Vanilla Optionen – Binare Optionen 2020

Beste Broker fur Binare Optionen 2020:
  • Binarium
    Binarium

    Der beste Broker fur binare Optionen fur 2020!
    Ideal fur Anfanger!
    Kostenloser Unterricht!

  • FinMax
    FinMax

    2 Platz in der Rangliste! Zuverlassiger Broker.

Contents

IQ Option: Top Binary Options Broker

Ever since the US Securities and Exchange Commission approved binary options in 2008, numerous traders have been interested in expanding their investments and exploring binary options trading. And s ince there’s an expanding list of available brokers today, it’s challenging to narrow down your choices to find the one that suits your preferences. With that, we’ve gathered the popular brokers to help you jumpstart your search.

To help you, we provide the lowdown on the top 15 popular binary options brokers of 2020 that you can consider for trading. Hopefully, the list will let you find the best broker for your investment needs and expectations, and start successfully trading on your own.

Binary options trading may have gotten a bad rap because of its all-or-nothing premise, but the high payouts keep traders coming back for more. This is why binary options markets remain strong in various regions around the world, particularly in Asia.

To avoid fraud in binary options trading, choose a trustworthy broker. These brokers can help minimize your losses and provide a measure of security for your funds. Some traders turn to smart contract-based binary options transactions to fortify their deals using blockchain technology.

Each broker also offers different options in terms of minimum deposit, maximum returns, and supported assets. Some brokers even allow traders to use cryptocurrency to fund their accounts or get payouts. The benefits of blockchain and the advantages that global fintech trends exert significant influence on the binary options trade.

To match you with the best binary options broker for your needs, we’ll take you on a tour of the top binary options brokers today. Our analysis of each broker lays out the most important features, including deposits, returns, bonuses, and supported platforms. This way, you can make an informed decision and get the best protection for your funds.

Top 15 Binary Options Brokers

1. IQ Option

IQ Option was established in 2020 and had since then received favorable reviews on the internet. It uses in-house software for trading. The maximum returns are 95%. However, traders in the USA, Australia, Canada, Russia, Belgium, Japan, Turkey, Israel, Iran, Sudan, and Syria are not accepted. IQOption Europe Ltd. is well-known for reliable broker services, as it is regulated by the CySEC.

It provides a wide array of web-based and mobile features that help make binary trading transparent, reliable, and more efficient. For instance, it offers a speed trading service with up to 5-minute increments and hourly binary options in 15-minute increments. It also offers trading expiration periods of up to a month. Moreover, its Digital Options service allows users to trade gold in over 500 assets.

IQ Option

Try out IQ Option with their free trial

This popular binary options tool offers a free demo account to help you get started. The minimum deposit is just $10 for the Real Account. And for the premium VIP account, the minimum deposit is $3,000. Customer support is currently offered via email, phone, and live chat. Finally, this broker offers multiple convenient deposit and withdrawal methods to help you trade easily.

IQ Option Key Features

  • Minimum deposit: $10
  • Minimum trade size: $1
  • Maximum returns: 95%
  • Supported trading platform: proprietary web, Android, iPhone

Detailed IQ Option Review

2. 365Trading

365Trading is registered with the CySEC and based in Cyprus. It was founded in 2020 and has since traded in the EU without issues. It primarily trades in binary options. As of this writing, US traders are not accepted.

Beste Broker fur Binare Optionen 2020:
  • Binarium
    Binarium

    Der beste Broker fur binare Optionen fur 2020!
    Ideal fur Anfanger!
    Kostenloser Unterricht!

  • FinMax
    FinMax

    2 Platz in der Rangliste! Zuverlassiger Broker.

The minimum deposit is at $100, with profits and bonuses reaching 85% and 100%, respectively. You can open a demo without deposit and try their long- and short-term expiries.

The platform, an in-house system, is robust and ideal for veteran traders. It features charts, lines, and candlesticks and provides historical analysis, functioning as a business analytics tool. The platform allows you to set up three assets with quick access shortcuts. Likewise, you can trade four assets simultaneously featuring a main window and three sub-windows.

Support is available via email and phone.

Detailed 365Trading Review

365Trading Key Features

  • Minimum deposit: $100
  • Maximum returns: 85%
  • Bonuses: up to 100%
  • Supported trading platform: proprietary, web, Android and iPhone

3. Ayrex

Ayrex is based in the UK and has a pending application with CySEC. It trades in 70 assets and is focused on binary options. As of today, US traders are not accepted.

The minimum deposit is $25, one of the lowest, while the bonus is up to 10%, 20% and 30%, based on the amount of your deposit for Ayrex account holders.

The broker uses a proprietary trading platform featuring instant withdrawals, which is unique in the niche. The interface is neat and lets you quickly jump to different trades. It’s ideal for short-term trading. High/Low options are also available.

Support includes 24/7 live chat and via email. Likewise, the system is accessible from Android and iPhone apps.

Detailed Ayrex Review

Ayrex Key Features

  • Minimum deposit: $25
  • Minimum trade size – $5
  • Maximum returns: up to 85-90%
  • Bonuses: $30 no-deposit new account, up to 30% on the trade
  • Supported trading platform: proprietary, web, Android and iPhone

4. OptionFair

OptionFair was founded in 2020 and is based in Cyprus. It is regulated by the CySEC and is also listed on the London Stock Exchange, a first among binary options brokers. US traders are not accepted. The broker trades in forex, CFDs, and binary options on 118 underlying assets.

The minimum deposit is $100, with returns up to 100%. However, there are no indicated bonuses, but you can always contact support for possible terms. The expiry time is shorter than average but makes for quick returns over short-term trading.

