Call and put options

Apparently you’ve already asked yourself the question “Why should I deal with binary options?” the answer is simple that is profitable investment. The profit can be from 60% to 95% and at the same time you’ll know its size even before you make your deposit. Also one of the main advantages of binary options is the opportunity to make profit in the shortest period of time – some brokers can receive it in 30 seconds!

While trading on binary options you don’t buy or sell your assets. Instead to make a profit you just need to know or assume the direction of their price movement in the market for a certain time period. At the same time it doesn’t matter which specific value the price has changed ‘cause your profit will only depend on how correctly you managed to predict the change in the pricing trend for an asset. Trading binary options is an excellent option for making a profit, because you can trade online at any time convenient for you, anywhere you have access to the Internet.

Bill, 44, trader of binary options

I am always happy to discover something new for myself either a new profession or new acquaintances and countries. You can enumerate as many as you like.My brother introduced me with options and I’m very grateful for it. I really like their simplicity and availability, because put / call options everyone is able to understand. I just were into it: I traded both currency and equity index options, and now I stopped at the stock options. I have already earned quite impressive amount, but I don’t want to stop, especially after I got acquainted with digital options and it was very interesting for me.

Helen, 42, manager

The first time I was quite skeptical of trading on binary options, but I wanted to deal with it, because I saw how my friends successfully made a profit. There were failures on the way to comprehension of options, but I didn’t despair. I traded in currency and equity options, investigated strategies and it started to show positive effects. For three months I made a 10-fold profit from a deposit of $ 100 and I managed to get $ 10,000. This money wasn’t enough for me to buy a new car and some was left to start trading options again. And now I know that I were going again!

Alexandra, 38, housewife

Trading binary options gave me an excellent opportunity to become more confident in my future and future of my children! I never thought that my life would change so much: we travel a lot, now it’s not difficult for me to pay for my son’s studies, I can afford to buy things I used to dream about! I’m sure that with the right approach to investigating options, you can also expand the range of possibilities.

Alexandra, 38, housewife

Trading binary options gave me an excellent opportunity to become more confident in my future and future of my children! I never thought that my life would change so much: we travel a lot, now it’s not difficult for me to pay for my son’s studies, I can afford to buy things I used to dream about! I’m sure that with the right approach to investigating options, you can also expand the range of possibilities.

Binary options online trading has been popular for over 8 years and while it continues to gain popularity and attract the attention of both professional traders and common people. Don’t miss the opportunity to multiply your funds, because you just need to make a deposit and correctly predict the direction of the price movement of the asset. The right approach with an investment of $ 100, you can earn $ 90 in just 60 or even 30 seconds.

 

Digital option

Equity, currency and trade markets change using growth or fall of price of an asset. As mentioned above in binary (digital) option you just need to predict only two variants price increase (call option) or decreasing price of an asset (put option). If for the selected period of time you correctly predict a change of price, you will receive fixed profit.

To understand how it works, we need to consider a very simple example. Let’s suppose that you decided to trade on the USD / EUR exchange rate. We have chosen the option type: the result in 60 seconds and than selected the option type: the result in 60 seconds. Since the exchange rate changes every 60 seconds, you only need to determine what will happen to it. Let’s say that after you have analyzed the market situation, you decided that dollar will go up. You must make a bet and win 60 seconds later. It was the example of call option. The most important thing is that the gain doesn’t depend on how much dollar will grow. In binary options only the likelihood assessment of dollar growth in profit is affected. In different situations, the winning percentage can go up to 100%.

An important advantage of trading binary options is the possibility of starting without large investments. In this case, you can anticipate the degree of risk and probable profit before the start of online trading.
There are the following types of binary options, which are based on certain basic assets:

At the base of the underlying asset, a currency pair (EUR / USD, USD / JPY, GBP / USD, etc.) form the basis of currency option, commodity option – exchange commodity (oil, precious metals, coffee, sugar, etc.), equity option – shares or securities (shares of the most famous and significant companies), index – the share index (Dow Jones, RTS, S & P 500, DAX, etc.)

 

How to start trading on binary options?

Start selling digital options online is very simple. Make a deposit isn’t more difficult than paying for a purchase on Ebay. There are also a large number of additional programs that promptly tell you which bet is best done. In addition, we have prepared for you a training program, which described in detail all the nuances of trading binary options. To achieve the main goal of trading-profit, you need:

We recommend you carefully read the information below to start trading online without unnecessary losses for your budge.

