Binary Options

Binary Options Signals – Is it a Scam or Will I be a Millionaire?

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Binary Options Signals – Is it a Scam or Will I be a Millionaire?

Binary options signals are a heated discussion topic in some trading circles.  Some swear by them, claiming they are the best way to create wealth with binary options, while others say they are a complete scam.  As with most things the truth is somewhere in between, and below we take a look at the advantages and disadvantages of binary options signals.

Binary Options Signals Advantages

-          Emotions are taken out of your trading, which avoids problems with over trading or an inability to pull the trigger on a trade.

-          Continues to trade for you 24/7 with no missed opportunities.  This is true whether you are running binary options signals on your own, or if you receive them from a signal service.

-          Can generate more consistent winning trades than manual trading.

-          You can program money management right into the signals, and relieve yourself of the need to remain disciplined when you really want to trade more than your money management calls for.

-          Binary options signals can identify market patterns that are complex and would be almost impossible for a human to see.

-          When automated a signal can be triggered and traded within milliseconds, ensuring no trade will ever be missed.

-          The ability to use strategies that might require dozens of simultaneous trades.  While these strategies are often very profitable, they are only possible when automated trading signals are used.


Binary Options Signals Disadvantages

-          There is little flexibility when using binary options signals.  You are often constrained to a single asset, and some signal services require you to use a specific broker.

-          Your trading is totally dependent on technical data and signals.  This can limit you in that fundamental analysis when combined with technical analysis is often superior in generating winning trades.

-          When using signals you will find that they often enter the market at predictable levels, opening you up to the possibility of your trades being hunted by others.  This can be very common with institutional investors, who are well known to take advantage of such trades.

-          Actual performance could vary wildly from what the historical performance suggests.  Oftentimes the historical data comes from back testing, and the results are not able to be replicated in actual market conditions.

-          Unusual market conditions can break the trade signals, leading to large losses in a short period of time.

-          When signals are provided by a signal service the trader may not have time to act on them if he isn’t able to trade immediately.  This is not as much of a problem with automated signals, but slippage can still be a factor that needs to be considered.

-          Automated trading signals are still open to errors in programming as well as hardware failures.  In addition, data transmission errors can also cause unintended losses when trading with binary options signals.

Binary Options

How To Hedge Your Forex Positions Using Binary Options

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How To Hedge Your Forex Positions Using Binary Options

You can make money trading currencies in the forex market, but it is also possible to lose money.  As with any type of trading it is always wise to look for ways to reduce risk, and one way to do this when speculating in forex is to hedge your forex positions using binary options.  A binary option is a derivative that pays $100 when the option expires in the money, and $0 if the option expires out of the money.  These are American style binary options, and they are available on all the popular currency pairs such as EUR/USD, USD/JPY, GBP/USD, and USD/CAS, as well as others.

To show you how to hedge your forex positions using binary options I will give you a basic example.  Suppose you are long the USD/JPY on a daily basis.  You have placed your position at 101.50 and have a 25 pip stop loss in place.  You are expecting an uptrend in the pair to continue, with a profit target of 75 pips.

In this case, if the pair declines to 101.25 your stop loss will be triggered and you will have lost roughly $250 on a standard lot.  Naturally you have confidence that your analysis is correct and the pair will continue to trend upwards, but it never hurts to have some insurance in place.  The stop loss is one form of insurance, but you can also use a forex binary option to hedge your position and get even more protection.

So, you will hedge your forex positions using binary options.  Assume it is now 10:00 in the morning.  Your stop loss would be triggered if the price of the USD/JPY drops to 101.25.  You decide to buy 4 USD/JPY binary option contracts with an expiry of 24 hours that pay out if the price ends below the current price of 101.50, and for these you pay $25 each or $100 total.  If the price does decrease you will make $300 in profit, which would offset the potential loss of $250 if your stop loss is triggered.  Of course if the price increases your options expire out of the money, and you are out $100, which can be considered the cost of your insurance.  We can also assume that the price of the pair would have gone up by at least 10 pips, offsetting your insurance premium.  No matter what the market does, you are pretty much at a breakeven point +/- 10 pips from the current price of the pair.  If price goes down you gain $50 net and if price goes up you gain as long as it increases by more than 10 pips, which is what you are expecting anyway.

