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The Oinvest Forex broker: what do they offer?
The Forex industry is growing very quickly, so it is no surprise that more and more brokers are popping up left and right, seemingly on a daily basis. Oinvest is seemingly one of such companies, that sort of sprouted into the industry out of nowhere. The company comes from South Africa and states, loudly, on its website that it is a global company, providing services to countries all around the world. Except to write this Oinvest.co.za review we had to jump through a number of hoops. Why? Because the service is not available to certain parts of the world. But being the dedicated bunch of reviewers we are, we did some internet magic (and got in touch with our South Africa based colleagues). Conversely, we no have reason to believe that the broker, while not the best in the world, has cause to be considered one of the better ones in the region. Why? Well, let’s find out.
The first thing you notice, once you manage to get into the website, is the sort of mediocre design that it has. The website has a number of qualities that it takes from bigger, better and international brokers. A simple design with a large homepage showcasing some of the details about the company. Great! Except there are several problems. The first problem is the fact that the company doesn’t really showcase much information on the homepage, other than mentioning the fact that there is a platform to trade on and an educational platform. Oinvest South Africa has a terrible navigational menu, designed so simplistically and in such an ugly way, it would make you not want to navigate through the website at all.
Best tips for binary traders to transition into FX trading
The age of trading Binaries is coming to a close as more and more financial regulators are starting to ban the activity. Although there are some cases where companies offer actual good opportunities to trade binaries, the bulk of the market eventually turns out to be either a scam or something unprofitable. If you are a binary trader and are looking for new opportunities then FX is your best bet. Let’s look at what’s best to do when you are switching.
DOJ to use alternative methods for binary options fraud victims
The United States Department of Justice has been given an approval to search for new methods, in order to quickly notify victims of fraudulent binary options schemes. The “green light” was given by Theodore D.Chuang of the Maryland District Court. The victims of fraudulent binary options schemes were mostly connected to Lee Elbaz, the former CEO of the Israeli Yukom Communications.
The notification will be published on a website that is maintained by the Department of Justice. If you are not already aware Yukom Communications, was connected to massive Binary options scams that also involved US citizens. Therefore on Friday, January 18th, 2020, the Judge signed an Order, that gave the Government the responsibility to notify the victims as mentioned above.
Binary Options and bad history
You are probably already aware of the Binary options and CFD restrictions that ESMA has introduced to the EU market. However, not many people know as to why these trading methods needed to be completely banned, and here are the reasons. Lissa Mel, who was a co-conspirator with Lee Elbaz, was charged for conspiring a wire fraud. This meant that she conducted illegal marketing and sale of Binary options, which she masked with deceptive bonuses and the promise of high gains on these “investments”. Her case is one of many, that ESMA had to study.
Marketing & Sale of Binary Options
Yukom Communications was not directly involved in defrauding investors from their money, but they did have a big part in it. According to the reports, when Elbaz was the CEO of the company, they provided Binary Options marketing, traffic and customer “retention” services to two Binary Options “brokers”, BinaryBook and BigOption. Which were clearly scams, and Elbaz knew it. Therefore this makes her equally guilty as the owners of BinaryBook and BigOption.
Binary Options are a trading method that seems like it’s 50/50 when a trader is “investing”. However, it has been proven many times that the odds are weighed heavily against the investor. Even if the odds were fair, in most cases about 99% of the Binary Options brokers turned out to be scams back in the day when it was popular. Therefore in this day and age, every single broker tries to avoid the whole thing. The scams were the primary reason why ESMA cracked down on Binaries and there is absolutely no reason why they would absolve it now.
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Binary Options Trading strategy: 5×5 Simple System
Binary options and forex trading can be implemented using a number of basic and easy-to-understand strategies. One of them is the 5×5 a simple trading system. Continue Reading →
Banks are running away and Bitfinex is struggling with Fiat deposits
Fiat deposits are what actually started the cryptocurrency trend. It all began when everything was still measured in USD on the digital market. But today a lot of the times transactions are made in Bitcoin or Litecoin or any other cryptocurrency, sometimes confusing the traders. Bitfinex has identified the problem and has suspended all fiat deposits in order to make cryptocurrencies more effective in the circulation around the system. Bank transfers have also been stopped completely, because of the fact that the operations were in complete chaos, even though they denied it.
