Start Trading Binary Options Guide for Beginners

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  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
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  • Binomo
    Binomo

    Honest broker!

Beginners Guide to Binary Options

When you have an interest in trading Binary Options online or via a mobile device you will of course need a full understanding of how to do so.

With that in mind we have put together the following step by step guide that will enlighten you on how you can master the fine art of trading Binary Options and also find the perfect Broker based on your level of trading experience and the volume of trades you wish to place.

You will of course need to spend some time learning all of the different aspects required to pick out the best Broker to sign up to, and also researching the type of trades you wish to place and a whole plethora of different aspects that will make you into a much more informed trader.

However, if you do follow this guide from start to finish we know you will gain all of the knowledge you will need in regards to you being able to spot potentially profitable trades whilst also being able to know which are the best types of trades to place, where to place them and also how to make use of the many different trader bonuses which can lock in additional trading value.

Deposit: $10 Payout: 90%*

Broker Offer Review
Review!

* Amount to be credited to account for a successful trade

You will first need to understand all of the many different types of Binary Options trades that you are going to be able to place. This is even before you find a Broker at which to sign up to.

By knowing the different types of trades available you will then be able to locate a Broker that is going to offer you the range and types of trades you are going to be interested in placing. With that in mind do read through our guide on the types of Binary Options trades you can place as you may be surprised at just how many different trades will become available to you as a trader.
Choosing Which Trades to Place

One you have an understanding of the range and types of Binary Options trades which can be placed online or via a mobile trading platform you will then need to gain a full understanding of the types of trades which are going to appeal to you the most.

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!

Whilst very experienced traders are always going to be prepared to place trades on anything that is likely to return a profit to them, as a first time and inexperienced trader you may be better off placing trades on companies or commodities that you have an interest in or are very familiar with.
Utilising Economic Calendars

Information is power, more so when you are a Binary Options trader and with that in mind you are always going to need to have access to the very latest financial news stories. However, at various times of the years all developed countries of the world will release financial data which will give an indication of how certain different market sectors are performing in their respective countries.

Please do familiarise yourself with the economic calendars that will enlighten you on a huge array of different financial data and information, as once you know how well different market sectors are performing in each country you can then use that knowledge to help you select the types of trades to place which are likely to help you make financial gains.
Choosing a Binary Options Broker

It is only once you have mastered all of the above qualities and aspects of placing Binary Options trades that you should then start to look around for a Binary Options trader to open an account at.

By putting together a checklist of wants and demands based on what types of trades you wish to place and the variety of trading options you are looking or will you then be able to match your wants and demands with a Binary Options Broker.
Opening Up a Trading Account

One aspect to opening up a Binary Options trading account that is often overlooked by many first time traders, is that there are in fact often several different account types available to you at many different Brokers.

With that in mind we would suggest you read through our guide to opening up a trading account for we will enlighten you on the many different types of trading accounts that are available to you and will point you in the right direction in regards to the type of account that will suit you best.
Methods of Funding a Trading Account

You will of course need to decide how you wish to transfer funds into your trading account whilst also having a method available to you for withdrawing your money out of a trading account when you have made one or more winning trades.

We therefore invite you to take a look through our guide to the many different ways of funding your trading account as there are likely to be several very cost effective and convenient methods available to you based on where it is you live and reside.
Making Use of Trader Bonuses and Promotions

As there is so much competition between Brokers for your custom you are always going to find some form of trader bonuses and promotional offers available at any Broker you do sign up to or are considers joining.

With that in find we have compiled a guide that will walk you through the many different types of trader bonuses and will help you gain an understanding on which ones offer you the best value.
Binary Options Trading Strategies

As you become a more experienced trader you will soon start to discover ways of trading that often tend to make you more regular gains and profits. Every experienced trader will have their own unique trading strategy and as such we would suggest you take a look through our guide which covers that very topic.

By putting into place some form of strategy and always following it when placing any type of Binary Options trades online you are going to have a structured way of trading and one that will be tailored to you personally.
Making Continued Profits

Our final educational guide to Binary Options is going to look at ways you can make continued profits as a Binary Options trader. Whilst it may take you some time to fully master the art of placing traders online or via a mobile trading platforms, once you have there are some high profits to be made 24 hours a day.

