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Binary options are a classic type of trading which can be simply described as a yes-or-no bet, with only 2 possible outcomes. Traders must predict whether a pre-determined price of a financial instrument will be at, higher or lower than the strike price, within a certain time frame. Therefore, there is a fixed payout (or loss) at a fixed deadline. Payouts are quite high, usually ranging from 70-85%.
To give a concrete example, you can bet that the price of Apple stock will be higher tomorrow than it is today. If tomorrow it is indeed higher, you win, if it is lower, you lose.
Binary options are any easy way for novice traders to get into the game before investing in stocks or commodities and easier to figure out than Forex. Many brokers offer users a free demo account to ‘try before you buy’; this is a great way to test the waters, before committing to an actual account, where a minimum deposit of $100-250 is usually required.
While each broker offers different types of assets, traders can usually choose between stocks, commodities, indices or a variety of currency pairs.
The secret to making profits when trading binary options is to predict the asset’s value at a defined future time. Expiry times are sorted into short (15s-30min), medium (1hr- end of the day), long (end of the week, 30 days, End of the Year). As a general rule, short expiry times are harder to predict and this means they have a higher percentage of winning rate. Longer time frames, while easier to predict, include risk management techniques. Choosing the right expiry time is essential to enhancing odds of winning.
Most brokers will offer a range of trading options. For inexperienced traders, the High/Low or Call and Put trade is easiest to select. More experienced traders will opt for One Touch Options, where they must predict the specific value of the asset.
Although most broker websites provide education material, which novice traders can use to familiarise themselves with the workings of binary options, there is often limited information or, in some cases even misinformation.
This is why our portal strives to be the middleman, lending a hand to newcomers as well as experienced traders, and we believe that following our articles and guides is definitely a step in the right direction. You can count on us to offer honest, accurate and up-to-date information on thousands of brokers worldwide.
Find out which brokers we recommend, to avoid risky sites and the possibility of being scammed. Also, discover which brokers are available for trading in your country, and learn more about regulators. In an industry flooded with an ever increasing number of websites, let us help you choose the right binary options broker for you.
View a complete series of binary options strategies, ranging from basic to advanced level, and written by our trading expert with more than a decade’s experience in the industry.
If you simply don’t have the time or inclination to study market analysis, take advice from the experts by using signals. These professional recommendations make binary options trading a whole lot easier.
You could also opt for auto trading, which goes a step further than signals since it swaps out manual trading and executes trades automatically by means of a computerised robot. We calculated win rates of around 70%, with one of the most popular robots around, BinaryOptionsRobot.
Make use of our Binary Options Economic Calendar to discover how traders can utilise data from daily economic reports to assess the market’s movements and capitalise on profits.
Keep updated on important stuff going on in the industry through our news section.
Finally, find out more about the status of binary options in New Zealand and what to keep in mind if you’re about to start trading from here.4Your capital might be at risk