Binary Stocks – Earn money like the pros

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

Learn about binary stocks and earn extra income

Any respectable binary options broker will have a variety of assets for you to trade. Brokers will offer a range of commodities (oil, gold etc.), currency pairs (EUR/USD, JPY/USD), indices (Dow Jones, S&P 500), and an array of international stocks. The beauty behind this diverse amount of potential underlying assets is the ability to diversify your portfolio as well as trade in the market that most interests you 24 hours a day. The best brokers offer a variety of international stocks. Succeeding with binary options requires you to be aware of the latest news and events across the financial markets around the globe. If you are not willing to read what’s happening, then you won’t catch the market moving in your favor.

Binary stock trading is an exceptionally great way to take advantage of market trends, because most likely you are already following the market. When is the next iPhone being released? Did Facebook just make a major purchase? Chances are you can answer these questions. This means you are already following the market. If you know when the next iPhone is being release, you are following the stock of Apple (AAPL). If you know if Facebook is looking to purchase new technology like WhatsApp you are following Facebook (FB). Since you are already following the market, you just need to read financial news with an eye for how it affects stock price trends.

Follow an industry to win at binary stock trading.

Since you are already interested in tech giants like Apple and Facebook, following other industry giants is probably something you’ll enjoy. One of the biggest advantages to trading with binary stock options is that stocks are heavily linked to the performance of an overall sector such as: Finance, Technology, Energy etc.

Grouping companies by industry is a great way to get a sense for the health of companies who provide a similar service. Top investors specialize in a specific sector and rarely venture of outside their circle of knowledge. That is to say, an expert in Energy won’t invest in the Finance industry simply because they don’t know so much about it.

It is also possible to get even more specific and follow specific industries such as: Food Wholesale, Health Care Plans, Electronic Equipment:

Stocks in Electronic Equipment Industry:

  • Apple, Inc (APPL)
  • Skullcandy, Inc (SKUL)
  • Sony Corporation (SNE)

You can see from this simple example that the above three companies are in the same industry because they more or less serve the same market. Since most companies provide products or services for defined industries or sectors, information in the public domain on that industry may also result in a movement in price in that particular stock. It’s not a hard and fast rule but it can help the trader to make informed predictions on how the stock price may move over the short-term.

Furthermore many of the top industries are already measured in one index. Many regular stock trading companies such as Vanguard offer an industry specific ETFs. An ETF, Exchange Traded Fund, is essentially a financial security that can track among other things a basket of related industry specific stocks.

You can see from the above Tech ETF graph from Vanguard, that the performance of tech stocks is trending up. From this you should investigate further, pick a stock and see the trend, and finally purchase a CALL or PUT binary stock option depending on what your research tells you.

What if I’m not interested in tech stocks?

These binary stock options are also offered across a wide range of industries, including technology, telecommunications and financial services. Technology firms include the likes of Google, Apple and Dell while telecommunications stretches across borders including Qualcomm, Deutsche Telekom and Vodafone. These international stocks provide an opportunity for traders, who are looking to benefit from short-term movements in price of the stock.

As mentioned above, any broker worth its salt will have a variety of stocks to choose from. One of the leading brokers in the industry offers its clients the option to choose from the following stocks covering all sorts of industries.

  • Yahoo!
  • Allianz
  • Societe Generale
  • Walmart
  • Barclays
  • Verizon
  • Daimler
  • Chevron
  • Commerzbank
  • Orange
  • Deustche Bank
  • E.ON
  • RBS
  • Vodafone
  • UniCredit
  • Pfizer
  • Baidu
  • Apple Inc.
  • Cisco
  • Facebook

It doesn’t matter which industry or sector you choose to research, or which you are already following. The key is to start reading the financial news you already read as investor and not as a consumer.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

Follow the steps laid out for you in the above article.

  1. Pick an industry or sector that you are already following
  2. Find a few industry or sector specific ETFs that track the stock you are interested in
  3. Review the last few weeks data to determine market trends
  4. Investigate further
  5. Purchase a CALL or PUT binary options based on your research

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.

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)

What Stocks Are Best for Binary Options?

While there are many reasons to invest in individual stocks in the traditional manner, the trading of stocks via binary options can offer a number of key advantages to traders. First, the investor’s risk is capped at a maximum amount. Thus, while there is risk involved in every type of investment, those who trade in binary options already know the amount of their potential loss prior to even initiating the trade.

In addition, trading in binary options is a much simpler form of investing altogether – especially as it relates to trading in stocks. This is because it does not require that the trader know a great deal of financial terminology, but rather it allows investors to trade with a simple yes or no option in regards to whether the share price of a particular stock will move up or down.

Why stocks are a great option

Stocks markets are one of the most popular forms of traditional investment and the ability for these markets to be traded using derivative vehicles such as binary options has made access to these even easier. Trading stocks with binary options is one of the most straightforward ways to trade, with the simple choice of higher or lower making the analysis of stocks easy. This also means that traders no longer need to arrange a stoploss or take profit level for their trades, since binary options only require that an expiry time is arranged in order to determine if the option will expire in or out of the money.

In applying binary options to stocks, trading platforms allow trades to be taken throughout the trading day. Due to the fact that these options only need to close fractionally higher or lower than the strike price means that even those slow moving stocks can be traded for up to 80% profits. This would be difficult to obtain trading traditional stocks where the degree of movement dictates the return on the investment. In addition to this, many binary options brokers also offer weekend touch trading for stocks which can earn traders up to 500% of the investment. For those who analyse individual stocks correctly, this is one of the most profitable investments available and certainly a unique return for short-term stock trading.

How to Make More Successful Trades in the Binary Stock Market

Unlike trading in regular stock options, traders in the binary options arena are under no obligation to purchase the underlying assets. Rather, they are simply investing based upon whether or not they feel that the share price will rise or fall within a certain period of time.

One of the best ways to ensure successful binary options trades is to conduct analyses prior to moving forward with one’s investments. There are two key types of analyses that are available for binary options traders to use – these include technical analyses and fundamental analyses.

Those who engage in technical analyses will generally study charts and/or graphs of an asset’s past price movements. In many cases, this type of analyses will show a pattern which – if followed by the trader – may indicate at what point the asset’s price will rise or fall again.

Fundamental analyses focuses on different types of data such as the underlying asset’s market, current economic conditions, and potential effects of supply and demand which may have a bearing on whether the price of the asset could move up or down within the near future.

While many binary options traders prefer one type of analyses over the other, in most cases it is wise to conduct a combination of both types. This way, a trader will get a much more thorough picture of both the past movements and patterns of the underlying asset, as well as an indication of market and economic conditions that may affect the future price of the entity.

In doing so, if a trader has correctly predicted the movement of the underlying stock price prior to the expiration of the option, then they will make a profit. Conversely, if the investor has incorrectly predicted the stock’s movement, then he or she will incur a loss.

Best Stocks to Use for Binary Options Trading

There are numerous stocks from which traders may choose as their underlying assets in binary options trading. These may include:

Many of the individual stock choices that are open to binary options traders are large corporations that are listed on a particular stock exchange like the NYSE. These exchanges consist of entities that are located around the globe. Depending upon the size of the company being traded, its shares may be affected only by national economics or by worldwide events.
Because of the many different exchanges – as well as differing trading hours – binary options traders typically are able to trade various stocks throughout the day and night, as well as on the weekend. This additional amount of trading time can allow binary options traders the ability to make quick profits at just about any time.

Some key aspects to consider prior to placing binary options trades on individual stocks include the sales and growth figures on the underlying company, the state of the industry and/or market that the company conducts business in, and the economic conditions of the country in which the underlying company is located. All of these factors will in some way affect the movement of the asset’s share price.

The best broker for trading Binary Options on stocks is IQ Option because it offers you a wide range of different underlyings and the minimum deposit is just $10.

Visit the IQ Option website now!
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Our recommendation: Start trading Binary Options with:

www.iqoption.com
IQ Option is one of the largest trading platforms in the world, with over 7,000,000 accounts opened. Your money is safe thanks to segregated trust accounts for cliends’ funds. And profit payouts are among the fastest in the finance industry. Start now!

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

Like this post? Please share to your friends:
Binary Options Trading Step By Step
Leave a Reply

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