Binary Options Guide

This binary options guide will explain to you what binary options are and how to get started in 3 easy steps. Binary Options Hub recommends to practically follow this tutorial step by step. By the end of the tutorial you will be ready to start trading binaries online.

If binary options are not for you – you will understand it in the middle of the tutorial. So save your time and your money, focus and read the text below. This binary options guide might be the only piece of honest information about binaries available online.

Read Binary Options Guide now and learn how to trade binary options!

Step 1 – Understand the Binary Options

It is vital to understand the market before you move on any further. Most of the sites will promise you 1000% return on your investment in 3 days with binary options. Unlike them, Binary Options Hub is an honest website and we are here to explain to you the details before you commit to online trading of binary options. Find out the most important info in the binary options guide below!

What are binary options?

Binary options are nothing more than a type of an online gambling. Don’t trust anyone who says that binaries are an investment, they are not. Although trading binaries is risky, the whole system behind binaries is transparent and this makes it a great alternative to online casinos. You can also predict the binary options strike prices, so it is not completely random. Got it? Great, continue reading our binary options trading guide!

How to trade binary options?

Trading binaries is relatively easy, when compared to trading stocks, foreign exchange, futures or other types of financial instruments. With binary options you need to:

  1. Select the direction of your trade (either UP or DOWN )
  2. Choose the time frame (between 30 seconds and 3 months)
  3. Pick an asset of your choice

Once you purchased a Call (upward direction) Option on EUR/USD that will expire in 30 minutes for 100 USD, you expect to nearly double the size of your bet or lose it. As simple as that. You main aim here is to correctly predict the future move of the asset’s price. Read the above again, as this is a vital example in the binary options guide. Also, take the time to read our strategies, so you will know what you are doing.

Should I trade binary options?

Most of the websites will tell – Yes, do it, click here to open an account now. At Binary Options Hub we want to give you a valuable advice. Trading binaries is risky and you may lose your deposit in minutes, if you are not careful enough. Risk always equals return, hence you may also gain fast income. This is why you should only consider trading binary options when you:

  • Have a sufficient amount of funds to risk
  • Can keep your emotions aside from your trading
  • Have an interest in financial markets

The main issue that beginners in binary options trading face is just mindless and clueless trading. They begin with placing some small bets, get some lucky trades and then lose some money. Afterwards, such traders end up losing lots of money while trying to cover previous losses. Don’t make a mistake – trade binaries only if you have an idea about financial markets and only if you are OK with fully losing your deposit.

But, binary options payouts are great and you can certainly make profit if you know what you are doing. Still interested? Read below a binary options guide on how to get started.

Step 2 – Get a Binary Options Demo Account

So, seems that you are brave enough to get started with binary options and try to beat the odds. The first mistake the newbie binary options traders make – they jump into action straight away. This is a no-no. You need to have a binary options account – but it is safer to start with a demo account.

Such an account will help you to learn and master the platform. You will eventually want to test the software, click here and there, to see how it all works. It is safer to do this with a simulated or demo account, using simulated money where your actual money is not at risk. So let’s get the ball rolling and get a nice demo account, shall we?

We will be registering an account with IQ option – the best binary options broker.

  1. Click here to sign up with IQ option
  2. Provide your personal and account information. Don’t be afraid that you are asked for too much, you’d rather spend a few more minutes signing up with a trusted binary options broker than spend a few weeks getting your deposit back.
  3. Perform a deposit. This is vital. Why? Because most of the rookie binary traders end up signing up, spending their time learning and then never trade actual cash. Deposit, but DO NOT trade. If you decide later that binaries are not for you, withdraw your money – with IQ option it is free.
  4. Ask the support officers for a demo account. Simply click on the live chat and request a support to supply you with a demo account. As you already have a live account, they will do it in a matter of minutes.

Step 3 – Learn To Trade Binary Options

You already have a binary options demo account, so now it is time to get started. First you need to pick the instrument you are going to trade. Start with only 1. It should be an instrument you are mostly knowledgeable about. Nothing seems to ring a bell? Well, perhaps you national currency is not EUR or USD? Try trading it. Maybe you are into technology? Then Sony, Apple or Google stocks might be just a right bet.