This strategy can be used to hedge nearly any forex position, and give you excellent protection in case the market unexpectedly moves against you.  All it takes is a small bit of calculation, and a binary options account to place the binary option hedges.

Binary Options Trading Strategies

Don’t Miss a Trading Opportunity

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trading opportunity

How is it possible to ensure that you don’t miss a trading opportunity?  Well I can think of several ways, and below I’ll go into more details about each so you too can add them to your trading strategies and ensure that you never miss a trading opportunity.  You work too hard to learn the markets to miss out on profitable opportunities, so heed this advice.

Trading Robots

Trading robots have been around for as long as we’ve had computers capable of processing large amounts of data.  These robots take instructions in the form of programming and turn them into trades on binary options or other financial markets.  They can work 24/7 without any help from a human, and can even place rapid arbitrage type trades within milliseconds, accomplishing something no person could do.  If you wanted to you could have a robot created to trade nearly any situation, and it would do so whether you were awake, asleep, on vacation, or at your workstation.  If you don’t want to miss a specific kind of trading opportunity a trading robot is the way to go.

Mobile Trading Apps

The addition of mobile trading apps have made it possible to be sure you don’t miss a trading opportunity.  With a mobile trading app installed on your smart phone or tablet you are just seconds away from placing a trade, no matter where you are and no matter what you’re doing.  Simply install the app and you will have access to the same trading platform as you have on your home workstation.  Now simply add in some alerts from your favorite financial news sites and you are ready to trade at a moment’s notice on all the breaking news.  This is one of the best ways in the 21st century to be sure you don’t miss a trading opportunity.

Never Sleep

If you don’t go to sleep you can monitor the markets 24/7 and never miss a trading opportunity.  Ok, this isn’t realistic, but I thought I would throw it in just for fun.


If you are only trading one type of asset you are certain to miss many trading opportunities.  Instead you need to increase your knowledge of the markets so that you are comfortable trading all kinds of assets.  In this way you will never miss a trading opportunity when it happens in a market you don’t normally trade, because you will be able to trade them all.  As we well know, all the markets are tied together and opportunities in one market will inevitably create opportunities in related markets.  Diversify your knowledge and you don’t have to miss a trading opportunity.

These are just a few methods you can use so that you don’t miss a trading opportunity.  Use your imagination and creativity and I’m sure you can come up with more.  However, with binary options you don’t have to worry about missing opportunities so much since your profits on each winning trade will be so large.

Binary Options

Binary Option Trade Types

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Binary Option Trade Types

Within binary options a trader has more choices in trading than ever before.  There are several binary option trade types that can be used to profit from different market conditions.  Each is best suited to different strategies, so a well rounded trader should have a knowledge of each type of binary trade, and when they should be used.  Below is a breakdown of the different binary option trade types.

The High/Low Trade

This is the binary option type that started it all, and it is still the most popular of the binary option trade types.  It is the basic option where you make a prediction whether the price of an asset will finish higher or lower at the expiration of the option.  It is simple to understand and easy to trade, and that is why it became so popular and remains so popular.  With returns of 65% up to 80%+ it’s no wonder that traders appreciate this trade type.

The Boundary Trade

This is similar to a straddle or strangle in vanilla option trading in that the option contains two strike prices, which are considered to be the boundaries of the option.  There are two basic ways that these options can be traded.  One is to predict that the price of the asset will finish outside the boundary, and the other is to predict that the price of the asset will finish within the boundaries.  The outside boundary trade can be very useful around important news releases, where the trader knows that the price of the asset will move violently, but he unsure in which direction price will move.  The inside boundary trade can be used in flat or range bound markets, where the trader belies that price will continue to move sideways in a tight range.  There are also more advanced boundary trades that call for the price of the asset to simply touch one of the boundaries, which leads us to the next binary option trade types.

