The Quick Guide to Binary Options Trading

What are Binary Options?

Binary options are limited risk contracts based on a simple yes/no market proposition like will the markets go up by the end of the trading week.
Binary options offer traders ways to trade the most active stock indices, commodities, forex, event and bitcoin markets with relatively low collateral.

How do Binary Options work?

Binary options ask a simple yes/no market question.

gold_price

Will the price of gold be above $1700 at 1:30pm?

If you think yes, you buy the Binary Option. If you think no, you sell.

The price at which you buy/sell is not the actual price of gold, but rather a value between zero and 100.

For example, Gold > 1700 (1:30PM) may be priced at 42.50/48.50. The first figure is the bid price (sell), the second is the offer price (buy).

The bid/offer price fluctuates throughout the day, but always settles at either 100 (if the answer is yes) or zero (if the answer is no). Your profit/loss is calculated using the difference between the settlement price (zero or 100) and your opening price (the price you bought or sold at).

Benefits of Trading Binary Options

  • Limited Risk – The maximum amount you can lose on every trade is your original investment
  • Low Collateral Required – Binary contracts are priced between 0 and $100
  • Short Term Contracts – Binaries have expirations ranging from 20 minutes to one week

How Do I Get Started?

Easily, we have compiled a list of the AAA+ Binary Options Brokers available online today.
Simply visit any broker site in the listings below and sign up to start trading!

Broker Bonus Min Deposit Payout US Traders Review Open Account
HighLow Up to $50 Cashback on your First Trade $50 180-200% Review Visit Broker
24Option 100% Match Bonus $250 89% Review Visit Broker
IQ Option 100% Bonus on deposit over 100 $/€/£ $10 92% Review Visit Broker
Banc De Binary Claim your 100% bonus on your deposit from a regulated broker! $250 81% Review Visit Broker
Anyoption 100% Sign Up Bonus! $250 80 (+20% cashback) Review Visit Broker

 

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John Valley
John S. Valley is the founder of The FX Academy, a lean and very mean financial planning and investment advisory firm that advises clients with portfolios ranging from $10,000 to over $50 million. The author of "Beating Wallstreet", Valley advises wealthy individuals on how to invest their money, as well as courses on behavioral finance at dozens of elite institutes. His articles and reviews on Binary Options Listings give valuable insights into the world of stocks, binary options & forex.

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