Is binary trade is right to become billioner

I will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic, you can educate yourself to be an expert and perfect skill.

Option Types

The most common type of binary option is the simple “Up/Down” trade. There are, however, different types of options. The one common factor is that the outcome will have a “binary” result (Yes or No). Here are some of the types available:

• Up/Down or High/Low – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry.
• In/Out, Range, or Boundary – This option sets a “high” figure and “low” figure. Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’)

How to Trade – Step by Step Guide

Below is a step by step guide to placing a binary trade:

1. Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you.
2. Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Cryptocurrency, Forex, or Indices. The price of oil, or the Apple stock price, for example.
3. Select the expiry time – Options can expire anywhere between 30 seconds up to a year.
4. Set the size of the trade – Remember 100% of the investment is at risk so consider the trade amount carefully.
5. Click Call / Put or Buy / Sell – Will the asset value rise or fall? Some broker label buttons differently.
6. Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade.

Choose a Broker

Options fraud has been a significant problem in the past. Fraudulent and unlicensed operators exploited binary options as a new exotic derivative. These firms are thankfully disappearing as regulators have finally begun to act, but traders still need to look for regulated brokers.

compare all broker – if you want to compare the features and offers of all recommended brokers.

Bonuses and offers– if you want to make sure you get extra money to trade with, or other promotions and offers.

Low minimum deposit broker  – if you want to trade for real without having to deposit large sums of money.

Demo accounts – if you want to try a trading platform “for real” without depositing money at all.

Halal brokers  – if you are one of the growing numbers of Muslim traders.

Asset Lists

The number and diversity of assets you can trade vary from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EUR/USD, USD/JPY, and GBP/USD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered.

Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally, you can choose from about 25 to 100 popular stocks, such as Google and Apple. These lists are growing all the time as demand dictates.

The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. This information is also available within our reviews, including currency pairs.

Expiry Times

The expiry time is the point at which a trade is closed and settled. The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time.

Expiries are generally grouped into three categories:

• Short Term / Turbo – These are normally classed as any expiry under 5 minutes
• Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes.
• Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months.

Related - What are the risks of Binary Trade? 

Regulation

While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include:

• Financial Conduct Authority (FCA) – UK regulator
• Cyprus Securities and Exchange Commission (CySec) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID
• Commodity Futures Trading Commission (CFTC) – US regulator
• Australian Securities and Investments Commission (ASIC)

There are also regulators operating in Malta and the Isle of Man. Many other authorities are now taking a keen interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation.

Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers.