Top 10 Binary

Brokers.com

Your Ultimate Guide to Trading

Binary Options Like a Pro!

Top 10 Binary
Brokers.com

Table of Contents
Chapter 1 - Learn to Professionally Trade the Financial Markets.................................................. 3
Chapter 2 - Learn To Trade Binary Options For Maximized Return on Investment.................... 5
Chapter 3 - Binary Options Trading Glossary................................................................................... 8
Chapter 4 - Pick the Safest Binary Options Broker to Avoid Potential Pitfalls........................... 11
Chapter 4a - Reliable Brokers Provide Quality Trading Robots............................................... 17
Chapter 5 - The Overall Profitability of Trading Binary Options.................................................. 20
Chapter 6 - The 4 Steps to Begin Trading Binary Options............................................................ 24
Chapter 7 - 4 Recommendations for Choosing Trade Types....................................................... 27
Chapter 8 - Types of Outcomes You Can Expect From Your Trades........................................... 30
Chapter 9 - The Impact of Market Phenomena on Your Investments........................................ 33
Chapter 10 - The Tools Youll Need to Trade in Binary Options .................................................. 37
Chapter 10a - Test Your Trading Skills with Our Trader Game!.............................................. 41
Chapter 11 - 5 Effective Strategies Every Pro Trader Should Know............................................. 43
Chapter 12 - Best of Luck and Happy Trading!............................................................................... 47
Chapter 13 - Top Rated Broker List (by Country)........................................................................... 49

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Learn to Professionally Trade

the Financial Markets
Binary options are trades with one of two possible
outcomes: You either finish in the money or you finish
out of the money. Learn how to trade binary options
with this helpful guide.

A few years ago, the financial markets were off-limits to most individuals.
Investors of prominent financial institutions dominated trading activity,
while everyday individuals watched from the distance. Now you can dabble
in the financial markets like a pro, right from the comforts of home.
Its thanks to binary options that all of this is possible. Binary options
place you in the drivers seat so that you can control every aspect of your
trade, from inception to cash out. You dont need to worry about all those
complicated rules and regulations including margin, leverage, spreads, pips,
extraneous charges and so much more.

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Call Options or Put Options You Decide

You choose your favourite financial assets from 4 basic groups including
stocks, commodities, indices and currency pairs. Perhaps youre a big fan of
Apple Inc (AAPL), Facebook (FB) or Alphabet Inc (GOOG) as your preferred
stock?
And if you enjoy trading the FTSE 100 index, the Dow Jones 30 or the Nikkei
225, these indices are available to you too. Commodities like gold, silver and
oil are extremely popular with traders. And yes, there are currency pairs like
the USD/CAD.
Now that you know what types of financial assets you can trade, its time
to start getting organized. These are the basic steps to follow when trading
binary options:

Pick a financial asset

Determine if the price will rise (call option) or fall (put option) at expiry
Invest in the trade and collect your cash when your trades finish in the money
In the Money or Out of the Money its your Call
There are just 2 possible outcomes when you trade binary options in the
money or out of the money. When your trade ends as you expected, you
will collect a predetermined percentage return on your investment.
If the trade goes the other way, you only lose your initial investment no
leverage factors into it. Sound exciting? Get ready to rev your binary options
trading engine because this is the hottest way to trade financial assets. With
so many options available, youre going to love trading binary options, and
thats a fact!

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Learn To Trade Binary Options For

Maximized Return on Investment
Binary options make it easy for you to risk less and win more
while youre trading the hottest financial assets online. These
are the benefits and pitfalls of trading binary options.

The Advantages of Trading Binary Options

There are many benefits to trading binary options online. For starters,
there are things like convenience and cost effectiveness to take into
consideration. When you trade binary options, you can do so from the
comforts of home. Thats a really big benefit! Additionally, you dont need to
pay excessive brokerage fees, account maintenance fees, commissions, or
maintain high balances on your account.
Another big benefit of trading binary options is the absence of leverage. In
traditional stocks trading, leverage lets you take out positions far greater

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than the capital you have on hand. This may work well if trades go in your
favour, but it works against you if markets turn against you. Fortunately,
binary options are the safest possible way to profit off price movements in
financial assets.

Consider this as an example:

If Apple (AAPL) stock is currently priced at $100 per share and you
forecast that the price will rise by the time the binary option expires,
you will finish in the money. With traditional stocks, the size of price
movement determines your profit. However, with binary options all
that matters is the direction of price movement.
That means that even if price moves by one cent you will realise the
full benefit of the predetermined percentage return. Binary options
pay out a fixed return on every trade and this figure is known from the
outset.
Further, you cannot lose more than the amount you have invested in
your trade thats the limit. With traditional trading, leverage makes
it dangerous for you if markets turn against you and you take out a
position larger than the capital you have on hand.

The Disadvantages of Trading Binary Options

As with all forms of trading, there is risk involved. However, your risk
in binary options trading is limited to the amount you have invested in
any individual trade. As you improve your knowledge of trading, so your
likelihood of success improves accordingly.

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There are other disadvantages to trading binary options if you select an

unregulated broker for example. It is strongly advised that you only trade
with fully licensed and regulated binary options brokers.
The third disadvantage is also an advantage, depending on how you look
at things. Unlike stocks or commodities, you do not take ownership of the
financial asset you are trading. Youre merely speculating on the future price
movement of that financial asset.

