Master binary options trading ebook
- 2. Table of Contents Master Binary Options Trading Resource.............................................................................................3 Broker Reviews.............................................................................................................................4 Signal Reviews..............................................................................................................................4 Broker Scams................................................................................................................................4 Social Networking.........................................................................................................................5 Master Ebook................................................................................................................................5 What Are Binary Options?..................................................................................................................6 History of Binary Options...................................................................................................................6 Why Are Binary Options So Popular Today?.........................................................................................7 Binary Options Trade Types...........................................................................................................7 High/Low....................................................................................................................................7 Touch/No Touch..........................................................................................................................7 Boundary (also known as Range).....................................................................................................7 60 Seconds...................................................................................................................................7 Binary Options: Online Trading Version 2...........................................................................................8 Why are so many CFD and Spread Betting Traders moving over to Binary Options? Binary Options Trading Strategies.......................................................................................................9 Bullish/Bearish Strategy................................................................................................................9 Money Management Strategy........................................................................................................10 Boundary Strategy.......................................................................................................................11 Binary Options Demo Accounts........................................................................................................12 24Option Demo Account.............................................................................................................13 OptionBit Demo Account............................................................................................................13 OptionFair Demo Account...........................................................................................................13 Binary Options Glossary...................................................................................................................14 iiiiiiiiiiiiii iiiiiiiiiiiiii
- 3. Master Binary Options Trading ! All binary options traders are advised to select a reliable source of information that can be referred to on a regular basis. Master Binary Options Trading (http:// www.masterbinaryoptionstrading.com) is one such source. The website provides a plethora of reviews, news, daily analysis, scam reports, trading education, and more. Both new and experienced traders will benefit from quickly being provided with a list of the most reliable brokers and what each has to offer. Those searching for the brokers who offer the highest payout percentages need look no further as... “...Master Binary Options Trading lists them all in one place.” The Master Binary Options Trading blog offers information for traders of all skill levels. Entries cover topics such as strategy development, money management, risk assessment, fundamental analysis, technical analysis, trading signals and more. Binary options trading is an ongoing learning process that never truly ends. This blog will provide a constant stream of new information that can be used to make trading even more profitable than ever before. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 4. Broker Reviews Reviews have become extremely important in the world of binary options. Master Binary Options Trading provides accurate reviews that fairly grade various brokers. Both the positive and negative aspects of each broker are revealed, allowing the trader to make an accurate assessment of the overall performance of the broker. Elements such as the trading platform, user- friendliness, customer service, minimum deposit amounts, and the withdrawal process are broken down in each review. Each broker is graded based on these important factors. Signal Reviews Signal provider reviews are also offered. Trade signals are now used by many to reduce the amount of time needed for research. The accuracy percentage of each signal provider is extremely important. Since there is a cost to use a signal service, traders must know which providers are the best. Automated trading, which is often used in forex trading, has also become popular in binary options trading. There is risk in allowing a program to perform automated trades. Reliability of these systems is critical. Broker Scams Though scams are not extremely common in binary options trading, all traders need to be aware of any that do exist. Master Binary Options Trading provides current information in regard to scam reports. With money on the line, one can never be too careful when selecting a broker. Though extremely rare, good brokers can run into problems should a proper money management system not be in place. Traders must be alerted to any red flags immediately in order to avoid losing money. Binary options scams can be presented in several forms. Fortunately, traders need not ever fall prey to a scam when current scam information is monitored. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 5. Social Network Do consider joining the Master Binary Options Trading community. This can be done via Twitter (https://twitter.com/MaBinaryOptions) or Facebook (https://www.facebook.com/ MasterBinaryOptionsTrading). Either of these social media outlets will allow you to access the latest news, interact with expert traders, and interact with other traders. While articles, news reports, and educational tools are important, there are plenty of benefits to being able to directly interact with those who can provide support, guidance, or friendship. Master eBook While we have covered a great deal of information within this eBook, there is more to be learned. These basics will certainly point you in the right direction and help you get started trading right away. However, this information is by no means all that must be considered when trading. With binary options trading now becoming the preferred trading method of many, there is no end to the growth of this industry in sight. Visit Master Binary Options Trading to access the latest information that should be considered when trading for profit. Press the ‘launch success’ button at the bottom of any page and be transported to the Worlds Number 1 Binary Options Trading Resource. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 6. What Are Binary Options? ! B inary options are a means of financial asset trading that does not require the trader to purchase an ownership stake. Instead, traders are allowed to purchase a contract that includes the trader prediction of whether or not the value of the selected asset will be at, above, or below a set price at the end of the contract time period. Binary options trades are often referred to as, "yes or no trades." This is due to the fact that most trades require only the prediction of yes, the value will rise above the strike price within the designated time period, or no, it will not. This simple form of trading can easily be mastered by anyone who invests the minimal amount of time required to learn how to trade. In order to complete these trades, the trader will need to partner with a broker. The broker will provide the trading platform that will be used to purchase contracts. There are plenty of brokers to choose from, with each being responsible for paying earning to traders. History of Binary Options ! M any think that binary options trading is a new concept. In reality, this form of trading has been around for quite some time. The Chicago Board of Options Exchange was established in 1973, paving the way for binary options trading to grow and expand. Prior to this time, this financial instrument could only be found in closed markets. Trades were not standardized at this time, instead being over the counter types of trades. The most significant changes would occur in 2007. During this year the Options Clearing Corporation would work towards bringing binary options mainstream. Proposals were made to, and accepted by the SEC in 2008. Soon after, the the American Stock Exchange and CBOE would become two of the first to offer binary options to the general public. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 7. Why Are Binary Options So Popular Today? Google Trends - Binary Options 2004 > 20012 ! ! T his form of trading offer several benefits that simply cannot be ignored. For starters, binary options trading is straightforward. The trader knows the exact profit percentage on each trade, as well as the potential loss amount. Traders will never lose more than their investment amount on any trade. “This straightforward approach renders money management a simple process.” The simplicity of binary options trading is another draw. In a time when there are almost too many options for trading, binary options allow anyone to quickly learn how to trade and to begin profiting immediately. There is no lengthy learning curve to prevent traders from trading immediately. In fact, it is possible to profit within the first few minutes of trading. The volatility of the markets today is yet another reason. In traditional trading, the trader can only profit if they value of their assets rises over time. Binary options allow traders to profit regardless of whether the value rises or falls. With so much economic uncertainty surrounding the markets today, binary options remain a solid option for trading that is not negatively impacted by these conditions. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 8. Binary Options Trade Types ! T here are several types of trades to consider with binary options. Note that different brokers may offer different types. However, the following are commonly used and found within many trading platforms. High/Low (also known as Call/Put) - The simplest trade type. Traders need only predict if the asset value will higher or lower than the entry price at the end of the contract time period. When an increase is predicted, the "call" option will be selected. Should a decrease be predicted, the "put" option will be selected. Touch/No Touch - Another simple trade that requires the trader to predict whether or not the asset value will reach, or not reach a predetermined set price at any time during the contract time period. Touch profits are earned should the asset value touch the set price at any point during the time period. In order to profit from No Touch, the asset cannot touch the set price during the contract time period. Boundary (also known as Range) - In this trade type, two asset price levels will be set, both high and low. This establishes a boundary. In order to profit, the asset value cannot exceed either of these amounts during the contract time period. 60 Seconds - Must the same as High/Low, but with a shorter contract time period. A call or put option must be selected, with the outcome of the trade known once the 60 seconds have elapsed. This is currently the fastest form of trading. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 9. Binary Options: Online Trading Version 2 ! B inary options trading has quickly become the preferred trading method of those who participate, or have participated in CFD Trading or Forex Trading. Niels Vahman, Chief Executive Officer and Executive Director at licensed Binary Options Market Makers, SpotOption summed up the reason that so many have switched over in a recent statement. “The Binary Options industry is where forex was 10 years ago. As I see it as the new forex, the possibilities are endless," said Vahman. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 10. Both CFD and Forex traders find a great deal of comfort in trading binary options. This comfort comes from knowing that nothing more than the investment amount of each contract can be lost. This allows the trader to only risk the amount that he or she is willing to part with should the trade end out of the money. In comparison, standard CFD and Forex trading never allow the trader to know up front the exact amount of money that may be lost. Binary options offer traders the ability to trade globally. This presents virtually limitless trade opportunities to explore. Any knowledge learned from CFD or Forex trading can be directly applied to binary options trading. Those who have never participated in any form of trading are not left out, as binary options trading basics can be learned in a very short period of time. Both experienced and novice traders can begin trading immediately with the knowledge that they have the power to limit risks. Market volatility does not impact binary options trading in the same manner that it impacts traditional trading. In fact, many who trade binary options profit greatly from volatility. It makes no difference whether the asset value rises or falls, only that the correct prediction is made. The ability to profit from declining asset values is something that is not seen in other forms of trading. “This unique feature opens up even more profit possibilities” iiiiiiiiiiiiii iiiiiiiiiiiiii