This latest suspension brings questions about the general future of the company and the industry itself. What will happen to all future deposits and what will they be like? Will Bitfinex be able to continue operating as it once could or will it fully cut off from the monetary system and start its dominance on the digital market? all of this questions need to be answered by Bitfinex itself or else it could be looking at a potential bankruptcy because of all the problems with these transfers.
It is known for a fact that Bitfinex has been banking with HSBC through numerous GTS (Global Trading Solutions). However, it is still unclear whether or not the crypto venue will be blocked by these companies and what other channels they have in order to face these challenges. These transmission delays are the top priority for every employee at Bitfinex at this point, because of the scale it may affect the market on a scale that nobody is expecting. Bitfinex had started assuring the customers that everything was under control and the situation would normalize within at least a week. But that week was going to be a hell of a ride for some investors as Bitcoin prices would surely react.
How is Bitcoin dealing with the news?
No matter what happened, Bitcoin was sure to react with its prices, some of the critics believed that the prices would go crazy and it would fall to the lowest it’s been this past year. But fortunately it managed to hold on to its number 1 place on the market and its relative price remained O.K. within the week.
What’s important to note here is that Bitcoin prices are one of the most responsive ones in the world. it is one of the most susceptible currencies regarding news and is sure to stay that way no matter who says what.
The Central Bank of Ireland warns population about a scammer
Numerous Binary Options traders were able to thrive on the market. However please note that we are talking about the legit and reliable brokers here. Unfortunately, however, no matter how many times we can talk about the legit binary brokers, they will still be outtalked by the scammers. Scammers have been around roughly the same time as binaries have been. After the industry was created it didn’t take much time for scammers to start emerging as well
Why was Binary so easy to scam?
Binaries were very easy to scam because of their gambling nature. Honestly, when you are trying to explain Binaries to a person who has never heard about trading it awfully sounds like gambling to them and they dont’t agree to it. This is what the legit brokers were doing, they were marketing it as it was and only getting customers who had fully understood the consequences and were ready to take the risk.
Scammers usually took a more charismatic approach to gain leads and bringing in customers. They mostly worked on elaborate schemes which included many online celebrities, promoting their web pages. Some of the biggest hoaxes were created to convince people that someone actually managed to make millions off of the market an now was living the dream life. Most of the times these scammers focused on the winnings which were sometimes ridiculous, like 100% or even 1000% being promised to these people. Many fell for the scams and soon the industry itself got banned in the EU.
However the ban was not able to kill off every Binary Options scam broker, some managed to slip through the cracks and a new one was found by the Central Bank of Ireland a week ago. 365BinaryOption.com was described by the CBI (Central Bank of Ireland) as a dangerous broker and advised the population to stay as far away from it as possible. There have been many cases of financial institutions taking a hands-on strategy to battle these brokers and the CBI is the latest example of them.
How did they appear?
The company markets itself as a regulated Forex broker within the territory of Ireland. However, the CBI warns that the broker is not regulated and is unauthorized to operate within the border of the country. This was a clear warning for the population to avoid them because such offenses are considered criminal in the country. The websites are a primary source of the company’s deceitful marketing. It shows up to potential customers as a trustworthy and reliable broker, which will take care of their investments and help them trade stocks, forex, and commodities. The list of warnings about the company has been growing and growing ultimately culminating with this official CBI warning. It looks like it’s days are numbered.
Next time you decide to choose a broker, please choose someone who doesn’t take pride in fancy words, but takes pride in actual numbers, numbers of people it has made rich with its services. Emphasize on its services, because trading binaries usually don’t require any.
