How to make money on binary options trading? Basic rules.

Ted Capwell Updated:

Advertising banners of earnings on Forex today is almost everywhere, no one is surprised, but financial markets are not standing still, and every year there are new tools for making a profit. One of the latest innovations are binary options. Despite their simplicity and availability, there are still doubting traders who do not admit that such a derivative is capable of making a profit.

A binary option is a financial contract, under which the parties assume certain obligations to perform the specified actions with the basis. A basis is any financial instrument – shares, raw materials, currency pairs. A trader does not buy the asset itself, but only a special contract with fixed profits and risks. If the conditions of the contract are fulfilled at the agreed time, then the trader will receive an income, if not – loses the stake and no more.

How to earn on binary options?

How to start earning on trading binary options?

To trade binary options really made a profit, you must initially take into account some of the nuances.

The first thing to emphasize is the choice of a broker. With the growing popularity of the financial instrument under consideration, a large number of companies offering brokerage services appeared. It is important not to make a mistake initially in order not to lose your starting capital, but to increase it in the future. Choosing a broker, give preference to companies that work in the market for more than a year, also pay attention to the availability of certificates and licenses of authoritative regulators.

The broker should have a convenient client service for you – a program that provides access to the customer’s trading space. Best of all, if there is a demo account for the opening of which you do not need to contribute, but by trading on it, you can determine the quality of the trading terminal. Also pay attention to the amount of the initial deposit and the minimum amount of the transaction.

Secondly, a trader, especially a beginner, should not immediately rush into the battle and try to conclude deals at random. It is better to spend a little time learning and developing your own strategy of behavior in the market. Only weighted and competent tactics will help to get the desired profit. Very well, if the broker chosen by you offers free training, video courses, e-books, dictionaries, and in the search for this information will not need to waste time on the Internet. Very good results are given by online seminars, which are conducted by experienced financiers. During these classes, you can not only receive new knowledge, but also ask questions of interest. Only after passing the thematic training and fixing it in practice can you start to trade binary options real trading.

How to choose a binary options trading strategy?

At once I want to note that no strategy is able to make a trader rich without his participation, desire and aspiration. How many indicators and complex algorithms it does not include, the trader still needs to be able to analyze the market independently and monitor its movement, rather than hoping that the indicators or advisers will do everything for it.

There are simple strategies, indicator and graphic systems, which include precise rules for opening transactions in the market of binary options. These rules must be strictly adhered to, at the same time the trader should be able to adjust technical tools to the specifics of his trade, understand market processes, and this can only be achieved in practice.

Trading in the financial markets, including binary options, do not forget about the management of capital. Even the most profitable strategy can not provide 100% profitability for each transaction, therefore it is necessary to observe such simple and at the same time important rules of risk management:

• risk no more than 5% of the total deposit in terms of 1 transaction;
• Do not try to recoup after a losing deal, it’s better to rest and relax;
• Initially, it is not necessary to conclude more than 3 transactions per day.

Compliance with these rules will protect your account from serious drawdowns.

Trading binary options is an art!

You have been trained, have chosen a strategy and worked it out on a demo account, now is the time to open a real account and start making money. The principle of bargaining on binary options is simple, but the very process of trading requires a good level of training and preparation:

• Choose an asset that you want to profit from trading;
• Set the expiration time of the option;
• make a forecast about the direction of the price movement at the time of expiration, determine whether it will be higher or lower than the current one;
• Determine the amount of investment and buy a contract.

If you know the basic nuances of working in the market of binary options and strictly observe them, then obtaining the desired profit is only a matter of time.

We recommend for trading a trading platform from a proven broker of binary options and the Forex market – Finmax:



“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”