The Touch/No Touch Trade

In this trade there is a single strike price defined and the trader is making a prediction that price will simply touch this strike price before the option expires.  As soon as price touches the strike price the option is in the money and the trader collects his profit.  In the no touch variety the trader is predicting that price will not touch the strike price at any time during the life of the option.  These touch trades are most typically used in weekend options, where the expiry of the option is set at the close of the market on the following Friday.  This longer term option can be challenging to trade, but some brokers offer up to 550% returns on weekend touch options, so as you can imagine they have become very popular with some traders.

Those are the three basic binary option trade types.  As brokers continue to innovate there is no doubt that they will come up with other trade types, but these three should give a trader the ammunition he needs to trade in any market conditions.

Binary Options Trading Brokers

How to Compare Binary Options Brokers?

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How to Compare Binary Options Brokers?

When just starting out in binary option trading every one of us needs to make an important decision.  That is, which broker to use.  Some new traders freeze at this thought as they don’t know how to compare binary options brokers.  The guide below will give you a starting point to reference as you search for the best binary option broker for your needs.

  1. Search through forums and binary option review sites to get an idea of who other traders use and trust.  There is a wealth of information out there and you will soon find that out of the hundreds of brokers available the same names keep popping up.  Sure, you could use that untested and unreviewed broker, but do you really want to use your trading account as a guinea pig?  I thought not.
  2. Create a spreadsheet to track the various characteristics of binary option brokers.  You can include such factors as follows:
    - Are they regulated?
    - Do they accept traders from your country?
    - What are the returns like on their options?
    - Do they offer deposit bonuses and rebates on losing trades?
    - What assets do they offer?
    - What trade types are available?
  3. Once you have a short list of brokers to consider, start to contact their customer service departments and ask simple questions to see what type of answers you get.  You are looking to see if the staff is knowledgeable, responsive, professional and helpful.  Often the quality of a company is reflected in the quality of their customer service staff, so this is a good place to go to get some research done on the broker.
  4. Look into the deposit and withdrawal terms for each broker.  Make sure that they will accept your preferred form of deposit and withdrawal channels.  Also look to see how quickly they process withdrawals and if there are any fees or restrictions on withdrawals.  Also find out how they go about verifying withdrawal requests and be sure you can comply with their terms.
  5. Look into the broker’s education center, assuming they have one.  Every broker should have at least a basic education center, and the quality of the material can be a gauge of how committed they are to their client’s success.  Extra points for brokers who go to the trouble of hosting regular trading webinars and those who have a structured education program.
  6. Finally, all other things being equal, go with the broker who offers the best returns on their options.  At the end of the day, even a few percentage points extra for each winning trade can add up to a profitable month, rather than breaking even or losing.  Also consider rebates on losing trades as well as special payouts for VIP accounts if you think you will qualify.

How to compare binary options brokers isn’t all that difficult.  There are many characteristics that the brokers have in common and all that is required is a bit of organization to compare each.  In this way you can easily find the best broker for your circumstances.

Binary Options Trading Brokers

Anyoption Platform Review

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Anyoption Platform Review – Key Details Revealed

Anyoption is a leading online broker and platform offering traders worldwide the opportunity to trade options and binary options from a transparent and safe trading environment. Opening their doors in 2008, Anyoption is headquartered in Cyprus and they provide their world-class service to traders in over 150 countries globally. Anyoption offers an intuitive and cutting-edge trading platform as well as a wide range of advanced trading tools and features to enhance trading success.

