Binary Options Trading - How to Succeed in 2022

　　Welcome to the most comprehensive expert guide to binary options and binary trading available online. Since 2011, BinaryOptions.net has been educating traders all around the world, and all of our articles are written by specialists who work in the finance business and online trading. We have about a thousand articles and reviews to help you become a more profitable trader in 2022, regardless of your present level of experience. If you want to talk about trading or brokers with other traders, we have the world's largest forum, which has over 20 000 users and a lot of daily activity. Continue reading to get started investing right away!

　　BinaryOptions.net will never contact or urge anyone to trade. It is a hoax if someone claims to work with Binaryoptions.net. Read the scams page to make sure you're safe while trading.

What is a Binary Option and How Can You Profit From It？

　　A binary option is a quick and easy financial tool that allows investors to wager on whether the price of an asset, such as Google stock, Bitcoin, the USD/GBP exchange rate, or gold, will rise or fall in the future. The time span might be as short as 60 seconds, allowing for hundreds of trades every day across any worldwide market.

　　Before you conduct a trade, you know precisely how much you stand to gain if your forecast is correct, which is usually 70-95 percent — for example, if you deposit $100, you will receive a credit of $170 – $195 if your prognosis is correct. This simplifies risk management and trading decisions significantly. The outcome is always a Yes or No answer — you either win it all or lose it all, which is why it is a “binary” option. The risk and return are understood ahead of time, and this structured payback is one of the appealing features.

　　Exchange-traded binaries are now accessible, which means that traders are not competing with the broker.

　　To begin trading, you must first open an account with a regulated broker (or licensed). Choose one from the recommended brokers list, which includes only brokers who have proven to be trustworthy. The top broker has been chosen as the best option for the majority of traders.

　　If you are new to binary options, you can open a demo account with most brokers to test out their platform and see how it feels to trade before depositing real money.

What is Binary Options Trading？

　　These videos will teach you about binary options and how to trade them. If you want to learn even more, please go through this entire page and follow the links to all of the more in-depth topics. Binary trading does not have to be difficult, but like any other subject, you may educate yourself to become an expert and develop your skills.

Types of Options

　　The most popular binary options trade is the straightforward “Up/Down” trade. There are, however, several kinds of alternatives. The one thing they all have in common is that the conclusion will be “binary” (Yes or No). Here are a few examples of the various varieties available:

• 　　Up/Down or High/Low - The most basic and widely used binary option. Will a price finish higher or lower than the present price after the contract expires？

• 　　In/Out, Range, or Boundary — This option establishes a “high” and “low” value. Traders forecast whether the price will end up within or outside of these levels (or boundaries).

• 　　Touch/No Touch - These have predetermined levels that are greater or lower than the current price. The trader must forecast whether the real price will 'hit' certain levels at any point between the time of the deal and the expiration date. Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterward.

• 　　Ladder — These options work similarly to a standard Up/Down trade, but instead of using the current strike price, the ladder will include preset price levels (which will be 'laddered' progressively up or down). These are frequently different from the current striking price. Because these options often require a big price movement, payouts will frequently exceed 100% – yet both sides of the trade may not be available.

How to Trade – A Step-by-Step Instructional Guide

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

• 　　Select a broker – Use our broker reviews and comparison tools to find the best binary trading site for you.

• 　　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.

• 　　Select the expiry time – Options can expire anywhere between 30 seconds up to a year.

• 　　Set the size of the trade – Remember 100% of the investment is at risk so consider the trade amount carefully.

• 　　Click Call / Put or Buy / Sell – Will the asset value rise or fall？ Some brokers label buttons differently.

• 　　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.

　　Note! Don‘t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site. Here are some shortcuts to pages that can help you determine which broker is right for you:

• 　　Compare all brokers – 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 brokers – 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 websites. This information is also available within our reviews, including currency pairs.

　　Trading cryptocurrency via binary trades is also booming. The volatile nature of cryptos makes them a popular binary asset. Bitcoin and Ethereum remain the most traded, but you can find brokers that list 20 or more altcoins.

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.

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) Financial Industry Regulatory Authority (FINRA)

　　There are also regulators operating in Malta, Japan, 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.

ESMA

　　Recently, ESMA (European Securities and Markets Authority) moved to ban the sale and marketing of binary options in the EU. The ban, however, only applies to brokers regulated in the EU. This leaves traders two choices to keep trading: Firstly, they can trade with an unregulated firm – this is extremely high risk and not advisable. Some unregulated firms are responsible and honest, but many are not.

　　The second choice is to use a firm regulated by bodies outside of the EU. ASIC in Australia is a strong regulator – but they will not be implementing a ban. This means ASIC-regulated firms can still accept EU traders. See our broker lists for regulated or trusted brokers in your region.

　　There is also a third option. Traders who register as ‘professional’ are exempt from the new ban. The ban is only designed to protect ‘retail’ investors. A professional trader can continue trading at EU regulated brokers such as IQ Option. To be classed as a professional, an account holder must meet two of these three criteria:

• 　　Open 10 or more trades per quarter, of €150 or more.

• 　　Have assets of €500,000 or more

• 　　Have worked for two years in a financial firm and have experience in financial products.