With binary trades, it may be easier to exploit various opportunities in the market, especially those opportunities that are time sensitive. As trading binary options is more about making predictions of future price movements in the market, the right availability of trading binary signals ensures better control of trades.

There is a common misconception in the market that binary trades are far riskier than other trading strategies, as, if the prediction goes wrong, one may end up losing all the money. However, this may not be the case in reality. This is due to the fact that most traders are able to limit their losses by simply limiting their stakes. Hence, binary trading acts similarly to other trade strategies when it comes to managing risks and losses.

In order to ensure long term success, it is always useful to keep your long term strategy in mind. Binary trading is not about arbitrary trade decisions inspired by random events in the market.

Instead, it is extremely important to have a bigger picture in mind when making binary trades. Even with trading binary option, it may be possible to come up with a range of different trading strategies. So, make sure to know which strategy suits you and serves your long term needs. Following a reliable trading strategy is extremely important for ensuring long term profitability in the binary option trading industry.

It is not uncommon for those who trade binary options to have question in relation to their personal trade volume. Some traders go as far as to set specific goals for the number of trades to enter into each day. This approach is fine, so long as the number is reasonable.

However, it is important to remember that the markets may yield a larger or smaller number of optimal entry points each day , based upon the events of the day. Consider the following information when making decisions related to volume. First and foremost, no trader should ever feel compelled to trade just for the sake of maintaining a larger trade volume. There will be times when market conditions are simply not favorable for doing so. There can be periods of several hours, or even an entire day when conditions are not favorable.

As discouraging as this may be, it is important to remember that there will also be similar periods during which conditions remain favorable. These better periods can produce considerable profits which will certainly make up for any downtime. Another important consideration needs to be total account funds. The primary focus when account funds are low should shift to trade quality rather than quantity.

Even a small number of profitable binary options trades can help to restore lost funds , while a smaller number of poor trades could deplete an account which is already low on funds. The best advice is to focus only on low-risk opportunities which offer a higher chance of finishing in the money when account funds are low. A larger number of trades can be taken once account funds have been restored to a respectable level. The provision of short-term expiry times makes it possible to execute a large number of trades each day.

However, profit only comes on winning trades, so traders must take care to not get caught up in rapid trading under less than optimal market conditions. The type of instrument which is being used can also make a difference. With some instruments, more detailed analysis will be required , and this can take time. The total amount of trade setups provided by a broker can also have an impact. Most platforms only include a set number of setups each day. Having said that, the overall number should greatly exceed the number of trades that any individual could even hope to complete in a days time.

There really is no need for concern in this area unless one is focusing on only specific underlying assets, which will present a limited amount of opportunities each day. With just a bit of time and experience, traders will naturally know which trades to take and which to avoid. Daily volume with indeed fluctuate up and down, as market conditions dictate. While everyone wishes to earn as much money as possibly , and must be actively trading binary options in order to do so, patience is often the most important key to success when trading binary options.

One of the newest features of the binary options market allows for the ability to close trades before their expiration times. But recent trends have shown that brokers are becoming increasingly open to this feature and the increased account signups that have been seen indicate that traders are equally interested in the increased flexibility that is made available through these features.

But when exactly is the right time to close a trade prior to its contract expiry time? And what are the advantages of ending your trade early? In recent years, we have seen events such as the Credit Crisis which led to extreme volatility in the financial markets.

These rapid changes in price can make the outcomes for trades less predictable and this can lead to trades that are profitable one day and unprofitable the next. There are many reasons why situations like this might occur. Some of the most drastic events could come with events like a natural disaster, a surprise central bank decision to change interest rates, a disappointing corporate earnings report or an unexpectedly strong macroeconomic data release can all lead to unpredictable changes in asset prices.

To be sure, this can be a positive when the change falls in line with your trading direction. But it is nearly impossible to know when this favorable outcome will occur and when the news comes out on the opposing side, losses can be seen.

This can be a highly frustrating and costly experience, as gains that were seen previously are suddenly wiped away. Unlike spot markets like Forex there were no defensive moves that binary options traders could take to preserve their gains. Now, however, traders are able to close a profitable position using the early closure function whenever one of these unexpected events occurs.

In other cases, trades will move in the wrong direction and create losses to a trading account. Here, the early closure function is also useful. When it becomes clear that a trade is unlikely to turn positive before expiry, traders can close a trade early and reduce the amount of losses that would be seen later. These percentages will vary depending on which broker you use, and the market conditions seen when the option is bought back.

It should be remembered that the early closure function is not something that should be used to arbitrarily close trades. When trading binary options using market makers, the broker is on the other side of your position. If every trader used this function, losses would occur much less often and the market maker would eventually go out of business because of all the losses they would absorb. Because of this, there are some rules in place when using this feature:. The relatively new early closure feature at the popular IQ option platform allows trader to protect their profits and prevent against potential losses when unforeseen events shift the market.

While there are some restrictions to trade binary options for this tool, the added level of trade structuring should be utilized in cases where a trade is unlikely to increase in profitability before the contract expires.

Given the dual nature of the binary options trading market, it makes sense to have a broader understanding of the general trends that are in place so that we can make the most informed trading binary options decisions and increase our chances of creating profitable trades. When looking at the dominant trends that are in places in the markets, it tends to be a good idea to trade along with the momentum: When most asset prices are rising, CALL options tend to be a better choice.

When most asset prices are falling, PUT options tend to be a better choice. To describe which dominant trend is in place, the trading binary options community will usually use term like Bull Market or Bear Market but it is much less common to see a discussion which characteristics actually make up these economic environments. Here, we will look at the differences between Bull and Bear Markets so that traders can more easily identify the dominant trend in a market and to place binary options trades accordingly.

Bull Markets are typically characterized by a financial environment that is composed of a large number of assets that are increasing in value, or are expected to increase in value. In many cases, the term refers to the stock markets but for those in the trading community, the term is applicable for all asset types. Bull Markets are created by generally optimistic sentiment, rising consumer confidence and the wider expectation that companies will successfully generate profits.

One clear indication of the existence of a Bull Market can be seen in the price of commodities, in the changes in valuation of a national currency, and in the overall performance of the major stock indices.

When looking at price activity in all of these various asset classes, it becomes clear that price swings show higher highs and higher lows the definition of an uptrend. When all of these factors are seen in combination with one another, a Bull Market is in place and CALL options will generally be viewed as favorable when entering into trades. Psychology and news headlines in the financial media are also instrumental in these cases, as positive momentum tends to be contagious.

On the flip side of this is the Bear Market, which is typically characterized by a financial environment what a majority of trading assets are decreasing in value, or are expected to decrease in value.

Again, this term can be applied to all asset classes and Bear Markets are typically created by pessimistic sentiment, declining consumer confidence and the general expectation that companies will perform weakly in terms of profit generation. Indications of a Bear Market can be seen all major asset classes commodities, currencies and stock indices when it becomes clear that price swings show lower highs and lower lows in a broad sense which is the definition of a downtrend.

The combination of these occurrences create Bear Markets and in these cases, traders tend to prefer PUT options when entering into trades. Before we answer this crucial question, there is a need to understand that the binary option is a trading strategy, similar to various other trading strategies.

It is not an out-of-the-world scheme to help traders make millions or to scam them. Trading binary options is as safe or as unsafe as you make it. Yes, it is true that it entirely depends on whether you make binary trading safe for you. So, how is it really possible? From registering yourself with a binary options broker firm to making your trades, every step you take will decide how safe trading binary options is going to be for you. As the first major step, you should carefully analyze different binary options broker firms, choose one registered with different relevant regulatory authorities, hold relevant licenses for investment activities, and have a verifiable track record.

This will ensure that you are not scammed by someone who is using trading binary options as a cover for fraudulent activities. It is always recommended to start investing in a binary options demo account. Once you gain a reasonable level of expertise, start investing in binary options starting with a low amount.

Never make this mistake unless you are fully confident in your abilities. Last but definitely not the least, never trade binary options in a way that you bet all your money on a single trade, no matter how amazing the odds may seem. The fact of the matter is that even if you win big once or twice with such an approach, you will likely take a wrong position every once in a while and end up losing all the available funds. As discussed in an earlier section, investing all money in a single trade or in a single position is one of the biggest reasons why traders especially amateurs fail in trading binary options.

Remember, it is easier to blame the firm or the trading binary options strategy than to accept your shortcomings or wrong steps. Never look for shortcuts to earning big profits, and binary options trading will never be unsafe for you. It is true that some instances of scams and frauds in trading binary options have been reported recently. However, it does not mean that the whole binary options industry is a scam, as you would find instances of scams, frauds, and embezzlement in nearly every industry and business, such as real estate, stocks trading, and even commodities.

