CallPut Binary Options Strategy

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Call and Put Options

You will learn about the following concepts

  • Call option in binary trading
  • Put option in binary trading
  • Examples and advice

Binary Options – Win or Lose?

As we have already mentioned at an earlier stage in our tutorial, the concept of binary option trading is quite simple, because the trader doesn’t have to make many choices. In fact, your job as a trader is to choose whether to bet your money on a Call option or on a Put option. Call/Put options are the simplest ones and they are currently one of the best ways to begin your binary option trading career.

Call Option

Let’s say that you’ve picked an asset that you want to trade and you’ve already read the data provided by the technical tools. You’ve analyzed all the information and recent financial news and you’ve reached to the conclusion that the asset’s price will go up in the next hour. In this case, you’ll have to place a trade on the asset and select the Call option.

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Choosing the Call option means that you are predicting that the asset’s price will go up before the expiration time comes. Here’s an example how trading with a Call option works. A trader selects the USD/JPY currency pair which currently trades at 99.15. The trader predicts that the pair’s price will go up in the next hour, so he opens a trade at 12:00 by selecting the Call option and sets an expiration time of 1 hour.

If the USD/JPY currency pair is above 99.15 after 60 minutes, then the trade will expire in the money and the trader will receive his payout. Respectively, if the price is below 99.15, say 99.05, the trade will expire out of the money and the trader will lose his investment.

Put Option

Let us assume that after selecting and analyzing the asset, you decide that the its price will go down in the next hour. In this case, if you want to place a trade, you’ll use the Put option.

According to the example above, in case USD/JPY falls below 99.15, then the trade will expire in the money and the trader will collect the pre-determined payout. If the price, however, surges above 99.15, say to 99.35, then the trade expires out of the money and the trader will lose his/her investment.

Conclusion

Call/Put options are the simplest ones when it comes to binary options. This makes them the best entry level for traders who are new in the world of binary options trading. We suggest you to stick to this type of binary options until you gain some experience and confidence in your skills. When you feel you are ready to make the next step, you can try trading other types of riskier higher-yielding binary options, which we will discuss in the following articles.

Binary Options Strategies

When working with binary options, it is imperative that you plan your course carefully. money is usually difficult to risk. Unless you can afford it, it is important to have . Like many new binary options traders, you need to have correct money management if you want to come out successful. Many who reap the great benefits of binary options trading have employed systems or strategies that give the payout that they are happy with.

If you are relatively new to binary options, then chances are you do not know enough about financials or options trading to get you started trading binary options. Usually, what new traders do is purchase contracts without any knowledge or basis for the option. No market trends, charting reference, or business news analysis was performed to back the trade. As traders get the hang of binary options trading through the interface of their choice, they usually employ more complex strategies using tools that they learn on the way. Binary options is a learning process.

Call/Put Binary Options Strategy

Call/Put are a common types of binary options that beginners use. This binary options type is also called High/Low or Rise/Low and is offered by all binary options brokers. Here, the trader purchases a “Call” option if he expects the price to go beyond the current price, which is also known as striking price for some brokers, or the trader purchases a “Put” option if he expects the price to fall below the current or striking price. The Call/Put is very easy to strategize. New traders are usually introduced to this type of binary options trading just because of the simplicity of some of the strategies involved.

If no market analysis is done, how can you ensure success? Well, the simple answer is you can’t. Your trades may succeed, but there is greater risk involved just because the decision to purchase a binary option is not an informed one. However, it does pay if you at least know how to use the tools in the platform of your choice. You can develop your own strategies while you work on their demo accounts.

If you want to try Call/Put, you can use this simple starter’s strategy. This strategy requires little to no knowledge in financial trading. All you need to do is open a free account where you can practice the strategy that follows. However, take note that this strategy, while it may be easy to use, is also very risky. Again, knowing how to trade in the market is very important. But this strategy has helped many experienced binary options traders when they first started trading.

