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Currency Trading Explained

Currency Trading Explained

Currency Trading Explained
There are. They are generally barebones operations, and unless they truly are ECN agents, there’s no reasons they’d not have the capacity or need to provide Currency trading. Recognizing that many agents offer forex demo accounts, it just works for their own disadvantage to at least not keep up with their contest. There are scores and scores of agents out there. You may not need to pay attention for something such as that if you do your homework.

There are lots of Forex brokers who possess a time limitation in their demonstration accounts they give. Anywhere from 2 weeks they also believe it a trial. Once you’ve gotten used to simulated Currency trading they believe, you won’t need the accounts and will always rely upon your accounts that are live. You’re familiar with who provides an unlimited demo accounts; proceed for it, if you can find a broker. It’s not simply for the guy that is newest. Plus it’s most certainly not just for fun. Those with experience know that it is so much more, although there might be a definite truth to this. Broadly speaking believe that they would like to discourage the man who merely wishes to mess around like they’d any digital game online. And there could be some credence to the assumption. There are people who view Forex trading as just another online diversion. Brokers aren’t in operation to provide free games and there is a certain truth to their logic because of limited demos.

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Why not any demos The same goes for simulated Forex trading. It’s the practice cycles. This practice pertains to the newcomer and experienced alike. Whether an experienced Forex trader wishes to try out a strategy that is fresh and he has a account, he’s got a place to get comfortable with the plan before he places it to effect in his trading account that is true. If he is trying a fresh Forex pair out that he’s not familiar with, he could try it out. There are dozens of causes of the seasoned Forex trader. He’s taken a few practice swings, prior to any golfer places the clubhead into the ball. He’s taken several practice swings, before any baseball batter approaches the plate. It’s not that they have never hit a ball before. Why demos It is pretty obvious why a brand new trader would like to undergo Forex trading until he sinks real money into an account.

The newcomer should get familiar with the process of exchanging online; no more strategies and subject. The demonstration account shouldn’t be a luxury. A new trader shouldn’t choose. It’s that simple. Simulated Currency Trading With Demo Account! Many believe Forex trading that is simulated is simply. As a matter of fact, many brokers have exactly the identical thought. They might offer their demo accounts for a limited time. There are agents who don’t offer you a demo account in any way.

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Binary-options Trading on the Planet

Binary-options Trading on the Planet

Binary-options Trading on the Planet

The next group are people from the Planet or even world states who entailed in reduction and profit, and their primary goal is making a profit. The first group is people from rich countries such as America(from various countries such as Chicago, New York, Georgia etc.), the United Emirates, Saudi Arabia and Qatar etc.. The main use of the majority of Binary Option Trading Users from these states is entertainment, taking pleasure in Binary Options and Forex markets. Just a very small percent of this category, abide by the niches as a way to earn a permanent profit and glance in it as an income.

The final group are those who have entered the Binary Options market depending on the others’ advice. For example, they became interested, without any key purposes and had observed their friends. It isn’t regarded as an associate of the first class on account of the fact that their aim isn’t entertainment and also they had not followed the market themselves. Like wise, we are not in a position to categorize into the 2nd category, as their intention is not making money in binary-options Market. These followers could possibly be referred to as jelqing. Actually, the second or first group is contaminated by by them and will become a member of those!

The Second Group Are People In The Second World and Even Third World A lot of individuals become interested in financial markets such as Forex or Binary Options trading. And demand earning profits or due to their addiction. In general, we can categorize those who come in such markets in three unique categories of Currency options Trading Behavior On Each Country! The First Group, People From Rich Countries Such as America (USA) In fact, they come in quest of earning a profit in binary-options and Forex trades and maybe entertainment. It is likely that in a short time it becomes dependence or a habit for them. But the key purpose is earning profits. With daydreaming and expect of huge profits, they input this flow. However, a very small percent of people (approximately 5 percent) in those societies think logically and deal scientifically. With having a plan are anticipating an experienced and permanent profit in binary-options markets which finally leads to an suitable income.

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Simple Trading Systems In Binary Options

Simple Trading Systems In Binary Options

Simple Trading Systems In Binary Options

With binary options you’re not required to predict the size of the movement; all that’s important is the direction of price movement. If your prediction is correct when the option expires, you will be in the money. If your prediction is off, you end out of the money. With binary options, there are only two possibilities. There are mixed strategies, which works using a few of the different instruments in their algorithm. But there are also quite Simple Trading Systems In Binary Options and, at the same time, profitable strategies, understandable by even a novice traders. We propose three of them below.