The broker uses its own platform that allows you to shift trading from forex to binary and to CFDs, from a single interface. It gives you access to myriad assets and instruments and a wide range of expiries. You can, in fact, trade simultaneously on forex and binaries. Mobile apps for Android and iPhone are available.

There is phone support in five international numbers, including English, Spanish, Italian, and French. Email and live chat support are likewise provided.

Detailed OptionFair Review

OptionFair Key Features

  • Minimum deposit: $100
  • Maximum returns: 100%
  • Bonuses: none
  • Supported trading platform: proprietary, web, Android and iPhone

5. BinaryTilt

BinaryTilt is an unregulated broker with headquarters in London, England, but is wholly owned by Cyprus-based Depix Holdings. Although it isn’t overseen, the broker seems to have a clean record with rare warnings from authorities. US traders are not accepted. It trades in stocks, indices, forex, and commodities across 150 underlying assets.

The minimum deposit is $250, with profits of up to 85%. Likewise, bonuses can reach 100%. Trading styles include high/low, one-touch, range, and on-demand. The stocks are also mainly US or EU-based companies.

The trading platform is SpotOption, a standard but increasingly old school tool compared to newer platforms today. The UI is familiar, and the elements are organized, good enough for first-timers to kickstart their trading without a hassle. Support is via chat, while Android and iPhone apps are available.

Detailed BinaryTILT Review

BinaryTilt Key Features

  • Minimum deposit: $250
  • Maximum returns: 85%
  • Bonuses: up to 100%
  • Supported trading platform: SpotOption, web-based, Android and iPhone

6. GTOptions

GTOptions is another Cyprus-based binary options broker. It uses the SpotOption trading platform, which is one of the most dependable web-based solutions in the market today. Its interface is smart and easy to use, with color-coded buttons and tabs arranged per type of trade offerings and asset offerings to be traded.

This binary options platform also offers several intuitive tools to help traders achieve better outcomes. For instance, it has a risk management feature that allows traders to cash in on their live trades before contract expirations. Likewise, it has a binary meta mode that supports high-level trading, specifically designed for professional traders.

Finally, the vendor offers 24/7 customer support and provides an extensive library for education and reference purposes.

Detailed GTOptions Review

GTOptions Key Features

  • Minimum deposit: $250
  • Maximum returns: 81%
  • Bonuses: Below $1000 50% bonus, above $1,000 100% bonus
  • Supported trading platform: proprietary, web, Android, and iPhone

7. OneTwoTrade

OneTwoTrade uses the popular web-based SpotOption trading architecture. The company provides the latest technological advancements for the benefit of its clients. OneTwoTrade has won an award for providing an efficient and safe trading platform that is relatively easy to use.

This fully-licensed binary options brokerage firm is headquartered in London. It is also highly regulated by government agencies, such as the Malta Gaming Authority. Moreover, OneTwoTrade is rigidly tested to ensure precision, stability, and quality.

OneTwoTrade offers two trading accounts; one is free, while the other is paid. The latter, called Privilege Plus, offers more benefits to users, including comprehensive market analysis, special promotions, and anytime access to senior account managers. Privilege Plus members also get either an iPhone or iPad that’s equipped with a special mobile trading app.

Detailed OneTwoTrade Review

OneTwoTrade Key Features

  • Minimum deposit: $200
  • Maximum returns: 65% to 85%
  • Bonuses: not specified.
  • Supported trading platform: proprietary, web, Android and iPhone

8. 99Binary

99Binary operates from Anguilla, a British overseas territory in the Caribbean. Started operations in 2020, this binary options trading company serves clients in the US and worldwide. It has a well-designed, comprehensive online portal that offers numerous features, tools, and trading information.

This HTML-based binary trading solution offers users the convenience of a clean, clutter-free dashboard design. Users will appreciate how the site presents data on the latest success trades of other users, which can be easily copied for later use.

Another notable feature of 99Binary is its trading turnover requirement. To cash out bonuses, customers must achieve a particular turnover quota, which goes down for every tier. This is an effective motivation for traders who love bonuses.

Detailed 99Binary Review

99Binary Key Features

  • Minimum deposit: $250
  • Maximum returns: up to 86% on Standard & 60-Seconds, and up to 350% on One Touch
  • Bonuses: To cash out bonuses, Starter level users must reach 30x turnover. For Premium users, 20x turnover is required.
  • Supported trading platform: proprietary, web, Android and iPhone

9. Binary.com

UK-based Binary.com is a licensed broker regulated in the British Isles, Malta, Ireland, and the UK. However, US, Canada, Japan, Hong Kong, and Costa Rica traders are not accepted. It is one of the more transparent companies in the industry that declares its owning company and market operations. Formerly the BetonMarkets, Binary.com blends gambling and trading but with transparency. It offers CFDs, FX margin, and crypto trading via MT5.

You can start the trading time aside from the expiry date, and the investment amount is based on the payout you set. The minimum deposit is $10, and for e-wallets, it’s even lower, at $5.

Bonuses are not standard; rather, they consist of two types–the Deposit Bonus and Free Bonus. Likewise, percentages are not specified, but you are required to have as much as 25 turnovers to avail yourself of a withdrawal. There’s also a 1.5% payout commission.

The broker supports various trading platforms, such as Binary Webtrader, Binary Bot, and Binary Next-Gen. Furthermore, it can personalize client trading needs all under one roof.

Th e platform is intuitive to the first-time trader and robust for the veteran. It features a lot of visual tools like charts and technical indicators, and the tutorials on binary options are comprehensive. Likewise, it supports 12 languages and provides a virtual money account. Mobile apps are available, with a mobile payment system.