Secondly, consider the ‘time frame’. Don’t go for anything small at first. Try to work on 1 hour expiration (or even higher), as such moves are easier to predict. Betting on 1 minute, 5 minute or similar moves is just pure gambling, you may of course try it and test your luck, but Binary Options Hub doesn’t recommend it in the binary options guide for the starters. This might be useful only when you got some advanced skills.

Thirdly, trade, trade, trade! Make at least 10 demo trades. Don’t make silly trades, try to come up with a justification for all of your trades, write them down and check them up after the options expiration has been reached. If after 10 demo trades you are totally clueless why you lost or earned – check out the education section to find out more about binary options trading strategies. Now the theory of the binary options guide has come to an end – let’s get some market action.

Step 4 – Start Making Money on Binary Options

Once you got a sense of the platform and a general idea of what you are trading it is time to start trading binaries for real. Many traders make the mistake of over trading on a demo account. Don’t be afraid – start trading live if you feel confident.

Remember that deposit you had to make at step 2 of this binary options guide? Great, now switch to your live account and start trading. Binary Options Hub recommends you not to risk more than 5% of your balance per trade. In other words, if your deposit is 1,000 USD, don’t trade more than 50 USD at a time.

What is important is to have a maximum amount of trades per day and per week set in your head. The worst nightmare is to spend the whole day trying to get your money back – you will end up losing all of it. If you lost some, take a deep breath and accept it. Go away from your PC and come back the next day motivated to fight the market back. Binary Options Hub recommends you to trade not more than 5 options a day and a total of 20 options per week. That’s it, nothing else to cover in the binary options guide, now let’s get into action!

This is an end of the Binary Options Guide for the beginners. Binary Options Hub hopes that the Binary Options Guide had been helpful for you. If you are still in doubt – contact us and we will do our best efforts to get you started shortly. If you do not like IQ option – check our list of the best binary options brokers.

Options Trading Strategies: A Guide for Beginners

Options are conditional derivative contracts that allow buyers of the contracts (option holders) to buy or sell a security at a chosen price. Option buyers are charged an amount called a “premium” by the sellers for such a right. Should market prices be unfavorable for option holders, they will let the option expire worthless, thus ensuring the losses are not higher than the premium. In contrast, option sellers (option writers) assume greater risk than the option buyers, which is why they demand this premium.

Options are divided into “call” and “put” options. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price.

Why Trade Options Rather Than a Direct Asset?

There are some advantages to trading options. The Chicago Board of Options Exchange (CBOE) is the largest such exchange in the world, offering options on a wide variety of single stocks, ETFs and indexes. Traders can construct option strategies ranging from buying or selling a single option to very complex ones that involve multiple simultaneous option positions.

The following are basic option strategies for beginners.

Buying Calls (Long Call)

This is the preferred strategy for traders who:

  • Are “bullish” or confident on a particular stock, ETF or index and want to limit risk
  • Want to utilize leverage to take advantage of rising prices

Options are leveraged instruments, i.e., they allow traders to amplify the benefit by risking smaller amounts than would otherwise be required if trading the underlying asset itself. A standard option contract on a stock controls 100 shares of the underlying security.

Suppose a trader wants to invest $5,000 in Apple (AAPL), trading around $165 per share. With this amount, he or she can purchase 30 shares for $4,950. Suppose then that the price of the stock increases by 10% to $181.50 over the next month. Ignoring any brokerage, commission or transaction fees, the trader’s portfolio will rise to $5,445, leaving the trader with a net dollar return of $495, or 10% on the capital invested.

Now, let’s say a call option on the stock with a strike price of $165 that expires about a month from now costs $5.50 per share or $550 per contract. Given the trader’s available investment budget, he or she can buy nine options for a cost of $4,950. Because the option contract controls 100 shares, the trader is effectively making a deal on 900 shares. If the stock price increases 10% to $181.50 at expiration, the option will expire in the money and be worth $16.50 per share ($181.50-$165 strike), or $14,850 on 900 shares. That’s a net dollar return of $9,990, or 200% on the capital invested, a much larger return compared to trading the underlying asset directly. (For related reading, see “Should an Investor Hold or Exercise an Option?”)

Risk/Reward: The trader’s potential loss from a long call is limited to the premium paid. Potential profit is unlimited, as the option payoff will increase along with the underlying asset price until expiration, and there is theoretically no limit to how high it can go.

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!

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