Binary Options Simply Make Sense

Binary options are fast paced and exciting

There are low deposit minimums and low minimums per trade.
The top binary options brokers offer demo trading accounts to help you
get started.

Binary options are easy to trade: you place call options or put options.
Binary options trading sites provide you with a comprehensive
education to make trading as easy, exciting and rewarding as possible.

With binary options, you do not take physical possession of the assets
you are trading since you are speculating on price movements. This
means that you can trade expensive commodities like gold and
platinum or stocks like Apple and Google that you would otherwise not
be able to trade under regular market conditions.

You dont need to wait for financial assets to appreciate over a period of
time since there are quick profits to be made.

You can trade a wide variety of financial assets across all major
categories including stocks, commodities, indices and currency pairs.

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Binary Options Trading Glossary

Binary options trading comes replete with important
trading terms, terminology and financial lingo.
Learn important terms to successfully trade binary
options.

Glossary of the Most Important Financial Terms

Before you start trading binary options, its important to have an
understanding of the main terms that youre going to encounter. What
follows is a list of the most important trading terms:
Asset: An asset takes the form of an index, commodity, currency pair or
stock. Binary options are based on individual assets.
At the Money: When a financial asset is at the money, it is considered at
the break-even point. There are no gains or losses at this point, and the
payout would be tantamount to the original value that was traded.

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Binary Options: Binary options, or digital options, have only one of two
possible outcomes: they either end in the money or they finish out of the
money All binary options feature a fixed payout which is known at the
outset. The payouts are made when the tradable assets finish in the money.
This can be with a call option or a put option. Provided the asset price
moves in the direction that was for cost traders will enjoy a payout.
Binary Call Option: Call options assume that the price of the binary option
at expiry time will be higher than the strike price. A trader who places a call
option is forecasting that the price of the underlying financial asset will rise
at expiry time.
Binary Put Option: Put options assume that the price of the binary option
at expiry time will be lower than the strike price. A trader who places a put
option is forecasting that the price of the underlying financial asset will fall
at expiry time.
Binary Options Broker: Brokers allow traders to trade financial assets.
They are the companies that make it all possible.
Bearish Markets: Bearish markets or their markets are markets where
prices of underlying assets are generally falling. There is negative
expectation with regards to prices and traders are typically selling.
Bullish Markets: Bullish markets or bull markets are markets where asset
prices are generally rising. There is positive expectation in bull markets and
there are excess buyers.
Commodities: Commodities are financial assets that can be purchased and
held in a physical form. They include things like gold, silver, wheat, platinum,
oil etc.

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Currency: Currency pairs are traded as binary options. They are usually
listed as follows: USD/CAD, USD/GBP/USD/EUR.
Current Rate: In financial lingo, the current rate is the prevailing price of
the tradable asset.
Expiration: The expiration point of a financial asset is the time at which all
trading activity on the asset stops.
Out of the Money: If a trade finishes out of the money, it means that it
does not generate profit it generates a loss for the trader.
Investment Amount: This is the amount of money that you invest when
you purchase a financial asset. Investment amounts can range from $1
upwards of several thousand dollars depending on your brokerage of
choice.
In the Money: If a trade finishes in the money, it generates a fixed
percentage return for the trader.
Payout: A payout is the amount of money that is earned from a trade.
Technical Analysis: This is analysis that focuses on the technical
components of an underlying asset such as its chart patterns. It is used
to forecast future price movements of the financial asset (currency,
commodity, index or stock). It is based on historical price data and trading
volume, as opposed to fundamental factors.
Fundamental Analysis: This type of financial analysis focuses on those
macroeconomic factors which influence the performance of an asset. They
include things like interest rates, inflation rates, central bank decisions,
fiscal policy, geopolitical shocks etc.

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Pick the Safest Binary Options

Broker to Avoid Potential Pitfalls
Selecting the safest binary options broker is essential to your
overall success as a trader. Learn to choose a trusted broker,
and avoid the most common trading pitfalls.

What Factors Must You Consider When Selecting a Binary

Options Broker?
In deciding which binary options broker to use, you will invariably have
to consider a wide range of factors. There are several things that you will
need to look at including the range of financial assets available to trade, the
available trading instruments, the licensing and regulation of the broker, the

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educational tools and resources available to you, customer support and the
profitability of the trades youre about to make.
As you can imagine, evaluating these factors requires considerable due
diligence on your part. Fortunately, our industry-leading experts have
evaluated the worlds finest binary options brokers so that you dont have
to. We have put them to the test, and scrutinised most every aspect of the
brokerages for your benefit.
The binary options brokers that we have endorsed are the crme de
la crme of the industry. Each and every one of them has individually
exceeded our stringent requirements, and you can trade with complete
confidence whenever the mood takes you.