Roubini is still attacking Cryptocurrencies
Cryptocurrencies have had rivals from the very second they appeared on the market. Those rivals now have doubled or maybe tripled in numbers calling these trading assets unreliable or too dangerous to trade. Cryptocurrencies have already proven multiple times that they are a reliable trading asset, they have encouraged numerous young generation traders to get themselves familiar with the trading world. In all cryptocurrencies have been nothing but an asset to the wallets of many people and to the transaction fees and speeds for many.
One of the most notorious people who are against the development of cryptocurrencies into a stronger trading asset is a man named Nouriel Roubini. Roubini has always been a vocal opposer of the adaptation of cryptocurrencies on a decentralized level. In his words, the blockchain technology is not reliable and is only strengthened by popularity and not a real commodity.
Who is Roubini
Nouriel Roubini was born in Turkey and moved to the United States where he finished Harvard University with a degree in International Economics. His advice has been heeded in numerous high authority institutions including, The US Federal Treasury, The Bank of Israel and the Federal Reserve. What’s most important about this man is that he is a very good economist. He has been around long enough to be able to predict pretty much all of the outcomes in the market, however it looks like he has met his match with cryptocurrencies.
Roubini became very popular when he predicted the 2008 market crash, stating 2 years before it that home prices were under so much speculation that in a matter of years the market would have to face a lot of consequences for its inadequacy to handle the situation. This was not the only shining moment for Roubini, he also earned the nickname of Dr.Doom when he announced that Italy, Spain, Portugal, and Greece would leave the Eurozone.
Decentralization was the primary argument in Roubini’s speech at the MIGC (Milken Institute Global Conference) in May when he disregarded the benefits and good applications of decentralized and useful cryptocurrencies. In his belief all of the decentralized industries that were hit by the same applications turned into pyramid schemes, being nothing but a bother.
As we’ve already established, Roubini is not a big fan of cryptocurrencies, but he is not just a blind hater, he has analyzed everything in his mind and now offers his analysis in the form of a 37-page statement. In this analysis, he states several key points on why the cryptocurrency bubble is soon to explode. Here are the statements:
- Roubini’s believes that Fiat currencies hold a lot more value because of their inclusion in the tax system, with this he disregards the usefulness of cryptocurrencies in every-day life.
- He calls Stablecoins a large scam.
- The security, decentralization, and scalability are very hard to have at the same time, actually, he deems it as an impossible scenario.
- Bitcoin’s limit of 21 million will be its downfall, because of the susceptibility to deflation.
- Blockchain is not the core of the popularity of cryptocurrencies, the main attraction is Data science and artificial intelligence.
Trade binary options on cryptocurrencies on these sites
Binary options have had a rough past year. Unfortunately, a lot of brokers took advantage of the very gambling like system that Binary options offered. Basically binary options gave you a choice, Either you call that a price of a certain stock commodity or pretty much anything will rise our fall, and if you were correct you would get 80% of what you bet. Continue Reading →
Scams in Binary Options still alive and kicking
Binary options have been receiving nothing but hate in the past few years. They used to be very popular before everything came apart and all of the industry started crumbling in front of the eyes of the investors. Most of the brokers that used to work on Binary Options were legit good brokers, who promised their customers realistic returns and in all honesty, gave them those realistic returns.
What Happened with Binary Options?
Unfortunately, however, the gambling nature of Binary Options attracted a lot of scammers, who used to make this elaborate marketing campaigns, promoting their “successful” customers who made millions and are now retired living in the alps. Many people actually fell for these tricks, because they were quite new and nobody had experience in them. Soon enough everything came apart and the true face of Binary Options brokers was seen. Most of the scammers quickly scattered, leaving the reliable brokers to clean up the mess.
All the scamming and stealing forced the EU to ban the product completely. It decided that regulating them would be much more big of a hassle than just outright banning them. Plus the regulations would have been so harsh that most of the brokers wouldn’t even want to feature Binary Options because of the small profits. Unfortunately, however, the ban seems to have not worked.
It is so easy to mislead customers into believing that a certain broker is regulated by a well know regulatory body. Before everybody starts figuring out the scam and the official regulator issues a statement about them, they would have already made enough many to pack up, leave and then rebrand. This was the case when on October 4th, it was announced by the Cyprus Securities and Exchange Commision (CySEC) that two websites, Binatex and 24Traderush were misleading their customers by claiming to be regulated by the CySEC.