One of the main methods for gaining new custom is to offer a bonus. These can come in many forms, from the simple deposit bonus or risk free trades, to more complex packages of training aids and hi-tech gadgets — brokers know how to entice traders, new and old. Here we list and compare all bonuses and explain the key points to ensuring that any bonus taken is a genuine benefit and does not become a source of frustration.

We explore some of the common types of bonus, and when the right time to take it might be. We also discuss some of the pitfalls, and why all that glitters, may not be gold. A binary options bonus is an offer from a broker, designed to provide the trader with additional funds to trade with or to mitigate losses should a trade go wrong.

Normally the offer is in the form of a welcome bonus, or a sign up offer as it is sometimes also called. Welcome offers are of course also an incentive for new clients to join that particular broker.

The bonuses will always come with terms and conditions. These terms are the most important aspects of comparing a bonus. Let us take an example. Here, when a new trader opens an account, their first deposit will trigger a bonus. This is normally a percentage of the deposit. A risk free trade is another simple form of bonus. One attraction of the risk free bonus is that the terms are normally way less restrictive. A risk free trade gives the trader a chance to place a trade, knowing that if it loses, they do not lose any money from their account.

If it wins, they keep the profits. Some brokers will offer 3 or even 5 risk free trades, and they will all operate the same way.

With more trades however, come more conditions. For example with one risk free trade, the broker is likely to pay out winnings as cash — immediately available for withdrawal. This is one of the reasons why when comparing bonuses, the terms are crucial. At the end of this page, we explore risk free trades in more detail, and explain why there is always some level of risk.

It is clearly an attractive option for a trader, but as explained above — reading the terms and conditions will be key. A no deposit bonus will generally require a very high turnover before any funds can be withdrawn, and this requirement will normally need to be met within a short space of time.

This type of bonus is also rare. It does not work that well for brokers, or traders. This allows traders to use the live, real money platform, but place a handful of trades at no financial risk. Brokers now tend to offer either risk free trades, or deposit match bonus. The best time to claim a benefit is often not at the point of making the first deposit.

With some brokers, the best course of action is to open an account with the minimum deposit — turning down any bonuses. Then after a period of trading, call the broker and negotiate a bonus directly with them, based on a larger deposit.

This is particularly effective if there is a larger sum to be invested. The bigger the second deposit, the better any bonus terms will be. Then calculate the rate using the principle of Kelly. It includes the accounting value of the deposit belonging to the trader with the total number of candles.

Finally, the purchase price shall increase by the principle of the Martingale. Traders can use this information according to their appropriateness. It is fundamentally an investing strategy that traders can use in Binary Options also. It allows an investor to buy and sell an asset in different markets simultaneously.

It helps to take advantage of a price difference and generate a profit. Although the price differences are generally small and short-lived, the returns out of them can be remarkable when multiplied by a large capacity. It is commonly put into application by hedge funds and other sophisticated investors.

In binary trading, the buying and selling of options together can visibly reduce the chance of loss in investments. It is relevant because the binary market does not have a centralization, so trading among multiple brokers and their different pay-outs can benefit the traders.

It is what makes arbitrage a preferable risk-free trade strategy. The strategies mentioned above can help ultimately, but a trader can also use other methods such as:. Before beginning trading, the dilemma arises when the element of risk appears.

It is a method for a risk-free trade because the user need not invest any amount. Instead, receive a bonus additionally and can reap the full benefits. Using a free demo can essentially qualify as a risk-free trade method for sure.

Various binary brokerage firms offer a free practice account. It enables the trader to invest with zero risk in the binary market and helps in understanding its dynamics. Demo accounts are the ideal symbol for risk-free trading, especially in Binary Options, in which the narrow time frame can prove to be advantageous. Contrary to that, in a binary options practice account, you can get the results within a short period.

It makes the use risk-free in this method without compromising any funds. In addition to all the above possibilities, you can always rely on the binary brokers that offer risk-free trading practices. It gives a diverse array of multiple assets, including currency pairs, indices, stocks, and commodities.

It undoubtedly offers a zero-risk trade. However, you can withdraw the amount after the risk-free trade week. That makes it a choice for the user. As a regulated binary broker, it promises more reliability with a varied collection of more than assets, including stocks and currency pairs.

There is no form of hidden charge, and you will have to pay a zero spread, fees, and commission. Moreover, it lets you reinvest the refunded losses that will count as a bonus on an asset of your choice. These brokers in Binary Trading have the right experience in providing a risk-free approach.

It is a definite requirement to study the market trend and use the indicators before entering binary trading.

But a consistent approach can ease the task beyond limits, so when you combine using various strategies and methods , along with their services, it is very much possible to optimally experience a risk-free trade and prevent any loss while trading in binary options. Show all posts. Write a comment abort. Save my name, email, and website in this browser for the next time I comment. How to trade Binary Options in South Africa - Guide.

Binary Options withdrawal: How to withdraw money from your broker? Where to find the best information on how to use Binary Options?

How quarterly ends influence Binary Options. Is it possible to trade Binary Options without Investment? We need your consent before you can continue on our website. com is not responsible for the content of external internet sites that link to this site or which are linked from it. This material is not intended for viewers from EEA countries European Union. Binary options are not promoted or sold to retail EEA traders.

Binary Options, CFDs, and Forex trading involves high-risk trading. In some countries, it is not allowed to use or is only available for professional traders. Please check with your regulator.

Binary options brokers are always keen to attract new traders. One of the main methods for gaining new custom is to offer a bonus. These can come in many forms, from the simple deposit bonus or risk free trades, to more complex packages of training aids and hi-tech gadgets — brokers know how to entice traders, new and old.

Here we list and compare all bonuses and explain the key points to ensuring that any bonus taken is a genuine benefit and does not become a source of frustration. We explore some of the common types of bonus, and when the right time to take it might be.

We also discuss some of the pitfalls, and why all that glitters, may not be gold. A binary options bonus is an offer from a broker, designed to provide the trader with additional funds to trade with or to mitigate losses should a trade go wrong.

Normally the offer is in the form of a welcome bonus, or a sign up offer as it is sometimes also called. Welcome offers are of course also an incentive for new clients to join that particular broker.

The bonuses will always come with terms and conditions. These terms are the most important aspects of comparing a bonus. Let us take an example. Here, when a new trader opens an account, their first deposit will trigger a bonus. This is normally a percentage of the deposit. A risk free trade is another simple form of bonus. One attraction of the risk free bonus is that the terms are normally way less restrictive.

A risk free trade gives the trader a chance to place a trade, knowing that if it loses, they do not lose any money from their account. If it wins, they keep the profits. Some brokers will offer 3 or even 5 risk free trades, and they will all operate the same way. With more trades however, come more conditions. For example with one risk free trade, the broker is likely to pay out winnings as cash — immediately available for withdrawal. This is one of the reasons why when comparing bonuses, the terms are crucial.

At the end of this page, we explore risk free trades in more detail, and explain why there is always some level of risk. It is clearly an attractive option for a trader, but as explained above — reading the terms and conditions will be key. A no deposit bonus will generally require a very high turnover before any funds can be withdrawn, and this requirement will normally need to be met within a short space of time. This type of bonus is also rare. It does not work that well for brokers, or traders.

This allows traders to use the live, real money platform, but place a handful of trades at no financial risk. Brokers now tend to offer either risk free trades, or deposit match bonus.

The best time to claim a benefit is often not at the point of making the first deposit. With some brokers, the best course of action is to open an account with the minimum deposit — turning down any bonuses.

Then after a period of trading, call the broker and negotiate a bonus directly with them, based on a larger deposit. This is particularly effective if there is a larger sum to be invested. The bigger the second deposit, the better any bonus terms will be.

If that seems too much trouble, then new traders should certainly research any potential bonus — and ensure it will work for them. Make sure any bonus conditions can be met comfortably — without having to change any trading habits. Pay specific attention to turnover requirements, and any time restrictions by which time the limits need to have been met. There are certain issues that traders should be aware of when comparing bonuses. All of these issues will normally be within the terms somewhere, so it is vital to check those.

Here we will list some of the details to look out for when checking the small print of the bonus deal you have found:. Only then can you judge if the bonus suits your trading style. A large bonus with restrictive terms could be worthless if those terms are not met without causing you to over trade. A small bonus, with few, if any, restrictions, could be a welcome boost to your trading funds. Biggest is not always best when it comes to bonuses.