Let Us Explore the Areas That Need to Be Considered When

Trading with Brokers:
Reputable Company - A binary options broker that has established a
solid reputation for itself is one that can be trusted. As a rule, you should
always avoid fly by night brokerages, since they have not had time to
prove themselves to their traders. A reputation takes time to nurture and
develop, and that is precisely why you are advised to pick brokers with
name recognition, trustworthiness and a sterling reputation.
User-Friendly Trading Platforms The trading platform is the
equivalent of the CPU of all binary options activity. It is here that you will
be spending most of your time while placing call or put options on your
preferred
financial assets. Trading platforms need to cater to traders of all skill
levels novices and experienced professionals alike. The usability of a

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trading platform is arguably the most significant component of a binary

options broker. Do you want a trading platform that is cluttered and
difficult to navigate through? Or would you prefer an uncluttered, easy
to navigate trading platform? Clearly, simplicity pays off and those binary
options brokers providing a user-friendly platform are preferred.
Range of Assets - For the most part, more trading assets are better than
fewer trading assets. Binary options brokers with a limited number of
financial assets to trade are best avoided. Pick a broker that has a wide
range of assets including stocks, commodities, indices and currency pairs.
The broader the range of assets, the more options you have as a trader.
Commodities include things like gold, silver, wheat and oil, while currency
pairs include the USD/JPY, EUR/GBP, USD/CAD and the EUR/USD.
Stocks are the most populous category of assets and include Apple,
Google, Amazon, British Petroleum, Glencore, Bank of America, Goldman
and so forth. Indices are the major averages that stocks traded on
including the FTSE 100 index, the Dow Jones Industrial Average, the CAC
40 and the DAX among others. The broader the range of financial assets,
the better the binary options broker.
Range of Tradable Instruments -Tradable instruments differ from
tradable assets in that the instruments are the types of trades that
you are able to make with the assets. For example, there are standard
call options and put options, range trading options, one touch options,
60 second options and pair options. The more variety you have in the
way that you can trade financial assets, the better the broker you have
selected.

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Real-Time Data - Binary options brokers that do not provide you with
real-time market data on their financial assets are doing you a disservice.
That is why it is imperative to select brokers with up-to-date feeds on
all their financial assets. With asset prices changing all the time, it is an
absolute priority that real-time data is a staple of the trading platform.
Educational Resources -Believe it or not, the right binary options
brokers are an incredible source of educational knowledge about the
financial markets. You can learn everything about trading binary options
from the best binary option brokers.
Things like webinars, e-Books, financial articles, technical analysis,
fundamental analysis, daily market summaries, expert commentary,
financial glossaries, FAQs and customer service are of paramount
importance. In fact, binary options traders are advised to contact
customer service before depositing and registering with a broker to
evaluate the type of service they are likely to receive when they become
traders.
Demo Trading Platforms - If you are new to the world of financial
trading, you will likely want to practice a little before you jump into
the deep end. Demo trading platforms are among the most important
resources available to you as a novice trader. You will be allocated play
money to make trades under real market conditions. This is definitely
something you will want to look out for when selecting a binary options
broker.
Expiry Times of Trades - Every trader is different. Your chosen binary
options broker should make accommodation for this by providing as
wide a range as possible of expiry Times. Typically, these range from

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60 seconds to 15 min, 30 min, hourly trades or 24-hour trades. There is

even a weekly option for certain binary option trades. Be sure that your
chosen trading timeframe is available at your preferred broker.
Licensing and Regulation - We have all read the horror stories of
traders who were unwittingly registered at unregulated brokerages
around the world. These typically operate offshore in jurisdictions that
are untouchable by the authorities where you live. Here is some sensible
advice to you as a new binary options trader or a seasoned professional
avoid unregulated and unlicensed binary options brokers.
If you make a winning trade, how do you know you will get paid at an
unlicensed broker? You dont! Thats why we recommend all of the fully
licensed and regulated brokerages that we have endorsed. You can
easily spot a fully regulated broker since they are proud of their licensing
and endorsement by authorities like CySEC (Cyprus Securities Exchange
Commission).
Bonuses and Promotions - All that glitters is not gold in the realm of
bonuses and promotions. We encourage traders to read the fine print
of all promotional offers prior to depositing since there are wagering
requirements associated with each bonus that you need to clear.
Nonetheless, things like free trades are common with the top binary
options brokers. It is always best to select a binary options broker that
offers a big first deposit bonus since the minimums are often high and
traders personal disposable incomes are not limitless. Get the most bang
for your buck first time around!
These are some of the most important aspects to consider when selecting
reputable binary options brokers. Most every broker that is worth its
weight in gold will offer you the best of the best when it comes to all of the

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aforementioned elements. Trade with confidence when you select a broker

and never sell yourself short, as your trading patronage is sought by the top
brokers around the world!

Help Me Select A Trusted Broker

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Reliable Brokers Provide

Quality Trading Robots
Quality binary options brokers provide safety and
security, educational resources and quality trading
platforms. Trading signals are one component of the
overall package.

Automated Trading or Not?

You always hear plenty of opinions about the merits of automated trading
systems, some as stand-alone resources and others as part of a binary
options trading platform. Its important to assess the overall value of the
signal provider, as part of the overall trading platform. Signal providers are
merely tools designed to assist you in your daily trading activity. Without a
reliable broker and the resources provided by it, a signal provider may as
well be rendered obsolete!

