Binary Options Trading Signals are keys to High Profit

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A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

Best Binary Options Brokers 2020:
  • Binarium
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  • Binomo
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A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Binary Options Profit – more than 80% ITM on binary options

Binary Options Profit is another arrow indicator for trading on classic binary options Call and Put. When you install it on a chart, you can see the percentage of the indicator’s profitability, which often exceeds 80%. This is a very, very good result! But is it really so? Is the Binary Options Profit so good in reality? Let’s figure it out.

Characteristics of the Binary Options Profit
  • Platform: Metatrader4
  • Asset: Any currency pair
  • Trading Time: Around the clock
  • Timeframe: Any (recommended M15, M30)
  • Expiry: until the end of the current candle
  • Recommended broker: Binomo, Binary, IQOption
Indicators of Binary Options Profit

The Binary Options Profit uses 4 standard indicators MT 4:

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By default, the indicator settings are as follows: ADX (4), DeM (4), MFI (2), WPR (2). You can, if necessary, change these settings at your discretion depending on the specific market situation, timeframe and currency pair.

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Rules of trade by Binary Options Profit

When you install Binary Options Profit on the chart, you will see the indicator signals and the information panel. As with any arrow indicator, the Binary Options Profit signals are very clear: the blue arrow up – Call, the red arrow down – Put:

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According to my observations, the indicator counts the number of ITM and OTM deals from the moment the signal appears and with the expiry – until the end of the current candle. In this case, the profitability will be maximum. Therefore, this indicator does not have a fixed expiration time. Only until the end of the candle.

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Very important! For a successful trade with Star Profit Option requires broker that does not create delays in the opening positions and has a zero spread. That is a broker Binomo. In addition, Binomo regulated by International Finance Commission:

What are Binary options ?

The Binary Options are one of many tools, with whom you can trades and to earn money. Distinguish themselves from the others mostly with his easy management. The trader must take decision to buy or to sell. It is very easy for everyone to use and to understand binary options. It is necessary for you to analyze and after that to decide if the price will go up or go down in next minute, hour or few days. When you decide what amount you will invest, you start the

deal and after that you wait until the end of the option. If you invest $100 and predict the correct movement of the price you can earn $180. It means that you make a profit of $80. If you do not predict the correct movement of the price you will lost your bet of $100.

Types of Binary Options

There are several types of Binary Options

High/Low binary options

– CALL option ( or as you can meet it in platform for trading like Low option) when you make an analysis and the price will be above your opening price, until the end of the time for the option.

– PUT option (or as you can meet it in platform for trading like High option) when you make an analysis and the price will be below your opening price, until the end of the time for the option.

Let’s take a look how to open position (option) and what is the exact meaning of CALL and PUT position (option).

In the platform’s terminal for binary trading there is a button for determination of the time for binary, CALL and PUT options. Let’s first take a look at time frames (the offered time for which we can put an option).In almost every platform there is turbo options ( time periods from 1 minute to 5 minutes ) 30 seconds, 1 minute, 2 minutes and 5 minutes. The other time periods are from 15 minutes to one week time ( 15 minutes, 30 minutes, 45 minutes, 1 hour, 4 hours, 1 day, 1 week and until the end of the month. After you choose the time period you must enter the amount that you want to invest in the option (position), and after that clique the button CALL ( if you think the price will go up, or you expect appreciation) or clique the button PUT (if you think the price will go down, or you expect depreciation. For brokers the minimum profit is about 63% and the maximum is about 93%.

ABOVE/BELOW binary option

In this Binary Option we answer the question: Whether the price at the expiration of time for the option is above or below a certain price level?

Touch/No touch Binary Options

In this Binary Option we answer the question: Will the price be reached or will not be reached in certain price level until the end of option’s time?

Boundary Binary Option

If you trade with this kind of Binary Options, the question is: Whether the price will be within or outside the specified limits until the end of option’s time?

60 seconds for Binary Option

These are classic options High/Low, where the time for the option is 60 seconds. The question is: Whether the price will be higher or lower after 60 seconds?

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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Best Binary Options Trading Guide For Beginners
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