How these websites were scamming their customers
Even though the Binary Options industry has been pummeled into submission by the EU, some gullible citizens are still susceptible to promises of quick profits, promises of becoming millionaires an so on. All of the Binary Options that are a complete scam, are currently being advertised as life-changing investments that made people transfer from a 9 to 5 job to a financially independent life, with which they always travel and have lots of fun. They buy luxury cars homes and so on. Naturally, this was going to attract attention.
The next step was the call centers that would call you uncontrollably, trying to make you deposit some kind of fund in your account. What’s worse is that the calls look like they are coming from the UK, but it is obvious by the accents of the call center sales people that they are being outsourced somewhere outside the EU.
The only thing the regulators can do is to find, identify and ban these kinds of advertisements. However, before that can be achieved advise needs to go out to all the “get rich quick” enthusiasts to not get into trouble and stay away from those promises of quick money.
Facebook has once again appeared on the lips of the media, because of some more controversial news. The last time we saw Facebook in the news it almost destroyed their stock prices and all of the investors pretty much bailed, once the information was confirmed. Last time Facebook had a flop, it was because of the privacy of their user’s profiles. They were accused of selling the data that they owned to numerous companies, without the consent of their users.
Even though this was included as major news, nobody really reacted in a way that was too shocking. It was as if all of this info was known beforehand and everybody was in on it. But it still sent quakes around the world, making the companies update their privacy policies and informing their customers about the supposed changes.
Why is Facebook in controversy again?
This time, however, the reason Facebook is in the news may not be their fault entirely. The internet is a big place, it is the home of everything and everyone who decides to utilize it. One of the most dangerous residents of the internet is probably the hacker. These types of hacked were able to procure about $600 million worth of account data which they are selling in the deepest depths of the web.
The dark web
The dark web is a place where everything controversial, everything shady and sometimes everything illegal can happen without too much interference from the law. This is a place where sometimes the worst of the worst gather, even though data selling is not the worst offenses, it is still privacy infringement at its finest. Accounts are now worth somewhere between $5 and $10. Everyone who wants to obtain these account data will have to pay in digital currency or else the banks would be able to trace their transfers.
Because of a breach within the digital securities of the webpage, hackers were able to access Facebook’s token storage. With this, they procured as much as they could and then disappeared never to be seen again. Until these very tokens started to appear on the dark web as commodities for sale. Tokens are basically keys that you as a user are using in order to access your account.
Is Facebook saying anything?
Facebook has already denied allegations of being an accomplice of these hackers and leaving the breech intentionally. It is still quite disturbing to think that Facebook has the capability to do that even if it didn’t do it. The account data is now sold on the deep web, on a website called Dream Market. This is where people can buy multiple digital products with digital currencies like Bitcoin and etc.
The CEO of Facebook, Mark Zuckerberg has also come out with a statement, saying that the reason behind these attacks is the weakness of the tools they have against hackers. He expressed his willingness to start working on more advanced defense mechanisms to prevent the same issue in the future.
Top 10 Tips for Winning with Binary Options
Binary Options trading is a quick and much less complicated way of trading than for example traditional forex trading. Therefor it does not come as a surprise that trading in binary options has attracted a lot of traders over the past few years. However, even though a trader can make huge winnings over short time periods, a trader can loose a lot of money over short periods as well. You need to approach this market the same as you would any other. Knowledge, experience, and emotional control are still the factors for success.
The following tips are presented as part of your preparation phase to get your mindset going in the right direction. These tips will not guarantee success, but you will be well advised to take note of the common sense of each one. As a companion article, we have also disclosed the pitfalls to be avoided when trading binary options. If these points are helpful, then please let us know, and do tell us of any other beneficial tips that you might also have to share. Lastly, binary options are popular for many reasons. Hopefully, these tips will help you to enjoy your binary options experience.