Anyoption Trading Platform

From the moment you enter the Anyoption website, you will notice that everything you need in order to trade options can be found on their homepage. This includes opening an account, access to banking, assets, their trading academy, live chat and much more. The website is offered in 9 languages including English, Turkish, Spanish German, Italian, Russian, French, Chinese and Japanese.

The trading platform provided by this broker is easy-to-use and to navigate. Traders also have a choice of trade options which include standard binary options, Option+, Binary 0-100, One Touch and Special. This variety enables a trader to diversify their trading portfolio and to take advantage of a wide range of potentially profitable trading opportunities. The Special trade option allows traders to trade in Bitcoins as well as in Alibaba shares. The broker also offers the exclusive ‘one click’ trading which means that once you select either the Call or Put option, no additional confirmation is required so your trade option will be executed immediately. The platform offered by Anyoption also gives traders a choice of expiry times catering both for long and short term investments. For those who prefer to trade while on-the-go, Anyoption offers a mobile version of their trading platform.


A core component of being able to trade options effectively is having access to a wide range of assets to trade in. Anyoption offers traders over 130 assets to trade in including stocks such as Twitter and Amazon; commodities such as gold and oil; indices such as NASDAQ and FTSE 100 as well as currency pairs or Forex such as AUD/USD and EUR/USD. You can find a detailed Assets index list on the Anyoption website which clearly outlines which assets are available for trading 24 hours a day.

Educational Trading Resources

To assist their traders to trade effectively and profitably, Anyoption offers a wide range of educational trading resources. Their Academy offers a vast selection of trading videos which include videos for both novice and advanced traders as well as trading guides. The broker also provides a selection of comprehensive trading tutorials which cover the different trading options available on the Anyoption trading platform. The Anyoption eBook is also available online and it provides step-by-step instructions on how to trade options. Another exciting feature is the Anyoption interactive demo which enables a trader to see how a trade is executed. The broker also provides a wealth of information on how to trade as well as detailed information on what binary options are.


In order to trade with peace of mind, a trader needs to have the ability to deposit and withdraw funds with ease from their trading account. Anyoption provides traders with a wide range of banking options and they are also well-known in the industry for providing fast withdrawals. You can deposit funds into your account using credit or debit cards, international wire transfers, CashU, Skrill as well as domestic payments. You also have the choice of the type of currency of your trading account and this includes U.S. dollars, Euros or British pounds.

Customer Support

Anyoption offers first-rate customer support and service. They offer a live chat feature that enables you to contact the broker directly at any time. You can also request a callback. For ease of use, Anyoption also provides a full list of local telephone contact numbers around the world or you can simply email them directly from their website.

Everything you need in order to trade options accurately and successfully can be found under the Anyoption trading umbrella.

Binary Options Trading Brokers

Grand Option Trading

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Trading with Grand Option is an excellent choice for both experienced and new traders.  While they are relatively new and untested as a binary options broker, they are also regulated by CySEC, and I think that speaks volumes about their commitment to the industry.  Rather than wait, they immediately sought out regulation to give themselves legitimacy in a sometimes questioned industry.  This alone makes them trustworthy as a broker, and as you’ll see below they also offer many other benefits to traders.

Security at Grand Option

Because Grand Option is CySEC regulated they follow the most stringent codes regarding data protection and account security.  Every trader account is segregated and 128 bit encryption is the norm, meaning you’ll have no worries about your personal data.  They also follow CySEC regulation rules in their firewalls and the encryption of stored data, making them fully PCI compliant.  You won’t find a trading environment that is more secure.

The Trading Platform

Unlike other brokers who use the same third party trading platforms, the platform at Grand Option was developed in house and is proprietary to them.  As soon as you experience the platform you will recognize the care that was put into the design process.  This is a platform that was obviously developed with the trader in mind, and the developers obviously have many years of experience in the binary options industry.

Trading Bonuses

While not everyone takes advantages of bonuses, if you prefer brokers that offer them you’ll be pleased with the 150% deposit bonus at Grand Option.  In addition, VIP traders get higher returns, there are cash back bonuses and rebates for all traders, and Grand Option also offers insurance protection for trades.  And if you need some guidance, there are professional traders on staff who will gladly assist you.