Trend Reversal

Today, we examine one of the most simple strategies based on candlestick analysis, which was called Trend Reversal. The strategy most often used for intraday trading for the purpose of profit making during the trading session.

The strategy is based on the fact that any movement is never infinite. If the price for a few days is moving one direction, someday it will go the other. That is, if we get bullish candles a few days, it is necessary to wait for a day when longest bearish candle is formed on the chart that its range may engulf some of the previous candles, or, at least, the range of the previous day.

This candle can indicate a trend reversal, which, incidentally, happens not so often or at least a correction to the previous movement. The same situation may be on the bearish trend, when amid the decline, one day gives a sharp rise and draws large bullish candle.

As you can see, a trend reversal has occurred twice. First trend reversal is bearish, the second – bullish. In any case, the trader had an opportunity to make some money in two cases.

Ichimoku

Ichimoku trading system – is a trading strategy, the roots of which come to us from Japan. However, the system now profitably used by many traders, according to which the accuracy of its signal reaches about 70%.

In order to start trading on the system, you first need to download and install MetaTrader 4 trading terminal on your own PC, as well as install indicators and trading system template. After the indicators installed to the trading terminal and you applied to the chart pattern trading quotes, graphic asset makes such a shape.

Only major cloud of Ichimoku Kinko Hyo indicator used in trading, finding where prices in the market means that there is the flat, enter into transactions is forbidden.

Once the candle at which the signal originated, closed and a new candle opened below Ichimoky cloud, enter into Put binary option/SELL contract. Once the candle at which the signal originated closed and a new candle opened above Ichimoku cloud, enter with Call binary option. If you prefer a more long-term trade, set Daily timeframe on a template system on the chart.

Doji

By itself, Doji candlestick pattern is not a reversal, but rather makes traders think that there is a balance of buyers and sellers in the market now, and it is unclear who will continue to push the market. This candle has a small body and long shadows. It shows that during the selected timeframe, the price made attempts to go up and down, but in the end, back to the opening level.

This candle may signal about trend reversal when after a rather strong price movements down after a bearish candle, which should at least be composed of half of the body with low shadows, Doji candle formed. This suggests that sellers are no longer able to raise the price and take a breather. Next candle answer to the question, which will tell us where the market will move on.

If the next candle is bearish, we miss such a signal, and if there is a big white candle is situated after Doji, it means that it’s time to enter the market with Call binary options buying. The answer to the question why we are trading only on a trend reversal, is that often such a move occurs more rapidly, and thus the chance to make a correct conclusion is higher. Therefore, if the next candle breaks the high of Doji, it is a signal for us to enter the market. The same situation may arise on an upward market. Thus, we need to wait for execution of the reverse conditions.

On the higher timeframe charts, tracing the emergence of Doji candle is fraught with the purchase or sale of options with long expiration, which will only make the long-term investment, keeping opened transaction a few days or weeks. Although, to confirm the use of such signals, these timeframes are useful.

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Forex Investing Business Plan

Forex Investing Business Plan

Forex Investing Business Plan

Like all businesses, in Forex investing you must have a business plan and it can’t be, “make a ton of money”. There is nary a business around whose business plan involves losing a ton of money, so the opposite is not quite good enough. Anyone that has ever opened a business knows there must be a business plan. Any start-up company looking for venture capital investors; the first thing they want to see is a detailed business plan before they dole out the much coveted seed money. Starting your Forex investing is no different. You need a business plan; a trading plan. And even more important than having the plan, is sticking to it.

It doesn’t really matter what kind of plan it is; as long as it is written down and carefully studied. There are many established plans out there for you to use, or you can make your own. But be sure to try it out in a demo account before you throw your real money behind it. Do not try out the plan for just a week or two and then go full tilt. Be fair to yourself. Try it out in a Forex demo account provided by your Forex broker for at least a month or two. This is a business you’re going to be in for a long time. Any business that is rushed into is doomed to failure; particularly in the Forex investing arena.

Write things down. Make notes as to what trades you’re making and why you’re making them. Oftentimes, you’ll see that some trades you made were based on things you wanted to see as opposed to points and lines that were actually on the chart. It makes for some great reading before you go to sleep at night and, unlike that trashy romance novel you’ve got on your nightstand, you just might learn something.