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However, binary option signal providers have tremendous value to traders

since they can organize important financial information and present it to
you in an easy to understand, accessible and automated way. There are
many arguments for and against automated trading systems, and there is
merit both ways.
The value of a signal provider hinges upon the quality of the algorithm
that is used to create the program. For example, your signal provider may
initiate trading actions instantaneously and assist you in generating healthy
profits, or it may be lagging behind major market activity.
Using Signals to Cream it Off the Top!
A high-quality signal provider is able to cast a wide net over multiple
markets, economic variables and their interactions with one another.
Assuming that the signal provider has a robust set of rules in place and is
dynamic enough to be able to understand and interpret market behaviour
based on your personal trading preferences, you may or may not have a
winning tool in your resource kit. But there are definite advantages to using
signal providers as part of your trading kit, namely:

Consistency of Performance and Results by planning your trades and

trading your plans

Removing Emotion from Your Trading Activity by using a signal

provider to evaluate the strengths and weaknesses of financial assets
and related market phenomena

Automatic Execution of Trades ensures the preservation of discipline

under highly volatile trading conditions

Fully Diversified Trading Activity since youre no longer required to

manually trade individual accounts the trading signal provider allows
for multiple accounts, multiple tactics and strategies

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These are a small sampling of the strengths of binary signal providers.

However, they are best used as part and parcel of a broader trading
strategy which encompasses a tried and trusted binary trading platform.
Remember, the signals are only as good as the providers that program
them. Typically, the top binary options trading platforms will promote their
own proprietary automated trading signals, otherwise known as trading
robots. Always focus your efforts on finding the most reliable binary option
trading sites as they typically offer traders trading signals as part of their
overall package. Trade with confidence at the top binary option brokers!

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The Overall Profitability of Trading

Binary Options
Binary options trading can be a highly profitable investment,
provided you heed the advice of seasoned professionals.
Your Winning Strategy Starts Here!
As a binary options trader, you may be wondering how much money you
can make trading binary options? Well, believe it or not there is no limit
to what you can achieve when you apply the right trading strategies to the
right financial assets, with the right trading platform. Consider for example
the recent turmoil in the financial markets.
The oil price dropped from well over $100 to the $25 $35 price range.
Binary options traders knew that there was tremendous anxiety and
volatility in the financial markets, so they placed put options on this
commodity which accelerated its declines.

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When sentiment is negative, markets move in the direction of the trend, and
vice versa. As the traders say: the trend is your friend!
The price of Brent crude oil and WTI crude oil plunged on global markets
from their mid-2015 highs to below $30 per barrel. The price of other
commodities in copper, iron ore, molybdenum and others moved in a
similar bearish direction.
But with binary options trading you dont need to anticipate the actual size
of price movement all that you need to do is forecast the direction of price
movement.
And with so much negative sentiment in the global financial markets of
late, binary options traders with a little common sense knew that put
options on things like crude oil, iron ore, steel and other mining and energy
commodities were going to pay dividends. And that is precisely what we
have seen taking place on a mass scale.

What Other Ways are there to Make Money Trading Binary Options?
As you learn more and more about market activity, you will start to
understand the relationships that exist between different types of financial
assets, capital markets, monetary easing or tightening, and fiscal policy.
For example, one of the easiest relationships to understand is that between
the strength of the US dollar and the demand for dollar-denominated
commodities. Let us assume that we are discussing the price of crude oil
once again and that the Fed has decided to maintain interest rates at their
current level of 0.25% - 0.50%.

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Since the sentiment is bearish for the USD, given that there will be no
appreciation of the dollar as a result of interest-rate hikes, demand for
dollar-denominated commodities such as crude oil, gold, copper and the
like will increase. Therefore, prices will invariably rise as demand increases.
Call options on these types of commodities are warranted.

Unbelievable Binary Options Trading Tips Right Here

There are other fascinating insights you can gain from trading financial
assets on your preferred binary options trading platform. These include
the interesting relationship between interest rates, equities markets and
the USD. Did you know for example that when interest rates rise, equities
markets sour? This is a surefire way to earn valuable income from smart
trading decisions.
These are tips that you learn as you progress through your binary options
trading activity, or you can gain invaluable knowledge like this from trading
experts market gurus. The USD will appreciate as interest-rates increase,
because the dollar becomes more valuable to foreigners and foreign
currencies become less valuable relative to the dollar.
So you would place put options on emerging market currencies and call
options on the USD. Equities markets fall when interest rates rise because
companies have to pay more money on their long-term debt and profits will
decline accordingly. Therefore, equities move in the opposite direction to
the interest-rate!

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Make that Trade Today!

These are some of the many fascinating insights you will learn as you trade
binary options. It is one of the fastest-growing trading arenas in the world,
and there is so much fun and profit potential to be had - it simply boggles
the mind. Trade with confidence, insight and purpose and generate those
profits that you so richly deserve!

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The 4 Steps to Begin Trading

Binary Options
Follow these 4 steps to learn how to trade binary
options online..

Your Guide to Trading Binary Options Online

Binary options trading is exciting and rewarding in so many ways. Lets get
started with the 4 quick and easy steps you need to know to trade binary
options online:

1. Pick your Preferred Asset

Choose a financial asset that you understand. There are 4 basic asset
categories including stocks, commodities, indices, and currency pairs.
Within each of these categories is a wide range of tradable assets that you
can select. It is strongly recommended that you pick an asset that you have
knowledge of, such as a currency like the USD, GBP, EUR, or JPY. Or, you
may wish to pick a commodity like gold, silver or crude oil. If you prefer

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the broader market, you may enjoy trading an index like the FTSE 100,
the Nikkei 225 or the Dow Jones 30. Many traders enjoy stocks like Apple,
Goldman, Bank of America or Alibaba. Whatever you decide, this is the most
important step to get you started!