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By simply looking at an asset’s chart and seeing the upper and lower limits of the chart, you can click on “Purchase” or “Buy” a High or Low option depending on the position of the striking price relative to the graph. If the point or strike is a the part of the graph, and their is no way to go but up, you can select High for the next 5 minutes. Conversely, if the strike point is at the topmost part, you can select Low for the next 5 minutes.

Many have done this strategy with some of the top binary options brokers who offer a free account. All you need to do is to sign up and you are able to practice this strategy. See if it pays out for you, then you can try it live with one of the top binary options brokers listed on our site. However, some binary options brokers require you to make a deposit. Conveniently these kinds of information about binary options brokers from our list.

Binary Options Requirements

You would not want to have great risks when you trade binary options. This is the reason why you should know to trade in markets to understand what’s going on. Many criticize binary options to be a scam or as a form of gambling. But it is usually those who fail to use the right strategy and ends up losing who say that binary options is a gamble. Those who make sound decisions based on tested systems are those who usually succeed.

Here are some preliminaries that will contribute much to your strategy:

Filter Your Niche

In any business, the first step to becoming a leader in your field is finding the right field in the market. Financial, Mining, Automotive, Real Estate or I.T., any field of your choice should be the one you are already good at, or at least have interest in. This is also called a niche. Not even the big investors became trading geniuses overnight. Practice makes perfect. As you mold this niche you can concentrate on a specific brand or asset that you must monitor. This allows you to lower your risks by upping your information.

Regardless of your level of financial knowledge, your niche is important. Advanced investors all agree that even inexperienced investors can easily be successful in the beginning stages of trading binary options if they are able to find their niche. It will be easier and more rewarding in the long run.

Know General Trading Concepts

When we first defined binary options, we mentioned that this type of trading is a derivative of options trading, where underlying assets such as currencies, stocks and indices directly affect your trade. Trends in Forex trading, and stock and index markets have aided many traders and brokers in helping them make the right decisions and earn from trades. There are thousands of signals to be considered. Some of them include world markets, economic affairs, and societal trends. But all of these are factored in to tested investment formulas that have given rise to financial greats.

But if binary options is a direct derivative of the market, and factual earnings have been made successfully in the market, shouldn’t traders be able to succeed in binary options, too? They can. This is the importance of having enough knowledge with general trading. After learning and expanding your knowledge about trading, you may even venture from binary options to other options trading.

Choose Your Platform

Being comfortable with your work area is human nature. Thanks to technology, many traders are able to perform their tasks from anywhere in the world. There are many binary options brokers who offer their services. You should choose one that you are most comfortable with. One of the most vital elements in trading binary options successfully is finding the right binary options platform that will let you work efficiently.

You can begin your search with us. Our list of binary options brokers offer a variety of platforms for you to choose from. Some of these platforms can even provide you with insider tips on the financial markets and tips on how to trade binary options. More importantly, platform should be able to provide you with a good selection of assets to trade. There should also be a good choice of expiry times to allow either short or long term investments.

Almost all of the best binary options brokers have an online platform. The platform should require no downloads and provide you with a simple and experience. Outstanding customer service is also important in your choice of platform. Questions regarding your money should be readily addressed.

Choose Your Asset

Selecting the best asset allows you to make more informed decisions. There are a number of assets to choose from: currency, stocks, commodities and/or indices. Trade binary options with different assets also entail different methods. The most effective one will help you decide which asset you would like to invest in. Comfort levels are best addressed in choosing your asset. Choose one that makes you feel most comfortable with your prediction.

The secret to choosing an asset is starting with the one you are most familiar with. The more you know about an asset, the better your prediction will be. For example, learning from world news reports that the price of gas is going down and having some advice from gas station owners can let you estimate that the commodity oil will drop. You then purchase a “Put” Option for Oil during your trade.