- 11. Small in size and self-contained in nature, binary options provide the perfect outlet for testing CFD or Forex strategies without risking large amounts of money. Though many switch to exclusively using binary options to profit, those who choose to also continue traditional trading may find this form of trading more profitable when using binary options tools and testing. With minimum deposit and investment amounts typically low, binary options trading becomes affordable to a large group of people. Minimum Forex or CFD trading minimum deposit and investment requirements tend to be quite high. The eliminates the average trader who wishes to profit from trading. Minimum deposit amounts with binary options brokers can be $100, or less. “Some brokers will also offer no minimum investment amount on each trade.” The profit percentages offered by brokers must also be considered. These typically range between 70-85% of the initial investment amount. Some brokers may even offer percentages higher than this. High yield trade profit percentages can be as high as 400% or more. Many binary options brokers now offer a 10-15% return of the investment amount on trades that end out of the money. A return is something that never occurs in traditional trading. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 12. Binary Options Trading Strategies ! T rading strategies are something that all traders will need to consider. The following three are widely used due to their simplicity and success level: Bullish/Bearish Strategy ! T his strategy is based on the overall market condition at the time of trading. A bullish market is one in which trading is strong and active. During this time, asset values are likely to rise. A bearish market is one in which investors are more hesitant to invest, causing the asset values to move little or decline. Either of these market conditions will allow the binary options trader to profit. Based on market conditions and general sentiment, the trader will need to first determine whether the market is bullish or bearish. This can be done by referring to financial data over a specific time period. The time period is important, as it will be used to select the correct contract expiration time. For example, if market conditions have been bullish Bull Market: Prices Consistently Trend Up for a short period of time, the trader may wish to assume that asset values will continue to rise in the short term. Long term market conditions can also be a strong indicator. Fundamental and technical analysis are required for this strategy to work well. Fundamental analysis will include a consideration of current news and events related to the specific asset class or underlying Bear Market: Prices Consistently Trend Down asset. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 13. Technical analysis will include reviewing charts and graphs to see how the asset has performed in terms of rising or falling value. “These two analysis types are used in nearly all strategy types, and are certainly not limited to the Bullish/Bearish strategy.” The final consideration when attempting to profit from either of these market conditions would be the include pivot points in the strategy. Pivot points as applied to overall market conditions are simply the point at which the market switches from bullish to bearish, or bearish to bullish. Many binary options traders are able to profit greatly from learning how to predict such a shift before it occurs. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 14. Money Management Strategy ! T he main benefit of a money management strategy is that it allows the trader to correctly manage funds. This strategy can prevent the trader from ever losing more money than the wish, keep more funds for re-investing, and prevent the need to be making frequent deposits with the broker. A money management strategy is not applied to just one trade type, but all trades. Money Management’s basic aim is to increase wealth over an extend period of time Once example of this strategy would be the establishment of a maximum percentage of funds that will be invested in each trade. A lower investment percentage amount, typically 10%, is set and not exceeded. This would mean that if the trader currently had $300 in their broker account, no more than $30 would be invested on any one single trade. This reasonable spreading of funds will allow losses to be easier to absorb. It should also allow funds to still be available for performing profitable trades that will offset losses and grow total profits. One of the biggest mistakes in binary options trading is investing huge amounts on single trades. Regardless of how certain the trader is that the prediction is the correct one, there will always be a level of risk. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 15. The money management strategy should also include diversifying so that the trader is not at the mercy of a single asset type not performing as expected. By building experience within all four of the major asset classes, the trader should always have several trade outlets to choose from. At any given time one of these could be easier to predict than the others. “A diverse approach removes limitations.” Money management is something that all binary options traders must consider. The 10% maximum investment amount may not be right for everyone. However, some investment limitations should be in place to prevent a total loss of funds and subsequent need for making another minimum deposit. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 16. Boundary Strategy ! A good boundary strategy relies heavily on research. Boundary trades require the trader to select an upper and lower boundary that the asset value will remain within during the contract time period. As long as the asset value remains within these two numbers while the contract time is active, the trader profits. Should the asset value be out of the boundary range, either above or below, a loss is the result. The Boundary across a period of time This strategy can be put into action by reviewing historical financial asset data to see how the asset has performed in the past. In doing so, certain price ranges should become apparent. A maximum high and low value should be noted, as the asset value is likely to break out of these. Between these two, however, should a range in which the asset value often hovers within. Spotting this range is critical. “Fortunately, charts and graphs will make this task easier.” iiiiiiiiiiiiii iiiiiiiiiiiiii
- 17. The expiry time period should also be considered. For example, if the underlying asset has remained within a certain range for only a short period of time it should be considered temporarily volatile. Alternately, should the asset have remained within basically the same range for a day or more, it can be considered more stable. “ The level of stability or volatility should be considered when selecting between a broad or narrow asset boundary range.” The boundary strategy may seem complicated on the surface, but is actually one of the easiest strategies to master. Analysis tools make it easy to see the typical boundaries that an asset moves within. A final tip when using this strategy would be to not overlook fundamental analysis when making boundary trades. Current news and events related to the specific asset could easily cause the asset value to become erratic and leave the boundary range very quickly. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 18. Binary Options Demo Accounts ! ! ! D emo accounts are offered by many brokers. These accounts allow trader to use the broker platform to perform no-risk, fictional trades. Traders can use these accounts to determine how well they like the platform that is being offered. Though there are plenty of broker reviews available, these cannot replace the experience of actually entering into the trading environment and making judgements based on first-hand knowledge. Demo accounts are typically offered free of charge. Brokers offer these accounts with the hope that those who use them will choose to partner and trade with them. This makes the demo account beneficial to both the trader and the broker. No one loses in this case, with both parties standing to gain something from the use of these free accounts. That said, traders should note that demo accounts are typically not offered for long periods of time. At the end of the account time period, the trader will need to decide whether to make the minimum investment or not. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 19. The benefit of demo accounts to new traders cannot be overstated. Those new to binary options trading must consider learning how to trader correctly. Since these accounts allow the trader to enter into a "real-time" trading environment, they allow traders to experience what it is like to trade. Though the funds are fictional, the experienced gained is very real. No trader should ever begin trading without fully understanding how to trade correctly. Experienced traders can use demo accounts in a different manner. Often these accounts are used when switching from one broker to the next, or in deciding whether or not to partner with more than one broker. Experienced traders already understand how binary options trading works, meaning that the training tools provided may not be extremely beneficial. However, experienced traders are well aware of the importance of trading with a reliable broker within a reliable platform. “Demo accounts can provided the necessary insight required to make decisions.” The following are three of the binary options brokers offering attractive demo accounts. While these are certainly not the only options, each of these can provide substantial benefits to traders. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 20. 24Option Demo Account This broker is a popular choice due in part to their user-friendly platform. Unlike some demo accounts, 24Option provides demos within their extensive trading materials. This is much more beneficial than simply having access to a platform and then not knowing where to go from there. 24Option takes traders by the hand and then leads them through the educational experience via not only written content but also training videos. Novice traders, in particular, will benefit from opening a free account with 24Option. OptionBit Demo Account OptionBit offers a free demo account along with an educational eBook that is valued at just under $40. Registration takes only minutes, at which point the trader can enter into the platform and begin examining the tools. Though there is plenty of value in the demo and educational tools offered by OptionBit, additional value will be had in the form of lucrative bonus amounts offered to those who convert their demo account into a full trading account. OptionFair Demo Account There is plenty to love about what optionFair is offering to those who have not yet tested their platform. Fast and free registration provides traders with access to the platform, plenty of educational tools, and binary options guide eBook. What makes optionFair most unique is that they are currently the only broker offering free live webinars to provide assistance to traders. These webinars are hosted by an expert binary options trade instructor, with a number of important topics being covered. iiiiiiiiiiiiii iiiiiiiiiiiiii
- 21. Binary Options Glossary • Asset Class: The four main asset classes include Stocks, Commodities, Currency Pairs (Forex), and Indices. • Underlying Asset: This is any asset that falls under the asset class. (Ex. Starbucks, which would fall under the Stock category). • Expiry: The is the end date and time associated with each contract purchase. • Call: A prediction of the increase in the value of an asset. • Put: A prediction of the decrease in the value of an asset. • In the Money: A trade that ends with the trader successfully earning a profit. • Out of the Money: A trade that ends with the investment amount being lost. • At the Money: A trade that ends with the asset value being the same as it was when the trade was initiated. This results in the full investment amount being refunded. • Payout Percentage: The percentage amount of the total investment that will be earned should the trade end in the money. • Current Price: The current value of an asset as determined by a major financial news source such as Reuters or Bloomberg. • Strike Price: The price linked to the contract purchase, or the contract purchase price. • Broker: The company with which trading contracts are entered into. • Trading Platform: Provided by the broker, this platform is the area in which trading is conducted. The platform will also include tools, banking functionality, and more. • Analysis: Research related to each asset. This is done in order to increase the number of in the money trades. iiiiiiiiiiiiii iiiiiiiiiiiiii