Binary.com Key Features

  • Minimum deposit: $5 for e-wallet and $10 for debit and credit cards
  • Maximum returns: 100-1000% depending on contracts and trades
  • Bonuses: not specified
  • Supported trading platform: proprietary web, Android and iPhone

10. eToro

Tel Aviv, Israel-based eToro is a social trading network and not a broker. It allows you to copy the leading traders in its community and, hopefully, realize the same margins. Conversely, your trading can be copied, which earns you additional income.

In this platform, you invest in people, not currencies. You will have to be mindful of other traders’ behaviors and analyze their patterns or strategies, instead of learning financial charts and indicators.

No worries, eToro provides more than 16 lectures and video courses on how to hone your skills. These include identifying consistent traders, not just one-shot deals. You also get a list of the best traders on currencies, indices, and commodities across a wide range of underlying assets.

On the B side, you can share your trading insights and enroll in the Popular Investor Program as a trade authority. While the minimum deposit is $200, the maximum returns vary. The network uses its in-house trading platform with Android and iPhone apps.

eToro Key Features

  • Minimum deposit: $200-$10,000, depending on the country
  • Maximum returns: varies
  • Bonuses: not specified
  • Supported trading platform: proprietary, web, Android and iPhone

11. 24Option

24Option has been online since 2020 and is a stable and reliable broker as it is regulated by the CySEC. It uses the third-party TechFinancials trading platform. Maximum returns are up to 88%. This broker does not accept traders from the US and Australia.

The minimum deposit amount is $250, and the minimum investment amount is $24. Trade types offered are high/low, one touch and no touch, boundary, and 60 seconds.

A demo account is offered for new traders. You can enroll in Standard, Gold, or Platinum account depending on the amount you deposit and the features you want. 24Option provides customer support via phone, live chat, and email in English and 13 other languages.

24Option Key Features

  • Minimum deposit: $100
  • Maximum returns: 88%
  • Bonuses: up to 100%; 25% or $500 (whichever is lowest) for first-time depositors
  • Supported trading platform: TechFinancials web, Android and iPhone

12. ETX Capital

ETX Capital is headquartered in London, UK, and regulated by the British Financial Conduct Authority (FCA). It trades in forex, equities, indices, and commodities, but note that binary options are unregulated by the FCA. Likewise, US traders are not accepted as of this writing.

The broker takes pains in educating newbie traders, explaining in detail binary options, risk trading, and other key topics.

The minimum deposit is $100, with returns between 75% to 85%. Bonuses are not specified but are available. A call to their support should specify a personalized bonus based on your investment. Likewise, withdrawals above $100 are free of charge.

The broker uses MarketPulse as a platform. It is clean and intuitive for beginners with expiry times easy to locate. However, it only supports English.

ETX Capital Key Features

  • Minimum deposit: £200 (around $260)
  • Maximum returns: 100%
  • Bonuses: varies, personalized
  • Supported trading platform: MarketPulse, web, Android, and iPhone

13. CMC Markets

UK-based CMC Markets has been a forex broker since 1989 but only went into binary options in 2020. Still, that’s a long history of trust and reliable operations compared to most binary options brokers. On top of that, it is regulated in the UK.

Today, it trades in indices, commodities, shares, treasuries, and forex, but US clients are not yet accepted. There is no minimum deposit, and there are no bonuses, too. Returns also vary depending on the product.

Meantime, the platform is customizable and includes charting tools, pattern recognition functionality, various screen layouts, and multiple timeframes. The system is accessible from Android and iOS devices. Support is UK-based and consists of live chat, email, phone, and fax.

CMC Market Key Features

  • Minimum deposit: no minimum deposit
  • Maximum returns: up to 95%
  • Bonuses: none
  • Supported trading platform: proprietary web, Android and iPhone

14. EmpireOption

Founded in 2020, Uruguay-based EmpireOption with a registered address in London, England. As with most brokers, US traders are not accepted. The broker trades in forex and CFDs with a diverse underlying investment portfolio.

The minimum investment is $200 and up to 80% maximum returns. Likewise, bonuses can reach 100%, but terms apply.

The trading platform is SpotOption but minus the SpotOption payment network. EmpireOption also uses its own branding interface and maintains control of most of the trading aspects.

Phone and email support are available.

EmpireOption Key Features

  • Minimum deposit: $200
  • Maximum returns: 82%
  • Bonuses: up to 100%
  • Supported trading platform: SpotOption, web, Android, and iPhone

15. BinaryMate

Binarymate is a UK-registered broker that is reliable as it follows the strict financial regulations of the UK. It accepts US traders. This broker uses a unique in-house platform for trading. You can earn a maximum return of 90%.

Trading accounts start with the basic Bronze package for which the minimum deposit is $250, and you get a 20% welcome bonus. For Silver account, the minimum deposit is $1,000, and you get a 50% welcome bonus. Finally, for the premium Gold account, the minimum deposit is $3,000, and you can choose between risk-free trades or a bonus of $250.

A unique customer support feature offered by Binarymate is live video chat with agents who are available 24/7. Support is offered in English, French, Spanish, and Russian. Last but not least, you can use the demo account to learn the ropes or to improve your skills. Before you decide on a broker, though, it’s always best to make a binary options brokers comparison first to make sure you pick the best service.

BinaryMate Key Features

  • Minimum deposit: $250
  • Maximum returns: 90%
  • Bonuses: up to $250, risk-free trades
  • Supported trading platform: proprietary web, Android and iPhone

How to Succeed in Binary Options Trading?

Many people pursue to trade in binary options even though many fail. This is because of the ease of trading, coupled with the high-profit potentials it offers. However, with thousands worldwide continuing to trade in binary options every single day, is it still possible to succeed in this lucrative trade?

