What are the main obstacles on the way of binary options trader

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
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  • Binomo
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Binary Options Trading in Kenya

Trading binary options is for years now an attractive and lucrative type of online investment, widespread among many people around the world. In Africa, binary trading is especially popular, such as South Africa, but also Kenya and several other countries, such as Nigeria and Zimbabwe.

This binary guide will provide more detailed information regarding most popular binary brokers in Kenya, can Kenyan traders trade on binary software and are there option to invest in binary options with the help of signal providers.

Binary Options Kenya

Initially, binary industry appeared in laite 2008 in the USA and quickly spread on different continents by providing trading platforms on which traders in Kenya will be able to trade with numerous underlying assets.

However, our Kenyan readers should know first what binary options are and how we define them. Trading binary options is an online trading alternative which has two options, yes or no and is based on fixed payout and expiry time. It all comes down to the fact that traders need to determine will and asset price rise or fall in a specific time frame which is set in advance.

Traders are able to trade with different underlying asset, such as stocks, commodities, currencies and indices. Also, trade options and times of expiry are required to complete a trade, whereas each broker has its own list of available assets and trading features.

Experience trading with IQ option!

Concerning trade options, Kenyan traders can choose between trading on 60 Seconds, High/Low, Ladder Options, Pairs, One Touch and many more. Regarding expiry times, they have on disposal a wide range of short term and long term time frames, such as 60 seconds, 2 min, 5 min, 15 min, 30 min up to a day, week, month or even 150 days.

In binary options trading, risk is involved since this trading type is done online and trades are executed based on current market trends. However, as one of the main benefits of such binary options popularity is the fact traders know potential risk in advance, even before a trade is made. This means how potential money gain or money loss can be known in the initial stage.

Binary trading process in Kenya can be done entirely online, where traders only need internet connectivity to be able to place trades and earn money accordingly.

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!

Binary Options Features – Trading in Kenya

For binary options success to be possible, there are several elements which should work simultaneously such as available trading tools and features available on particular broker’s platform.

High returns are definitely one of the reasons why many traders from Kenya find binary trading to a suitable option to invest their money. This industry seems also attractive to beginner traders who have opportunity to experience online trading, practice and possibly make money in the process.

Features such as demo account, different trading instruments such as option to limit daily trades and ability to trade binary options on the go, thanks to mobile app, are all popular ways of how to achieve better trading results.

Demo account is especially appreciated feature among novice traders who lack financial knowledge such as expert traders possess, and with practicing on demo, they can test the platform and have better performance in risk free environment. By this we mean how Kenyan traders don’t need to invest actual money but instead they are provided with virtual funds.

Traders who are very busy and don’t have time to trade binaries solely on computers, are able to use mobile application and have a more simple way of trading when they are on the move. These apps are designed is a simple way to be efficient and easy to use. With most brokers, app is connected with Apple and Android systems where Kenyans have option to use it on their tablets and smartphones.

How to Choose a Top Binary Options Broker?

Selecting a right binary broker should be traders’ initial step when planning to invest in binary options. Nowadays, there are a lot of binary brokers who are available on Kenyan market and traders should wisely choose the one to trade with in order to avoid any possible scam.

As a novice trader, choosing a broker who offer demo account might be a good idea to start with, among other segments on the trading platform. Traders should also check carefully broker reviews listed on our site to find a detailed explanation of what particular platform has to offer.

Each broker has its own trading characteristics and offer different tools as well as number of trading account and minimum deposit requirements. Usually, average industry minimum deposit is $250, while some brokers such as IQ Option who offer deposit of just $10.

When Kenyan traders check a specific platform, they should read terms and conditions as well as find information about withdrawal procedure since this element is one of the main ones in terms of successful binary trading process. If a broker has good and responsive customer support, it is one more thumbs up for traders who can see how this broker is serious and has very good support agents who can provide fast and accurate trading info.

Alternative Way of Trading with Binary Robots

If Kenyan traders are new to binary options trading or simply don’t want to spend too much time trading, they can try out option to connect with binary trading software or robots. There are couple of them on African market these days, and some of the most reputable ones are Binary Options Robot and Fintech Limited.

What these binary robots deliver to traders in Kenya is an option to adjust the settings and let the software to place a trade on their behalf. As one of the useful features we discovered lately is that on Binary Options Robot software, traders are able to activate Auto Trade Approval – a tool that enables full control over trading portfolio so that traders are able to accept or decline received trading signal

Are Binary Options Legit in Kenya?

