How to Start Trading Binary 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!

How to Start Trading Binary Options

Here is an easy guide to getting started with Binary Options for those of you who are brand new. This will get you set up and put you on the path to trading successfully. For those of you unfamiliar with Binary options, we recommend you read our overview of what they are and how they are traded.

To start trading, follow these steps.

1. Sign up for a Binary Options account with a reputable broker. If you are from the US/Canada or Australia then start trading binary options here.

Rank Broker Min. Deposit Max Returns Features Review
$50 200% + $50 CASHBACK TRADE NOWREAD REVIEW
$100 85% + CYSEC REGULATED TRADE NOWREAD REVIEW

2.Deposit your funds so you are ready to take advantage of opportunities when they arise, but do not begin trading live yet. We recommend starting with a small deposit, not more than between $200-$500 is needed but this is up to you.

3.Set up a demo account, this should be extremely easy with the broker to trade in a sandbox mode.

4.Read our binary option trading tips. This guide is a basic overview of strategy for new traders.

5.Place at least 20 trades in demo mode before making one live trade. At this stage your focus is on getting a feel for the trading platform and entering trades correctly, as well as beginning to develop your read on how the market moves and factors that influence movement.

6.Begin placing live trades, not more than $5-$10 dollars per trade. Remember the goal is not to make a million dollars with one trade, it is to systematically make money over time. You need to start small in order to trade with a clear head, and to work on your strategy without taking a huge risk at this point.

7.Contact us if you would like help with your trading or developing your strategy from this point, remember we are here for a resource to help you learn and grow as a trader. Things to keep in mind: what time of the day are you trading? What are you using to indicate a trade setup? Did you write your rules down and are you following them every time? Are you using larger size when you have more conviction on a trade? Let us know what you are doing and we will help.

This is a guide to getting started. For more advanced strategy read our posts and strategy guides, and feel free to contact us. The more you learn the higher the probability of you making a lot of money, so we recommend it.

Daniel Major

B.S. Degree in Economics and Finance. Professional day trader. Live and work in Manhattan, NY, NY.

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!

10 thoughts on “ How to Start Trading Binary Options ”

There are two ways of learning in Life: learning by doing or learning from others. Learning by doing is certainly possible, but you will spend more money. Why? Because you have to “finance” your losses. You will have – no doubt – a string of losses, until you master the art of trading with Binary Options. Many Beginners take this route. It seems so easy.
Just open an account, fund it and start hitting the buttons. The awakening comes once the account is empty! In order to avoid this and make the journey more pleasant and easy you can use several tools and support systems: Binary Options Managed Accounts, Binary Options Trading Signals and/or a good Binary Options Education.Binary options trading is very easy means getting money online and get rich in no time it all depends on an investment,With a good strategy, a regulated broker that won’t rip and strategy,research and some knowledge on price action, support and resistance you can make very good profits it will bring hug return of profit from this you can be financial free and you wont care about your bills any more with a minimum investment of $300 you will be able to get not less than $4200 or even more if you start with a minimum investment of $500 you will be able to get not less than $7500 if you start with a minimum investment of $1000 you will be able to get not less/Than $18,000 weekly or even more if the market is very profitable. Before getting into binary options you need to have a good amount of knowledge and regulated broker feel free to contact for assistance if you want to start trading binary or info on strategy,softwares, trading or how to trade profitably via email

I’m from Nigeria and I want to start trading binary . How do I get a broker

How to Start Investing in Binary Options

Damyan Diamandiev
Contributor, Benzinga

Invest With TD Ameritrade – Now Commission Free

Invest With TD Ameritrade – Now Commission Free

Open an account with Benzinga’s best online broker, TD Ameritrade. $0 commissions on online stock, ETF, and option trades plus award-winning platform and customer service.

If you’re looking for a simple way to trade and invest in financial assets, why not consider binary options? They’re easy to understand and preferred among newbies, so you’ve pretty much already got a head start in the right direction. Benzinga will help launch you the rest of the way.

Table of contents [ Hide ]

What is Binary Options Trading?

Binary traders profit from price fluctuation just like other traders, but binary options have a preliminary stated risk and profit potential. That’s why this type of contract is called a “binary” option. You get one of the two possible outcomes: suffer the risk or profit from the reward.

In binary trading, you bet if the price will be higher or lower after a certain time passes: the expiration. If you’re right, you win. If you’re wrong, you lose. When you lose, you lose the amount you’ve bet in the trade. When you win, you win around 80% of the amount you’ve bet (this depends on the broker as well).

Let’s say you believe the price of the EUR/USD will be higher in one minute and you bet $10. If you’re correct, you’ll profit around $8, depending on the broker. If you’re wrong, you lose your $10.

There’s some specific terminology wrapped with binary options. Can you sell an option? No, but you can buy a “put” option.

This is how it works:

Call Option

You buy a call option when you expect the price to increase. This means you enter a deal where you bet that the market will increase in price.