Stick to the plan. All your trades are not going to be profits. Get over it. If you get angry and try to teach the Forex market a lesson, you will find yourself learning something; how to flip burgers and asking if they want fries with that.

Discipline is the key. It may not always be exciting, but it leads to longevity. It doesn’t matter what currency pair you choose to trade or even how many currency pairs you choose to trade. The plan is the main thing and it needs to be hashed out, practiced, and proved before your first real Forex investing trade hits the market. There’s no hurry. There is always money to be made in Forex. It’s the traders with the plans that will consistently make that money.

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How to handle Forex Trading Losses

How to handle Forex Trading Losses

How to handle Forex Trading Losses

How to handle Forex trading losses? It is simple actually, you should just stop trading. Honestly that is the best solution to do if you do not want to be taken over.

The only exception to this is the trader that is disciplined enough to detach himself / herself from the monetary aspects of trading. It is not easy but yes you have to get into a mental state of detachment from the money in order to focus on the trades. You cannot be worried of the drawdown of your trading account and be 100% concentrated on the setup and market movements. Also to add more to this, you will not be able to pen another trade soon after Forex trading losses if you are not detached from your money thoughts.

Most of the retail traders when they get Forex trading losses, especially larger losses, they would get into revenge trading, they would enter trades even based on nothing, not even setups that have high probability. I have seen traders that not only open revenge trades but leave them more open and expose themselves much more then usual. All this because they think that the ultimate trade is now going to hit and get the account back up to profits! Well sorry, that will not happen. The exact opposite will actually happen. The trades will get worse and your account will end up to zero in a very short time. Possibly leaving the retail trader without trading capital or with just a nominal amount as trading capital after being wiped out.

Anyways, do accept a loss! It is normal to have some Forex trading losses, make sure you balance them off well.

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Online Forex Software

Online Forex Software

Online Forex Software

Online Forex software is designed to allow end users to trade currencies online in a real time, secure, private and efficient manner. When shopping around for Forex brokers who offer their own software, these are the key concerns every trader should have.

What to look for

 Make sure the online Forex software you choose is providing constantly up-to-date exchange rates in increments of a few seconds. These rates, in contrast to traditional bank rates, are actual, tradable Forex quotes. Once you decide to trade on a currency you can lock in a rate and this will be the actual rate at which the transaction will take place.

Make sure of the security, privacy, and data integrity of any online Forex software you choose. Any user performing financial transactions over the Internet, whether it’s eBay or trading Forex, already knows this is a concern that can’t be ignored. This point is further emphasized with online Forex trading software, where the amounts traded may be significant. The software must be designed with the highest level of data security, integrity and privacy. Most systems use at least one layer of at least 64-bit SSL encryption, as well as various data backup and recovery methods and procedures.

Make sure the software is available all day every day. There is nothing more frustrating than software that fails during a time you want to trade.

What about Macs

As far as online Forex software goes, people with those wonderful MacBooks are still out of luck. It’s a market that is ready for the entering, but so far everyone with a Mac has to use the web based Java program of their favorite Forex broker. It is amazing that there isn’t software for Macs, but that’s the way it is. Windows still has a hold on Forex.

The same is true of mobile devices as is true with the Mac. It’s all web based operations.

Which is better

 Concerning mobility and universal use, the web based platform is probably the only way to go at this point. However, having downloadable online Forex software always seems to be more stable with any consistent and constant use. It’s true that you have to have a dedicated computer to utilize it, but so far the majority of Forex traders are trading from the same spot every day. It’s their work day and they have a work station in which to trade.

The rule of thumb is to have a Forex broker who offers both. You want to have an option and these days, there’s no reason why you shouldn’t. Whether it’s online Forex software or web based Java platforms, stability and reliability will be your biggest asset. Do your research and use the demos.

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Forex Market Maker

Forex Market Maker

Forex Market Maker

By definition of the term, the Forex market maker is on the other side of your trade. If you are the buyer, he is the seller. If you are the seller, he is the buyer. Once all the buy orders are exhausted at any particular price, the market will move. The Forex market maker is still guided by the number of buy and sell orders in any particular Forex pair. They can’t skip around.

Conflict of interest?

At first glance, it might seem like the Forex market maker is operating in a conflict of interest. After all, they are not matching up buy and sell orders from individual traders; they are taking the opposite sides of the trade.