What we learnt from our reviews regarding Kenyan regulatory authorities and binary options, is that it seems there are no prohibitions on binary options. There is Capital Markets Authority financial watchdog which is responsible for monitoring and supervision of stock exchange and other market activities.

Therefore, binary options trading seems as a legal online trading industry which is available on Kenyan market to interested traders.

There are plenty of binary brokers, such as IQ Option, AnyOption, StockPair etc who offer trading platforms to Kenyan traders and conduct a legit binary trading business. When traders register with them in few steps, they’ll get access to the platform and after they deposit, traders can invest in different underlying assets in order to maximize profit.

To become a pro trader, reputable binary brokers provide a selection of useful education materials, such as video tutorials, guides, trading basics 101, webinars, ebook, glossary and many more. These edu materials can be used to enhance trading knowledge and have better understanding of how does binary options trading in Kenya works and can traders earn money during binary trading journey.

What is Options Trading?

When most people think of investment, they think of buying stocks on the stock market, and many are probably completely unaware of terms like options trading. Buying stocks and holding on to them with a view to making long term gains is after all, one of the more common investment strategies. It’s also a perfectly sensible to way invest, providing you have some idea about which stocks you should be buying or use a broker that can offer you advice and guidance on such matters.

This approach is known as a buy and hold strategy and can help you increase your wealth in the long run, but it doesn’t provide much, if anything, in the way of short term gains. These days, many investors are choosing to use a more active investment style in order to try and make more immediate returns.

Thanks to the range of online brokers that enable investors to make transactions on the stock exchanges with just a few clicks of their mouse, it’s relatively straightforward for investors to be more active if they wish to. There are many people that trade online on either a part time or a full time basis; buying and selling regularly to try and take advantage of shorter term price fluctuations and often holding on to their purchases for just a few weeks or days, or even just a couple of hours.

There are plenty of financial instruments that can be actively traded. Options, in particular have proved to be very popular among traders and options trading is becoming more and more common. On this page we have provided some useful information on what is involved in options trading and how it works.

What Does Options Trading Involve?

In very simple terms options trading involves buying and selling options contracts on the public exchanges and, broadly speaking, it’s very similar to stock trading. Whereas stock traders aim to make profits through buying stocks and selling them at a higher price, options traders can make profits through buying options contracts and selling them at a higher price. Also, in the same way that stock traders can take a short position on stock that they believe will go down in value, options traders can do the same with options contracts.

In practice however, this form of trading is far more versatile than stock trading. For one thing, the fact that options contracts can be based on wide variety of underlying securities means that there is plenty of scope when it comes to deciding how and where to invest. Traders can use options to speculate on the price movement of individual stocks, indices, foreign currencies, and commodities among other things and this obviously presents far more opportunities for potential profits.

The real versatility, though, is in the various options types that can be traded and the range of different orders that can be placed.

When trading stocks you basically have two main ways of making money, through taking either a long position or a short position on a specific stock. If you expected a particular stock to go up in value, then you would take a long position by buying that stock with a view to selling it later at a higher price. If you expected a particular stock to go down in value, then you would take a short position by short selling that stock with a hope to buying it back later at a lower price.

In options trading, there’s more choice in the way trades can be executed and many more ways to make money.

It should be made clear that options trading is a much more complicated subject than stock trading and the whole concept of what is involved can seem very daunting to beginners. There is certainly a lot you should learn before you actually get started and invest your money. With that being said, however, most of the fundamentals aren’t actually that difficult to comprehend. Once you have grasped the basics, it becomes much easier to understand exactly what options trading is all about.

Below we explain in more detail all the various processes involved.

Buying Options

Buying an options contract is in practice no different to buying stock. You are basically taking a long position on that option, expecting it to go up in value. You can buy options contracts by simply choosing exactly what you wish to buy and how many, and then placing a buy to open order with a broker. This order was named as such because you are opening a position through buying options.

If your options do go up in value, then you can either sell them or exercise your option depending on what suits you best. We provide more information on selling and exercising options later.

One of the big advantages of options contracts is that you can buy them in situations when you expect the underlying asset to go up in value and also in situations when you expect the underlying asset to go down.

If you were expecting an underlying asset to go up in value, then you would buy call options, which gives you the right to buy the underlying asset at a fixed price. If you were expecting an underlying asset to go down in value, then you would buy put options, which gives you the right to sell the underlying asset at a fixed price. This is just one example of the flexibility on these contracts; there are several more.

If you have previously opened a short position on options contracts by writing them, then you can also buy those contracts back to close that position. To close a position by buying contracts you would place a buy to close order with your broker.

