24Option is one of the first Binary Options Brokers to arrive in 2010. 24Option is regulated and uses TechFinancials Trading Platform, which is considered one of the best trading platform available to date. 24Option has superior payout which’s up to 95%, this’s significantly higher than other Binary Options Brokers which offers payout varying between 71% […]
Talking about stockpair.com, we could consider it as the king of stock pairs trading in binary options. Besides regular assets like Forex Pairs, Commodities and Indexes, StockPair also includes the trading of relative strength between 2 stocks. Stockpair is very similar to Forex that we look at the relative strength of two assets and measure […]
TradeRush was found in 2011 but it already looks like a mature Binary Options broker. Traderush has their headquarters in Cyprus, I don’t think there’s a big problem since I’ve always been using broker from Cyprus, so far they’ve treated me nicely. SpotOption is their chosen platform with at least 85 different assets and a […]
OptionFair was first landing on Binary Options industry in early 2009 and it’s considered one of the older Binary Options broker around. Like 24option, OptionFair use TechFinancials trading platform, which’s tested and tried platform. The payout is up to 89%, and it’s considered one of the better one for payout. In fact, there’s only a […]
The first trade carries the most significant meaning to you as a trader as you have to conduct it by yourself and make sure that nothing goes wrong.
Prior to your implementation of your first attempt in the market, please take these three key points into considerations, which include asset selections, price direction determinations and trade outcome predictions.
Choosing an asset
Trading binary options initially requires you to decide on what assets you’re going to trade. When your decisions are made, you need to enter the platform that has been selected and pick up the assets of which you feel confident. It’s advisable for you to choose the assets matching your interests. For instance, Nike stock should be a good choice for traders who love sports manufacturing industry. After asset identifications are done, let your analytical skills work then. Many traders think of research and analysis as a waste of resources but they are the basis on which the success of most trades rests on. Such a comprehensive process will give you the general idea of how asset’s prices will move in the future, leading to a higher profitability.
Determining the price direction
Take the Nike’s case as a typical example. The Nike’s chart helps you find out the trend of the manufacturer’s stock price. Afterwards, you may gather all relevant date from such sources as research and financial news centered on Nike. Sources for your analysis of Nike or any assets that you aim at are abundant and diverse from which you may obtain consistent market assessments or trading expertise.
Those tools are highly recommended as they assist you much in your trading skill development and your trading progress in the field of trading binary options. A prediction of surging prices by the expiry day prompts you to implement a call option and vice versa – predicted price decreases lead to the execution of a put one.
Potential trade outcomes
Your last important job is to wait for the possible outcomes by the expiration. As aforementioned somewhere in this material, you may expect two kinds of contingency including “in-the-money” or “out-of-the-money”. To make it clear for you, let’s go through the case of Nike stock. The former outcome will occur if the market price by the expiry date exceeds the trigger one at your trading moment, say $60. On the other hand, a market price which is lower than $60 will lead to out-of-the-money result.
Binary option trading has a general concept that is not too complicated or difficult. The main task in binary option trading is to make predictions upon the movement of prices and to gain profits from such predictions if things turn out to follow what you predict. Nonetheless, for beginner traders who are performing their first trades, they will surely face lots of problems and struggles in their first month of stepping into the binary option trades. This period is the hardest time for any beginner binary option trader. Should you find yourself in the same situation as that mentioned above, then you need to read on to the end of this article as there will be many pieces of advice on how to survive your first month. They will help you ease out the first month of your binary option trades.
Giving yourself some perspective, especially when you have just started your career in binary option trading, is always necessary and useful. The core of binary option trading is to make predictions on prices, which should be borne in mind all the time. Binary option traders are required to be good at managing their money. Never get involved into too many trades at a time! Most of the time you will eventually make loss if you follow such strategy. As you are still inexperienced in this industry, you may get tricked or tempted into investing too much money on a single trade to get big returns. The advice is “Never invest all your money into one single trade!” You should also make a specific limited time frame for trading per day. A time frame of up to 4 hours of trading per day is very reasonable, especially for beginners, as it will reduce your chances of making wrong choices.
Learn how to take losses
Not all trades will yield profits in return. Every trader will go through some serious losses throughout their trading career, so it is more important to learn to overcome the losses soon after its occurrence. If you feel that you have made mistakes too often in your trades, you should take a rest and pause your trading. Traders must equip themselves with knowledge on risk management, as this will keep them away from the disaster of losses upon losses.