Choose Your Expiration

Many experienced investors consider their selection of expiry time carefully. Expiration is another key element in being able to create the course of your binary options strategy. Knowing the right expiration for the right circumstances is the trademark of trading binary options skillfully. Expiry times of different binary options brokers differ, you should choose one that fits your style and need.

Expiry times includes 60-seconds to 5 minutes, half hour, 1 hour, 24 hours, 7 days, or even end of the month. Some even let you choose your own expiry time. Depending on whether you are seeking a short term or long term gain, you should be able to decide what works best for you. If you feel you need more time for the asset to reach the underlying price, then you may need a longer period. But if you are hoping to gain on a short term trade, 5 minutes or may suit your trading strategy better. Those who want the rush can try the 60-second trade.

When binary option strategies are used simultaneously, they often yield the best results. More often, buying or selling of one or more mixed options can differ in one or more of many of the options’ variables. Gaining exposure with binary options trading give you the specific opportunity to ride with the right knowledge of options trading and apply them to the binary options derivative. It is you job to learn from your own knowledge of a number of things including money management, niche assessment, and sometimes, just plain instinct.

Binary Options Academy for Beginners – Binary Option Trading 101

Education and experience are the main constituents that ensure success in any venture. The same holds true for binary options trading as well, unless you are among the lucky few individuals who can make a considerable amount of profits out of sheer fortune alone. However, don’t entrust your savings on blind luck, as even the luckiest gamblers in the world face massive losing streaks from time to time. Binary Options trading does not reward gamblers, or luck for that matter, unless traders are willing to take calculated risks in their trading decision.

As a beginner, it is imperative for traders to be well-versed about their investment opportunities, and have a thorough knowledge of the different aspects of binary options trading and the trading strategies in general. Our innovative binary options training program is designed for beginners and traders who are just starting out in the industry and provides comprehensive information on all aspects of binary options trading. Our binary options guide for beginners is designed to offer a relaxed learning platform that reduces the learning curve for all types of traders, irrespective of their trading expertise.

Beginner Level Table Of Contents:

Getting Started In Binary Options Trading

It is relatively easy to get started in binary options trading and does not usually involve any complicated procedures. Unlike the traditional financial markets, traders can open a binary options trading account for a very small initial investment, with several binary options brokers offering their services for a very insignificant amount. The average investment required for a binary options account is $250, but some companies offer binary options products and services for a small investment of $1.

There are countless binary options brokers in the market that cater to beginner traders, and we have reviewed some of the leading and reputed companies in the market to offer you the best option for your investments. You can open an account within minutes, and make a deposit to your trading account using multiple online payments. Some brokers may also require its traders to send in verification documents before commencing trading, while other brokers may request for identity proofs and other documents at the time of withdrawal.

Nevertheless, traders should make it a priority to open a demo trading account and practice their trading strategies before putting real money on the line. Beginner traders are largely unaware of the dynamics of the financial markets, and even though it may be exciting to dive into the markets without any precaution, you should consider the implications of losing a significant chunk of your trading capital within the matter of a few seconds. Therefore, we can’t stress the importance demo trading enough before commencing your live trading journey.

Grasping The Different Concepts & Components In Binary Options Trading For Beginners

As a first step, traders must learn binary options trading by understanding the different terminologies and concepts used in the exotic financial market. Binary Options trading involves making a call or put option to bet on the movement of the market. The call option is simply the possibility of buying an underlying asset in the hope of the price going up, while the put option is the option of selling an underlying asset to take advantage of the price moving down.

Binary options trading has only two outcomes and is entirely different from the traditional forms of investing. In conventional FX, CFD, and Stock trading, the profit and loss of trading are determined by the money invested in a trade, the magnitude of movement, and the cost of trading. On the contrary, binary options trading has two outcomes, a fixed ROI for in-the-money trade and a loss of the entire invested capital for out-of-the-money trade.