 

Choosing a broker

Today there is competition between brokers (they are also trading platforms). The growth of their quantity favorably affects the market of

trading services, opening a lot of bonuses and guaranteeing a higher percentage of profit for investors. However, it isn’t possible clearly to answer the question “Which broker is the best?” The trading platform should be chosen correctly, and also consider that it meets your requirements.

It should be understood that there are no ideal brokers. One offers a good percentage of trading, but the difficulty in withdrawing funds, the other on the contrary has licenses from the regulator, there are no difficulties with withdrawing funds, but for this you have to pay a low interest on deposits. To be mobile in different situations experienced investors trade through several brokers.

Let’s consider the basic nuances, which you should pay attention to when choosing a broker:

Since online trading of binary options is carried out around the clock, the trading platform must be available at all times, the program should work qualitatively and have convenient interface. Technical support staff should provide the most prompt assistance and understanding of financial and technical issues, as well as in the exchange trade in general.

The ability to quickly withdraw the earned money shows the reliability of the binary option broker. You should choose the one who withdraws funds immediately to VISA, MasterCard or AmericanExpress card, by money order or by means of WebMoney. Also, you should pay attention to the availability of additional commission, which exist for some brokers when withdrawing funds.

When choosing a platform, we recommend you to familiarize with the broker rating, in which we took into account all of the above criteria. It was based on the assessments of specialists and the results of an open vote. Below is the top of five brokers.

Sites of binary options
1. Ayrex
2. Hihglow
3. BDSwiss
4. Binary.com
5. IQ

It will be very easy for you to register an account. It is also best for you to open several accounts on different trading platforms in order to have an alternative choice.

 

Choosing a trading strategy

There are a huge number of strategies, but there is no need to know them all, and only a few will know enough to get a good profit from their investments. We would like to note that even the most successful digital option traders use rather simple methods.

In order to minimize risks and save capital, you must follow the next basic rules:

The most effective way is to trade only one asset, in spite of the fact that trading of binary options doesn’t exclude the trade of several options. Trading with one thing, over time, you will learn to predict the direction of price movement more precisely.

Consider the basic strategies of binary options:

The first, and one of the most simple, is the catching of trend. A trend is a certain price movement in one direction for a long time. It can be descending and ascending. The essence of the strategy is to find sustainable growth or fall of rates and is quite effective. The main task is to have time to finish the trade before changing the direction of traffic. Trending is effective on five-minute forecasts and less, because probability of changing situation on  market is great.

Trading signals are based on the use of hints that in the form of a table display all the necessary information: cross, price and recommended action (“actively buy”, or “actively sell”). This strategy is well suited for beginning traders who will be able to make a profit already from start. Professionals will also receive a lot of useful information using trading signals, as well as they will be able to increase their income.

The Martingale method is based on a constant increase in the rate to pay off losses from past unsuccessful transactions. This strategy works as follows.

The trader makes the first bet and it turns out to be wrong. Therefore, it raises the second rate taking into account the return of lost money in the first bet. So it is possible to raise and at the third rate and further until it covers the formed loss. After a successful forecast, for example, after the fifth time, you should trade again with a minimum bet. However, don’t overdo it, otherwise you can lose all your money.

There is a strategy of trading against trend. And let it sound absurd, the level of successful transactions on such a strategy is very high: in the course of movement and against the movement of the trend can be considered correct, but in different situations one is more, and the other is less effective.

Trade is effective when the price fluctuates in a stable range in the narrowest possible corridor. Trading against the trend is more profitable in conditions of modern asset movement.

Whatever strategy you use from the list above or independently investigated a strategy is necessary. The work plan on the market increases efficiency several times.

 

Robots of binary options

For those who don’t know how to trade at all, we advise starting work on trading platforms using binary robots. There are two types of programs for digital options. The first kind includes robots, managed by a trader, the second kind is robots that work in automatic mode. In the first variant, the program points to an asset and it recommends an option, and you decide on your own whether you agree or refuse to trade. The work of automatic robots is accompanied by high risks, carried out even when you are offline, decisions are made without you.

The essence of the robot is a continuous analysis of the market, which takes into account the state of the asset, the analysis of price changes for a certain time, the history of positive transactions by other traders and the analysis of asset movements in recent years. Practice shows that a properly configured robot can earn an average of about 600% per month.

There are a lot of robots and most of them are configured for a certain broker. Distinctive features of each of them, in addition to the interface, is the algorithm for calculating the recommended transactions. This information may be publicly available or hidden by the developers, but not every program can boast of good analysis of the market. Before making a choice in favor of any robot, you need to carefully study information and reviews about it. An important criterion when choosing a binary robot is the safety of personal assets.