However, in order to create an even flow of volume and trends, the system seems to work out. Contrary to popular belief, the vast majority of Forex brokers are not working against their traders. They actually become the Forex market maker to help them and keep them in the market. It’s not good policy to blow out your traders. It certainly doesn’t lead to longevity for the broker if that’s what he does.

Added extras

Traders who trade through a Forex market maker get added benefits. Most trading brokers provide online live charts; technical analysis; market news; and some even give educational tutorials.

A seasoned trader might not want or need any of the things a Forex market maker provides and prefers to trade with the commercial industries. That’s where an ECN broker comes in. There is a commission involved and the quantities traded must be larger. The volatility is higher in price fluctuation; so it is definitely not for the novice.

There are advantages and disadvantages to both methods of trading. But that can be said about anything. To label a Forex market maker any particular way is leaving it short. There are a lot of traders out there making a very good living this way, and they’re very happy with the market the way it is.

Is there room for improvement? Absolutely. With the CFTC regulation and other regulatory commissions keeping a close watch on the Forex market, it will only get better. But with trillions of dollars being traded daily, the market is doing pretty well as it is.

No one is doing it for a philanthropic exercise and the brokers who act as a Forex market maker are certainly out to make money themselves. But in order for them to continue they have to make the markets attractive to the traders participating, and it will continue to do so. So, although it is still a long way from a perfect system, the system does allow for some great trading and great opportunities.

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When to Cut Your Losses

When to Cut Your Losses

When to Cut Your Losses

When to Cut Your Losses? By being able to take losses when they are small, the leverage that you apply on a trade will not come back to bite you as hard and can keep the account well funded. When you do not learn to cover your losses, it can lead to devastating losses that you will not be able to recover from. In fact, this is one of the most common killers of forex trading accounts. But the biggest issue is to recognize when it is time to let go.

How to know when to stop:

There are several different methods that you can use in order to determine this, but they all have one similar component: acknowledging a specific point on the chart that represents when your analysis isn’t correct.

For some people, this is a percentage of their total account. As an example, you might decide that any time you are down 3%; you are going to get out of the market, no matter what is going on. This is very common, and allows you to have a specifically defined amount of loss you are willing to take.

Another very common method is to simply place a stop loss at a point that you feel represents that things are changing in the marketplace. For example, many traders will place their stop loss below the most recent swing low (in an uptrend) or the most recent significant swing high (in a down trend). By doing this, you are forcing the market to change recent trends in order to take you out. It proves to you that the market isn’t going where you thought it was, and you need to step back and rethink your position. By doing this, you can take yourself out of the emotion of the moment and begin to clearly see the opportunities that may or may not be there.

Some traders will simply base their exits on time. For example, day traders will not carry a balance over to the next day, and will exit the market no matter what at the end of their trading day. This allows them to highly leverage their trades and sleep at night without worry about spikes in the middle of the night going against them.

No matter what you decide to base your stop loss placement on, the common theme on all of these viable methods is that you have to be committed to adhering to their rules. Most traders that blow up their accounts all have the same issue: they broke some of their “golden rules”, and stop losses are without a doubt one of them. One of the most important points to remember is that the markets are always there, and the next trade is just around the corner. You can go ahead and admit that you were wrong in your analysis, and close the trade. Doing so will save you money in the long run.

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Islamic Accounts Add Interest to Forex Brokers

Islamic Accounts Add Interest to Forex Brokers

Islamic Accounts Add Interest to Forex Brokers

Islamic Accounts Add Interest to Forex Brokers? Sharia laws prohibit acceptance of specific interest or fees for loans of money (known as riba, or usury), whether the payment is fixed or floating.

As of 2009, there were over 300 banks and 250 mutual funds around the world complying with Islamic principles. As of 2014, sharia compliant financial institutions represented approximately 1% of total world assets totaling close to $2 trillion in funds. Not all Muslims follow Sharia laws. According to accounting firm, Ernst & Young, Islamic Banking makes up only a fraction of the banking assets of Muslims, but it has been growing at an annual rate of 17.6% between 2009 and 2013, faster than banking assets as a whole and it is projected to grow by an average of 19.7% a year up until 2018.

Islamic banking is able to make money by keeping within Sharia frameworks. Unlike conventional banking, Islam forbids simply lending out money at interest, so specific Islamic rules have been created on transactions in order to prevent this from happening. The basic principle of Islamic banking is based on risk-sharing which is a component of trade rather than risk-transfer which is seen in conventional banking. As such Islamic banking employs concepts such as profit sharing, safekeeping , joint venture, cost plus and leasing.

Islamic Brokerage Accounts

Under normal trading conditions, trades in commodities and currencies are executed in the spot market for 24 hours. At 5:00 pm New York time, all open positions are rolled over for the next 24 hours and the daily interest is added to the company’s accounts every 24 hours. The brokerage company can then either pay the interest or charge the client’s account to cover what is considered rollover fees. For traders who hold positions overnight, rollovers can have a significant impact on an account’s bottom line.

In an Islamic account, things are different. Since there is no interest (Riba) in any form throughout the duration of the Islamic account contract, any open trades at the end of the trading day that are automatically rolled over pose a problem for those following Islamic law as this type of transaction is considered usury. So rollovers in a conventional form are simply not allowed.

Sharia laws prohibit acceptance of specific interest or fees for loans of money

Over the years, Islamic rules have been tweaked slightly so as to allow Muslims to participate in currency markets without violating sharia law. Most brokers now offer Non-Swap accounts which can be used under certain conditions that allow traders to either trade as much as their money permits, or take a loan from broker on the condition that the broker doesn’t receive any usurious interest on the loan. In most cases, there is no interest or commission taken on contracts lasting longer than 24 hours and zero rollover interest is a constant.

Revenues Come from Spreads

So how does a broker make any money on Islamic accounts?

A broker’s revenues come strictly from the trade spreads which is the difference between the Ask and the Bid prices of a currency pair. Many brokers that offer swap-free accounts will either raise the spreads on these accounts or require an additional commission or fee, so at the end of the day, it is like paying for interest incurred on overnight positions but often at a higher rate. Other trading brokers offer the Islamic account with no commission or additional fee and maintain the same spread as in its swap accounts.

There are also some brokers that offer additional perks for swap-free accounts in the form of Hibah. Hibah are gifts or donations awarded voluntarily, therefore the broker enables its Muslim clients to donate a share of their profit for charity.

With the Muslim trading community expanding, brokerage houses are doing their best to accommodate Islamic trading accounts. Not all brokers have jumped on the bandwagon just yet but if they wish to stay competitive they will have to add this feature to their offerings.

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The Best Times to Trade Binary Options

The Best Times to Trade Binary Options

The Best Times to Trade Binary Options

The Best Times to Trade Binary Options! Binary options’ trading involves trading several assets and making money based on the outcome of the price direction. Some of these assets are traded on a 24-hour basis: here we have currencies, commodities and stock indices. Stocks are not usually traded on a 24-hour basis. The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market.

The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market.

Trading works best when the market is bubbling with activity from traders all over the world. When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires.

Even though assets like currencies and commodities are supposed to be 24-hour markets, there are only certain times of the day when the market activity is at its maximum. This is usually when we have an overlap of the trading zones of the world.

Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.

Timing for Stocks

As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. Stocks of most major companies outside the US are traded on the US stock markets as American Depository Receipts (ADR). As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9.30am EST to 4pm EST.

However, there are other markets in Europe that are just as important, such FTSE (7am GMT to 3.30om GMT) and the Xetra Dax (8am GMT to 4.30pm GMT) in Germany. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation.

Timing for Currencies

The forex market is most active when there is an overlap of the London/Asian and London/New York time zones.

You also need to know that the local currencies of the active time zones will have increased volatility over others. For instance, the Australian Dollar will be more active during the Asian/London time zone overlap than the London/New York time zone overlap.

Timing for Commodities

Commodity markets are most active at the following times:

Crude oil (NYMEX.CL) – 9am EST to 2.30pm EST

Natural gas – 9.30am EST to 5.15pm EST

Corn – 9.30am EST to 1.15pm EST

Gold – 8.20am EST to 5.15pm EST

Silver – 8.25am EST to 5.15pm EST

Another way of studying the trading times would be to group the commodities under the exchanges where they are traded. As such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more actively traded from 9.30am EST to 1.15pm EST and from 6pm EST to 7.15am EST the next day.

Full information on trading hours is available on the CME Group website.

Timing for Index Futures

Stock indices are CFD instruments that measure the movement of the relevant exchanges, As such, the DJ30, NASDAQ100 and S&P500 will conform to the US markets open from 9.30 am EST to 4.30pm EST, and the DAX30 will conform to that of the Xetra Dax’s trading hours.

