat or trend.

We recommend to trade IQ option with an expiration period of 5-15 minutes, this is the optimal time for the price to pass a sufficient number of points from the first open transaction to the second.

Example of profitable Hedge trading:

Determine the direction of the price movement, in the example on the 5 minute graph-the price increases. The initial option was opened for a fall, the second for growth-the price is caged. It is possible to work inversely. Our tests show it is more preferable to open the first position on a trend, and the second against.

This strategy for IQ option is based on the market observation and the statement – “the price can not constantly rise or fall.” After a number of points up (down) there will be a correction in the opposite direction.

In the example, the price of binary options is four hundred dollars with a yield (with a positive forecast of 88%).  The sum of $ 800 is total investment, in the case of caging the course up the trader receives a top 754 dollar net income ($352 per option).

If the rate goes out of the cage, the losses can make the difference: $ 400 (bet on losing positions) minus $352 (profit on winning the deal) = $48. In the end, it is better than to acquire one or a pair of options of the same direction, where the losses will be much greater.

An example of a failed transaction according to Hedge system:

-The strategy’s benefits:

-Double profit, 75-80% of winning trades;

-Minimum loss in case of negative forecast;

– Slow deals (5-15 minutes);

 It is recommended for beginners.

Scalping and pullbacks

Scalping is another kind of IQ option trading strategy. This trading system is based not so much on the graph analysis as on the speed of the trader’s reaction. Unlike the Hedge system, Scalping is used on turbo options or binary options before expiration.

The essence of the tactics is to open a deal on the trend in case of a sharp change in the rate against the trend. The risks are clearly visible, because the course may not move back, but continue its direction. It is necessary to monitor the price movement working with this system. If there are no news and other messages affecting the asset on the market, the system will work. This strategy can be difficult for beginners because of involving analysis (fundamental and technical) on the part of the trader. Many factors should be taken into account.

Trading in IQ option on rollbacks

The system requires fundamental analysis on the part of the trader. During the flat period, the asset price moves in a narrow range. But as soon as there is news (positive or negative), the rate begins to fall or rise. The strategy is similar to Scalping: as soon as the rate begins to roll back — a temporary decline (with a trend growth) and Vice versa, you need to catch the moment and enter the market. A rollback is a movement against the trend (in the opposite direction), but with the next return to initial position. You can study the list of other strategies in the relevant section of our website.

Conclusion

Standard 15-20 minutes strategies in IQ option have some advantages over turbo options. If an advanced user wants to help beginner he will always recommend trading on low options there is no point to start with turbo trades immediately. They are complex in terms of determining the direction of the trend, and as a consequence, it is not always possible to predict the result. The best traders use 10-30 minutes deals the number of unprofitable options will be less, and trading will be systematic and comfort.

Are binary options a Scam?

binary options scam

You can safely make money, because binary options are not a fraud and completely legal. At the moment, there are no schemes of dishonest profit on such exchanges. In turn, they also adhere to the rules and pay the participants all the money earned. 

Who is a broker and how to choose a good one ?

A broker is considered the connecting link between the seller and the buyer of the currency or any of the securities. He receives his own income from the Commission money coming after the registration of each operation related to the purchase/sale of assets. 
The activity of the broker is to ensure that it acquires and sells certain assets on the orders of its buyer. In addition, the functions of such an intermediary can be successfully carried out by a variety of investment firms and banks. And, as a rule, the first give their own customers a full range of services related to brokerage and consulting services, Depository and dealer activities, etc. 

To get to the foreign exchange market, you will certainly need to choose a suitable broker, sign a certain agreement with him, and then transfer a certain amount of funds to his account. In addition to the basic functions, intermediaries can provide traders with a workplace for trading, which is equipped with everything necessary. There is also a service of providing brokerage leverage, implying the issuance of a Deposit of credit funds to the trader. 
Choosing a broker, first of all you need to pay attention to the feedback about it. Thanks to them, it is possible to weed out more unscrupulous intermediaries at the first stage of the search, thereby narrowing the list of possible options. Then you will need to know the history of the intermediary you are interested in. Find out about the number of clients he has and how long he has been working in this field, how often he has had order failures, etc. In addition, you should find out everything related to the terms of trade, directing interest to a set of trading tools. If necessary, you can even visit the office of a certain broker.

Who is a trader?

The emergence of economic markets has led to the emergence of a new specialty called “trader”. Trader (eng. trader) is a member of the financial market, which conducts purchase and sale operations with a single purpose: to attract income. He conducts trade either with the use of personal money, or being a Trustee of his buyer (investor).


The trader’s job is to perform trading operations, the task of which is to generate income. It sells or acquires securities, currencies, bonds and shares. The trader should examine the incoming information very carefully, as well as have the ability to react to the changes in a timely manner. In addition, discipline is considered an important factor in the well-being of the acquisition and implementation operations. 


Professional traders include those who have received proper financial and/or economic education, as well as employees of investment funds, analytical centers, banks and brokerage companies. In addition, there are traders-professionals that carry out trade in their own assets, thus making a good living.
Amateur traders are a more numerous and diverse category. A group of these people has a different level of education, beliefs and range of interests, but they clearly have an interest in trading in economic markets. As a rule, trading in economic markets is only a hobby for such traders, and not the main type of work. But most of the fans, having received the necessary practice and knowledge, will retrain into high-class traders and enter the world of finance for a long time.