Below are some reviews of the traders:

 

Signals

For those who have a little idea of how online binary options trading works, we offer to buy signals that will increase your chances of a successful transaction several times. They are arranged as follows. If the price of the asset is expected to move in any direction in the next three hours, then you receive a trading signal by SMS or by e-mail. This function is very useful for both beginner and experienced trader. The accuracy of this service is more than 70%.

Also there is a huge amount of free signals. The principle of their work is similar to the principle of paid services except for SMS. You can use the simplest – mechanical type – that are provided to everyone on the world portal – investing.com, on its conclusion, you can make predictions. The site presents six types of signaling tools:

The simplest and most popular is Technical Review, which shows quotations of currency pairs, indices of stocks, commodities and futures. The principle of operation is simple: on the basis of the calculations performed, the system in the “summary” column issues its conclusion: “Actively buy” or “Actively sell”.

The analysis works on the principle of technical review, but in this case you are provided with more explanatory information.

Free signals don’t inform you of good rates, and it is difficult to imagine that any program would provide data for making money completely free.

In general, we can say that you need to use the signals wisely. If you got it, it doesn’t mean the information is 100% winning. Initially, it’s necessary to understand the work of digital options, learn to trade and only then the programs will begin to help and multiply your capital.

Mark, 36, engineer

I have used signals more than 4 years. I work as a trader and therefore found this service necessary. Thanks to the settings at any time of the day and night I get fresh information about the situation on the market, which allows you to conduct the most faithful operations.

Laura, 40, lawyer

One of the very first functions, if not the first one, which appeared and is relevant today. Very valuable information, which in skilled hands turns into money.

John, 60, psychologist

Used to rely only on my knowledge and my head. I read a lot of literature on trading stock options and dont regret at all. I trade using signals. Once you figure it out and believe me – the result will not take long.

Ann, economist

I wrote a diploma work on binary options, reworked a lot of information on this topic and decided to try to start making money on put and call options. For the third year already, digital options trading has been my main earnings. All additional functions, of course, greatly simplify the work of the trader, I use signals too, but I think that it is extremely necessary to understand, first of all, the device of the asset market.

 

Choice of subject of trade

When trading binary options, four types of underlying assets are distinguished:

– Shares;

– Stock indices;

– Commodities;

– Currency pairs.

For trading, trading platforms offer currencies, indices, raw materials and stocks. For beginners, we can recommend starting your trader’s path with currency trading, for example, at the EUR / USD exchange rate or trading in stock options.

 

Stock options

Let’s analyze what stock options are. These are options that allow traders to profit by simply buying or selling shares at a fixed price until a certain date on the open market.

Trading stocks on binary options has significant advantages over trading on the stock exchange. The first of them is a clear understanding of risks due to the fact that both profits and losses in case of an unsuccessful transaction are known in advance when concluding such contracts. The second advantage on binary options is the ease of online trading compared to investing in stocks on the stock exchange, in which you need to be a competent enough expert, who can very accurately make forecasts in the stock market. Trading on options, it is enough to have an idea of how the price of the contract will change: it will increase or it will fall. Another advantage in options is the ability, with the smallest investments, to trade in high-priced stocks, because you are acquiring a contract, not the asset itself.

You have the opportunity to trade shares of the most important stock exchanges, provided that the broker uses the services of a certain liquidity provider. One of them is the NYSE (New York Stock Exchange) or NASDAQ, where the shares of the world’s largest companies are represented:

Google;

Apple;

Vodafone;

Nike;

Microsoft;

Coca Cola and many others.

Considering the fact that the market of binary options is a set of trading tools of exchanges that are located in completely different places in the world, in different time zones and, accordingly, have different opening hours, you can trade at a convenient time for you.

Trading shares on binary options, you should carefully consider the economic indicators of the company, take into account the financial situation of the country in which it operates.

 

Commodity options trading

Trading these assets is much easier than others, given their triviality. Consequently, the profit is much easier to receive. This explains the popularity of commodity trade. We’ll figure out why raw materials are one of the most predictable assets.

The first factor characteristic of this group of assets is seasonal cyclicality. Obviously, with a large demand for the resource, its price grows: it is easy to explain the change in prices for energy raw materials during the heating season. This sinusoid of demand is constant and practically unchanged, not taking into account the short-term speculation of traders. You will not find such undulating demand for any other trading asset.

A not unimportant factor is the trend. You can easily analyze the situation in the market of raw materials – cereals, for example – the increase in prices in the autumn is evident in the previous summer drought.