Put Option

You buy a put option when you expect the price to drop. This means you enter a deal where you bet that the price will go down.

Calls and Puts

It’s easy to understand the difference between “buy” and “sell,” and which corresponds to bullish and bearish markets. However, it might be tricky to remember the difference between calls and puts. Here’s an easy way to remember:

Imagine a phone is on a table. When you want to “call” you need to lift the phone “up,” an increase. When you want to “put” it down, it needs to go downward, or “drop.”

How To Start Trading Binary Options

Step 1: Build your strategy

Test different approaches and check which one is profitable for you. You can also combine different indicators to build your strategy. Some indicators could be:

  • Price levels
  • Trend
  • Candle patterns
  • Chart patterns
  • Moving average indicators
  • Fibonacci levels
  • On-chart indicators
  • Area indicators

These are not the only indicators available; there are many more and each of them works in a different way. Match signals from different indicators to reduce the chance of getting a bad signal and incline the scales in your favor.

Step 2: Calculate the returns

Say that your broker will give you 80% return if you guess the right price direction. You risk 100% of the invested amount, a return of 8:10. How successful should your strategy be and where is your break-even point?

Say that you do 100 trades by investing $10 in each. This means that you’ve invested a total amount of $1,000. Your strategy has a 55% success rate, meaning that you will get an approximation of 55 successful trades out of 100.

If you guess correctly, you’ll win $8. If you guess incorrectly, you’ll lose $10. Since you’ll get around 55 winners, this means you will make 55 x $8 = $440. Since you’ll get around 45 losers, then you will lose 45 x $10 = $450.

A profit of $440 – $450 (loss) = -$10 per 100 trades with this strategy, which isn’t ideal.

Here’s another test with the same brokerage conditions: 80% return on a successful guess. Let’s say our strategy has a proven record of 70% success rate. This means we’ll have 70 winners and 30 losers after 100 trades:

70 x $8 = $560 (profit)

30 x $10 = $300 (loss)

Net profit = $260

Step 3: Money management strategy

Don’t forget to factor in luck. If you deposit $100 in your account and you invest $20 in each trade, you’ll likely fail. The reason for this is that you will be able to handle only five losing trades in a row, which is very likely to happen.

It’s safe to have money for at least 100 trades. What is the chance to get 100 losing trades in a row? It’s just like flipping a coin and getting 100 heads in a row: pretty unlikely.

Step 4: Choose your binary options trading broker

Pay attention to some important rules when you choose a broker. There are scam brokers who will not let you withdraw your money, so research in advance. Good brokers:

  • Are regulated and conform to the laws of a country.
  • Have existed for a while. Scam brokers get caught and typically close after a year or two.
  • Have good reviews online. What are people saying about the broker? Can you withdraw your winnings?
  • Offer a variety of trading assets. You don’t want to have only five currency pairs available for trading.
  • Have a friendly interface.
  • Include a rich set of trading indicators. These indicators will assist in your analysis and help you build a successful strategy.

Step 5: Create and fund your trading account

This is the easiest step as long as you have the money! Follow your broker rules for creating an account. You’ll need to identify yourself and to confirm your account, then deposit the amount you are willing to start with.

Make sure you conform to the money management rules we already discussed. If you’re willing to invest $10 in a single trade, this means you’ll need to deposit at least $1,000. This way, you’ll have enough money to conduct 100 trades and you’ll be able to handle an eventual downswing.

Step 6: Execute your first trade

Now you’re ready to go! If you’ve deposited $1,000 in your account, then it is safer to invest only 1% per trade, or $10.

  • Change the investment per trade to $10.
  • Choose the expiration time of the binary option.
  • Do your analysis and apply your strategy.
  • Click “call” if your analysis shows that the price will go up or “put” if you believe that the price will go down.
  • Wait until the binary option expires.
  • Track results.
  • Repeat.

Final Thoughts

Binary options are an innovative and easy way to invest in the financial markets. Rules are simple (that’s why many traders prefer this type of trading) and there is a limited risk per trade, based on the amount you invest.

You’ll still need to conform to the well-known trading rules if you want to be successful. Build a strong strategy, calculate the amounts, manage your bank well and be smart, and you’ll increase your chances of success. A demo account is always a helpful test before jumping in with real money.

How to Start Trading Binary Options

If you’re new to the whole online trading industry and want a simple and fuss-free way to trade and invest, why not opt for binary options? It is comprehensive and easy to understand, making it suitable for anyone!

Binary traders earn from the fluctuations in prices, similar to other traders. The only difference is that binary options do have a preliminary stated risk and profit potential, hence deriving the name of “binary” in binary options. This essentially means that traders either suffer the risk and lose money or profit from the reward and gain returns. Binary options trading basically requires you to predict and bet on whether the price will go higher or lower after the expiration. If you bet correctly, you win and if you don’t, you lose. Traders lose the amount that they have bet in the trade while winners win around 80% of the amount that they bet (but this is also dependable on the broker too!)

