Binary options Brokers

Posted by Deb | Binary Options,Guest Post | Tuesday 28 August 2012 3:37 pm

The concept of Binary options trading has evolved a lot during the last 2 years. Many forex brokers started offering a binary options service. In fact the binary options are quite easy and very straightforward way of trading forex and other commodities. All you have to do is to predict the price movement, will it go up or down for a certain period of time. If you guessed right you immediately win up to 85% and if not you lose the entire investment. There is no stress of waiting the price feed, everything is clear and immediate. You can see a list of binary options brokers in order to choose the best one.
After you read this article please let me know if you found it useful and interesting for you? How it contributed to your trading experience?

Binary options brokers

Because binary options became so popular during the last 2 years, CySEC (the commission of financial supervision in Cyprus) decided to regulate those entities. The project is still in a development process and one can hardly predict what will be the consequences of that decision. In fact there are some SCAM brokers among them and it is good to know that companies must be chose carefully.

The brokers offer different conditions in terms of minimum account opening amount and maximum position size. Some brokers may not accept the risk of opening too big position against you because this may result in loss for the broker. Also, it is a n interesting fact that some brokers offer back loss of 10 to 15% which means that if you guess wrong a small portion of your investment is returned to your account as a compensation.

Types of binary options

Cash-or-nothing binary options – It is obvious that this type of options offer the opportunity of winning either fixed cash amount or nothing against your initial investment. The strike price is determined, i.e the price at which traders enter the market. As soon as this is done an expiry time is set and when the option expires the investor either wins the cash or loses his or her investment. In the case that the prediction about the price was right the binary options broker has to pay the trader a return which is predetermined and fixed before entering the trade. Conversely, the trader loses all the funds blocked into the trade if his or her prediction was not correct.

Asset-or-nothing binary options – The principle of trading this type of binary options is entirely the same as the Cash or nothing binary options. The only difference here is that the price of the asset is paid out as return of the investment. In this case the trader wins or loses the value of the asset on which the option is based according to his or her prediction of the price direction.

One-touch binary options – These options work differently from the Cash or nothing and Asset or nothing binary options. Here the trader bets that the price of an option will “touch” or reach the price. In this case the expiry time is determined by the chart and all can happen in 1 second or 1 week. Of course, there is a maximum exipy time set by the broker so you cannot wait for ages.

No-touch binary options – those are the same as One-touch but here traders hope that the price will never reach the defined level. It can be used for hedging with One-touch, although it is quite complex.

Double-one-touch and Double-no-touch binary options – these exotic types of options increases the variations you might have with options tradind. As the name suggests, double touch options are simply instrumenst that can bring you return if the price is touched twice. To predict such movement it is needed to have a quite good understanding of the market you are investing. It might be an interesting opportunity of trading news with Double touch binary options.

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13 Comments »

  1. Comment by Binary Options Bonus — August 31, 2012 @ 5:44 pm

    Binary options are surely a great way of investing the markets. What I really like about them is that you know if you win or lose immediately. In other words no need to wait and move stops or limits. In an hour you get all or nothing
    Binary Options Bonus recently posted..6 Binary Options Brokers added

  2. Comment by Damien — September 10, 2012 @ 5:33 pm

    Probably a good indicator of a good options broker is one that will issue an “offer back” of the initial investment if its a loss. So I would look for unbiased customers of options brokers to find out how they were treated.
    Its a good article Deb, I will now think of firing up my forex account and jump back in again.
    Damien recently posted..personal injury lawyer seattle wa

  3. Comment by automated forex trading strategies — October 15, 2012 @ 3:44 am

    Thanks for the post. I personally just got started with trading forex. This really gave me some good insight into binary options. Cheers mate.

  4. Comment by binary option broker — October 18, 2012 @ 1:11 pm

    any person should choose best broker before start trading in binary options. binary options trading system is good for investment, good strategy surely help to earn huge money on investment.

  5. Comment by Tracey from Binary Option Trading — November 4, 2012 @ 2:51 pm

    Your method of explaining everything in this article is really pleasant, every one can simply know it,
    Thanks a lot.
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  6. Comment by Jodi from Binary Options — November 29, 2012 @ 6:26 pm

    These are in fact fantastic ideas in regarding blogging.
    You have touched some nice points here. Any way keep up wrinting.
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  7. Comment by GoWest — December 11, 2012 @ 5:05 pm

    You make it sound all so simple, quote “All you have to do is to predict the price movement, will it go up or down for a certain period of time”. In reality, this can be very challenging, and require the help of a variety of trends and indicators to provide confidence.

    As much as it is essential to have a good grasp of the fundamentals it is also essential, as suggested above, to ensure you choose a reliable, regulated and competetive broker or market maker.
    GoWest recently posted..MahiFX Top 10 Tips For Christmas – Tip Number 1

  8. Comment by Simon from BINARY OPTIONS BROKERS — January 19, 2013 @ 4:33 pm

    I like what you guys tend to be up too. This kind of clever work and coverage!
    Keep up the superb works guys I’ve incorporated you guys to my blogroll.
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  9. Comment by binary options demo — February 25, 2013 @ 1:15 pm

    Thanks for this interesting article, binary options are a great way to start investing on the markets.
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  10. Comment by Maya from binary options scam — July 30, 2013 @ 3:42 pm

    Got me into researching more of this kind of trading, there is really not as much regulation for these brokers as I would like and truth is, that it is not like the 50%-50% coin toss analogy, you are at disadvantage right from the start where you always get less reward than risk per trade, just my 2 cents.
    Maya@binary options scam recently posted..Best Tips to Avoid Binary Options Scam

  11. Comment by Willeke Liselotte — June 7, 2014 @ 5:41 am

    I have been researching on binary options for last 1 year. And now I can make profit by 70%-30%. Can I improve my winning percentages more??

  12. Comment by Binary Options — August 10, 2014 @ 3:56 am

    Hey great site, I trade all the time and just got into binary options

  13. Comment by Deb — August 12, 2014 @ 9:58 am

    Great! Let us know how you are doing with binary options.

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