It is worth noting that rumors can also play a positive role in the trade in raw materials. We constantly get information about raw materials from people, from the media. From day to day, we hear news about the growth or fall in prices for coffee, tobacco and other resources. And you really can use its for your own good.

The most popular commodities are:

– Gold

– Silver

– Platinum

– Oil

– Coffee

 

Index options

Stock index illustrates the trend right combination of tools, which are united by what is common attribute and relates to certain sector or a stock exchange.

At the moment, most of the indices are weighted by free-capitalization and reflects the total capitalization of all the companies included in the index there are also equal-weighted indices, where the number of shares is chosen so that the weight of each share in the total capitalization was approximately the same. It is also sometimes used the index calculation on the weighted cost, which is considered as the sum of the prices of all the instruments, divided into specific divider. Let’s try to briefly consider some popular indexes:

Dow Jones-30 (DJ30) – 30 largest industrial companies in the USA Nasdaq-100 – includes 100 international industrial companies

The S & P 500 is the stock index of the 500 largest US companies in the main industrial sectors. Illustrates the development of the American economy.

DAX (Deutscher Aktien Index) – includes shares of 30 of the most liquid companies in Germany.

FTSE 100 (Financial Times Stock Exchange) – 100 largest companies in Britain. Includes companies such as British Airways, British Petroleum, HSBC, Lloyds TSB, Tesco and Unilever.

CAC 40 – 40 largest companies in France, whose shares are traded on the Euronext Paris.

IBEX 35 is the index of the main Spanish stock exchange “Bolsa de Madrid”. It includes shares of the 35 largest companies in the Madrid market. It includes companies such as Iberia, BBVA and Telefonica.

There are a number of advantages when trading stock indices on binary options. Because the number of indexes is not small, a trader has the ability to implement a variety of strategies for trading. Some traders are confident that the stock indexes are much more easily compared with securities than forecast, which explains their popularity. In addition, certain shares are not immune from strong fluctuations, in contrast to the weighted index. An important advantage is the minimization of risks in comparison with the trade in shares.

It should be taken into account that the shares can give quite serious fluctuations, which can rarely be observed in a weighted index. There is one more significant advantage for stock indices before stocks: these are risks. For example, Nasdaq-100 includes shares of 100 largest companies. A trader does not need to buy shares directly, if the subject of his trade is an aggregated index, which smooths fluctuations for some of them.

 

Currency Option

Currency option is the type of transaction between the seller and the holder of the option, as a result of which the owner of the option gets the opportunity (but not the obligation) to purchase from the seller or sell him some agreed amount of currency in exchange for another currency at the flagged rate. This kind of fixed rate is called the strike price.

Trading currency through the binary options market, you have a number of advantages, namely:

– Access to the world’s largest financial markets

– Sufficient liquidity

– Possibility to trade around the clock

– No complex risk analysis

If you decide to trade in currency, then one question will be relevant for you – which currency pair is the most rational to trade? It isn’t possible to give an unambiguous answer to this question, in view of the fact that each currency pair has its own distinctive features and each trader has his own way of trading. Choosing the best currency pair for yourself, you are just looking for your own advantage in the trading market. Despite the fact that GBP / USD is one of the most popular currency pairs, you should choose currency pairs of yuan for trading if you have opted for trade in the Asian market. It is generally accepted that inexperienced traders should start trading with currency pairs on EUR / USD and GBP / USD.

But in order to determine the best pair for yourself, you can simply test currency pairs by betting not large amounts and keeping statistics on your trades. In order to be confident in your strategy and in the chosen currency pair, you will need to carry out not a few transactions, but your minimum investments will necessarily pay off and you can gradually increase your investments.

 

Asset price change forecast

You can make a correct prediction by choosing one of the strategies, analyzing the market, using a robot, a signal, or relying on your knowledge. Trading on binary options, you can implement several types of actions, which are called the same name – options. The main types of options.

High Low / Call Put. The simplest digital option. It is only necessary to predict what will happen to the price of assets – it will grow or it will fall over a certain period of time.

One Touch. In this option it is necessary to determine whether the price of the asset will reach the set value at the end of a given period of time or not.

No Touch. This option has analogies with Call / Put. The only difference is that you yourself determine the value of the price that the asset will not reach in a given period of time.

30 Second Trading. This is a very simple option. It is necessary to guess growth (Call) or fall (Put) of the asset value for 30 seconds.

Consider the types of options in more detail.

 

Growth / Fall.

This is the most simple and popular type of options. If you are a beginner, then call / put options are the most acceptable solution for you.

 

Put option

Let’s see what a put option is.