A good place to start is to have an authoritative list of today’s top binary options brokers. So that’s now a check. Likewise, make sure you have the appropriate payment gateway providers for seamless payment transactions. Finally, check out these key elements that will help you succeed in binary options trading:

  • Learn how to interpret historical, current, and predicted charts.
  • Test various trading strategies and use one that works for you.
  • Always consider market indicators.
  • Learn to control your emotions, use them to your advantage.
  • Trade by capitalizing on your strengths and follow your signals.
  • Prepare and stick to a personal, long-term trading plan.

Yes, because of the high stakes involved, trading in binary options is really difficult and high-risk. But if you’d take the time to learn the ropes and sustain your commitment to it, it is realistic to succeed in the binary options trade.

Check out our 2020年最受欢迎的15家二元期权经纪商:哪一家是最好的? article for a Chinese version of this article and 15 nhà môi giới quyền chọn nhị phân phổ biến của năm 2020: Ai mới là tốt nhất? is available for the Vietnamese audience. There is also a Korean version available here: 2020년 최고 인기 바이너리 옵션 브로커 15개사, 누가 최고일까?

Vanilla Options

What is a Vanilla option?

Vanilla options are contracts giving traders the right to buy or sell a specified amount of an instrument, at a certain price on a pre-defined time. When trading vanilla options, the trader has the power to control not only the instrument and the amount he trades, but also when and at what price. Options can be traded for a day, a week, a few months or even a year.

Trading options is a mystery for many people. Many would choose trading spot over options, but once getting into the options – traders get hooked. The variety of choices, with the ability to control all aspects of a trade, properly balancing risks and rewards, welcomes traders to an exciting world where all options are open.

Trade now with N.1 licensed regulated international broker

Vanilla Options Terminology

There are some unique terms in the vanilla options trading world, and one must know them before starting to trade. There are two types of options:

  • Call options, which give the buyer the right to buy an instrument at a specified price. Call options are more typically bought by traders who believe the market is on the rise, known as bull traders.
  • Put options, which give the buyer the right to sell the instrument at a specified price. On the other hand, put options are bought by traders speculating the market will go down, or bear traders.

However, one can either buy or sell either type of option.

In order to own an option, the buyer pays the seller an amount called the premium. When the trader acts as the buyer he pays the premium, and when selling an option he receives it. The premium is decided by a few factors; the current rate or price of the instrument is the first one. In addition, since options are contracts to trade in the future, there is a time element. The date on which the option can be exercised is called the expiration date, and the price at which the option buyer can choose to execute is the strike price. Longer dated options have higher premiums than shorter dated options, much like buying insurance.

Market Volatility

Another key factor in determining the premium is the volatility of the underlying instrument. High volatility increases the price of the option, as higher volatility means there is a greater likelihood of a larger market move that can bring about profits – potentially even before the option has reached its strike price. A trader can choose to close his option position on any trading day, profiting from a higher premium, whether it has risen due to increased volatility or the market moving his way.

The effect of market factors on Call/Put Option price
AN INCREASE IN: CALL OPTIONS PUT OPTIONS
Spot +
Strike Price +
Expiration Date + +
Volatility + +

How to trade Options?

When buying an option – whether a put or a call – the trader pays the upfront premium from his account’s cash balance, and his potential earnings are limitless. When selling options, however, a trader receives the premium upfront into his cash balance, but is exposed to potentially unlimited losses if the market moves against the position, much like the losing side of a spot trade.

To limit this risk, traders can use stop loss orders on options, just like with spot trades. Alternatively, a trader can buy an option further out of the money, thus completely limiting his potential exposure.

When buying options there is limited risk; the most that can be lost is what was spent on the premium. If selling options – a great way to generate income – the trader acts like an insurance company, offering someone else protection on the position. The premium is collected, and if the market reacts according to the speculation, the trader keeps the profits he made from taking that risk. If wrong, it is not much different than being wrong on a regular spot trade.

In either case, the trader is exposed to unlimited downside, and therefore can close out the position (with stoploss orders, for example), but with options the trader will have earned the premium, a real advantage vs spot trading.

Start trading real options with a regulated broker!

Steps in Vanilla Trading

  1. The first step in trading options is to determine the market view for the chosen instrument. If a trader believes a certain instrument will rise, he has three ways to express that view. The first would be to buy the instrument’s outright, i.e. with regular spot trading.
  2. The second is to buy a call option. With this strategy, the most he can lose is the premium, paid up front. This position can be sold at any time. This is the safest way to express a bullish view.
  3. The third course of action is to sell a put option. If the instrument is higher than the strike price at expiration, the option will expire worthless – and the trader keeps the entire premium he collected upfront.

Example of Option Trade

Scenario:The current price for EURUSD pair is 1.1000. The trader speculates it will rise within the week

Spot trade:In the first case scenario he will open a spot position for 10,000 units, on any platform at the given spreads. If the EURUSD price moves higher, he instantly makes a profit.

Buy Call Option: In the second strategy, he buys a call option with one week to expiration at a strike price, for example, of 1.1020. Once buying he pays the premium as shown in the trading platform, for example, 0.0050 or 50 pips. If, at the expiration date, EURUSD exceeds the strike price, he will earn the difference between the strike price and the prevailing EURUSD rate. His breakeven level will be the strike price plus the premium he paid up front. He can also profit at any time prior to expiration due to an increase in implied volatility or a move higher in the EURUSD rate. The higher it goes, the more he can make.

For example, if at expiration the pair is trading at 1.1100, his option will be 0.0080 or 80 pips “in the money”, and his profit will be 80 pips minus the premium he paid of 50 pips. On the other hand, if spot is below the strike at expiration, his loss will be the premium he paid, 50 pips, and no more.

Sell Put Option:In the third case, he will sell a put option. Meaning he will act as the seller, and receive the premium directly to his account. The risk he takes by selling an option is that he is wrong about the market – and so he must be careful in choosing the strike price. He should be comfortable in his view that EURUSD will not be below this level at expiration.