Once you master the trading hours for each asset, you are one step away from potential profitability in the market.

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No Deposit Bonus Advantage in Binary Options

No Deposit Bonus Advantage in Binary Options

No Deposit Bonus Advantage in Binary Options

Trading without investment! This is a very good idea for all beginners and professional traders but What is a No Deposit Bonus?

What is a No Deposit Bonus?

No Deposit bonus is being offered to new players looking to join an online Binary Options trading. It is available even before you deposit funds into your Binary Options account. The bonus amount offered is low, usually between 5$ to $100. You can use the no deposit earn real cash.
The bonus comes with terms and conditions that you need to fulfill to be able to withdraw your profit.

Advantages and Disadvantages

Most of the times fulfill all the terms and conditions is very hard and sometimes it’s unreachable!

You will get to trade with real money for free, without having to deposit funds into your Binary Options account.

binary.com no deposit bonus

You can test out the broker platform for free with real market ticks.

No deposit bonus is not high amount than for some Binary Options traders which is not interesting.

No deposit bonus is helpful for new clients that can use as a learning Forex trading or Binary Optionsto perfect their trading strategies and techniques.

To cash your no deposit bonus or withdraw your profit you need to fulfill some terms sometimes the rules are complicate and confusing.

Unfortunately some traders trading with a free deposit they ignore money management and their trading strategy.

I believe that binary options no deposit bonuses benefits are more than their disadvantages and it’s better to trade with this bonus when  you will not lose anything’s and maybe you earn free money without any risk.

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Start Binary Options Trading as an Amateur

Start Binary Options Trading as an Amateur

Start Binary Options Trading as an Amateur

Binary Options is a kind of online trading based on Forex market. Basically, Binary Option can be explained as way of online investment for a fixed return with an expiration period, which is also fixed. It has gained huge popularity in the last couple of years mainly because its simplicity and appeal toward the general public. To understand it first you should know Forex market.

What Is Forex and How to Start Trading in Forex Market?

Forex means Foreign Exchange, in the Forex market you will buy/sell currencies. This is common description about Forex Market but today Forex market trading is the kind of online trading. Some companies offer you to trade in Forex market and the traders call them Forex Brokers. Forex is like Stocks market. Today a lot of Forex Brokers offer their clients trading on Stocks, Energies and metal markets too.

Just like stocks markets in Forex market, you can trade currency based on what you get about the currency value, but the main difference with Forex is that you can trade sell or buy just as easily. If your prediction is a currency which will increase in value, you can buy it. If you think it will decrease, you can sell it.

On Forex market you should choose symbols for trading. You can’t buy one currency and exchange it to your desire currency.
For example you can’t Buy GBP (British Pound) and convert it to AUD (Australian dollar), JPY (Japanese Yen), and Or USD (Us Dollar).
In the Forex market, you should chooce your desire symbols in the beginning and the symbols defined in Forex broker like these:

EURUSD, GBPUSD, AUDUSD, USDCHF, GBPJPY, NZDUSD and etc (we call them symbol)

For instance you choose EURUSD for trading. It means that if you buy EUR/USD, you should convert it to USD when you decide to sell your EURO.  You are not allowed to change it to GBP or JPY. When you choose your desire symbol to trade, you have 2 options for trading Buy/Sell.

If you think EUR value will decrease against USD,  you can sell EUR/USD and if you think EUR value will increase against USD, you can buy EUR/USD.

What is Binary Options Trading and How to Start?

On binary options, you can trade on Forex symbols like EURUSD or GBPUSD or USDCHF but you should predict the market directions only it looks like bet on the Forex market! On Binary Options we say Call orders and Put orders. In fact call on Binary Options means buy and Put means sell.

There is 2 big different between Forex market and Binary markets:

  • On Forex market you can hold your positions (orders) for long time and close it every time that you like. But On Binary Options you have expire time. You can’t close or modify your orders till expire time.2- On Forex market your profit and lose is variable and depend on market movement But in Binary Options your profit and lose is fix.

The Binary Options brokers offer you fixed return if you guess market movement correctly. For example CloseOption.com offer you up to 85% on EURUSD if you guess market movement correctly.

Now maybe you think that this is pure gambling system and it’s not trading! Here I want to describe about this question:

Is Binary Options Trading Gambling?