For example, a trader predicts that the price of the EUD/USD will be higher in the next minute and he decides to place a bet of $10. If he is correct, he will earn a profit of about $8 depending on the broker and if his bet is incorrect, he will lose the $10 that he bet.

Put Option

In binary options, there are several specific technical terminologies that brokers and traders use. You cannot sell an option but instead, you can buy a “put” option. You purchase a put option if you predict that the price will drop. This means that you enter a deal whereby you bet that the price will decrease.

Call Option

Conversely, you buy a call option when you predict that the price will rise, and enter a deal whereby you bet that the market price will increase.

How to Start Trading Binary Options

Step 1: Build Your Strategy

Traders can start with trial and error to test out different approaches and see which one is the best fit for you to earn profits. Combining different indicators is also another way to come up with a personalized strategy for yourself. Some of these indicators include price levels, trend, candle patterns, chart patterns, moving average indicators, Fibonacci levels, on-chart indicators, and area indicators. This is not an exhaustive list of indicators and there are still many others that function differently and complement others. Matching signals from different indicators is recommended to ensure that the chances of getting a bad signal is lower and hence increasing your chances of a profit.

Step 2: Calculate the Returns

Since your broker gives you an approximately 80% return if your bet is correct and you lose 100% of your bet if you get it wrong, figure out the ratio of success of your strategy and evaluate yourself the maximum loss that you will suffer until you want out.

For example, if you do 100 trades by putting in $10 each, your total amount invested will be $1000. You choose a strategy that has about a 55% success rate, translating into about 55 out of 100 successful trades. Bearing in mind what was stated above, if you get about 55 successful trades, this means that you will earn a profit of 55 x $8 + $440 and lose about 45 x $10 = $450. Instead of earning from these 100 trades, you end up suffering a loss of $10 which renders this trade unprofitable and proves not ideal at all.

This is where you can consider opting for another strategy with a higher success rate o say 70%. If you do the calculations similar to the previous example, you will make yourself a net profit of $260, which is much more idealistic than the previous strategy. Hence, by playing around with different strategies and success rates, you will be able to discern for yourself a strategy that works for you and reaps the profits that you want.

Step 3: Money Management Strategy

Bear in mind that luck plays an important role as well. Let’s say you deposit $100 in your account and invest $20 in each trade, you will likely fail as you do not have enough capital to start earning profits, and can only handle a maximum of 5 losses before you are wiped out.

Therefore as a rough gauge, traders normally have enough deposit for at least 100 losing trades, since the chances of having 100 consecutive losses in a row are unlikely.

Step 4: Choose Your Binary Options Trading Broker

Choosing a legitimate and reliable options broker is crucial as there are many scam brokers out there who do not let you withdraw your money. If you are new to trading you should definitely check out this list of options brokers published by business24-7. Typically, good brokers:

  • Are authorized and adhere to the legislation set by the country
  • Have been operating for a substantial period of time since scam brokers are usually caught between one to two years
  • Have reasonably many good reviews online. Bear in mind that certain brokers can have fake reviews that normally consist of only less than 10.
  • Offers a range of trading assets in order to prevent you from being restricted
  • Possess a friendly and comprehensive interface
  • Have a wealth of trading indicators to facilitate a better trading experience and higher chances of earning

One of the best and most reliable brokers is definitely IQ Option. You can find a detailed review on business24-7 or check out the special features of IQ Options for UAE users here.

Step 5: Create and Fund Your Trading Account

Follow the steps of opening a trading account carefully provided by your broker. They typically involve a few verification processes to identify yourself and confirm your account and then depositing a certain amount that you wish to start off with.

Be sure to keep in mind the tips mentioned earlier, instead of having too little money in your fund that will prevent you from making enough trades to earn profits.

Step 6: Begin With Your First Trade

You’re finally ready to go! Typically, it is recommended to invest about 1% of your total funds in your trading account. These are some basic steps to follow:

  • Change the investment per trade to your desired amount
  • Choose the expiration time of the binary option
  • Conduct your analysis and choose your specific strategy
  • Click on “call” if you predict that the prices will increase or “put” if you predict that the price will decrease
  • Wait until the binary option expires
  • Track results
  • Repeat again

Final Thoughts

Trading binary options are one of the easiest ways of managing your financial assets without the process being too complicated for a newbie like you. Rules are extremely simple and easy to follow, and there is also a limited risk per trade depending on your bet, therefore preventing you from losing too much.

Final tips are to build a strategy that works for you with a good success rate, calculating your capital carefully, and being smart. Change your strategy if you don’t find it to be working well. You can consider getting a demo account first to practice before using your real money. May the odds be ever in your favor!

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!

Like this post? Please share to your friends:
How To Start Binary Options Trading 2020
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: