Binary Options trading

If like me, you’re looking for an opportunity to earn money on the net and you have already done some research, you probably already heard of sites of binary options. These sites are also called binary options platform. Their main advantage for novices to trade like me, is that through these portals I arrive to me more easily in the area of the stock market. With these trading sites, investors have the opportunity to earn money in very little time. Explanations are needed to better understand the principle of these trading platforms.

Open an account at a site of binary options

Before making your first trades, it is important that inclusion on a broker option binaire. For this, you must complete a form available on the website of trade. When these formalities, you must provide some personal information concerning you, note that your information will be carefully preserved in the database of the site. In addition to your personal information, you must also register data on your account. It is important to indicate the currency of your account because once selected in the list proposed by the site (EUR, USD, GBK, CAD, SEK, DKK, NOK…) it will be more complicated to change.

trading binary

How trader of the underlying assets on trading portals?

To carry out trades on a trading website, the procedure is simple, just three steps :

  1. The choice of action
  2. The direction the curve at the end of the contract
  3. The inclusion of the amount of your investment

A few seconds just to negotiate a binary option!

Take advantage of the bonus to invest in binary options

When you choose to invest on brokers, you can enjoy some advantages offered by these sites. The nature of the option binaire bonus optionweb is of various categories. Take as an example, the granted bonuses when you make a deposit. According to platforms, this type of bonus is paid as soon as the first deposit or on each transfer of money to your account. Make deposits into brokerage sites to win bonuses ranging from 30, 40 , or 5%. By investing on some site, you can also enjoy a first free trade.

Forex trader on a site of binary options

By investing sites of binary options, you have the choice between several categories of assets whose currency parities.

Brokerage portals offer the traders of the types of underlying assets. Apart from commodities, indices, and stock shares, we also invest our money by leveraging the Forex. These types of options encourage us to look at the course of national and international currency.

Earn money through the site of binary options

By investing in binary options, you can win lots of money in a few days. Thanks this good plan, you can earn more than €500 per day. By becoming a hardcore option binaire trader online, it is possible to win €1,000 / hour ! The profit of these trading sites rate varies from 70 to 400%.

Master online binary options

If you want to learn how to bet money on binary options, you have several tools.

Learn to trade thanks to the demo account and trading Simulator

Trading sites are likely to propose trading simulators. Through these illustrated tutorials, you can understand the principle of negotiation of options. With regard to the demo accounts, only a few portals offer it. This feature is very useful to learn strategies of digital options.

Follow trainings

Training provided by professional traders and finance experts are organized on some platforms of brokerages. Follow these webinars to enhance your knowledge and make more relevant updates.

Choose your brokerage sites

It is important to entrust your money on sites of serious commissions corresponding to your expectations. Find the broker that suits you by checking comparison sites devoted to binary options brokers. Thanks to these tables, it is easier to compare the options that interest you.

Regulations of sites of binary options

With regard to the control of the markets of activities financial, the Autorité des Marchés Financiers and the Bank of France are two regulating entities capable of issuing the licences to exercise. A broker to receive this kind of certification in France, the site must meet certain conditions including those to have a representative in France. IG Markets and XTB are brokers who received this accreditation.

Some tips for good options trader

Although the principle of binary options seems simple, it must be particularly attentive when it invests its money in the underlying assets.

You are interested in the simplicity of binary options and thought seriously to embark on this lucrative market, the technique the simplest is to follow trends. It is difficult to decide on a neutral trend, however when you detect a bullish or bearish trend, do not hesitate to bet until this changes. When your trades, please also note to be reasonable in your investments. Set yourself a budget to allocate to your binary options to avoid bankruptcy.

10 tips for successful trading binary options

Trading binary options is easy to learn but that does not mean that it is very easy to get yourself profitable gains with this new financial products. In order to become a successful trader, it requires a lot of knowledge about the market, endurance and discipline. Binary options are derivatives.

Today we will give you some tips so that you can move a step higher with your trading binary options.

Binary-Options

Tip 1: Disciplined trading Money Management

First the most important tips. But disciplined Money Management, it is impossible to make lasting and permanent gains. Risk no more than 5% of your trading capital per binary option trade, stockpair demo  and do not try to offset your losses as soon as possible with the right action at the next trade. Then it can only get worse, for short or long time.

Tip # 2: Be in the 1-hour-binary-options

60-second options are without coercion very exciting, but really, it happens only on luck or bad luck (Besides some exceptions in very specific market situations). It is impossible to predict the trend in such a short time with probability of 65% to 70% as you need. Bet only on options of an hour, or options with longer maturities.

Tip 3: Buy only if you are emotionally balanced

How you feel, is how you shop. Your goal should be well balanced and relaxed when you shop. If you are having problems that you take with you to the trade, which is all set to lose.

Tip 4: take a break when you have lost a trade

If you lose a trade, then it’s important that you don’t think about it all the time, but that you release your head so that you can concentrate on the current market situation instead. But it’s a long way until, and for this reason, you should start with a break every time you lose a trade. Note: Although a win could affect you emotionally and affect your choice in trade (…) — to risky behavior, for example.

Tip 5: write a diary about your trades

To be able to succeed in trading binary options, it is very important to learn from your mistakes, and if possible, not to make a mistake a second time. Each mistake costs you money and the money, you won’t be able to use for the next trade. If you lose 30%, you have to win 50% to get back the amount you had before.

A trading diary is one of the best ways to find your error in your trading. Write down for each entry: entry price and time, why you went in for it, results and also background information, for example. If you have had a run-in with someone before you dealt with. If you regularly read your entries in the diary, you will find patterns for your error, you can correct and then you can even improve your performance in the future.

Tip 6: know the market you are trading on

You should not trade in currencies, if you have no idea about currencies. Inform you about what affect exchange rates. The same is true for stocks and commodities, find yourselfa cfd trading etoro bonus to start off.

Then you should know what is going on in the world, in economic field and figures on companies and much more. Nowadays the markets very vulnerable, unpredictable and unstable. Read in all cases Non-Farm-Payrolls (data of the u.s. labor market monthly every first Friday).

Tip 7: use an external Charttool

Brokers in binary options exist to place your orders on the market. But a useful application for charter offers no supplier. The Charter on the platform is just to be able to get a quick glance at the numbers.

If you really want to analyze charts, then you need an external chart tool. On the internet you can find a lot of excellent free alternatives, such as. Financesplus.net.

Tip 8: continue to educate yourself

If you want to get profit at your trade, you have to keep your skills up to date and expand them. Trade binary options are still very young, but there are already some good resources you can use. Good books in German is unfortunately not yet.

Tip 9: read the bonus terms and conditions

Some brokers in binary options offer a deposit bonus on your first deposit. Inform first about bonus terms and conditions before you decide to redeem it. Of course, these are not free money, you have to invest a certain amount in trading before you can freely dispose of the bonus.

Tip 10: Trade binary options on your mobile phone

If you are on the road and if you don’t want to miss a particular event in the market, or go for it, then it’s no problem with binary options. Many brokers in binary options offers apps for Iphone and Android so you can shop anytime, and anywhere.

Strategy and risk in the Forex market

Strategy and risk in the Forex market

The foreign exchange market (Forex market) offers opportunities to make money, but you can also risk losing money. Learn a little about strategy and risks in order to increase the likelihood of making money.

Forex provides opportunities to make money, but not without risk. We will now look at the strategies that can help you reduce the risk and not necessarily at the same time limiting the possibility of profit.

the market works much differently than other markets! Speed, volatility, and the huge size of the Forex market is different from everything else in the financial world.

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the Forex market is uncontrollable-no separate event, person or factor governing this market. That’s why what economists call a “perfect market” or a effisent market-that is, a market where prices reflect all available information.

your strategies for risk management in the foreign exchange market should include:. Unexpected corrections missed payments, delayed payments and receipts on claims, turbulent fluctuations in prices, and divergence between bank drafts received and the contract price.

Set stop-loss on foreign exchange market

stop-loss orders allow traders to set an initial value for the trade you lose on. Stop-loss orders help traders control risk by cutting losses early. Stop-loss orders are non-intuitive, because you don’t want them to happen, but in the end, you’ll be glad you put them! When you connect the logic is easy to be guided by greed.

You should set the stop-loss orders closer to the opening price than limit orders. This is only a general guide.

Technical trading in the Forex market

Trade as a technical analyst in the foreign exchange market. To understand the basics behind investing in the Forex market, one must also understand the technical analysis method.

When your fundamental and technical signals are pointing in the same direction, you have a good chance of making a successful trade, especially if you have established good practices for the management of the money placed in the market. Our proposal is that if you are trading in the Forex market, you should use a simple technical analysis on the basis of support and resistance, and Fibonacci tracking.

“Leverage trading” in Forex trading

which in English are called Leveraged trading, or move the Swedish, which makes it possible to make more money on currency trading. But increases the risk of loss if he is on the margin. At worst, you will lose everything you have invested, and it must always be taken into account when doing Forex trading.

Virtually all experts move their investments, it is the fast track to riches-but also a dangerous and risky ways to get rich. You don’t get rich if you do not take your precautions, and if things go wrong.

Leverage means to borrow money as you use for investing or trading. Say that there is a risk of $ 1,000 of your own money, while trader for $ 100,000-when you borrow $ 99,000. If you lose $ 99,000 that is your loss, and you have to finance the loss.

Risk and currency trading

the risk is that you have the money you can afford to lose without compromising your standard of living. with this money you can invest in it you are feeding, laugh you competent to such speculation in the Forex market. You should never invest more in risky investments than you can afford to lose.

No one wants to lose money, but when it comes to trading in the Forex market, it is impossible. All traders will eventually lose money. It is, however, Toale you are left with that counts.

Create a stable return over time is something all successful traders want to achieve. There are generally just “dreamers” who are looking for opportunities to get rich overnight in the Forex market.

Those who are rich in Forex trading is that because they use their risk in a meaningful way that provides value over time. It’s not easy, but you can go a long way with experience and knowledge.

We recommend Easy-Forex to speculate in the currency over the internet. You always have great opportunities to make money in the Forex market, but don’t forget the risk.

Forex trading course

Forex trading course

A good Forex Trading course can make you a successful Forex trader. You realize the potential of Forex trading (Forex), and you know that your best chance to capture your share of the potential is to get a good Forex training.

First, let’s explain what makes FOREX trading the best option to make money from home:

Low start up costs
No marketing costs
No employees
No inventory
No website
No Office
No schedule
No customers
In addition to being the best business system from home is the Forex market also the best trading tool available. Please read our comparison between currency trade and any of the other common markets.

Secondly, let us go over the benefits you can expect as a successful Forex traders:

Make money from home
Self-employed
Spend more time with family
Work anywhere
No boss, no Office, no schedule

So why not take all opportunities for you to help you become a successful Forex trader.

The main tools you have at your disposal is a Forex Trading course. Get a Forex high-quality training that will help you build a rock solid knowledge base.

With a good Forex training, almost anyone can become a successful Forex trader.

Are you someone in one of these groups?

Retirees
Students
Recent graduates
Employee looking for a change of career
An employee who wants to supplement or replace income

No one cares more about your future than you do. Don’t fall into the pattern of the overwhelming majority of Forex traders fail to make money.

In fact you will lose something when you start with Forex trading. The question is what, time or money? If you try to trade the currency without proper Forex education, you will lose money. If you prepare yourself with a basic FOREX trading you will invest your money with knowledge and risk only a little time.

The final result of a Forex Trading course is that you become an independent trader. You want to achieve the skills necessary to make your own decision about currency trading, not follow someone else’s trade, or be dependent on someone else’s signals.

Are the benefits of being a FOREX trader appealing to you?

Are you willing to invest in yourself?

Do you want to control your own financial future?

