Auto Trading Binary Options – Important Things to Know

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

Auto Trading

Is Binary Options Auto Trading For Me?

Did you know that trading with binary options has become even more popular than the traditional Forex experience? And did you also know that most of the things – tools, extras and even binary options bonus types – in binary options trading are taken from the Forex trading. Just like the options we have already mentioned, the auto trading has been also introduced to binary activity. Binary options auto trading is a fantastic approach into increasing your final outcome and getting the necessary predictions for the binary you have purchased in a faster way. All of these must sound amazing, don’t they? But is the binary options auto trading for you? Find out now!

What Exactly The Binary Options Auto Trading Is?

It is not harsh to understand what a binary option trading is. As you can guess by its name, there`s something automatic in this approach and eventually it will brings you more money. The automatic thing in binary options trading comes from software or a mobile app, if you are using a mobile device to be on the binary market – a tablet or a smartphone with good and reliable internet connection. In general, the way the auto trading helps you is by detecting the best moment for you to make a binary option contract. Moreover – the tool or the app can also point you the different alternatives you have as to the specific binary type, as well as the direction you should follow to make the greatest deal. How exactly does it work, though? Simply, what you have to do is to download and install a proper auto trading tool and to integrate with your current binary options broker. Turn them on at once and wait for the auto trading software to give a signal what binary option to buy, when to buy it and of course, how to make the prediction. In short, the auto trading tool does take your turn in your task to predict and to analyze your market.

Many traders – especially the beginners or those, who have never taken the benefits of using auto trading assistance in their binary options activity – think that this approach is illegal. Ok, it might sound as illegal – after all, someone or something tells you when to buy binaries to make money, which puts your completion in a worse situation – but as a matter of fact, auto trading with binary options is completely legal. The question is not whether these tools are officially banned and proclaimed as illegal, but whether the particular website allows them. Thus, in our detailed and helpful binary options broker reviews, we always inform you whether the certain platform does allow the auto trading approach. All of these means that binary options trading is legal, but brokers have the right whether to exclude them as options in the websites, or to permit them.

How To Find Good Auto Trading Tool For Binary Options Activity?

There is no need to rush into getting the first auto trading binary options tool you see. Better, consider what you need at first and then, start your search. Be aware that some auto trading products are paid, but there are also numerous cool free of charge alternatives. On the other side, it is always a better idea to use the official auto trading software that your personal binary options broker has established and advertised on its website. Last, but not least, make sure your device will handle the auto trading tool and you will not damage your system.

Why Using Binary Options Auto Trading?

Last, but not least, take a look at all the benefits that an auto trading tool can bring into your personal and individual binary options experience. And this is the list of the advantages of this way of trading with binaries:

  • Faster trades – Instead of spending hours of analyzing and predicting the market, use auto trading to make faster trades and quicker profits!
  • Precise prediction – Your prediction might be usually ok, but in other cases – when you feel doubts – an auto trading can delete your hesitations as to a certain binary option.
  • Reducing the risk – Your risk management task can be completed in a flash of a second due to one single and free auto trading tool, Why not having it?

Use auto trading tool for binary options activity and see the different – faster and greater final outcomes!

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

5 Things You Absolutely Need to Know About Binary Options

Ever since 2008 when Binary Options burst on to the mainstream, they have been constantly gaining more and more popularity. But despite all this, people are still very uninformed when it comes to the basics of this industry. That being said, I’ve decided it’s time to write about 5 things you absolutely need to know about binary options. This article is mostly for the newbies but even if you don’t consider yourself that way, take a look; you might find something you didn’t know. So let’s get down to business:

1. The Disclaimer. It’s There for a Reason.

HIGH RISK INVESTMENT WARNING: Trading Binary Options is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose.” Binary Options brokerages (the ones that are regulated at least) are required to display this disclaimer or similar ones on their websites. Forex brokers have to do it as well. Read it, understand it and then read it again! I don’t know why, but a lot of people still think that Binary Options are an easy and sure way to make money. Things are not like that: trading is highly speculative, carries a high level of risk and may result in loss of all your invested capital. I am not talking about binary options exclusively: Forex is risky, stock trading is, all forms of financial trading are risky (at least the ones I know about).

2. The Bonus – Take it or Leave it

Most binary options brokers will offer you a Bonus on your deposit. It works like this: you invest 1,000 bucks and they give you an additional 50% (this percentage differs from broker to broker) to trade so your available sum is 1,500. Sounds too good to be true? Don’t worry, it’s true. But… the ever present “but”… once you accept a bonus you will have to trade a certain volume (which again differs from broker to broker) before you can withdraw. And don’t think that you can trade the extra 500 bucks or 50% or whatever the bonus is and if you lose it, just withdraw the rest of your money. Nope, that doesn’t work either because the bonus will be deducted from your balance. Some brokers don’t even allow you to withdraw a single penny if you haven’t reached the required trading volume. Bottom line is this: if you accept a bonus, make sure you know what the consequences are. Read the broker’s Terms and Conditions.

3. The Account Manager – Not a Trading Guru

Once you open an account with a binary options brokerage you will get an Account Manager. Usually these guys will offer trading advice and will even trade for you. They will present themselves as seasoned veteran traders, with expert knowledge of the market. They will do their best to make you trust their skill and follow their advice. Please don’t! Most of the time, these Account Managers are nothing more than sales representatives. Their knowledge is related to salesmanship not trading. Sure, among them there might be some real traders so you might be lucky and get a good account manager, but the chances are slim. If they were really such skilled traders, believe me they would be sitting at home trading and making money. If you want to be a trader, be one, but don’t expect to be showered with money by your account manager.

4. The Chart – A Trader’s MAIN Tool… and Brokers don’t Give it to You

You cannot be a trader without charts. I don’t think I have to explain further. Ok with that out of the way, I have to tell you this: once you open an account with a binary options broker you will not get charts. They all say their platform is the best in the industry (I don’t know how they can all be “the best” but… whatever) when in fact they don’t even give you proper charts. All you get is some price line which doesn’t even look like a chart. You won’t get any indicators or candlesticks; you won’t be able to at least draw a trend line or to add a moving average which are the very basics of technical analysis. The solution is simple though: get your hands on a third party charting package (a demo account from a Forex broker, Netdania.com, MetaTrader, etc.).

5. Trading Binary Options is Not Easy

I am telling you this because on every website you will hear how easy trading is. Almost all brokers claim that you don’t need any prior experience, you don’t need to learn anything and trading is as easy as “Pick an asset – Pick a direction – Click Trade”. Well, guys they are right in a way: even a monkey can click on Put or Call so yea, it’s very easy. However, deciding on which one to click is a tad more complicated. I’d say that if you wanna do it profitably, you definitely need to put in some work. Nothing is as easy as some would want us to believe.

Wrapping it up

There you go, now you know 5 important things about Binary Options. But this is not all. You will learn a lot more if you are really serious about trading Binary Options. I didn’t mean to scare you away from trading but this industry is full of scams and traps are all over the place – anybody can tell you that – so you need to be prepared and leave the naivety outside when you step through the Binary Options door.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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