2. Choose the Direction of Price Movement for your Asset

Once you know what asset you will be trading, you need to select a
direction for the trade. In other words, will the price of the asset rise at
the time of expiry or will the price of the asset fall at expiry time? If you
are bullish about the future prospects of the asset, you would place a call
option. And if youre bearish about the future prospects of the asset, you
would place a put option.
Remember that binary options are time-limited contracts. You can
generate tremendous profits in next to no time at all. Typical expiry times
in binary option trades range from 60 seconds, to several minutes, hours or
even days. In all instances, binary options have short expiry times.
This is a big part of their appeal since you dont need to wait months or
even years for your financial assets to appreciate as they do with stock
markets. Bear in mind that you can generate guaranteed profits whichever
way the asset price moves, provided you forecast directional movement
correctly.

3. Choose your Investment Amount for the Trade

For this step, you will need to invest a certain amount in the trade that you
want to make. The more you invest, the greater your nominal payout when
your trade finishes in the money.
Many binary options brokers today offer you affordable minimums which

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means that you can easily invest in multiple binary options trades, and
enjoy profit potential across the board.
For many brokerages, the minimum investment amount is as low as
$1/1/1, and the maximum investment amounts per trade cater to high
rollers and VIP traders. Once you have selected your investment amount,
you are ready to initiate your trade. A good bit of advice for you at this stage
of the game is to limit your overall investment per trade to just 5% of your
available bankroll.

4. Wait for your Trade to Expire and Collect Your Profits!

Once you have completed steps 1 through 3, you can sit back, relax and
wait for your trades to expire. The good news is that you have probably
already done all the necessary research that is required to ensure that your
trade stands a better than average chance of ending in the money.
As soon as your trade reaches its expiry time, you will be able to cash out
your profits and start all over again. Thats the beauty of binary options
they are simple, fun and altogether rewarding!

Ready to Begin Trading Binary Options? Click Here.

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4 Recommendations for
Choosing Trade Types
There are numerous types of trades are available
to you in binary options. These include 60 second
options, call/put options, boundary options, touch/no
touch options and more.

Digital Options Trading

Are you having a good time yet? You should be, because were about to
introduce you to some fantastic trading types that you can access. Binary
options are anything but dry, thats why you will love the range of trading
types available to you. Lets get started with the most basic trading types
and work our way up!

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1. Standard Call Options/Put Options

You want simplicity and big profit potential? You got it! Standard call options
or put options are the most popular trading types for novice traders. They
are really easy to understand. All you have to do is invest in a trade that is
either going to rise by expiry time, or fall by expiry time.
Remember, with binary options it doesnt matter what the size of the price
movement is all that matters is the direction of price movement. Call
options indicate that the price of the asset will rise above its strike price at
expiry, and put options indicate that you believe the price of the asset will
fall below its strike price at expiry. Thats it!

2. 60 Second Binary Options

Imagine being able to generate 65% - 75% profit in just 60 seconds. Thats
precisely what you can do if you trade 60 second options. These options
expire within 1 minute, and they are the darlings of many traders around
the world.
However, a caveat is in order here: 60 second binary options are not
for everyone. If you dont have your finger on the pulse all the time, you
will be slow to spot rapidly changing factors that will impact heavily on
whether you win or lose individual trades. These types of trades are only
recommended for expert traders who have a full working knowledge of the
trading platform, the markets and the underlying asset. Since youre trading
real money in real-time, everything is unfolding in just 60 seconds.
If you have a slow Internet connection or a slow-to-respond trading
platform, 60 second options will not work for you.
Before you get involved in these trades, be sure that you understand your
asset and your choice of price direction. Have a solid risk management

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strategy in place so that you dont burn through your bankroll in a few
minutes. We recommend that you familiarize yourself with conventional call
options and put options before you advance to 60 second trading options.

3. Touch/No Touch Binary Options

When you place a touch binary option or a no touch binary option you
are making a clear prediction about what you expect your underlying asset
to do while it is active (before expiry time).
The touch option indicates that the price of your asset will touch a specific
price before it expires. Note that it doesnt have to end at that specific price
it merely needs to touch that price. By contrast, the no touch option
indicates that you do not believe your asset will touch a specific price while
it is active.

4. Boundary Binary Options

Once youre a little more familiar with the prices of assets, you may wish
to consider boundary binary options. This is otherwise known as Range
Trading since you are effectively trading within a narrowly defined range.
With boundary options, you will be speculating on the price of your assets
ending within the range indicated. There is both an upper-level price and a
lower-level price. Boundary binary options also feature a market price.
You have the option to make in trade or out trade investments. By
selecting the in option, youre forecasting that your asset will finish in the
upper trading range, and the out option indicates that your asset will finish
in the lower trading range.
We do not recommend boundary binary options trading for novice traders
since they require a greater degree of insight into price movements with
financial assets. But with a little practice youll soon get there too!

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Types of Outcomes You Can

Expect From Your Trades
When you trade binary options, there are three potential
outcomes: in the money, out of the money, and at the
money. Lets analyze the possible outcomes.