Asset Types

Grand Options does not have the largest collection of assets available, as they chose to focus instead on other aspects of trading that make it more profitable and user friendly.  That said, all the standard assets are available, so if you aren’t looking for the most exotic assets you’ll be happy with the asset selection at Grand Option.

Types of Trades

This is one area where Grand Option excels.  In addition to the most common high/low trades, there are a number of other trade types available.  Perhaps the best is the new one touch options, where traders can realize returns as high as 500% on a single trade.  You can also take advantage of boundary trades, which are ideal for range bound markets, or trading around news releases.  And they specialize in short term options, offering 5 minute, 2 minute and 60 second expiries on many of their available assets.  If you are looking for a broker that will allow you to make fast profits, Grand Option will fit the bill.


Even though they are new, Grand Option is a very solid broker, especially for new traders.  You get protection in the form of industry regulation, and you will soon find that the trading platform is one of the best offered to traders in the whole binary options industry.

Binary Options Trading Strategies

Realistic Stocks Trading

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Realistic Stocks Trading

All of us begin trading for one purpose – to earn money. And generally when beginning stocks trading you will consider “What can I sensibly make my first year trading?” Quite standard question to consider when just beginning in my opinion.

I frequently discover that many beginning traders don’t get a hint in regards to expectations from the marketplace regarding gains. They definitely need to know about realistic stocks trading though when trading their cash on a regular basis. Sadly most of you will learn about stocks trading the hard way.

I don’t have any idea on earth how much you might make in your first year of stocks trading, to be frank. And when trading you can’t assume too much.  I can tell you that without appropriate education including a trading strategy that is strong you will probably drop a several years of savings if you don’t have realistic stocks trading expectations.

Establishing Reasonable Expectations

Traders’ often begin with expectations of their future performance that are not realistic. It’s impossible to know for sure how much can be made. Where do new traders get these expectations? Simply because somebody profited from a penny stock several years ago will not imply that there is a 386% return regularly.

Starting your stocks trading off with flawed expectations may cause failure. It’s not worse to confront be realistic now rather than becoming shocked later. You should have goals that are reachable and which are planned. Have a strategy set and learn about stocks trading and the technical analysis mindset now. It will inevitably make things considerably easier later on.

Here is an instant checklist of five things to contemplate as you finalize your goals and expectations.

1. Traders often lose more than they make, especially when beginning stocks trading. The amounts are a bit off from one source to another, but it is thought that 80% to 90% end up losing and abandoning trading completely. So determine why they lose and learn how to prevent the typical trading mistakes.

2. You will suffer losses. I notice too many traders ceasing after a run of losses.  You didn’t think this would be so simple?  Truthfully, losing cash is one way to learn about stocks trading. It is the manner in which you handle your losses that makes a big difference. It is not possible to forecast price movements persistently. Watch the technical indicators, hold your emotions in check, and most of all…save your capital!

3. Don’t expect overnight riches. Do you believe it’s totally unlikely that a little stake of under $3,000, will yield enough returns for you to retire overnight? I certainly do. Instead, focus on trading that is low risk with trading systems focused on long term income.

4. Only a small percentage of retail traders are profitable. Do not get discouraged, we all fell off the bike before we learned to ride it right? If you are just beginning, you should expect to incur some losses as you scale the learning curve.

5. Document trades first without risking money. I always tell starting traders to paper trade everything first. By doing this you correct strategies, discover ways to enter trades, and understand your blunders without losing real money. Then when you’re prepared to invest money that is real, ensure it remains modest. If you can’t trade viably with $1,000 how in the world are you going to trade $10,000 or more?

Binary Options

How Much Risk Capital Can I Set Aside?

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how much risk capital can I set aside

When just starting out trading many new traders begin to wonder how much risk capital can I set aside.  A more accurate question might be how much risk capital should I set aside, as the amount you can set aside will depend on your discretionary income.  The amount you should set aside is a very different question, and the answer rest in money management principles.

Proper money management states that a conservative trader will not be trading more than 1-2% of their account balance on any single trade.  We can use this to easily determine how much risk capital can I set aside if you want to follow proper money management principles.

Let’s say that your broker only allows for trades of $20 or more.  If you are trading 1% of your account balance, you would need to have a $2,000 account balance to trade a $20 option.  If you were going to trade 2% of your account balance you could start with a $1,000 account.  The problem with starting with the minimum amount like this comes if you lose your first trade.  Your account then goes below the threshold set and your risk rises accordingly.  This becomes even worse if you continue to lose.  I know none of us thinks we are going to lose any trades, but it is not unlikely to see a trader lose several trades in a row, even when just starting out.

In order to avoid this I would begin with a slightly higher balance.  If you set aside $2,500 as risk capital you could be relatively sure that you would not fall below the $2,000 minimum when trading 1% of your account balance.  I know this sounds like a small amount, but with the high returns in binary options your account balance can grow very rapidly, and as your account grows so does your minimum trade amount.  Thus success begets more success.

I know that most traders do not want to hear that so much risk capital must be set aside prior to beginning trading, but if you are really looking to get into this for the long haul it is the best way.  All successful traders use these money management principles and there are no shortcuts to successful trading.  If you feel it will take some time for you to come up with enough trading capital though I have a very good suggestion.

While you are building up your capital begin to trade binary options on a demo platform.  This will give you experience, and even better it will allow you to develop a profitable trading strategy.  Then when you do have enough trading capital you can also be fairly sure that your trading will get off on the right foot with a profitable and proven trading strategy.

Binary Options

Binary Options Demo Account: Understanding the Basics

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Binary Options Demo Account Understanding the Basics`

While forex brokers have long offered demo accounts for new traders, they are a fairly recent introduction for the binary options brokers.  This is a very positive change as it gives new traders a chance to hone their trading skills before risking real money in the binary options arena.  It is important therefore that traders understand the basics of the binary options demo account, so that they can take full advantage of this new feature.

A binary options demo account is exactly the same as a real account, with one major difference.  The demo account works with virtual money, so there is no risk to the traders account when trading in a demo account.  This allows a trader to learn the trading platform in depth before beginning to place real trades.  This can be a huge benefit, as it means the trader can intuitively trade, without having to think about the process of placing the trade.  Once a trader fully understand the platform they can place trades in seconds, thus avoiding the possibility of missing out on a trade as they struggle to figure out how to place the trade.  It also avoids the potential for making a mistake when placing a trade and thus having a losing trade that should have been a winner.

A binary options demo account also allows a trader to test their strategy before placing real trades.  In this way, the trader will know if they have a profitable strategy before they risk their own money.  If the strategy isn’t working as planned the trader can take as much time as necessary to make adjustments to the strategy, and when they begin to invest real money they can be assured of winning trades.  This is much better than blowing through hundreds of dollars testing a strategy, only to find that it is not suitable.

When choosing a binary options demo account it is important to find one that trades using real time data.  The information presented and trades taken should mirror the results that would be had on the real platform 100% of the time.  Beware brokers who provide demo accounts that work off historical data, as these can be manipulated in such a way to make the demo trades more profitable, and do not provide a true picture of what trading will be like with a real account.

Also understand that most of the binary option brokers will require you to make a deposit before you are able to access their demo trading platform.  This does not mean that you ever have to risk any of that deposit.  It is possible to make a deposit simply to test the demo platform, and once you are done with the demo account you can then withdraw all the initial deposit, having risked nothing, but gotten valuable information about what is like to trade with the broker.

In short, it is always a savvy decision to trade first with a binary options demo account.  Understanding the basics of trading will build a good foundation for future success.