Keeping a trading journal besides you throughout your binary option trading career can be a really good idea. What should be written down in the journal is your strategy and specific reasons for a bet that you have made or are about to make. These items must be written with complete honesty—that is the spirit of keeping the journal. For instance, you trade in EUR/USD in the long position as you have watched the trend going up for 6 hours. Then you need to note down the price levels and some time later you check back to review your mistakes. You will learn from your mistakes and equip yourself with more experience to become a better binary option trading. The track record should be reviews regularly, even monthly, so that you can know exactly the types of mistakes in the past.
Binary option trading has lots of excitement to offer to players and it is not easy for one to get that out of their mind, especially for the beginners. Nonetheless, taking your time to keep reading more and more is never a bad idea. You can find a huge number of reliable materials for your binary option trading career. These materials are available on the Internet. It is always good to read more and get yourself educated. Your way of thinking will be improved and it can help you create new strategies and techniques in your trading career.
Learn from your mistakes
As you have just stepped into your first month of binary option trading, you yourself are a beginner in the field without any experience whatsoever. So as to reach the high position in the binary option trading industry, you will need lots of experience. There will be no way you can ever get millions of dollars streaming into your pocket in just one month of binary option trading as a beginner, which is why you are advised to invest in small trades first to get used to the system and practice your strategies. Making losses is a normal thing in trading of any kind, so you should get used to it as well and keep moving forward.
Previously we’ve gone through the benefits that traders can gain by trading binary options instead of any other means, and also the grounds for starting your binary business now. Today, we’ll talk about what aspects of a trading platform will affect your choices throughout this section.
Trading binary options is entirely an internet-based business, and thus a stable software platform with trouble-free operations will be a prerequisite for a successful trading process. In such currently competitive market, you’ll find only a few negligible technical difficulties in every trading platform on an irregular basis, and even if they occur, around the clock support will come to resolve them for you immediately.
Choose the returns
First off, the most important consideration that makes a broker the best options to traders is its offered returns which should be no lower than 70%. As we’ve mentioned before, trading binary options is favorable to traders as the predetermined payouts give investors the general predictions of how their assets’ price will move before such options expire, thus knowing clearly whether they win or lose with their assets. Of course, the higher the payout rates you may receive, the more likely you may earn a profit by the expiration. In any case, it’s nice to see your investment generate further profits, so why don’t you invest in it?
More interestingly, even in case of the out-of-the-money outcome, you may receive a sum of money as a means to alleviate to your losses from some platforms. What a great feature! Imagine that how nice it could be if you start trading and lose some of your bankroll but the brokers are willing to suffer, say, 15% of your losses by giving you the same amount of money as a morale encouragement.
The diversity of such platforms is determined by the offerings of underlying assets on offer. Therefore, the bigger the library of assets the platforms are offering, the more “freedom” they grant traders. One more thing that shouldn’t be overlooked is the efficiency of the newsfeed tool as to be a winner in the binary option market you must keep yourselves abreast of the latest economic events that may have an effect on your assets’ price.
Quality of support
Quality support is also crucial to your selecting a suitable binary option trading platform. As even the most reputable brokerage companies have some flaws in their system, you would rather go for such brokers that offer 24/7 customer service so that you can address your issues at any times.
Furthermore, the more secure the platform is, the more preferable it is to traders. There is no doubt that the confidentiality and integrity of personal data are among the top priorities of any traders. Bad reports on data management will make up a minus in brokers’ assessments, leading to the lower likelihood to be chosen. For that reason, brokers must find any ways to keep their clients’ private information safe from hackers. On the other hand, you – traders, are obliged to supply brokers with the honest information on your process of registration as the system will dismiss your submissions in case of invalid information. If somehow you may pass the sign-up step with your fake information, then you may suffer the aftermath of an account theft or breach as the request for recovering your account is not effected.
Binary options platforms
The design of the binary option market is generally similar to that of Forex with two types of trading platform including white-label and proprietary platforms. As its name implies, proprietary platforms are tailored to only their brokers who designed them. By contrast, white-label platforms are products of co-creation of some certain companies and can proceed with multiple binary options from various brokers.
Such platforms were inspired by the model of MetaQuotes Software Corp’s white-labeled MetaTrader platform. They are invented by software developers and then change hands to brokerage firms. They are really useful to small brokers with insufficient resources and manpower which prevent them from building up their own proprietary platforms. From a custom-made model, those brokers will adjust it in a way that meets their unique requirements, a practice that saves their time and facilitates their specialization.
However, brokers have still encountered some problems around white-labeled platforms. Specially, brokers’ operations are limited to the available platform models. Their offerings of binary options are offered only if they are consistent with what the platform allows. Meanwhile, by creating a proprietary platform, brokers may list any binary options that create their own distinctions.
At present, you may see the white-labeled platform in the list of many software providers and top 3 of this industry includes SpotOption, Tradologic and Tech Financials. Let’s go through brief overviews about these firms.