Binary Options: All the Possible Outcomes Are Known From

the Get-Go!
For the purposes of this chapter, let us assume that you have an option to
trade conventional stocks and/or forex, or you can trade binary options.
Where do you think you have greater potential for generating rapid profits
with low outlays, and no leveraged downside? If you were to trade regular
stocks, chances are you would need a much larger bankroll to invest in
stocks, and to maintain your account with the brokerage (commissions
and fees) etc. When you take out a leveraged position on a stock, index,

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currency pair or commodity, you are potentially putting yourself at greater

risk of loss if trades do not go your way.
With binary options, you know from the get-go precisely how much you
stand to lose on any individual trade, and more importantly how much
you stand to win when the trade finishes in the money. Typically, returns
for binary options traders are in the region of 75% 85% for in the money
finishes.

What Does in the Money Mean?

Recall that the price of your underlying asset does not need to rise at the
point of expiry, or by expiry in order for you to be in the money. That is how
most traders and investors work the stock markets they wait for their
assets to appreciate over time. With binary options trading, you neednt
worry about whether an asset decreases in value or increases in value; the
only thing that matters is that the price of the asset at expiry time is greater,
or less than the strike price.
The determining factor is whether you placed call options (a higher price
at expiry) or put options (a lower price at expiry). You simply need to make
the right call and you can be in the money (generating a profit) provided the
underlying asset has appreciated or depreciated by expiry time. To sum it
up: youre in the money when the trade goes your way!

What Does out of the Money Mean?

Out of the money trades describe a situation where the trader loses money
on the trade. In other words, the amount of money that you invested in the
binary option trade (stocks, commodities, indices and currency pairs) is lost

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because the trade did not go your way. In trading parlance, this is known as
being out of the money. Certain binary option brokers make it possible for
traders to claim 10% back on their losing trades, and its always a good idea
to ask your preferred online broker whether they offer cashback on losing
trades. As an example, you may place a call option on Alibaba (BABA) with a
strike price of $10 and a market price at expiry of $9.
In that case youre out of the money. But its possible to be out of the money
when you place a put option too. If you speculated that Alibaba (BABA)
would fall below the current strike price at expiry time and the price actually
rose you would be out of the money. Several binary options brokers offer
traders things like 5 risk-free trades when you sign up or 10% cashback on
losing trades. Be sure to look around at the top brokers for these benefits.

What Does at the Money Mean?

When youre at the money, the strike price of the underlying asset is equal
to the current market price of the underlying security. In this instance, call
options and put options are both at the money. This is a rather unique
potential outcome where traders with bearish sentiment and bullish
sentiment on individual assets will share the same outcome.
However, as a binary options trader, there are only two potential outcomes
in the money or out of the money. In other words, you would place a call
option that the strike price will be lower than the market price at expiry, or
you would place a put option that states that the strike price will be higher
than the market price of the asset at expiry.

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The Impact of Market Phenomena

on Your Investments
Technical analysis and fundamental analysis allow you to
forecast future price movements of financial assets. Learn
how to structure your trades accordingly.

The Blitz Guide of Market Factors Impacting on Your Trading

Decisions
So now youre ready to trade binary options, but you not quite certain
what market factors to look out for. Fair point. Myriad market phenomena
directly or indirectly impact upon the price of an underlying asset. For
example, there are geopolitical events that have the capacity to cause a
spike in demand or a drop in demand almost instantaneously.
Below are several examples of real-world geopolitical events that shape the
financial markets:

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Excess production of crude oil with a concomitant weak global

economy led to a supply glut. OPEC and non-OPEC countries have been
competing with one another for market share, and neither side is willing
to back down in the interest of rising oil prices.
Its all about a war of attrition to wear the other side down. This is
particularly true of Brent crude oil versus WTI crude oil producers.
As production and inventory levels increase, so the price of crude oil
decreases, ceterus paribus. (Geopolitical Factors)

The Federal Reserve Bank decision vis--vis interest rates and

quantitative tightening are especially important for the USD, major
averages on Wall Street and emerging market economies. As the interest
rate rises, so the dollar becomes more valuable and other currencies
become less valuable relative to the dollar.A strong dollar is also a
disincentive to purchase dollar-denominated commodities like crude oil,
platinum, gold, iron ore etc.
The reason for this is simple: It takes more foreign currency to purchase
the same quantity of commodities when the USD is strong. And, demand
is inversely related to price.

There are other similar financial indicators in the form of the European
Central Bank (ECB) which recently opted to increase the money supply
by 20 billion per month, up to 80 billion per month now. The ECB also
lowered the deposit rates to -0.40%. These types of financial decisions
have a strong impact on financial markets such as the FTSE 100 index,
the EUR/USD, GBP/EUR, Dow Jones Industrial Average, S&P 500 index
and the NASDAQ composite index. By flooding the European economic
area with 20 billion extra, the euro is going to weaken relative to

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You may be wondering about technical analysis, and youre banging on the
money because its important too. Unlike fundamental analysis which takes
the macroeconomic perspective into account, technical analysis looks at
charts, trends and patterns with individual financial assets.
In other words, you look to the assets history (past performance) to
evaluate any potential trends or patents that are developing in order to
trade with the trend. To this end, binary options brokers providing expert
market commentary, reliable charts and graphs and a wealth of educational
resources will prove invaluable to you.