Another way to say it is that he must be comfortable buying EURUSD at the strike price, because if spot finishes lower, the seller has the right to “put” EURUSD to him at the strike price. In return for taking this risk, the option seller receives the upfront premium. If spot finishes higher than the strike price, he keeps the premium and is free to sell another put, adding to his income earned from the first trade.

In both options trading examples, the premium is set by the market, as shown in the AvaOptions trading platform at the time of trade. The gains and losses, based on the strike price, will be determined by the rate of the underlying instrument at expiration.

Trade Options online: Why?

Risk management
At the end of the day, it is considered a safe investment in fact, for an option buyer, they are far less risky than trading the underlying. For a seller, the downside risks, too, are less than that of being wrong on a spot trade, as the option seller gets to set the strike price according to his risk appetite, and he earns a premium for having taken the risk. Options do require an initial investment of time, to get to know the product.

Express any market view
Perhaps the most unique advantage of options is that one can express almost any market view, by combining long and short call and put options, and long or short spot positions. The trader is bearish on USDJPY, but not sure? He can buy a put option for his target expiration date, sit back and relax. Whether USDJPY goes up or down tomorrow, he is safe in his position all the way to the expiration date. If he turns to be right, spot is lower than the strike price by at least the premium value, he will earn profits.

Multiple Options Strategies
Like any instrument, trading options has its risks and potential losses. However, there is a major difference between trading spot and trading options. In spot trading the trader can only speculate on the market direction – will it go up or down. With options, on the other hand, he can execute a strategy based on many other factors – current price vs strike price, time, market trends, risk appetite, and more, i.e. he has much more control over his portfolio, and therefore more room for manoeuvre.

Learning Center
Options are a great tool for any trader who invests just a little time to understand how they work. AvaTrade offers a full education section accessed directly from the trading platform

Increased options trading choices
For an experienced and aggressive trader, options can be used in a myriad of ways. For the beginner, or a more conservative trader, long options strategies such as buying options and option spreads, offer a limited risk entry into the market. By using the products and tools offered on the AvaOptions platform wisely, this flexibility generates more possibilities for making profits.

Vanilla Options with AvaTrade

AvaOptions is not only a leading platform for trading options, but also one that was built with the client in mind. The platform has embedded tools that are available to all clients, and their purpose is to guide and assist you every step of the way. Moreover, the platform is simple to understand and use. This is done, amongst other ways, by allowing you to shape the display and tools based on your desire, and thus create the platform to help you succeed.

Open an account in less than a minute & get Huge Bonus !

Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Binary Options vs. Vanilla Options in Forex Trading

According to my last year’s poll about 15% of this blog’s readers use binary options and in their currency trading. 15% also use other types of financial options to trade Forex. Although it is not much compared with the popularity of the spot market, the options can be very useful in portfolio of every trader. However, there are two problems when dealing with online options trading industry:

  • The majority of online Forex traders lack basic understanding of the financial options concept.
  • The binary options have a very poor reputation thanks to many brokers acting like they are online casinos with attitude.

The first problem will be addressed here by explaining the basics of binary and vanilla options and their main difference. The second problem cannot be addressed by me alone, but I can start by introducing vanilla options and manageable binary options as a viable alternative to gambling opportunities that most popular BO brokers actually offer.

What are options and why traders need them?

Vanilla options are financial contracts that entitle a right to buy or sell a specific asset at a particular price (called strike) on or before an agreed time/date. An example of a call option (bullish) is a contract for a right to buy 1 lot of EUR/USD at 1.4000 (assuming current rate of 1.3670) on December 31, 2020. If you buy such an option, you are betting on significant EUR/USD uptrend during the next year. Your gain on the strike date is calculated as X — 1.4000, where X is the EUR/USD rate on December 31, 2020. For the sake of example, let us consider that it reaches 1.4221. Your end gain is 1.4221 — 1.4000 or 221 pips or $2,210. Depending on the price you paid for this call option, you can calculate your total profit or loss. E.g. if you paid $1,000 for it, your total profit would be $2,210 — $1,000 = $1,210.

You might be asking — what is the point of buying such an option when you could make 551 pips (1.4221 — 1.3670) buying 1 lot of EUR/USD on spot Forex? Because your risk is limited with a call option. If you buy 1 lot of EUR/USD, your risk is virtually limitless. Of course, you would apply a , but then it would not be the same trade as using a call option as the latter would not be negated if a price were to reach some deeply unfavorable rate during the holding period. If you are buying a call option instead of a spot, your risk is always fixed.

Let us look at an example of a losing vanilla option trade but now with a put option (bearish). You anticipate a weakness in EUR/USD and decide to buy a put contract on 1 lot of EUR/USD with a strike rate of 1.3500 (the current rate is the same 1.3670) on December 31, 2020. You pay $1,500 for this contract. The year 2020 ends at the same 1.4221 rate as in our previous example. Obviously, your put option does not yield any profit — you will not exercise your right to sell EUR/USD at 1.3500 when the current rate is 1.4221, wouldn’t you? So, your only loss is the price you have paid for the option — $1,500. If you have used a spot trade in this situation, you would have lost 1.4221 — 1.3500 = 721 pips or $7,210.

American and European style options

Vanilla options come in many styles, but the most popular are two of them: American and European. American options can be exited or, simply telling, sold before the expiration time. You might decide to exit a call option to cut your loss if you see that the currency pair is poised to move down. Or you might want to sell a contract when the underlying rate moves in your favor, but you need some cash. In this case, you earn the profit, which is a difference between the price you sold your option for and the price that you have paid for it. In the examples above, you could have sold your call or put contract before December 31, 2020, if you were buying options.

European options cannot be sold before the contract’s expiry date. In the examples above, you would not be able to sell your European options before December 31, 2020. Obviously, European options for the same underlying asset, same entry and strike price and same expiry date should always be valued cheaper or equally to American options. If you are focusing on Forex trading, you will probably never deal with European options as currency options are rarely traded in European style.

Binary options

Binary options are not vanilla options. They are exotic style options as they are neither American nor European. The main difference between the binary and the vanilla options is the fixed outcome of the former: you get a fixed ROI on the contract’s price if option ends . This means that binary options have a fixed gain in addition to a fixed loss, which intrinsic to vanilla options. While it can be limiting to your potential profit, it also means that you can potentially earn more than vanilla option would offer in some situations.

Additional difference stems from the current trend in the online binary trading industry — usually brokers award option expiration with some minor reward (5–15% of the original option price). It can be a nice consolation if you happen to lose your binary option bet, but you should understand that this award is created by cutting the maximum award with the same broker.

How to use options to your advantage?

Getting right platform

Despite their disadvantages and apparent difference from the traditional spot Forex trading, both vanilla and binary variants can be used as an auxiliary tool by common retail traders. If you follow my blog, you should have probably read my case study for using a spot FX trade to hedge a binary options trade. There are other ways to combine spot and options, but to do that you have to choose your broker carefully.

First thing to do is to avoid binary trading brokers with inflexible strike prices and times. It is also a bad idea to trade with a binary options providers that forbid exiting a trade before the expiry of the option. Flexible contract size is also a very important property for successful combination of binary and spot trading. If your broker lacks all of the , you can still try trading with it, but I would say that your chances for success are significantly crippled with such companies.

Second, the best binary brokers offer not only standard call/put but also such important option types as “touch”/”” and “in”/”out” as they are very useful in exercising trade based on volatility (which is nearly impossible to do in spot market).

Third, going with a vanilla options broker (like Interactive Brokers or ) should be your preferred choice. Unfortunately, with companies offering vanilla options trading, it is still true that the better their conditions and platform the more difficult it is to set up an account with them. You would need at least $10,000 to open an options trading account with Interactive Brokers and also pay for price feed subscription, but you would get an exceptionally powerful options trading platform. With , starting is much easier (who would have thought!), but their product is less sophisticated and would not satisfy professional participant of options market. You can also try vanilla options for free using our platform.

Combining spot and options FX trading

There is a number of ways to enhance your overall trading performance using different kinds of options. Here is a short list of some such methods:

  • An earlier mentioned method for hedging a option on spot FX market.
  • Binary options can be used to trade on your ideas of the future market volatility. For example, even simple uncovered sale of the normal call and put options can be used to bet on decrease in volatility.
  • trades are probably safer in options than in spot. When you bet on behavior, you normally want to avoid using because it may prevent your trade from maturing. On the other hand, trading spot market without can be very risky. This is where buying a call or a put would do the trick for you.
  • You can use data from your options platform to analyze the current market sentiment. Higher values for certain strike prices usually mean higher probability of moving towards those levels.

I would like to finalize this overview post with a poll to find out the current preferences of this blog’s readers.

Binary Options Trading: A definitive guide for newbie’s

Trading is a nice way of making money in a shorter period of time, learn how?

Hey Friends, the first day of this week, I am going to share a new trend of making money online which was named after so-called Trading business.

This is called Binary Options Trading, which empowers many individuals and corporates to become a millionaire in a shorter period of time.

This is not a magic but works on logic. People who have the market knowledge can easily get into this business with a little investment to start.

Make your investment in any tangible (or) intangible products, and trade upon to make profits over time.

We will discuss this method more in detail in this article. Let’s get your note and pen to take down important aspects that will be a nice decision for a perfect start.

Table of Contents

2.1.) High earning potential
2.2.) Quick outcome
2.3.) Ease of trading
2.4.) Affordability (independence of stock price levels)

7.1.) Free practice
7.2.) Minimum entry threshold
7.3.) Maximum profitability
7.4.) Quick and smooth money withdrawal
7.5.) No extra fees

8.1.) Technical settings and design
8.2.) Assets
8.3.) Types of accounts
8.4.) Depositing and withdrawal of money
8.5.) Educational opportunities
8.6.) Technical Support
8.7.) Customer Reviews

1.) What are Binary Options?

The World Wide Web of today offers plenty of opportunities for making extra income online to both employed and unemployed people.

If you are one seeking to improve your family budgets, then you’ll find it worthwhile to learn about binary options – one of the most innovative styles of trading.

This is a type of a short-time investment, that does not require buying actual stock. All you have to do is forecast the direction of a stock price fluctuation, which is possible to do via some basic analysis of the market.

As the name suggests, there are only two types of binary options to select from: Call or Put.

Some binary options brokers use the Up or Down terminology, but they mean essentially the same.

This new style of trading has attracted a huge number of traders and is getting more popular by each passing day. The reason why it is experiencing such a huge growth is that it offers an unmatched money-making potential in a very small period of time.

In binary options trading, all you have to do is to predict the price level movement of an asset. Suppose you want to trade the Apple stock with binary options trading. Let us assume that the Apple stock is currently trading at $93.5689.

You have to make a prediction if the stock price of Apple will be higher or lower than the current price level after an expiry period (The expiry period is selected by you).

Suppose you predict that the price level of Apple will be higher than its current price level after one hour. If your prediction is correct you will earn a profit of about 80%. However, if your prediction is incorrect you will lose the amount you invested.

2.1.) High earning potential:

When it comes to the money-making potential, nothing beats binary options. You can nearly double up your money by trading in the binary options market. In fact, there are some options which can even give you a profit of 500%.

2.2.) Quick outcome:

The expiry time for trading binary options is very short. It is generally in terms of hours and can be as small as 30 seconds.

It essentially means that you will get immediate results and you certainly do not have to wait for a long time to know the outcome of an investment.

2.3.) Ease of trading:

Trading binary options are very easy. Anyone with an internet connection can trade at any time during the trading hours. You can trade from anywhere in the world.

In fact, you can use the dedicated apps using which you can trade via your smartphone while traveling. Not much information is required to start trading in binary options.

However, being able to trade and being able to make profit require totally different skill levels.

2.4.) Affordability (independence of stock price levels):

The actual stock prices do not matter much in the case of binary options trading. All that matters is if your prediction regarding the price level was correct or wrong.

It essentially means that there is no difference if your prediction is correct by 0.1 points or 100 points. Both give the same result. Same is true when your prediction is incorrect as well.

All that said, one thing is important to keep in mind before you invest: all the attractive features of binary options trading come at the price of a big risk factor. A risk factor is, of course, high but so are the rewards.

3.) How binary options differ from regular trading?

Regular trading (also known as vanilla trading) and binary options trading might look similar at first for a newbie to financial markets, but in truth, they are very different from each other.

One key difference is that in vanilla trading the actual value of the price level matters. In binary options trading, all that matters is whether your prediction is correct or not.

Suppose Google is currently trading at $100. If you buy the stock in vanilla trading and after a day the stock is priced at $101, you will earn a profit of 1%.

Meanwhile in binary options trading, if you buy the Up option for Google which is trading at $100 with an expiry time of 1 day and the price level of Google is $101 after 1 day, you will earn about 75%.

In fact, it doesn’t matter how high Google ends. As long as it makes your prediction correct, you will make the same profit.

It is therefore for the same reason that you will make the same profit in binary options trading if Google would have ended at $200 or $120 or $500 after 1 day.

The risk factor in binary options trading is significantly higher than in vanilla trading.

Taking the previous example if Google had ended up at $99 after a day, a vanilla trader would have lost just 1% while a binary trader would have lost all the invested amount (considering the trader had selected the Up option).

When it comes to the expiry period, vanilla options have very long expiry periods of 6 months, a year, 5 years etc. But in binary options trading, the expiry period is generally just a few hours. It can be as small as 30 seconds.

In binary options trading, you can easily make money even if an asset is falling down. It is not possible with vanilla options.

Vanilla option traders may buy a falling stock when they feel that the asset has hit its minimum and will start to rise soon.

Binary options traders can just select the Put or Down option and if the price level of an assets ends lower than the strike price after the expiry time, a profit will be made.

Binary options traders can’t sell their bought option before the expiry period.

If a trader has bought an option with an expiry period of one hour, he or she will have to wait till the expiry period ends to get a result and it can’t be sold in between.

A vanilla trader, on the other hand, can sell the bought options anytime.

Binary Options

High money-making potential
Small expiry time
Actual value of an asset doesn’t matter
High-risk business
Profit can be made if an asset price falls

Vanilla Options

Low money-making potential
Big expiry time
Actual value of an asset matters
Low to moderate risk business
Profit can’t be made if an asset price falls

4.) What are the limits of my potential earnings?

Theoretically, a binary options trader can become a millionaire – because there is no sky to how much you can make by making correct predictions.

You can nearly double your money every few seconds. Although being correct all the time is not practically possible – one has to remember that.

Let us take a few assumptions and calculate your payout. Suppose you invest $100 in every trade and have an accuracy of 80%.

Let us also assume you execute 30 trades per day and the average payout is 80%. In this case, your pure profit is $57,600 per month.

Even if your winning rate is 70%, you will pocket a monthly income of $50,400. The best part is that you can earn this money sitting on your couch.

As per a report published in binary today, a trader makes more than $20,000 per month by trading binary options.

He follows some basic strategies with discipline and gets amazing results. There are many similar success stories on the web.

5.) Who can earn with binary options trading?

Generally, the answer to this question goes: “Anyone who is interested in making online home income, wants to try this type of financial instruments and has a good Internet connection”.

For a start, basic knowledge of the financial market and access to economic news will be enough.

Talking in a more long-term perspective, one has to be open for self-education. The more extensive learning you get, the better you can create a well-structured trading plan and not rely on sheer good luck.

Luck is part of the fun, of course, but its combination with proper skill will lead you to more steady income in the future.

In this context, when you are selecting a broker – which is the first thing you need to do – pay attention to the training and practice facilities the company provides.

6.) Olymp Trade – a trusted partner in binary options trading

If all the above has sparked your interest in binary options trading, your first step will be choosing among a variety of brokers on this growing market. How should one make such a choice?

Things which are of crucial importance:

••• Ease, convenience and transparency of the trading mechanism
••• Profitability levels offered by the broker
••• Opportunities for education and improvement of your trade skills
••• Honesty and reliability, confirmed by credentials from official bodies.

There are not many companies who stand out of the crowd by virtue of their premium trading serves, and Olymp Trade is one of them. This Seychelles registered broker was founded by Smartex International Ltd. and has operated on the market since 2020.

Olymp Trade is an “A” member of the International Financial Commission, an independent organization that provides and guarantees the protection of traders’ rights. Which means if a broker acts unlawfully, the Commission reimburses the trader up to $20,000 from its Compensation Fund.

The broker is highly recognized by the industry professionals and boasts four important awards, received over a short period of time:

••• IAIR AWARDS prize in the category “Best Binary Options Platform”
••• KROUFR Awards as the “Best Binary Options Broker”
••• ShowFX World prize as the “Fastest Growing Broker”
••• CPA Life Awards international prize as the “Best Financial Broker”

Now we shall dwell a bit more on its advantages, which matter especially for a beginner trader.

7.) What are my key benefits with Olymp Trade?

7.1.) Free practice:

Each trader is given access to a free demo account with 10,000 virtual units right after the registration. It is particularly useful for beginners who can practice as long as they wish before trading with real money.

The balance is rechargeable if it has less than 5,000 units (back to 10,000 for free), and you can always go back to the demo mode – in case you want to practice a new strategy.

7.2.) Minimum entry threshold:

Depending on the account currency, you can start trading binary options with just $350/$10/€10/20

7.3.) Maximum profitability:

With Olymp Trade it is possible to earn up to 80-90% of the investment if your forecast was correct.

7.4.) Quick and smooth money withdrawal:

As soon as you make a profit, you can apply for a transfer of money to your bank card or an e-wallet. The processing usually takes no more than a day or two.

7.5.) No extra fees:

The broker bears commission for all incoming and outgoing payments.

8.) How does Olymp Trade platform work?

The company has developed its own trading platform and continues to improve it every day. This is an essential thing because it implies almost zero chances of technical failure – so you may be positive that the platform will not freeze at the most inappropriate moment.

The product is custom-designed by the broker with input from experienced programmers, financial analysts and traders. It provides convenient tools for the market analysis, so you could make informed “up or down” decisions every time.

Available in both a desktop version and a mobile app, downloadable at Google Play.

8.1.) Technical settings and design

The platform is designed in a very user-friendly, understandable way. Once you look at it, trading on the financial market immediately becomes less dense and daunting. The design will not make you doubt whether trading can become a part of your life – you will know that it can if you wish.

One of the platform’s advantages is that traders can adapt it to their own liking:

••• Change the language: Vietnamese, Russian, English, Thai, Indonesian, Spanish (LATAM), Portuguese (Brazil), and Turkish are available;
••• Select how the chart is displayed: area (line), Japanese candlesticks, or HeikenAshi;
••• Set the color scheme to light or dark.

The technical settings are equally varied. Traders can:

••• Change chart time frames from 25 seconds to 1 month on the area chart and from 15 seconds to 60 minutes on the Japanese candlesticks and HeikenAshi;
••• Add indicators and oscillators to the chart to analyze it more accurately.

8.2.) Assets

The Olymp Trade platform is pretty versatile and allows to trade in a variety of key assets:

••• Foreign exchange market assets (currency pairs);
••• Assets of the stock market (stocks, bonds, indices, etc.);
••• Assets of the commodity market (gold, silver, oil, etc.);
••• Exchange assets of the cryptocurrency (Bitcoin is the most popular).

8.3.) Types of accounts

The platform offers 3 types of accounts: demo-account for a newbie, a standard account for everyone willing, and a VIP account with special privileges for more experienced traders. See a more detailed description in the table below:

8.4.) Depositing and withdrawal of money

Use any of the following ways to make a deposit:

••• Through E-wallets: Qiwi, Webmoney, Epayments, Neteller, Skrill, Yandex.Money, and Bitcoin;
••• Through Visa or Mastercard bank cards.

You can also withdraw money through the same payment systems.

Important: you can make a withdrawal only to the same e-wallet/card that you used to make a deposit. This rule enables the broker to guarantee payment security and protect traders’ funds from fraud.

The maximum withdrawal time is 3 business days, but the broker tries to process traders’ requests as quickly as possible. All operations are commission-free.

8.5.) Educational opportunities:

Never had a trading experience before? No worries. Olymp Trade offers a whole range of educational materials that will help improve your confidence – whether you are a complete beginner, or a trader seeking more in-depth expertise. At your disposal are:

••• Video tutorials
;••• Interactive courses;
••• Webinars
;••• Strategies developed by leading analysts.

Besides, the broker supports its customers in various social networks. Join the company Facebook page and YouTube channel to get access to all up-to-date information, extra educational content, daily analytics and articles with useful trading tips. Not to mention special contests offering bonuses and gifts for the lucky winners.

8.6.) Technical Support

Olymp Trade technical support department operates 24/7 – every day, around the clock, so be sure that your question will be answered by specialists promptly and at any time.

For English-speaking support, you can call on +357 25030996, write to [email protected] or ask your question in the online chat on Olymp Trade platform.

8.7.) Customer Reviews

You may find it useful to read some feedback from Olymp Trade customers.

Nobby Jackson describes his experience of binary options trading in this manner:

“As an amateur trader, I was overwhelmed by the number of binary options brokers. I, being an amateur trader, was looking for a broker which offered a quality way of learning how to trade and high payouts.

Olymp Trader offered both. My trading experience with Olymp Trade has been phenomenal. I am able to make a consistent profit and learn how to trade better.”

Steven Levitt, another amateur trader, puts his experience as follows:

“I love the way Olymp Trader has designed its trading platform. It is easy to use with simple navigation. The fact that you can do a lot of analysis using the website itself makes my trading very smooth.”

Bottom Line

Making an online income with binary options is a reality. And you will not have to sit long hours in front of the monitor in order to do that. Besides, it is totally affordable.

You may start with only a ten-dollar deposit, investing as little as 1 dollar in every trade before you gain more expertise and confidence.

Choosing a reliable broker is essential, and the Olymp Trade platform offers all the necessary facilities and transparency of trading.

The platform now has more than 6.5 million registered users with at least 20,000 traders actively trading each day.

You can easily join them and start utilizing the earning potential of financial markets while sitting at home.

Beste Broker fur Binare Optionen 2020:
  • Binarium
    Binarium

    Der beste Broker fur binare Optionen fur 2020!
    Ideal fur Anfanger!
    Kostenloser Unterricht!

  • FinMax
    FinMax

    2 Platz in der Rangliste! Zuverlassiger Broker.

Like this post? Please share to your friends:
Alles über Binäre Optionen
Schreibe einen Kommentar

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: