Shoot for the Money: Binary Options

Binary trading options are highly powerful trades that have only been on the trading front for a few years. These types of options were once only for traders at big banks with large sums of money available for trade. Now, you can trade in binaries with deposits as small as $100, some places even less.

If you are knowledgeable about bullish (prices are rising) or bearish (prices are lowering) markets and commodities, and you have a handle on the markets, you can make money by trading in binaries. All you need to do is predict whether the market will rise, buy a call, and if the market goes up you make money. Or on the reverse, predict the commodity will fall within a period of time and you will also make money. It is as simple as those scenarios. You do not have to buy and hold, just trade in the direction of the market.

What are Binary Options?

At the beginning of your trade you know how much you risk and how much you will make in a specified period of time. Binaries have short durations of up to a few days or hours or even minutes. Positions close very fast and you know your results quickly.

Trading in markets in the old-fashioned way traders keep their positions unknown for a period of time. The prices on assets went up and down every day due to market fluctuations. With digital options (or binaries) you do not have fluctuations. You are either in the money or out of the money (hence the name “binary.”)

With just the click of the mouse you can trade large cap stocks and in the leading stock indices. You can also trade with currency pairs, silver or gold or oil and petroleum, and specific bonds. There is no other platform where you can trade stocks, commodities, currencies and indices quickly and simply. Remember that binaries are not proxies or even ETFs, they are real assets.

Trade in binaries and realize the simplicity and ease of use. You can train on platforms using software provided for free. This software and the platforms provide real-time quotations, monitoring, reporting and trading. Just make a correct prediction and you are in the money.

Determine whether or not your chosen commodity will go up or down. If you feel that prices will rise (bullish) place a call. If you feel that the option will fall (bearish) then predict a falling price. There are also options that stay within a range. You just need to predict that the asset will not fall or rise, just the vague range. Use the tools that are on your platform. Tailor them to your precise requirements, bid and shoot for the money.

There are currently no specific numbers concerning how many people have made money trading in binaries. But it is a fact that your chance of making a good profit is definitely higher than with traditional trading, many have come to find. And binary options trading is really exciting!

Binary Options Trading Robots

In most forms of investment, the investor actually buys an asset and monitor its value. If the investor sells the asset back to the market when its price has gone up, he has made a profit. If he sells it when the price has dropped, he has made a loss. There is the actual movement of the asset here, with its added responsibilities to the investor.

In Options trading, you are predicting the value of the asset for a predetermined time frame. There is not the psychological pressure of actually having the asset with you.

In Binary Options, there are only two investment possibilities you can predict

Call – where you predict the value of the asset will go up

Put – where you predict it will go down.

What are the assets that can be traded as binary options?

Stock indices, Forex (combinations of foreign currencies), Commodities like gold, silver, Stocks

Though they are considered to be the building block for asset pricing and financial derivatives, they are grossly misused and many fraudulent operators have made scams out of them.

They are variously known as All-or-nothing options, digital options (when working in foreign exchange or interest rate markets) and FROs or Fixed Return Options on the American Stock Exchange.

The trading of binary options is more unregulated than regulated.

Auto binary trading is when robots place the trade based on software developed from stocks algorithmic trading. Auto trading makes use of electronic platforms where the trading order is entered with an algorithm. The platforms execute the trading instructions with variables like price, timing etc. An order can also be initiated by the robot without human intervention. This sort of algorithmic or robot trading is used by investment bankers, mutual fund houses or any institutional traders while dividing their large trades into smaller ones to manage market risk. This auto trading is considered way superior and accurate than that done by you or me.

How do you get an auto binary trading working for you?

Auto binary options providers take a fee from a trader and sell him a robot which the trader downloads. This downloaded software will execute trades on behalf of the trader based on the requirements the trader keys in.

There are certain signals that are made available to the trader, informing him or her of the direction of the value of the asset that the trader has made binary options on. These are built into the software of the robots. These are also matched to the requirements and the trade is made for optimal trading success for the investor. Typically, they identify assets which fulfil the preset criteria indicating movement in a particular direction. Some signal providers are independent of the binary options provider (broker).

How to choose the best auto binary options robot

· It should be easy to use

· It should have proven results.

· Its win rate should be substantial

· Should provide high quality reporting and analysis side by side of its trading activity, to be utilized by the trader.

· Automatic trades should be possible

· Fully configurable

· Tested extensively before handing over to the client.

· They should be designed by experts in the industry

· Easy to monitor and functioning properly.

Bitcoin and Binary Options Trading

Binary options have been becoming more and more popular in the last 2 years. This type of trading has been desired among new traders as they don’t need to actually buy anything, just predict whether the asset will move up or down in specified time frame. Those trades are happening in short time frames (30 sec, 1 min, 5 min) but might be months too. If the trader predicted wrongly, they will obviously lose their money. If the trader was right in his/her prediction, they will receive 80-85% payout, depending on the broker.

Binary options are sometimes referred to as ‘all-or-nothing options’, ‘digital options’, or ‘fixed return options’ (FROs), which are traded on the American Stock Exchange.

Bitcoin (BTC) is a digital currency which is created and held electronically and no one controls it. “Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008, and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.Transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. The ledger uses its own unit of account, also called bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency… “

Bitcoin as a currency in binary options trading

Bitcoin is now widely used currency and many trading platforms accept it as a method of payment for their clients’ trading deposits. There are many benefits using Bitcoin as a currency. The first benefit is “the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction. Since there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment.” Another reason for traders to use Bitcoin as a currency is that Bitcoin itself is tradeable and they can earn extra Bitcoins that way.

“By having all the trading transactions denoted in Bitcoin, a trader is able to shield himself from the fluctuation of this crypto currency while at the same time earn more of it through profits earned in trading.”

Bitcoin as a commodity in binary options trading

With a recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms started using Bitcoin as one of the currencies to trade. so as an asset. Stockbrokers are seeing the value in trading BTC against flat currencies, mainly versus American Dollar.

Today there are 2 main types of Bitcoin binary options platforms:

  • First-generation brokers – binary options platforms that allow trading on Bitcoin
  • Second-generation brokers – platforms that offer both Bitcoin funding and Bitcoin trading

First generation brokers – brokers who offer Bitcoin trading:

  • Coinut – only Bitcoin options exchange platform; programmed as a robust and distributed on Linux operating system coinut.com
  • BTClevels – Bitcoin binary options trading platform; with or without registration, hassle free btclevels.com
  • 24 Options – one of the first brokers who started offering BTC as an asset 24option.com

Second-generation brokers – brokers who offer Bitcoin funding and trading:

  • Traderush binary platform – accepts BTC deposits traderush.com
  • Nadex trading platform -accepts BTC funding and allows BTC trading; offers limited risk, short-term trading, transparency and full regulated market nadex.com
  • Satoshi Option trading platform – accepts BTC funding and allows BTC trading; doesn’t require account registration neither personal details. Payouts are near instantaneous and the service is accessible from anywhere in the world satoshioption.com
  • BTCOracle platform – Bitcoin only platform – allows BTC funding and trading offering few wallet options and full transparency btcoracle.com
  • Bitstamp platform – As above, BTC only platform – allows BTC trading and funding but requires login bitstamp.net
  • Bitcoin Wisdom – allows trading 3 digital currencies, Bitcoins, Litecoins, Altcoins versus other flat currencies and requires login bitcoinwisdom.com
  • Beast Option – allows BTC funding and trading of Bitcoins and Litecoins; guarantees fairness in pricing regardless of market fluctuations beastoptions.com

When choosing a Bitcoin broker it is important to check their terms and conditions, paying a particular attention to the information whether their Bitcoin Assets are stored in “Deep Cold Storage”. It means that Bitcoins are insured and stored offline, where they are not susceptible to hackers.

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