- The first position among the three is occupied by SpotOption. The firm offers brokers the whole online trading interface without any necessary downloads. Also, it supports mobile versions on iOS and Android mobile devices. In addition, you may plug it in MetaTrader 4 and refer to Expert Advisors and indicators while carrying out your trades to make wise decisions.
On the SpotOption platform, you may go with five binary options types for over 200 assets:
- Standard Call and Put options
- OptionBuilder – a conventional Call/Put option which leaves its expiration to the trader’s determination.
- Variable options feature – a standard Call/Put option, whose expiry time may be subject to changes.
- High yield touch options
- Paired Options – a gambling feature which directs trader to a game where they exchange one asset for the other and bet which one will make a profit.
- Another one that can be manipulated through a web browser is Tradologic‘s BINARIX trading platform which also comes to users in mobile versions for both Google and Apple devices. Like the previous platform, it works well with MetaTrader 4 and features ChartPlus allowing traders use charts for their trades. Let’s take a look at its option library:
- Standard Call and Put options
- Range options – basically the boundary trade
- 60-second Call and Put options
- Touch and No-Touch trade options
- One-Touch Option – an option that create a high yield with the payout rate nearly double.
Unfortunately, the expirations of all options are left to the broker’s decisions, totally different from SpotOption’s OptionBuilder trade type which offers traders the rights to determine the options’ expiry date.
- The last one – Tech Financials‘ trading platform, also operates in the online environment. It is powered by the Orca+ trading technology and offered in mobile versions for both iOS and Android devices. The platform includes the integration of MT4 and works with four types of trading options:
- High and Low options (conventional Call and Put options) which have two variants – a standard version whose strike price is equal to the market price, and the Above/Below option whose strike price is determined by traders.
- 60-second High/Low options
- Two types of boundary trade – the In/Out trade and the unique for the binary options market High Yield Boundary Trade
- Touch trade which is offered in both Touch/No-Touch option and the High Yield Touch option.
Like Tradologic, Tech Fnancial’s trading platform offers no option whose expiry time is determined by traders.
You may see other white-labeled platforms such as the MarketsPulse, OSystems, KeyStone, ParagonEX and PandaTS platforms, as well as the TradeSmarter Platform – the first standardized Australian platform. Regulated by the Australian Securities and Investment Commission, it not only deals with special binary options trading platform specially designed for Australian residents but also offer common ones for clients worldwide.
As aforementioned, those platforms are the products of certain brokers. With their own designed exclusive platforms, brokers can abolish such limitations on their offerings of options, which are facing them on the white-label platforms. Expiration arrangements are more diverse with proprietary platforms than with the white-label counterparts.
Brokerage companies are not unfamiliar with the proprietary platform invented by Regent Markets Ltd and now used by Binary.com. Its payouts fall between $1 and $100,000 and it’s also nice to see the rights of traders to set the strike price. Specially, if you have options with multiple maturities ranging from 10 seconds to 365 days, you will be offered to trade them on white-label platforms.
Anyoption’s trading platform is considered one of the market leaders in the proprietary industry. It began its business in 2009 and still remains exclusive to its respective broker, keeping its own uniqueness for clients of Anyoption.
StockPair is another proprietary trading platform worth being mentioned here. Its fame lies in the so-called Pair Options Trading which allows you to invest in two assets and predict which one will outperform the other by the expiration. That also means you needn’t keep updated with what is going on in the market but keep a close eye on the two chosen companies and their stocks’ behavior. You may opt for fixed Pair Options in which your profits are counted over the course of waiting time from the purchase time to the expiry date. Otherwise, you may choose Floating Pair Options whose outcomes are identified at a pre-defined time period (a day, week or a month). With Pair Option Trading, traders may rightfully terminate their position prior to its expiration.
Anyoption – one of the famous veteran binary-option trading platform, has recently expressed its great determination to put an initial public offering (IPO) – the initial sale of stock by private firms to the public, on the London Stock Exchange Alternative Investment Market. It’s going to submit the letter of intent next month and we will likely see its name listed in February 2015.
It seems like Anyoption aims to pile up nearly £30 million so that the firm can acquire a series of online advertising companies in the US, Australia, European Union and Japan. These steps could create big upheavals in the options industry as this strategy makes binary options more tempting to traders.
At present, Anyoption accounts for 20% of the total market share of the binary option industry worldwide. The platform attracts more than 100,000 active clients every month which generate over $40 million annually in revenues for the broker.
All of those great figures tell us – traders that the binary option industry is stepping in its prime time when we will see competitive payouts offered by multiple companies and several trading platforms with futuristic features. Therefore, Anyoption is probably so promisingly profitable. Advice for you is to keep yourselves abreast of its future plans.