1) Choose Your Broker Wisely: With each passing month, droves of newcomers, both veteran traders and beginners alike, rush to open at binary option trading account, based primarily on an Internet advert. The appeal of this new trading vehicle has also generated an army of new brokers on a monthly basis, each sporting the latest and greatest trading platform, asset portfolio, or payoff ratios. In the early days, these brokers originated in far off tax havens where gambling casinos were legal, but in the last few years, traditional brokers have begun to join the fray, finally accepting that binary options were not some fad. As a result, the competition is great, and, unfortunately, the conditions are ripe for a fair share of fraudulent brokers to exist and for many to employ very shady business practices. Take your time finding the right broker for you. Check with your local regulator, other traders, and Internet review websites for any irregularities or a rash of negative comments. Your time spent here will be the best investment you can make for the long run.
2) Curb Your Expectations: Many newcomers harbor dreams of getting rich quickly with these options and are suddenly frustrated when the opposite occurs. Early reports noted that the first converts to binary options were former online poker players. The allure of another online gambling outlet had appeal for them, but the human psychology factor was working in a different fashion. You had to go “All in” with each order. There was no way to drive other players off the table to increase your odds. Payoff ratios looked good early on, but they heavily favored the House. Competition has improved those odds, but you have to conduct your own review. Many brokers tout 81% and up, but that may only be for selected assets at varying times. If the average payout is 70%, with or without a rebate, you may still have to win 60% of the time just to break even. If the average is 80%, then your odds are similar to traditional forex trading, where a “55/45” split covers commissions and losses. Remember that your goal is to tilt the odds in your favor to win over time.
3) Know Your TA and Candlesticks: No one, not even the experts can predict with certainty what any investment instrument might do over a minute or an hour in time, or even a month or more in the future. To win at this game, you need Technical Analysis on your side in a big way. If your broker skimps on these tools, you may need your MT4 forex platform available for additional support. In this regard, pattern recognition can also play a big part, especially in the form of candlestick formations. Fundamental Analysis can also play a role, but with short timeframes, it is best to be aware of scheduled events that could highly impact your chosen asset. Knowledge is power from a guidance perspective with options, unless you only want to gamble.
4) Focus, Focus, Focus: It is easy to get distracted by the multitude of possibilities in the binary options space. Besides hundreds of asset types offered, tour broker may also present you with One-Touch, Boundary, Ladder, and a variety of other option types to choose from, apart from the traditional “Put/Call” alternative. Your best bet is to stay simple with “Put/Call” options, until you become very familiar with the nuances of trading in this medium. It is also recommended that you stick with better-known assets that you have knowledge about. Trade them when the markets are active to ensure that volumes are at their highest and liquidity concerns do not overly impact valuations. As with other trading pursuits, the trend is your friend. Be patient enough to wait for strong trends to offer high-probability setups for your trades.
5) Develop a Trading Strategy: If you fail to have a trading plan, then you are planning to fail. Emotions can mess with your mind and destroy your deposit account. The only accepted way, according to the veterans among us, is to develop a step-by-step strategy for how you will approach this market. You do not necessarily have to create your plan on your own. Search engines can bring up a wealth of strategies that others claim to work. You only need to review a few of these to find one or two that you like and then refine to put your own twist upon it. Live by your plan, keep your ego at the door, and you may be one of the few to find success in this genre.
6) Practice, Practice, Practice: The way you make your initial plan your own is with practice on a demo system with virtual cash. There is no shortcut for experience in any trading environment and especially not with binary options. Veterans suggest that one-hour options are the best place to start. See what times of day produce the most consistent swings in market action. Predictable swings are your targets. If you intend to got he turbo route, then try out a few 60-second options during practice sessions. Luck will play a part in winning and losing. The brokers are counting on it, but as Louis Pasteur once said, “Chance favors only the prepared mind.”