Binary options trading is a unique concept in financial investments that involve different components that contribute to the overall trading environment. Traders will have to understand the core trading attributes such as expiry times, payouts, binary options products, entering trades, exiting trades, rollover, double up, and refunds, in order to ensure clarity of trading. One must only attempt to trade the markets after gaining a proper understanding of the multiple components and concepts in binary options investments, which can indeed pave the way for deeper market analysis and enhanced success in trading.

Trading Strategies & Money Management

Although the binary options market has a very straightforward concept that basically comes down to a call or put option, there are multiple strategies available in the markets that are aimed to offer different trade outcomes. Not all trading strategies are guaranteed to be profitable, as it depends on a wide variety of conditions. One trading strategy might be profitable for one trader, while the same strategy may not work for another. It depends on different trading factors such as the psychology of the trader, market conditions, money management, and trade management. The strategy can also vary depending on the underlying financial instrument, the expiry times, and the type of analysis performed by a trader.

Even if a trader is disciplined in his/her approach to learning by keeping track of all the technical analysis, fundamental factors, and the different strategies in the market, he/she can only enjoy profitable trading by exercising proper money management and reducing the risk by controlling the capital outflow. A trader can gamble a huge sum of money and win quite a few trades consistently, but that doesn’t make him/her a complete trader. In stark contrast, a trader that can be profitable despite having a string of profits and losses in their account can guarantee of long-term profitability without succumbing to severe account drawdowns.

Money management is a result of extensive practice, emotional strength, and a capability to withstand market pressures without acceding to greed and emotional instability. A majority of successful traders in the market stress on the importance of having a trading plan, and being able to stick with it, despite the adverse market conditions. At times, even the most lucrative trading strategy won’t work, but it is up to the trader to go in and tweak their strategies to get back to their winning ways. Of course, during times of drawdown, a trader must have the strength and the tolerance to keep the losses to a minimum, which can indeed help in preserving the trading capital for taking advantage of the winning streaks in the future.

Inherent Risks Of Binary Trading

It is essential for traders to know the risks of binary options trading before investing. There are multiple risks associated with binary options trading and is not exclusively reserved to losses incurred in trading. Other risks include loss of trading capital due to broker scams, loss of money due to faulty trading signals, losses induced by trading platform malfunctions, and outright financial malpractices perpetrated by trading companies. Each of the risks outlined here is all detrimental to the profitability and bottom line of a trader’s career, as even a profitable trader can find it difficult to acquire profits if faced with adversities.

In our binary options school and training academy, we cover a wide range of risks associated with binary trading. We will not only offer better insights into mitigating risks, but we also give advice into being proactive against financial scams. It is always a better option to take the safer route in the investment market, rather than taking the risk with your hard-earned money.

Binary Options Robots & Trading Signals For Beginners

Automated and social trading is an integral part of the financial markets and is proving to be insanely popular with binary options traders. Automated trading is usually an established trading strategy among professional traders, but these trading concepts can be replicated in a beginner’s trading account for improved profits. Beginners can take advantage of the trading robots, trading signals, and even social trading to enjoy better returns for their trading ventures, all the while using all the binary options learning resources available in our Binary Trading Academy to learn the trading concepts.

How Can Beginner Traders Benefit From Our Learning Resources

All of our binary options tutorials are created with the beginner trader in mind, and can not only make the job of learning easier but can also help traders to stay safe in the binary options market. We cover all the major aspects of binary options trading, which in turn help you to stay informed, despite the uncluttered information that is available through online sources. We don’t want to confuse our readers, and we have taken every precaution to create a feature-rich binary options education program for beginners.

Our beginner binary options training program is not only suitable for amateur traders but can also come in handy for intermediate and even expert traders. During the course of a trading career, it is natural for traders to miss out on several basic concepts of trading. It is also possible for traders to forget what they have learnt from their earlier days of trading, and might want to refresh on some of the beginner concepts in trading. Therefore, our beginner binary options courses should also be of greater assistance for all categories of traders, without any distinction.

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