What Should You Look out for As a Binary Options Trader?

Interaction between individual financial assets such as the USD and

demand for crude oil, iron ore, copper, gold. Typically, there is an inverse
relationship between demand and the strength of the USD.

Upcoming economic data and news releases on things like nonfarm

payrolls, GDP growth rates, inflation rates, interest rates, PMI data on
services and manufacturing, housing data, the US dollar index and so
forth.

Earnings reports from major players in key industries such as BP, BHP
Billiton, Glencore, Microsoft, Google, Facebook, Twitter and so on. With
stocks, the concept of an earnings surprise is an important variable to
pay attention to. Stocks that outperform consensus estimates tend to
generate strong upside movement in the aftermath of earnings reports.

EIA data on crude oil inventory levels or gasoline demand are equally
important. When inventory levels are too high, this negatively impacts

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upon the price of the asset under consideration. It could be steel, iron
ore, crude oil or copper etc.

What Apps and Resources Should You Use to Improve Your

Return on Investment?
The best thing for you to do as a newbie trader is to trade with a reputable
binary options broker that provides you with a comprehensive educational
set of resources. This includes things like a demo trading platform, a broker
offering you free trades, a generous bonus and/or promotional package
and you sign up, a reliable binary options signal provider, and access to a
fully integrated mobile trading platform.
There are of course many other resources that you can sink your teeth into
to gain an edge over the competition with binary options trading. There is
no substitute however for reading about individual market components
and how they interact with one another, following the financial news and
practicing your trades on a day-to-day basis.
Bonnie options trading really does favor those who spend the time learning
about how individual components in the market react with one another.

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The Tools Youll Need to Trade

in Binary Options
To be successful at binary options trading, you will
need to make use of a wide range of tools such as
market analysis, charts, graphs, signals, e-books,
webinars and others.

Find out How to Use the Resources You Need to Power Your Trades
Now that youre involved in binary options trading, you will want to
make use of all the available resources to boost your chances of success.
Fortunately, the leading binary options brokers provide traders with a
wealth of resources. These come in many shapes and sizes, and you will be
able to pull information from whatever sources you deem most helpful to
your trading activity.

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Charts
Recall that we discussed technical analysis and fundamental analysis in
earlier chapters. Well, charts are the most important resource when youre
conducting technical analysis. Youre effectively looking at the history of
an assets prices, trading volumes, comparative statics etc. Charts are the
most important resource to use when youre conducting technical analysis
because they allow you to see patterns, trends, peaks and troughs and the
behavior of the asset in the broader context of the global economy. You can
extrapolate data over time, and compare what is happening with your asset
with other significant events in the global economy.
For example, you could look at a chart between January 4 and January
7, 2016 (the dates that the Shanghai composite index and the Shenzhen
composite index tanked) and see how that impacted on your chosen
financial asset. Simply run your finger across the screen and note the highs
and lows over time. With charts you will be better poised to make effective
high/low trades, or anticipate whether the price of an asset will move
horizontally.
This is ideal for boundary trading, as it gives you an indication of the upper
and lower limits of an assets likely price movements. If youre sticking
to traditional put and call options, you can simply gauge an assets price
movement by following the trend line. Remember that the trend is your
friend and it is best to dovetail your forecasts accordingly.

Binary Option Signals

In simple terms, a binary options signal is a trading alert that is sent directly
to your phone, or email to alert you to important opportunities in your

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trading activity. Binary option signals work with stocks, commodities, indices
or currency pairs. They are the ideal way to access ever-changing data in
the financial markets. It is near impossible to keep your finger on the pulse
when youre trading multiple assets simultaneously.
Binary option signals simplify this process by providing you with important
economic information to alert you to trading opportunities that you need
to know. Simply register with your preferred binary options broker and
select a proven signals provider. Even if you have no knowledge of trading
whatsoever, you can get a head start with binary option signals.

Market Analysis
Market analysis is the most important daily action that you can conduct
as a trader. Remember that there is a macroeconomic perspective that is
influenced by myriad factors.
These include interest rates, inflation rates, GDP growth rates,
unemployment rates, geopolitical tensions and the like. Youll want
to conduct as thorough and relevant a market analysis as possible to
understand how it will impact upon your chosen financial asset.
A simple example will help you in this regard: Suppose you are looking to
trade gold as a binary option what should you look out for? Your market
analysis should look at things like current trends in the gold market,
the strength of the USD, the Federal Reserve Bank and its interest rate
decisions, the performance of equities markets and the analysis of market
experts. When equities markets are bullish, demand for gold will drop.

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When the Federal Reserve Bank is expected to raise interest rates, the
USD will strengthen and the demand for gold will drop. This type of if/
then analysis is crucial to understanding the interaction between different
financial assets in the broader economy.
Now you know how to use various tools when trading binary options at
your preferred online broker. Trade with confidence in the knowledge that
youre using the best possible resources to profit from your trades!

Im ready to begin trading!

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Chapter 10a

Test Your Trading Skills with

Our Trader Game!
Test your binary options trading skills before opening
a trading account or making a first time deposit!

