What Is Binary Trading 101: Start with The Basics

What is binary trading? If you ever thought about starting to trade, then you’ve probably asked yourself this question more than once. Now you have a comprehensive guide that will give you all the basics on what is binary trading and so much more.

binary trading on tablet

What Are Binary Options?

Typically, binary options are categorized as exotic options, although they are very simple to use and have a functional understanding. The most common of them is the ‘high-low’ option. It provides access to indices, stocks, commodities, and foreign exchange. Given all this, they are also called a ‘fixed-return’ option. The name comes from the fact that the binary option has an expiry date or time and a so-called strike price.




In simple terms, if a particular trader happens to wage correctly on the direction in which the market is going and the price at the moment of expiry is set on the correct side of the strike price, then the trader will be paid a fixed return on investment independently of how much the initial instrument has moved. Building on this, the trader who happened to wager in an incorrect manner in the direction of the market, will lose the money he or she had invested, to begin with.

If you, as the trader, believe the market is, in fact, rising, then you will purchase what is called a ‘call.’ If you think the market is falling, then you need to buy a ‘put.’

Tip – it’s imperative for you, as a beginner trader, to learn the slang or correct terminology that is used in the field of investing. Make sure you do some thorough research so that you can stay on top of the game at all times.

A call will only make money if and when the price is above the strike price when the time expires. A put, on the other hand, will only make money if the price happens to be below the strike price at the exact moment of the expiry time.

The features called the expiry time, strike time, payout, and risk will all be disclosed at the outset of the trade.

What Assets Can One Trade as Binary Options?

Here are the options with which you can trade as far as binary goes.

  • Indices – a few examples include Nasdaq, Dow Jones, FTSE, Nikkei, and several others.
  • Forex – It provides combinations regarding many major currencies, such as EUR, USD, GBP, JPY or AUD but these are just a few.
  • Commodities – Gold and oil are most well-known, as well as the most important commodities on the market, but there are others as well, such as silver, corn, coffee, and almost anything else of value and importance.
  • Stocks – these belong to almost all the companies in the world, from the biggest and most important, such as Google, Apple, and Coca-Cola, down to the smallest.

Choosing Your Broker

After you learn what is binary trading, you will have to select a specific broker on whose platform you can trade.  Our advice is that you take your time during this step of the process and you review as many binary options traders you can find online. Doing your researcher will help you find a broker that will suit your needs perfectly.

Here are a few options.

#1. 24Options

The bonus is unlimited, the deposit is $250, and the payout is 89 percent.

#2. Boss Capital

The bonus is 100 percent, the deposit is $200, and the payout is 85 percent.

#3. GoOptions

The bonus is unlimited, the deposit is $200, and the payout is 90 percent.

#4. Opteck.com

The bonus is 50 percent, the deposit is $250, and the payout is 100 percent.

#5. IQ Option

The bonus is 50 percent, the deposit is $10, and the payout is 85 percent.

#6. CT Option

The bonus is unlimited, the deposit is $250, and the payout is 91 percent.

#7. TradeRush

The bonus is 100 percent, the deposit is $200, and the payout is 81 percent.

#8. Porter Finance

The bonus is unlimited, the deposit is #200, and the payout is 83 percent.

#9. Magnum Options

The bonus is 100 percent, the deposit is $200, and the payout is 81 percent.

#10. Banc de Binary

The bonus is $8 000, the deposit is $250, and the payout is 100 percent.

#11. TopOption

The bonus is $2 500, the deposit is $100, and the payout is 85 percent.

#12. 10Trade.com

The bonus is $10 000, the deposit is $200, and the payout is 81 percent.

#13. Redwood

The bonus is 100 percent, the deposit is $200, and the payout is 81 percent.

#14. Anyoption

The bonus is $20 000, the deposit is $200, and the payout is 86 percent.

#15. CherryTrade

The bonus is $20,000, the deposit is $200, and the payout is 81 percent.

All of the brokers that we have presented above are licensed and completely regulated. This information means that you can start trading on their platforms at your earliest convenience, without the fear of losing any money or getting into trouble.

Each of these brokers has a plethora of different account types. Taking this into consideration, it becomes crucial for you to open yourself an account that will maximize your profits based on the amount of money you invest in the first place.

The Three Main Questions about Binary Options Answered

#1. How big are the bonuses when it comes to binary options?

The bonus or, otherwise, the money you will be receiving typically depends on what site you decide to log onto, create an account, and on which you start trading. It’s very usual, as you can see from the list of binary options platforms we’ve detailed above, for a broker to offer you bonus worth up to 100 percent of the amount you initially deposited. Sometimes, even bigger bonuses can be possible.

#2. Can you open more than one account per every site?

Many people wonder about the idea of opening more than one account on the same website so that they can take advantage of the welcome bonus. Unfortunately for all traders, it is not possible, and you shouldn’t attempt to do it. Apart from that, you need to be careful. If you do try this ruse, you might get all the bonuses you were granted thus far, voided. As a conclusion, it’s really not worth it to try and trick the system.

#3. Are bonuses offered on mobile binary options websites as well?

The answer is yes. It is, in fact, the same website, only in mobile format. Therefore, all the options you get on the online version, bonuses included, will be available on the mobile version as well. This piece of information is important because it means you don’t need to make any compromises when it comes to your binary options trading ideas.

So, what is binary trading? Apart from the classical definition of an investment venture which will allow you to make easy profits from the price movements of a number of stocks, it’s also a great way for you to make some extra money. Therefore, what are you waiting for? Start trading now!

Image sources: 1

Leave a Reply

Your email address will not be published. Required fields are marked *