Lastly, a high quality, reputable broker will make it easy for you to opt out of a bonus. Some will even allow you to cancel a bonus deal part way through. A broker pushing their bonuses on you could be seen as a red flag. if the bonus does not suit you, turn it down. Deposit bonuses are a common feature of binary options brokers today, who use them as an attraction to get new traders to open and fund accounts. There are several reasons why bonuses are not as free as they seem and why you may not want to accept one.

Trade Minimums — Every bonus comes with a trade minimum. This a dollar amount you must reach before the bonus monies can be withdrawn from your account. On average the trading minimum will be between 20 and 30 times the total account value. We have seen some as low as 15 times and some as high as 40 or 50 times the total account value. Of course, you can make bigger trades in order to clear the minimum faster but that can also lead to catastrophic losses.

Time Limits — Some, but not all, deposit bonuses have a time limit. This is usually something like 30, 60 or 90 days. This means that you have to reach the trade minimum before the time limit is up before you can make a withdrawal.

You might not like being forced into trading more than your budget or system allows. The time limit may be another reason to shoot for the stars, trading more often or with larger amounts than you normally would and adding risk to your portfolio. Withdrawals — Bonuses make withdrawing money from your account difficult. Some brokers, the shadier ones, will not let you withdraw any money until you meet the minimum trade limit. Brokers that do will not let you withdraw any part of the bonus or profits based on the bonus.

In either case clauses in the terms will usually lead to you forfeiting the entire bonus and all profits with any withdrawal request prior to meeting the withdrawal requirements. This broker OptionYard says that bonuses can not be redeemed for cash value, very shady.

Except that it might. The only way to get the bonus could be to deposit money and then meet the bonus requirements. You may also get an additional deposit bonus on top of the sign up bonus, which means the bonus requirements could be quite high. Make sure to check what the case is with your preferred broker.

There is a reason why brokers continue to use bonuses as an incentive — they know that the average binary options trader is more likely to lose all of their money than to clear the bonus requirements.

That is why the minimum requirements are so high and the time limits so short. In order to meet the minimum you will likely have to engage in risky trading behavior. Any time you are contemplating accepting a bonus be sure to read the terms of use and fully understand what it will take to clear the minimum.

Like everything else in life not all brokers are the same and each will have different policies concerning the bonus and when and even if the bonus is really yours. Bonuses are often applied to accounts automatically by the broker once they are funded so be wary of this an see if you can decline a bonus, should you want to, before you commit.

In order to opt out you, the trader, are responsible for contacting their account representatives. Some brokers will also offer other bonuses from time to time so be sure to read the terms and conditions before accepting them.

There are hidden risks to risk free trading the average binary options trader is unaware of. Fortunately we can reveal what to look out for. This sounds great and is potential way for a trader to take advantage of a broker for demo trading purposes. This is not unusual in and of itself, bonuses come with terms. Sure you can get one. Sure you can withdraw it, but only after making a deposit. That deposit may also need to be way more than the original bonus.

Some brokers offer free demos to potential clients with only an email address in return. The demo is free, if you deposit with us. We do not list brokers that operate like this, but it is worth being aware of. This usually requires a certain minimum deposit, a certain minimum maintenance balance and a trade volume.

But here is what you need to know — Some rebate programs give you money back only on your losses. If you are a net loser on the month you get back some of your loss, if you are a net winner you get back nothing. The kicker is that if you are a net loser, you will have to make another deposit to maintain your balance requirement where there is one. Also remember that rebates are often paid as bonus funds — with their own set of terms.

So they are often not that attractive after all. The absolute worst of the risk free offers is the out and out risk free trade. Some brokers will offer you risk free on your first, second and third trade. These will always come with a minimum deposit and usually an automatic bonus.

If there is no automatic bonus then the money that you would have lost turns into bonus money. There is certainly some risk still involved.

Brokers are filtered based on your location Portugal.

There are numerous possible ways to get a risk-free trade. Various binary brokerage firms offer a free practice account. Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed. This allows traders to use the live, real money platform, but place a handful of trades at no financial risk. It undoubtedly offers a zero-risk trade. Let us understand what Binary Trading precisely signifies and how the strategies like risk-free trade help in it. For example, one of the rare binary option platforms that accepts US traders is reviewed in our Nadex review.

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