7) Money Management Counts: Money and risk management rules are greatly curtailed in the binary options space, but they are still important, if you wish to trade another day. You can either lose your entire investment, receive a small rebate back, or win a large percentage return. Your possible outcomes are fixed at time of order execution. Your downside risk is your option amount, less any applicable rebate in case you guess wrong. Let’s assume you wager $100. If you are conservative, this amount would only be 2% of your $5,000 account balance. More aggressive traders may tolerate 5% or 10%, meaning that you would need balances of $2,000 or $1,000, respectively. These rules are to protect you from long losing streaks, which will happen, even to veterans. If the force of a strong trend is behind your back, you may want to increase your percentage, as well, but never “Double-Up” on a losing trade or “Sell Early” on a winner with momentum. Increasing your investment amount in order to recover prior losses is just another way to become a quick casualty.
Find a Reputable Signal Provider: If you want to trade as a profession and not just as a hobby, you may want to invest in an alert/signal service that can point you to potential opportunities in the binary option space. Be careful, however, because there are a lot of software robot providers that claim to be legitimate, but are just ordinary scams or junk. The good ones rely on tested software algorithms that indicate when a particular asset might be experiencing a trending bias. Options do not work that great when markets are ranging. Validate winning percentages, and do a complete due-diligence review before you make a decision. Also be wary of a broker that offers to trade on your behalf. They are trying to entice you to increase your deposit and then enter a losing trade thereafter. Binary option brokers only make money if you lose it.
9) Be Careful with Correlating Assets: How may open positions should you have at any one time? The advice in traditional trading is no more than three, but since your downside risk is fixed with each order, you may find that you can raise this figure a little. Do not feel that you have to be in the market at all times. If you are trading hour options, be sure that they do not extend past a market closing. The point here is that trading is stressful enough without adding to it. If you do have multiple positions open at one time, you want to be sure that you are diversified without correlations working against your interests. For example, the Euro and Gold tend to move in directions opposite to the U.S. Dollar. If you place your positions incorrectly, you could find that one order cancelled out the other, but you would still lose overall, due to the lower payoff ratio.
10) Expect Early Losses and Start Small: You have followed the tips above, developed and practiced your trading strategy for hours on end, and now you are ready to make some real money. Whoa, Partner! Putting real money on the line can due weird things to your brain cells and nervous system, one reason that casualty rates are so high in this industry. High risk means just that. Do not commit funds that you cannot do without. Early losses could be high, the reason that most brokers must have aggressive new client solicitation campaigns together with hefty promotional deposit bonuses. Be aware of the trading commitments that are associated with these bonus programs, sometimes as much as 30 times the value before withdrawal restrictions will be removed. Brokers expect 7 out of 10 traders to fail and get both the bonus and initial deposit transferred to their coffers. There is no rush. Be patient. Do not put pressure on yourself to step up your action. Start out with small amounts, and as you begin to accumulate consistent gains, then increase your amount to something more reasonable, in line with money management rules.
Binary Options Trading
Binary Options Trading Tips
Binary options trading – represent the single most simple way to trade price fluctuations in multiple international markets. Risks and rewards of these instruments need to be well understood before you invest. Another golden rule is that you should never invest more than you can afford to lose. Binary options Meaning is quite distinct from traditional options. In trading, one can opt for these options which have different fees, risks, payouts, investment processes, and liquidity structures.
What are Binary Options Trading?
Binary options Meaning is exotic, unconventional options which are simple to use and understand in terms of functionality. A most common binary option is a high-low option. This is also called a fixed return option and it has an expiry date or time. This particular option also has a strike price. When the trader wages correctly on the direction of the market and the price at the moment of expiry is in agreement with the strike price, fixed returns accrue. In the event that the trader wagers incorrectly on the market’s direction, his or her investment is lost.
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Call or Put= Rise or Fall
If the market is rising, a trader would buy a “call” and if the market is perceived to be falling, the trader will purchase a put. To make money through a call, a price must be higher than the strike price at the time of expiry. To make money through a put, a price must be lower than the strike price at the time of expiry. An important point to note is that the trader gets to know the strike price, expiry, and payout as well as risk which are disclosed from the beginning. The strike price is the present price/rate at which the underlying product is pegged such as Yen/USD currency pair or a particular stock. It will be wagered whether the future price at expiry is more or less than the current price; the trader’s profits depend upon this.