Selling & Writing Options

There are basically two ways in which you can sell options contracts. First, if you have previously bought contracts and wish to realize your profits, or cut your losses, then you would sell them by placing a sell to close order. The order is named as such because you are closing your position by selling options contracts.

You would usually use that order if the options you owned had gone up in value and you wanted to take your profits at that point, or if the options you owned had fallen in value and you wanted to exit your position before incurring any other losses.

The other way you can sell options is by opening a short position and short selling them. This is also known as writing options, because the process actually involves you writing new contracts to be sold in the market. When you do this you are taking on the obligation in the contract i.e. if the holder chooses to exercise their option then you would have to sell them the underlying security at the strike price (if a call option) or buy the underlying security from them at the strike price (if a put option).

Writing options is done by using the sell to open order, and you would receive a payment at the time of placing such an order. This is generally riskier than trading through buying and then selling, but there are profits to be made if you know what you are doing. You would usually place such an order if you believed the relevant underlying security would not move in such a way that the holder would be able to exercise their option for a profit.

For example, if you believed that a particular stock was going to either remain static or fall in value, then you could choose to write and sell call options based on that stock. You would be liable to potential losses if the stock did go up in value, but if it failed to do so by the time the options expired you would keep the payment you received for writing them.

Exercising Options

Options traders tend to make their profits through the buying, selling, and writing of options rather than ever actually exercising them. However, depending on the strategies you are using and the reasons you have bought certain contracts, there may be occasions when you choose to exercise your options to buy or sell the underlying security.

The simple fact that you can potentially make money out of exercising as well as buying and selling them further serves to illustrate just how much flexibility and versatility this form of trading offers.

Options Spreads

What really makes trading options such an interesting way to invest is the ability to create options spreads. You can certainly make money trading by buying options and then selling them if you make a profit, but it’s the spreads that are the seriously powerful tools in trading. A spread is quite simply when you enter a position on two or more options contracts based on the same underlying security; for example, buying options on a specific stock and also writing contracts on the same stock.

There are many different types of spreads that you can create, and they can be used for many different reasons. Most commonly, they are used to either limit the risk involved with taking a position or reducing the financial outlay required with taking a position. Most options trading strategies involve the use of spreads. Some strategies can be very complicated, but there are also a number of fairly basic strategies that are easy to understand.

You can read more about all the different types of spreads here.

Benefits of Trading Options

There are actually a number of benefits this form of trading offers, plus the versatility that we have referred to above. It’s continuing to grow in popularity, not just with professional traders but also with more casual traders as well. To find out just what it is that makes it so appealing, please read the next page in this section – Why Trade Options?

3 Traits Of Unsuccessfull Traders

A friend of mine advised me that it would be a good idea to write an article dealing with the bad habits of unsuccessful binary options traders. It was a really great idea. There are lots of things that prohibits even better trader from making money. Experience is an important factor that everyone must acquire. Without it, no one will ever be profitable.

I’m not talking only about the experience gained from reading graphs and from trading on a demo account. Sure, it is important. But what makes trading trading is the stress, uncertainty, anger, and on the other hand, also joy and success.

Not adhering to proper money management

In the case of trading binary options, never place more than 5% of your eggs in one basket. ��

There are lots of traders who deposit, for example, the sum of $ 200 on their trading account, and their first trade will be in the amount of $ 50. Don’t you consider it stupid? Yes, it certainly is. As we mention in our articles about money management (which I recommend you read here) you should never use more than 5% of your total account balance for one single transaction.

We recommend to use even less than this, about 3%, but it is understandable that not every aspiring trader has $ 2,000 available in their trading account.

Lack of information

e lack of information is not a vice, but I think that it fits this list. There are “traders” who read two articles about binary options on the internet and think that they have already swallowed all the wisdom of the world and immediately flock to investment and entering trades.

To this, I say one thing: Trading binary options may be simple. But I mean it only as entering trades and the accessibility of the actual trading. This means that it is also easy to lose money. Successful trading is a complicated thing, and not everyone knows how to do it. But with some practice and expertise, I believe, comes reward.

Unrealistic goals

Earning hundreds of thousands a day, living on a beach, sipping a drink? Forget about it. I do not believe anyone who tells me that the truck driver came to be a successful binary options trader after only one week.

By this, I mean that you can‘t expect that you will make hundreds of dollars a day. Well, you can, but certainly not when you just got started with trading. Better be careful.

I think that these three things are the main obstacle between the trader and the profit. What is your opinion on the article? Share it with us in the comments section!

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

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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