Advantages of binary options

  • The probability of maximum fast trading and personal timing. To determine such a short time is possible only in binary options and “turbo options». This is practical if you need to get income urgently. However, we should not forget that the faster and more profitable the operation, the less chance to calculate its result. 
  • High profitability. This mechanism gives an income of up to 85%. This is a very high profit by the standards of various exchanges. 
  • Risk control. 
  • The ability to perform minimal investment. Only in the system of short-term binary options you can bet less than a dollar, to increase or decrease the rate.
  • Small bets. It can also be a disadvantage.  Anyone can start using the platform, even without any knowledge in the industry. On the one hand, this is a great opportunity to start your own way of investor or trader. On the other hand, a beginner deepened into the auction, can simply lose a full deposit. You need to ask for support from more experienced users.

Cons of binary options

  • The randomness of the course. For example, to determine the jumps in the value of the monetary unit by ten thousandths of a percent in thirty seconds, it is not reliably established. 
  • Turbo mode is non-profit at a distance. 30-seconds and fleeting operations, which certain platforms of B. O. offer, will not provide steady earnings (especially if you use the methods of playing in the casino, with doubling the rate, etc.). This is almost always the loss of the deposit. Turbo trading is possible, but it should be understood that it is only in certain cases. 
  • Place to Scam. You should always choose a proven, certified platform for sales and do not trust the advertisements of ultra-reliable strategies from strangers.

As you can see binary options are quite honest earnings. Before start earning with the help of binary options you should believe in yourself and not afraid of losses. If you have a little patience the profit will be in your pocket.

Binary options with no deposit bonus

Today, starting investments are not necessary in all cases to start trading options. Some brokers offer a no deposit bonus on binary options with a withdrawal. This means the client does not invest and it is enough just to register a personal account and get a bonus, and then make a successful transaction for a certain amount. 
If the forecasts are correct, the trader will be able to withdraw the earned funds, i.e. cash them with a bank card, for example. This method of making a profit has its advantages and certain risks, which are described in detail below.

No deposit bonus on binary options for registration

This bonus is always a voluntary decision of the user. The company often advertises and promotes such actions in every possible way, offering really favorable conditions. However, before the agreement, the trader is better to think carefully about the ability to fulfill the conditions of winning. To do this, it is useful to learn about the advantages and disadvantages of this tool. 

Advantages

The most obvious advantage – the user does not invest personal funds, he really gets the opportunity to earn money without starting investments. It is enough to pass a simple registration, create a personal account on the broker’s website. After that, you can safely try to earn your first money. Thus, the trader can use binary options with no deposit bonus for registration. Another advantage is that you can try out strategies, trading indicators and other trading tools for free. In fact, the user can immediately understand how this type of activity is suitable for him personally. And if you also manage to earn – it turns out that there are no risks.

Disadvantages 

In fact, this way of making money has its drawbacks. The most important of them is that the offered bonus funds can’t be withdrawn in all cases. First of all, it is important to remember that you need to fulfill the conditions to win in this kind of competition, to make a certain number of transactions for a minimum amount, for example. 
The company also may allow withdrawal of your winnings only after replenishing your account with real funds. It is necessary to pay attention to such tricks. If you turn to unverified brokers, there is a risk of loss of personal funds, so do not invest your own money, especially for beginners. In addition, such an opportunity is not provided by all brokers.
In fact, the list of no Deposit bonuses for binary options 2019 is an additional means of attracting new customers, but at the same time it is the broker’s costs.
Therefore, the companies don’t always carry out such actions and the user should monitor the update of information on the official sites. Another drawback consists in the features of the psychology of trading. The fact is that the trader must learn to play on real money, and this involves significant risks, up to the complete loss of the deposit. If you work without an open account, it creates the impression of “easy” money and reduces the responsibility of the person. It is important to understand that working on real money is significantly different from trading on a demo account. Therefore, the user must immediately understand the psychological characteristics of this trading and protect himself from risks. For example, any strategy should be tested in advance on a training deposit, and the rate should not exceed 3% of the total amount.

Best no Deposit binary options with a possibility to withdraw funds

Before getting a no Deposit bonus on binary options with a withdrawal to a real account, it is important for the trader to choose a suitable company that conducts such actions. 
Usually welcome bonus money is distributed in 2 cases:
*Young companies that have just started to develop in the market. They need to attract new customers by any available means.
*Fraud companies that use such tricks to force the client to make their own money, then they disappear. They tend to use tempting advertising, promise a very large income in the minimum time, etc. 

In order not to get into such a situation, it is important to know how to choose the most honest binary options. First of all, it should be a proven, licensed company. On its official website you can find relevant contacts and relevant documents (certificates from financial regulators – CySEC, the FMRRC and others). Also, the platform should not ask to enter the client’s personal funds, although it may offer to do so. The terms of the action should be really feasible in a few weeks. In addition, these conditions should not change – otherwise you can immediately suspect fraud and stop cooperation with the company.

Choosing a broker and a platform

Despite the fact that in most cases such actions are really carried out by young companies, sometimes bonus funds are offered by large brokers. Periodic promotions are aimed at attracting additional customers, especially during periods of calm (for example, summer holidays or new year holidays).
Thus, it is really possible to get a no Deposit bonus on binary options in 2019. However, it does not eliminate the need to understand trading in order to trade for real money. Therefore, before taking part in this action, it is important to soberly assess your strength and make an informed decision. And beginners in most cases it is better to start trading without any bonuses, relying only on their own strength.

Conclusion

Trade or not to trade binary options is up to you. I can only give you detailed information about this tool and show that you can make money on binary options. 
Do not expect quick results — be sober! For everything that is worthwhile in life you have to pay with your time, effort and diligence.
And if you are not ready — it is better not to start, the result will be predictable.

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