No, on gambling you should use mathematical possibility and gambling is not predictable at all. But Binary options symbols are Forex trading symbols and all financials markets are predictable if you have enough knowledge to analyze markets behavior. How can you gamble on Binary Options or Forex market too? It’s your choice whether you like trading by chance or knowledge.

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Binary Options Trading Scam

Binary Options Trading Scam

Binary Options Trading Scam

Are you afraid of falling a victim of binary options trading scam? The first thing to do in this case is to educate yourself on what a scam is and how to recognize one when you see it.

Remember that a trader becomes a scam victim even before opening an account or making a first deposit. It all begins with a promotion of some binary options signal service or binary options robot. How can you recognize that it’s not a trustworthy service and stop you from falling into a trap?

How the Scam Works

  1. A fake company sets up a website that looks like a genuine binary options service.
  2. The company then develops a trading software that is said to give 100% success rate or even sometimes guarantees stable income.
  3. This software is then promoted through multiple channels and often under different names using fake testimonials.
  4. After joining the system, a trader quickly loses $250 deposit.
  5. A trader is quickly contacted by someone from the company and is asked to invest more money into the system. The circle continues until a trader gets tired and gives up.

Please see many different reviews of binary options system below. You will find out more about how scams look like and will become better at recognizing them.

How Not To Fall as a Scam Victim

The very first step on the way of becoming more aware of the binary options scams out there is educating you. Read a few reviews of the binary options broker before actually investing your money. You should be able to find answers to the following questions about a broker:

  • Does this broker have a license from a reliable regulatory body? (CySEC, FCA, ASIC or any other government regulator)
  • Will you be constantly asked to deposit more money?
  • Does this broker’s license cover investors from your country?
  • Has this broker been fined for any unethical conduct in the past?

Then you should carefully select the binary options signal service or a robot. Here are just a few tips on how to choose one:

  • Never sign up for a service that asks you to deposit money before seeing conditions.
  • Don’t trust fake testimonials
  • Never follow a trading signal unless it fits your trading strategy.
  • Remember that the software that created your account can place trades on it.
  • Previous performance history is not always an indicator of a future result.
  • Ask other traders about their experience with this software

Demo Trading

The easiest way to avoid being scammed is to first try trading with a demo account. This way, you can place trades and see results without actually risking your own money. See the list of the services that provide you with a demo account in the list and choose one to try.

Conclusion

Unfortunately, there are some binary options scams out there and an inexperienced trader can fall a victim of one. However, when doing proper research and educating yourself on the situation on the market, you are increasing your chances of choosing a reliable service. Don’t base your decisions on the exciting promise to gain $1000 in one day by doing nothing.

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What is binary options trading?

What is binary options trading?

What is binary options trading?

What is binary options trading? Binary options trading relies on two directions – higher and lower or up / down – with respect to commodities prices, foreign exchange market rates and indices. In trading binary options, you’re predicting whether an asset class will be above or below a certain price at a certain time. If you purchase a “higher” option in binary trading and the rate rises, then you will receive a return. Had you chosen “lower”, then your trade would not yield any returns and you would lose your stakes invested in that binary trade or binary bet.

Binary options can simplify the market for many people. Few people are investment bank analysts who research markets for a living. Casual and serious market watchers alike have a chance to make profits in binary options trading without being an expert analyst or consulting teams of advisers to place investments.

Assets that can be traded as binary options

As with other investments, the assets available to trade as binary options will depend on the broker you choose.

In general, you can trade on:

  • Stock indexes, like the S&P 500, Nasdaq, Russell 2000 and FTSE 100.
  • Forex (currency pairs).
  • Commodities, like precious metals, crude oil, natural gas, soybeans and corn.
  • Individual stocks.
  • Economic events, like the federal funds rate or the jobs report.

How binary option trades work

To place a binary option trade, you’ll walk through three main steps:

  1. Decide on an asset or market to trade.
  2. Decide on an expiration date or time for the option to close. Most trading platforms let you sort by expiration date, so you can view contracts that expire within the next few hours or days. Most contracts will expire by the end of the trading week, except those tied to economic events.
  3. Decide if you want to buy or sell the binary option, based on the strike price and expiration date. The strike price is essentially a line in the sand. If you think the asset will be above the strike price when the contract expires, you buy the binary option. If you think the asset will be below the strike price, you sell the binary option.
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