So, what happens if the price has expired on the strike value? Traders receive their money back with no profit or loss. However, the transaction is over the counter so brokers have different rules. Brokers can book profit or loss on an automatic basis in and out of the trader’s account.
Types of Binary Options Trading
And here are some binary options trading tips and binary options trading meaning that will help you to get more detail about the binary options trading.
Many different types of binary options Trading can be done online.
Indices Based Trading: Trading on The Stock Index
The most popular of these are indices based trading for which there are many different stock exchanges across the globe. When the trader places a wager on this kind of binary options trading, he or she is predicting what the value of top traded stocks and shares will be in terms of its position when the trade was placed over a certain time period. You can trade on different kind of stock indices and the most commonly traded are the Dow Jones, Hang Sen, and NASDAQ. Indices trading is the best idea if you do not want to pay massive brokerages as you do not have to purchase stocks and shares in firms constituting the indices.
Currency and Forex Binary Trading Options: From Currency Pairing to Bitcoins
Many traders bet one currency against another when they trade binary options Trading online. There are no restrictions when it comes to currency trading and you can pair just about under currency under the sun from dollars to pound sterling. roubles to rupees. Binary options sites also allow traders to pair Bitcoins with other currencies.
Commodity Binary Options Trading without Purchase
This is a very popular type of binary option which allows trading on the value of the fixed commodity without any requirement for purchasing the assets. Binary options trading associated with commodities includes oil, silver, gold, and copper. This type of binary option is again popular because no purchase is required.
High-Low Binary Options- The Upside and the Downside
These include one touch binary options and range binary options. One touch binary options are where the price needs to touch the allocated target level at one point prior to expiration for the trader to take in cash. Targets can be picked above or below a certain value. The upside? Risk and reward can be accessed and multiple asset classes can be accessed through simple options. You only lose or gain a fixed amount. In contrast, a reward is outweighed by risk often. A downside of this is that traders have to be right most of the time to cut down on losses; unlike a normal game, losing trades here costs much more than winning them. So while it pays to make gains, it pays even more not to make losses.
Range Binary options trading allow choosing a price range to be traded by the asset till the point of expiry. If the price within which the range is selected is correctly estimated, only then the investment is gained otherwise the payout is lost.
Binary option space rises up, and brokers are offering more binary options products now as the trading ecosystem undergoes a change. Binary options trading offers payouts in the range of fifty to five hundred percent. This means a better reward is to risk ratio though the higher the stakes, the less the chances of winning a payout. Foreign workers also permit traders to exit trades prior to the expiration of the binary options platform. Before you get the payout, exiting the trade means one big loss. Trader won’t lose his or her total investment, but even partial losses can be phenomenal. Binary options Meaning is estimates of asset performance underlying a particular time period.
Binary Options Trading vs Conventional Trading
In common parlance (and understanding), trading means sale or purchase of assets and profit or loss resulting from it. If investors sell the asset back to the market when the value increases, a profit is made and vice versa. Conventional trading requires sale and purchase of assets keeping the market volatility in mind. Binary options trading is way simpler In options the focus is on trading the markets. Binary means dual and it reflects the two options before the trader- call or put. Two investment possibilities and a single correct investment decision turn into massive profits for the trader in binary options trading. Anyone can profit from commodes, shares, stocks, assets or forex through binary options. A major plus point of binary options trades is just that there is a range of different expiration and if you feel binary trading is two-faced, seek your clarifications through this step by step guide:
Decision 1: What Trades Should You Make?
This is the first thing you need to consider. You need to divide the nature of the asset, commodity or stocks and shares you will be investing in. The choice is quite simple…it’s your “call” to see where to “put” in the cash.
Decision 2: Opt for a Broker
You will need to choose a Binary Options broker for placing trades and making profits. Make sure the broker is fully licensed and regulated along with a range of tradeable assets and many are also offering a bonus which translates into more value for the original deposit. Brokers have different account times. Make sure you choose well.