Speaking of put options, we mean a contract for the sale of assets on the exchange under certain conditions for the duration of this option. In this case, the buyer does not have the opportunity to refuse the delivery of goods, if the seller has made the appropriate decision.

Fixed, it is a certain price for the sale of an asset is called a strike-price. In binary options, your profit depends on the direction in which the price of the underlying asset changes.

 

Call option

Call option is an ordinary contract, according to which a right (however not an obligation) is created to acquire the underlying assets. In this case, the seller is obliged to sell the asset if the buyer takes an appropriate decision.

Naturally, the buyer acquires this opportunity for a price. It is defined as the amount of the premium that the buyer pays to the seller at the time of the conclusion of the contract itself.

The fixed price that is a certain price for the sale of an asset is called a strike-price.

Call is an option for the buyer, provided that he is confident in the future growth of the price of this asset. The seller can suffer losses as a result of a sharp jump in the value of the underlying asset, as the second party, the seller has no right to refuse the transaction. Typically, sellers agree to call an option, subject to market stability.

 

One touch

The peculiarity of this type of options is that the trader has to determine not only the direction of the asset’s movement, but also the price that he will reach over a certain period of time. One-touch options are the most effective way to quickly increase your initial deposit. Trading on put / call options, you need to conduct dozens of successful trades before you can get a similar benefit. However, one should take into account the risks that significantly increase in one cloud of options, because it is much more difficult to determine the quantitative value of a change in the price of an asset than its direction.

It is important that the opportunity to open such a transaction is provided only once a week. If over the next seven days the price of the asset does not reach a certain level of the broker, then the trader will lose his investment.

In one touch options, it is important that within a week the price of an asset should reach the designated mark only once: it does not have to remain that way at the expiration of the option, you will still get profit. You can bet, like $ 100, and $ 1000, if you are confident in your knowledge, large bets will significantly increase your winnings.

 

No touch

No touch options are similar to One touch, the only difference is that in No touch options the price of the underlying asset should not reach the value set by the trader before the expiry date expires. In other words, the trader determines the lower or upper level, which should not cross the chart for a set period of time. A trader makes a profit if this condition is met, if not, loses money.

It is rational to use No touch options if the level of volatility of the underlying asset is not high, but also under the condition of a pronounced trend, when you can accurately determine the movement of the chart. This type of options is also relevant given the relative calm in the markets.

The peculiarity of No touch options is the absence of an opportunity to win a deal before the expiry date expires, but in case of a loss, if the schedule touched the specified mark, the trader will already know this fact before the expiry of this period. Thus, the trader does not have to spend time on this transaction and he can easily switch to another.

Either way, no touch options will definitely help you get a good return if you conduct a competent market analysis.

 

Trading in 60 seconds

60-second options are very simple: you acquire an option and in a minute you know what the outcome of the transaction. Options 60sec allow you to make a huge number of transactions, it can reach 50 pieces per hour, it is enough just to predict the trend correctly. Another advantage of this type of trading is the terms of brokers: traders are given more bonuses, lack of commissions, as well as the ability to trade a large number of assets.

Trading on short-term options is important to understand that the profit depends directly on your chosen strategy, because without it, trade simply turn into a roulette.

 

Selecting the amount of investment

When choosing the amount of investment should be understood that it is not worth investing in the transaction immediately all the assets. The risk is certainly a noble cause, but to lose everything and at once no one wants. Since we came to this business to earn, it is necessary to learn the following rule: “No more than 10% of the total amount of capital should be invested in a transaction!”.

 

Getting winnings

All you need is to make the right prediction. As a result, you receive a profit of 60% to 100% of the invested funds. Conclusions of incomes at brokers can differ, therefore at a choice of any platform on it as it is necessary to pay attention. A typical version of withdrawal of funds from the account is as follows:

We would like to add that in this article only the basic information is briefly reflected. To start trading online correctly and at a lower cost, we recommend to learn more about information about binary options, binary option robots, regulators, signals, options and more. Practice shows that there are a large number of traders who earn big money on digital options, simply by making small efforts to understand how the asset market works.

They say that money doesn’t grow on trees – it’s not like that. It grows and binary options is a ladder, climbing on which you can break it. All you need to do is to make small efforts to install this ladder.

Who are we?

– We are a community of investors who want to introduce you to the tool of multiplying money.

What is our goal?

“Our goal is to let people know more about binary options”

How do we achieve it?

In our opinion, we collected for you the most important information and processed it through the eyes of an experienced broker.

28 November, 2017

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28 November, 2017

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