Now, you can try out binary options trading without having to
open an account or invest money.
Play TraderGame, the only interactive, online game that lets you practice
trading binary options.
Decide whether to place a call or put option on a trade, and see whether
you end up in the money or out of the money.

Next Page

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After 3 trades, the game will tell you if it thinks youre ready to begin trading
or if you need to brush up your binary options education before trading.

Start Playing Trader Game

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5 Effective Strategies Every Pro

Trader Should Know
As a professional binary options trader, there are
certain strategies that you should be mindful of. This
guide will teach you what you need to know about pro
trading strategies.

Professional Trading Strategies

Now that youve learned the fundamentals of binary options trading, the
market mechanics of asset interactions, and the resources available at your
disposal, its time to step it up a gear. Our focus is now on implementing
effective binary options trading strategies.

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Strategy #1 - Long up Binaries

These are an interesting form of binary options in that they have a limited
risk profile to the downside, with concomitant limited upside potential. As
the strike price of the up binary option increases, it becomes significantly
cheaper. However, a payout becomes less likely.
You will receive a fixed payout if the market price is greater than the strike
price at expiration, in return for a predetermined initial cost. These types of
binary options assume a bullish perspective on the underlying asset.

Strategy #2 - Long Down Binaries

When you adopt a long down binaries trading strategy, you are taking a
negative perspective on the underlying market. You will receive a fixed
payout when the market is below the strike price of the binary option at its
expiration, in return for a predetermined cost.
The cost of a long down binaries option will diminish as the strike price
decreases. But remember, a payout will be far less likely. These types
of binary options sport limited downside risk, but they also have limited
upside potential.

Strategy #3 - Long in Boundary Binaries

When you buy one of these binary options, you will receive a fixed payout in
the event that the market ends within the range determined by the 2 strike
prices at the time of expiry. Your cost will be known with a long in binaries
option. This trading strategy is best adopted for a neutral perspective on
the underlying market.

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The cost diminishes with narrower strike prices of this type of binary
option. However, you should know that the likelihood of a payout will
diminish accordingly. These types of binary option positions feature limited
downside risks, with limited upside prospects.

Strategy #4 - Long out Boundary Binaries

When you trade binary options with a long out boundary binaries
strategy, you will receive a fixed payout when the markets end outside the
designated range of the 2 strike prices at the time of expiry. This, in return
for a fixed upfront cost on the option.

Strategy #5 - The Viability of Certain Strategies Over Others

In all instances of boundary-related binary options, you are forecasting on
the likelihood of an assets price being restricted to a range over a period
of time. The lower and upper strike prices of the boundary binary option
determine the range that you are trading within.
There are also alternative forms of binary options whereby you forecast
that the price will trade outside of the range. This means that the price will
either be below the lower strike price in the range, or it will be above the
upper strike price in the range.
Your profitability will be determined by whether or not the price of the
underlying asset finishes outside of the range. A great way to understand
when to use range -related binary options is to check the volatility of the
underlying asset. If you know that there is likely to be high volatility with the
specific asset or category of assets, then you would want to trade outside of

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the boundary range. And if volatility is going to be low, you would be more
likely to trade within a tight trading range.
And there you have it, a quick and easy guide to understanding advanced
trading strategies for binary options!

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Best of Luck and Happy Trading!

You are now ready to explore the rewarding world
of binary options trading. We trust that you gained
valuable experience from this e-book and that you find
success in your trades!

Final Thoughts
This e-book is the culmination of efforts by a group of professional traders.
Our trading professionals combined their years of experience to create a
step-by-step trading guide for entry-level traders.
Weve dispensed with all the formalities to provide you with a
comprehensive guide to binary options trading. Weve gone through the A,
B, Cs of binary options and explained why you should seriously consider
them as a viable trading opportunity. You are now fully aware of all the
financial terms that you need to know.

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Follow the Teachings of This E-Book to Your Trading Success

Plus, now you know how to pick the right broker and trade assets that
will generate positive returns for you. All in all, youre on the right path to
making a success of yourself with binary options.
The world of binary options investments is packed with opportunities
and we are delighted that you have chosen to partner with us on your
educational journey. Get ready to begin earning and learning with the most
user-friendly guide to trading fundamentals.Use the tools and resources at
your preferred binary options broker along with this e-book to power your
way through this exciting realm!

From Strength to Strength!

We wish you well on your exciting journey trading binary options. You are
now well prepared to take your first steps into the trading arena to put your
knowledge of financial assets to the test.
The global marketplace is an exciting arena where profitable opportunities
await you at every turn. Put the lessons youve learned from this guide to
the test and watch your profits rise!

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Top Rated Broker List

Looking for a top rated broker? Weve compiled a list of
brokers which have received the highest user ratings,
by country.
Africa/Middle East

Asia

Bahrain

Brunei

Egypt

China

Kuwait

Hong Kong

Morocco

India

Nigeria

Indonesia

Oman

Japan

Qatar

Malaysia

Saudi Arabia

Singapore

South Africa

Turkey

United Arab Emirates

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Europe

North America

Austria

Canada

Belgium

Jamaica

Czech Republic

Mexico

Denmark

United States

Eastern Europe
Finland

Oceania

France

Australia

Germany

New Zealand

Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
United Kingdom

South America
Argentina
Brazil
Colombia

Top 10 Binary
Brokers.com