If you have answered “Yes” to any of these questions, it’s time to take the next step toward becoming a Forex Trader – continue to our forex guide.

Forex Trading Strategies

Forex Trading Strategies

Do you have a forex trading strategy? If you are a beginner, it’s important to always have a strategy for your Forex trading every time you invest in the foreign exchange market.

Benefits of a Forex Trading strategy

There are many advantages to having a strategy for your Forex trading. And we’ll try to highlight them here in hopes of helping new Forex traders to realize its importance.

A Forex trading strategy, organize your thoughts and actions. Because the world of forex trading can easily get volatile with sudden movements in currency rates, some form of organisation can get absolute order in the seemingly chaotic world of currency trading. A well thought out forex trading strategy can certainly provide some sort of direction and advice in what would otherwise be a very confusing environment.

A forex trading strategy will minimize your psychological fear that you are prepared for what the Forex market can mean for you. To go to battle without ammunition is a silly mistake you don’t want to do as a forex trader. To be well prepared on how the Forex market works does not necessarily mean more profit to your trade, but increases your confidence which helps your decision is more balanced and based on a good understanding of the forex market. A forex trading strategy is a plan that you should stick to and trust. To know that you have prepared you well for an investment means you have analyzed the market and are prepared for all eventualities. So psychologically speaking, should you be unsure of your options.

A Forex trading strategy to minimize your losses and maximize profits. By making a strategy for your Forex trading gives you the advantage of knowing in advance what your loss or gain would be, depending on where the market is going according to your analysis. If the market moves against your open position, you already have a cut-loss point you have calculated and analyzed on the basis of your forex strategy. You should not depend on false hopes that prices would return and go in favor of your position. In this way, minimize your losses.

Finally, make a forex trading strategy, it is easy to evaluate. Through the course of your Forex trading, you always follow a set of rules based on your forex trading strategy. Are you following your trading plan religiously, it is very easy to evaluate your trading strategy if it is effective. It would be easy to point out which areas in your trading strategy needs to be improved further.

Preparation of a strategy for your trade is a necessity if you hope to be able to create a career in Forex trading. Planning, systematic analysis and organization are qualities that all types of businesses must have if you hope to be profitable. Forex trading belongs to certainly the category.

Over / under options

Over / under options

Over-/underoptioner is another name for binary options. They are also known by various other names such as. all or nothing-options and digital options. These options are called in English call/put options. This type of options was former governing such as casino games, but they have since evolved and is now to be financial instruments traded as such. Many brokers of over-/underoptioner is based abroad and are governed by the rules for over-/underoptioner and trading with financial instruments in their homeland. They may, in accordance with EU regulations Act and sell binary options in Sweden without having to license from the Swedish financial supervisory authority.

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What is the over/under options?

Over-/underoptioner are options where you are trying to predict how a market or a financial instrument will be developed during a predetermined period of time. If one predicts the development correctly so you will receive a pro-rated reimbursement. (In some cases, this compensation depend on the underlying instrument’s development but this is usually given not the case.). If you are wrong then the options worthless

When it’s all over-/underoptioner it is possible to choose between buying a over option or option.

Överoptioner:

With a överoption so that the emphasis is on the underlying objects must go up.

If the underlying object goes up before the option’s output to earn you money
If the underlying object goes down so are options worthless and you have lost your bet.
Under options:

With a sub option guessing one of underlying objects will go down.

If the underlying object goes down before the option’s output to earn you money
If the underlying object goes up so are options worthless and you have lost your bet.

Why trade with over-/underoptioner?

Over-/underoptioner makes it possible to quickly make a lot of money if you can correctly predict the market and different financial instruments will be developed while at the same time have a limited down side because it can only lose the option’s price. To the use of over-/underoptioner easily get several hundred percent return on invested capital in a single day. Many over-/underoptioner pays between 70-90% return if you correctly predict the underlying instrument’s development. There are, however, more specific options that could provide as much as 500% return. This makes binary options to a potentially much more profitable and exciting instrument than stocks.

There are lots of different over-/underoptioner for you to choose from. This often makes it possible to find an option that is based on a financial instrument that you think is relatively easy to predict how it will evolve.

Another advantage is that binary or over-/underoptioner is so easy to understand and deal with. Everyone can deal with them without the need for any financial background and without having to be familiar with the market. If you take the time to do more research and to follow a particular instrument more intense can, however, make more money than we otherwise probably will earn.

Digital options

Digital options

What is digital options?

Digital optionerDigitala options is another name for binary options. Other names used include all-or-nothing options and over-/underoptioner. All these name famously alludes to how options work and they only have two possible end values. Profit or loss, over or under, one or zero. They are binary. That they are called digital options have to do with the fact that digital communications are binary.

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Digital options are options where you are trying to predict the direction in which the market or a specific type of financial instrument will move over a certain period of time. If you are entitled to receive a return which usually is around 85%. If you’re wrong you lose its value when the option expires. In other words, the loss of the amount you paid for the digital option different digital options have different maturities.

How much can you earn when you deal with digital options?

There is no limit to how much money you can earn when you shop with digital options. How much you earn depends on how much you trade and how good you are at predicting the market. If you are good at predicting the market, you can quickly make money trading with digital options and there are few, if not none, other financial instrument that allows you to make money just as quickly. You can earn several hundred percent in a single day. Every time you correctly predicts market movement earns around 85% and if you deal with digital options with short duration such as 1 hour, you can quickly earn high percentages.

As you earn more money, you can buy more expensive options and earn even more. This makes the digital options to one of the most exciting and potentially profitable financial instruments.

Where can I trade with digital options?

There is a wide range of broker that lets you shop with digital options. You’ll find reviews of a wide range of agents here on binära.se. Examples of brokers that allows you to trade the digital options include:

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Digital options maklare

Top Option
Anyoption
TradeRush
Bloombex options
Banc de Swiss
Banc De Binary
EZbinary
optionfair
24option
stockpair
option bit
ioption

Most of these brokers make it easy to trade with digital options in both the cell phone and on your computer.

The risks of digital options

You can as you read above make a lot of money by shopping with digital options. Trade, however, is not without risks and you can lose money with all financial instruments on trading of digital options. When you shop with digital options, you risk losing the entire amount you paid for the option. Your risk is limited to your bet and you can never lose more than what you have invested.

When you shop with digital options, it is a good idea to limit the risk you take by only investing a small portion of your portfolio in a single option. In this way you risk just losing a smaller share of your option money if the market does not move as expected.

Digital options are short-term investments and shall only constitute a small percentage of your total investment portfolio. You should also invest in other instruments such as bonds, equities and mutual funds.

Why do you get a bonus when you start trading digital options?

Competition between different brokers that offer digital options is very high. Brokers offer you a bonus to get you to invest your money with them. They do this to bind new customers on board and you must generally wager your bonus a certain number of times before you can withdraw any money from your brokerage account.

Different brokers offer different bonuses with different wagering requirements. Almost all brokers offer any type of bonus, and in most cases, you can contact your account manager to get some better bonuses than it is at the website.

Never accept a bonus without reading the fine print. If you think that you will not be very much, it is better not to accept any bonus not to lock your money.

Are digital options right for me?

binara digital options

This is an issue that really only you can answer. If you are looking for a new way to invest your money that does not require much effort on time or money but which can give a very good return then I recommend you try digital options. If you prefer long-term investments that don’t require a lot of overview so are digital options is not for you.

Best way to learn about digital options is right for you or not is to try to deal with the digital options. You can try to deal with the digital options with a very small effort, often less than £ 1000, and if you don’t like it then you have not lost much money. On the other hand, if you like it and is good at it, you can quickly make a lot of money.

All or nothing-options

All or nothing-options

All or nothing-options is another name for binary options. All or nothing-options are actually a better name because it better explains how these options work. Binary options sounds much more complicated than all or nothing-options. This despite the fact that binary options mean the same thing, that there are two possible outcomes, all or nothing, gain or loss. Binary options are also called digital options and over-/underoptioner.

What is an all or nothing option?

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An all or nothing option is a temporary option where you are trying to predict how a financial instrument will be developed over a period of time. You can either buy options that pay off if the stock market during the pre-determined period goes up or down. If you correctly predicted how the current instrument or market developed to serve mostly a predetermined amount. If you were wrong about how the market developed so, you lose the whole stake. Options becoming worthless.

There are some exceptions to these rules. In some cases you can get part of his bet back if you almost had it right, IE. If the market comes close to develop as it predicted when it bought all or nothing option. An example of this might be if you buy an option that pays out if the market goes up and it goes down just a little. In these cases, you usually back 15-25% of the option’s price.

There are also all or nothing-options which do not serve a predetermined amount, but how much you earn depends on how much the underlying instrument moves during the period.

The most common type of all-or-nothing options are, however, options with a predetermined profit if you correctly predict how the underlying instrument or market develops.

You can buy all or nothing options with different time limits. Anywhere from 10 seconds to the end of the trading day is the usual time constraints. Sometimes you can find options with longer maturities.

How is it all or nothing-options?

If you want to trade with all or nothing-options, you have to get an account with a broker offering trading binary options. Binary options are traded on Nasdaq OMX. There are a wide variety of brokers to choose from and many give you a bonus when you start shopping. The easiest way to find a good broker is to read our reviews here at binära.se or google “binary options brokers”. We here at binära.se have put a lot of time and energy to create what we believe is the best and most complete review section where we give our honest opinion on all popular brokers.

When you have registered with a broker to trade in all or nothing-options, it is very easy to shop. You can trade both on your computer and on your mobile through to easily navigate your way to the type of option that you would like to purchase. Then, select how much money you would like to purchase options for and when you select this, you can complete your purchase with one click. Some sites offer trading in Swedish, while others only offer English. If you know English, you can easily trade in both languages. No specialist English required.

Why shop with all-or-nothing options?

trade in your mobile phone all or nothing-options are exciting options where you can quickly make a lot of money. If you correctly predict the market can make a lot of money in as little as 10 seconds. This then it unlike for example. with the shares do not have to wait for the stock market to rise and sell their shares to get a win. With all-or-nothing options do you get immediately a significant profit if you correctly predict the development of the market.

However, it is also possible to quickly lose a lot of money. If you wrongly predicting market development will lose of course as we know its entire stake. You can, however, be options for small amounts making all or nothing warrants a great spice in your investment portfolio.. You can quickly make a lot of money by correctly predicting the market and if at any time you are predicting error then your losses limited.

Risks with binary option

Risks with binary option

To trade binary options is not without risk and it is very important that you understand the risks you take when you trade binary options before you start shopping with them. Binary options is also known as often for all-or-nothing options because most people only have two possible outcomes.

If the underlying instrument (such as stock market indices or a single share) developed as you expected so you earn money. This yield can either be predefined (for example, 85%) or depending on how the underlying instrument is developed.

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The underlying instrument is not progressing as you predicted. If this happens, you will lose your entire stake. Your investment in binary options are when this happens usually not worth anything at all.

When you invest in binary options you risk to lose your entire stake. However, you cannot lose more than the option’s price so your risk is unlike trade with some other options limited to your initial bet.

risk with binara options Bin honor options, due to their nature, only be used as a spice in your investment portfolio. They should not be your only type of investment for two reasons:

They can give high returns but is also associated with high risk. By limiting their share of your portfolio, you limit the risk you take.

Binary option is short-term investments. They do not create long-term values and they are not long-term investments. You should also invest in longer-term instruments such as stocks and bonds.

We recommend that you never bet more than 5-10% of your capital investerbara in binary options.

It is important to remember that binary options are investment items where both luck and skill determines whether you make money or not.

Knowledge and skills will help you to predict how the stock market probably will develop during the option’s life. However, it is impossible to predict how the stock market will be developed for a limited time and we therefore need to have luck on their side in order to earn money.

It is important to remember this when you are trading binary options and not get annoyed and emotional when luck is not on your side. If this happens then we risk start taking stupid decision to recover their losses. When you start to “Chase” their losses often lose even more than it otherwise would have done. In poker and other games is called often to “tilt”, IE. When your emotions take over and prevent one from acting logically and successfully. This is a real risk when you are trading binary options as it is when playing poker.

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Limit your risks

It is often a good idea to try to limit the risks you take when you are trading binary options. This then binary options often have very short maturities. Down to as little as 10 seconds. These short durations make it easy to quickly lose a lot of money. Especially if you “tilts” as described above. You should therefore limit how much you let herself Act or lose on binary options for a single day or week. In this way to prevent losing too much money when luck is on one’s side, and maximize the amount of money you earn over time.

Binary options can be an interesting season in one’s investment portfolio and a great way to make a lot of money quickly but to be a successful trader it is necessary to know the market, and the risks of the trade. If you do not, it will not reach its full potential and risks when making less money than you might otherwise earn.

How do I earn money on a binary option?

How do I earn money on a binary option?

If you get the right in his prediction obtains a certain predetermined amount of money or a certain predetermined access per option. If you get wrong will receive no compensation at all. The option will always be worthless at expiration, so unlike for example a stock, it cannot save his option for future use.

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Binary options binary options is called because it either is fully paid or lose everything on a binary option. So there are only two different positions.

The worst thing that can happen when you bought a binary option is that it becomes useless. It is not possible to lose more money than you purchased options for.

Among individuals, it is normal that you buy binary options, but larger investors can also exhibit (sell) options.

European style or American style – what about binary options?

In financial values are talking about options of European style and options of American style. (There are other kinds of options, including hybrids between the European and American style, but they are rarer.)

Binary options are normally of European style, which means that they can only be effected on the due date. Options of American style can, however, enforce at any time up to and including the maturity date. Binary options of American style exists, but is much rarer than binary options of European style. Binary options of American style usually called one-touch options.

Time frames
There is nothing to prevent binary options are set out in a long time, but time is far more common. The starting time is sometimes as close as 60 seconds after purchase.

Examples of common timelines for binary options:

30 seconds
60 seconds
30 minutes
1 hour
Stock Exchange’s closure the same day
What are the most common binary options?
The vast majority of currently existing binary options is included in either of these two categories:

Cash-or-nothing
Cash-or-nothing (or nothing) is a binary option where you get a certain predetermined amount of money if you are correct in your prediction. Options of type cash-or-nothing is popular among investors who want to know both exactly how much they can lose and exactly how much they can win.

Example:

You buy an option of type cash-or-nothing that is linked to the value of a share in the company YYY. The agreement says that you’ll get $ 1,000 in compensation if YYY shares are worth at least $ 100 when American Stock Exchange closes today, on 15 april.

This means that you are already at the moment of purchase know you at the close of business on april 15, will either lose the cost of buying the option or receive $ 1,000 in compensation. This is the only scenario that could occur. No other amounts or dates may be at issue.

Asset-or-nothing

Asset-or-nothing (or nothing) is a binary option where the compensation you receive if you are correct in your prediction is linked to the value of a particular asset. The access that is normally the underlying security.

Why not buy shares directly instead of going for binary options?

shares vs. binary optionerEn of the reasons why binary options have become so popular is that they can yield big dividends on a small effort.

For example, suppose that you are interested in purchasing a bingär option of type asset-or-nothing, where the underlying security is a stock today trades at € 10. You think that the stock will be at least € 100 when the American Stock Exchange will close on april 15. Due to the large difference in value, you can find an exhibitor of binary options that are willing to sell you a binary option for € 1 that will give you € 100 or more if you get right in your prediction on april 15.

You take a big risk, but has at the same time chance to go plus a great deal more than if you had invested directly in shares.

Example:

You buy 10 binary options today for € 1 each. April 15 is the unerliggande shares worth € 100. This will give you € 100 x 10 = € 1 000 on 15 april. You have made a profit of € 990.
You buy 1 share today for € 10. On april 15, is it worth € 100. You have made a profit of € 90.
Worth bearing in mind, however, is that a binary option is just binary, i.e. either or.

You buy 10 binary options today for € 1 each. April 15 is the unerliggande shares worth € 99. You get no compensation at all and has been losing € 10.
You buy 1 share today for € 10. On april 15, is it worth € 99. The shares gained, while not up to € 100, but you have still made a profit of € 89.

Binary options in EUROPE
The EU directive on markets in financial instruments (MiFID2) makes a financial futures exchanges do not have to have the Swedish State to offer binary options in Sweden, but it is enough to warrant the broker has permission from any of the EU Member States.

Today it is common for financial futures exchanges operating in the EU is registered in Cyprus and with the Cyprus State, and therefore are required to comply with the rules imposed by CySec (the Cypriot financial supervisory authority) and MiFID. Binary options are covered by the State deposit insurance in Cyprus, which has a ceiling of € 20 000.

Even Malta has regulated trade binary options and counts them as financial instruments, including trading platforms in Malta must satisfy requirements set by Malta’s financial inspection and MiFID.

The binary option’s history – from lawlessness to EU regulation

Binary options have long been available outside the regulated stock markets and bought and sold through the so-called over-the-counter (OTC) trading. Because they are not sold on any large regulated stock exchange could be difficult to find suitable köpeobjekt or get sold the binary options they wanted to get rid of before the expiration date. This led in turn to that they began to be baked into the complex option contracts which not only covered the binary options. It also began to appear completely unregulated trading platforms on the internet that did not have a licence from any jurisdiction.

Thankfully, a lot has happened in the last few years, that have made trade binary options safer. For us in the EU, for example, the ability to make our transactions on commerce platforms that submit to Cyprus or Malta legal framework for trading in financial instruments, and that, therefore, the need to comply with EU directives. Cyprus introduced its regulation in 2012, followed by Malta in the following year. It is one of the reasons why the interest in trade binary options has grown so big in Sweden and other European countries over the past year.

Cyprus class binary options financial instruments in 2012
One of the reasons that Cyprus today is a normal country to register in for serious trading platforms is that Cyprus was the first country in the EU which created a framework for binary options. This was done in response to the “lawless” platforms that market trade binary options had started to appear on the internet during the second half of the 21st century. On these platforms was no guarantee that the client’s deposits held in a separate fund, which meant that the financial problems of the company behind the platfformen could cause the client’s money was used to pay the company’s debts. There was also no independent third party could control the transactions to ensure that they were carried out correctly.

Cyprus Securities and Exchange Commission (CySEC) announced in may 2012 a new policy regarding the classification of binary options as financial instruments;. 3 CySEC became this policy change the first MiFID member defined binary options as financial instruments. The platforms for trading binary options that were active in Cyprus had six months to submit a license application to the CySEC.

Malta class binary options financial instruments in 2013

In Malta, it was former Malta’s Lottery and Gaming Authority (LGA) which regulated the binary options, but since mid-June 2013 regulated binary options instead of Malta’s Financial Servies Authority (FSA). This then this authority confirmed that they believe binary options covered by the Markets In Financial Instruments Directive (MiFID), 2004/39/EC. Malta became the second EU country as classified and regulated binary options financial instruments (4)

Before this change took effect, it was a game condition from LGA to arrange trade binary options on Malta, but now you should instead have a Category 3 Investment Services Licence from the FSA. That binary options is seen as financial instruments also means among other things that operators must comply with MiFID requirements on minimum capital.

Warning for rogue traders

There are operators that offer products similar to binary options without actually being there, and that in different fuzzy, try to get the buyer to believe that it’s binary options offered though this is not the case. Strange pricing, arcane terms and unserious marketing is common among this type of vendor. You should therefore be careful when examining various possibilities to invest in binary options in order to make it through a serious actor.