Decision 3: When the Clock Runs Out-What about Expiry Time?
Once a particular asset type has been chosen and a broker is selected regarding where trades need to be placed. the next dot you have to connect to make the perfect picture is choosing the expiry time for the trades.
You can choose from trades that last for 60 seconds to 60 days! Always remember, the longer the expiry time, the greater the risks are.
Decision 4: Understanding the Risk-Reward Ratio
You need to understand the potential gains (and more importantly losses). Binary options trading ensures there are financial gains in each and every trade. Potential gains vary depending upon the choice of investment decision, assets, commodities, and shares.
Decision 5: Use Your Tools, Expand your Kit
Which trades are popular with others? To which direction is the news pointing? How high or low can the market go? You need analytical and risk management tools in your market survival kit to make it to the top. A spot which trades are translating into high trade volumes and get the lowdown on them.
Decision 6: Deciding Your Budget
Promotional offers can lead to skyrocketing of your trading budget and a meteoric rise in its value. Sign up bonuses can give you the edge, but loyalty and promotions should also accompany deposit matches bonus and risk-averse trading. You are locking in money so make sure that you get the returns you deserve. When it comes to binary options trading, a budget is important.
Decision 7: How to Time Your Trade?
One will never know potentially profitable trading options until one opts for binary options trading. Timing is important and instantly placing trades through mobile or online platforms will always give you the benefit of fast connectivity.
Decision 8: Hedge Your Trades, Safeguard Your Bets
Many traders look at hedging or using promotional offers from multiple brokers to get the single highest returns. Each side of the trade can easily be managed through bonus funds. With a rolling forward feature, additional trading opportunities are available when a live trade gains traction. Roll forward is a choice of extending expiry time on live trades places and this option is used when expiry time undergoes modification.
Decision 9: Early Exit, Quick Returns?
While many traders choose to wait it out, an early exit can have remarkably rapid returns as you lock in trading profit. Always consider an early exit rather than a long and painful wait with no positive results.
Decision 10: Questions You Need to Ask
Ask and you will find, seek and you will receive. Nowhere is this adage more true than the binary options market where you have to ask the right questions if you want to make profits. Consider factors like the most traded stocks, whether social media stocks can be traded and banking options for this type of trading.
Decision 11: Learn the ABC of the BO market
A binary options trading market is all about understanding the ins and outs of options trading. You need to learn about binary or fixed return options that have an expiry date and a strike price. If you strike when the iron is hot, expect to get amazing returns. A strike price is also known as a binary option contract. If you gauge the direction of the market correctly, half the battle is won. You need to know everything about trading from how the contract price is calculated to the specific terms. Price of BO contracts is equivalent to market perception of a chance of the event occurring. Specific terms you need to be clear about our “out of” and “in the money.” Out of the money is when the strike price skyrockets above the market price for a call and plummets below market price for a put option. If there is a put option, in the money is when the strike price is ahead of stock/asset market prices while option’s strike price is falling below the market price of a stock or specific asset.
Decision 12: Understand the Benefits of Binary Options Trading
Binary options are simpler to trade as against traditional stock options. This is because the former lacks the duality of the latter. In traditional trading, you need a deep understanding of market direction and movement of the price. For BO trading, you only need to understand the stock’s direction as far as price movement is concerned. Binary options have controlled risk to reward ratios and involve trading and hedging. Market analysis is critical before placing each trade, and the payout amount does not equal the amount through which the option ends up in the forefront.
Decision 13: Always Factor in Transaction Costs
When it comes to BO trading, you need to check the potential gains you will make as well as transaction costs that will be incurred. While binary options brokers do not charge fees per trade and collect commissions, a percentage of time you anticipate the markets correctly corresponds to the amount of profit from the binary option
Conclusion – Binary Options trading
Binary options trading is a wonderful way to wade into the sea of opportunities when it comes to stocks, shares, and assets. But be careful about considering all the angles before you take the plunge because, as investment guru Warren Buffet says, you cannot judge the depth of the river using both feet! so this is all was the about the binary options trading tips binary options trading meaning.
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