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How To Trade Binary Options

To become a successful trader, it is important to know how to trade. This is a question every trader has asked, at one point in his/her career.

Learning the basics: It is important to become familiar with binary options trading terms. Some of this include; Call, Put, In the Money, Out of Money, Expiries etc. After mastering these terms, you’ll be able to navigate binary options platform and know exactly what you are looking for.
Picking a Data source: Each trader should have an external source of data and not rely solely on the one provided on the trading website. It could be online charts or other trading softwares like Ninja trader, e-charts or the most popular one, Meta trader.
The next thing to do is to find a strategy that gives a profitable win-loss ratio. This is the most important, having a strategy that works. For novice traders, you could use charting softwares to create strategies using inbuilt indicators like Moving averages, Stochastics, Bollinger bands etc. Once you have a strategy that has an edge, you are ready to start trading.
The following step is obvious, you’ll need to create and fund an account in order to start trading. You can check out this page to see some of our recommended brokers. Before funding an account, it is important to look at the platform and see if it meets your requirements. For example the minimum and maximum per trade, minimum per deposit, and also to do some research and find out if the site is reliable. All this matters when you want to invest your money in a binary options broker

What are binary options?

Binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset) or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff). The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security.

In Binary Options, you only need to predict either with a “Call” or “Put”. Binary Option trading has only two investment possibilities, either you win or you lose. After you select an asset, you will then predict whether you think that asset will go up or down in price. After the chosen expiry closes, if your prediction was correct, you will usually earn up to 85% on your original investments. If your prediction was wrong, you’ll lose all the money invested. Some Binary Options brokers usually refund 3% when your prediction was wrong, but this is not so common anymore.
Choosing an asset is the first step of your investment. Most Binary Options brokers offer a wide variety of tradable assets, from indicies to stocks, currencies and commodities. After choosing the asset, you’ll then choose an expiry in which you’ll predict if your chosen asset will appreciate or depreciate in value. After this step, you’ll then determine how much you want to invest. It is advisable to only trade or riskabout 5% of your account. This will help minimizes loses if they occur.

To trade binary options, you need to create an account with a binary options broker. You can create a Real account or a Demo account. After this step, you will need a profitable nd consistent strategy. This is the most important part. You need to be able to make proper market analysis in order to place and make profitable trades with Binary Options. Trading strategies determine your success in the markets. From Price action, to Fibonacci, Gann, Pivots, Custom indicators etc, you’ll need to find a profitable trading strategy and master it. Once this part is figured out, you can then trade without limits.

Price Action System

With this strategy, we use support and resistance to predict the direction of price. This strategy uses new methods of synthesis in the financial markets, and it gives alerts in areas of pivots coupled with the speed of volume.