Why you need a Binary Options Demo Account

Binary Demo Account is an account in which you may start practicing for the trading binary options, it is risk free.  The demo account gives you access to enough amount of virtual money that you can use to start trading.  You are able to trade in the real time using real assets and you can see how you can translate such skills in the real trading.

Trading with a demo account is like real trading but you are not in a place of making the losses or the profits. You should have the same skills that are required in the actual trading so that you can be able to make money in your demo account.  A demo account is a risk free option for someone who just wants to test a new strategy, who is new to a specific broker or who just started to trade with binary.

dd1In case you had never tried to trade with binary options, there is no need to learn it in the hard way.  It is hard to succeed when you start trading with binary options and you start with real money trading. When you use your money to learn how to trade, you are losing your money for nothing. The real trading is normally tough especially to the new traders.  Even if the binary option can look simple when it comes to trade with it, it is normally difficult to be able to master it.

Like any other skill, you need to practice so that you can be able to make profits in the marketplace. If you have not practiced in the proper way, you will lose your money or you may make profits by being just lucky.  It requires you enough time to know how to trade with binary and with a demo account, you will be able to speed up your learning process without putting your money at risk.

A learning curve in the trading binary is always steep. It will take you time to be able to develop enough skills that can make you to trade profitably. If you do not use the practice account, it will be like throwing yourself into the water and you do not know how to swim.

Binary Options Brokers

Most of the top brokers have Binary Demo Accounts and you are the one to decide which broker to choose and how to use your demo account. However we strongly suggest choosing of these brokers: 24Option, TradeRush or Banc de Binary. They have proven their good qualities during the years. Read this TradeRush Review to find out more.  There are some brokers who require that you open your real money account before a demo account but this does not mean that you will always have to trade using your money. This is to make sure that you are interested in the trading not just wasting their time. There are people who just open the demo accounts to practice them without having the intention of trading afterwards.

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Some people may trade for few hours or few days on a demo account and they may think that they are ready to start trading with real money. However, this is not the case. There are some brokers who limit the amount of virtual money you can access to or others let you access the demo account for 72 hours only.  Even if this may be just enough for you to master a software on the platform, it is not going to be enough time for you to master any given strategy.

To know if a strategy works or not, it will take some months. If you want to make money while trading, you need to make observation of the market for a long time, even before you start with a demo trading.  In this way, you are going to be able to test a certain strategy and to get the feel of how everything works and to make adjustments where they are needed.

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High/Low Binary Options

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The binary options have two possible outcomes whether the trader earns a high profit or earns nothing at all. Binary options are easier to understand and simpler to use. New traders entering the stock market regard the binary options as the best experience to start with the market. The most common binary options are the high-low binary options. These binary options provide an access to the assets such as indices, stocks, foreign exchange and commodities. The high-low option in the binary market is also called as the fixed return option.

Fixed Return Option

The fixed return options mean that these options have certain expiry periods. The expiry period may be a certain day or certain time during the 24-hours of a day. It is mainly in the hands of traders where and how much the traders invest. If a trader invests correctly according to the tendency of the market. And in addition to it has a high price of a certain commodity at the expiry time may win or gain a higher profit margin. In contrast to the merchants that have a little bit of know-how about the market are unable to invest at the right time, and they may lose the amount they have invested in their binary options.

Basic Rules

hw1There are two basic rules for a binary options market the ‘call’ and the ‘put’. A call option is for the traders who believe that the market price will rise in the future and buy a certain commodity, they term it as a Call. And if a trader believes that the prices and rates will fall below a certain level and they purchase the options, this is termed as Put. The strike price is another feature of the high-low binary options market.

 

The strike price is the price of commodities, indices, or stocks at the time when the expiry period has just ended. This price determines the profit gained or loss suffered by a trader in the market. Therefore, the forecast near the expiry time is the most important.

High Point

The high point is the point that provide the investors a right but not necessarily the option to purchase a commodity at a high price. These are usually called as the Call options. The Call options are used by the investors who are long going in the market. And seek for more profits than other investors and traders. These options are utilized by the traders and investors who are generally considered as the bulls of the markets. Bull means a trader who purchases the stock at a higher price and sells it a lower price and when the price is lowest he/she buys it again.

Low Point

The Low point is the point that provide the investors a right but not necessarily the option to purchase a commodity at a low price. These are usually called as the Put options. The Put options are used by the investors who seek for a short term stay in the market and want to earn a profit in the shorter period. These options are used by the traders who are considered as the bears of markets. Bears are the traders who buy the commodities at a low price and then seek the opportunity to sell the stock again when the prices are high thus earning a profit margin quickly.

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How Efficient is the Use of Binary Option Robots

006One of the characteristics that define as humans is the need to be efficient. This can be seen in almost all the tasks that we do as regardless of from what angle you view the world. In the financial markets, things are no different. Automated systems have been replacing manual ones over the years to this day. In the Binary options market, the most recent development is the binary option robots. These new invention is able to among other things, monitor even the slightest changes in the market, weigh the options and advice you on your best move to take advantage of the situation.

Why they are so popular

As with all other securities, binary options require that you constantly watch out for market trends and know all about the factors that will affect the performance or price of an asset you “Put” or “call” (-ed) an option on. The need for this regular and up to the minute follow up on the securities is what makes these robots so popular. With one that is genuine you will have a new right hand to assist you on all matters binary options. Unfortunately, the fact that most, many of which are scams, offer supernormal profits also makes them popular especially among beginners and unskilled traders.

How they work.

However, there are some that are genuine. These use an algorithm created by software developers, with the aid of brokers specializing in binary options. This collaboration integrates the technology of automation; with the knowledge of experts in the binary markets to create a system that can analyses in detail, markets for these options. While doing this they will be in search of trades that offer the highest chance of predictability and offer courses of action needed. In addition to these some of these robots will actually go as far as trading the options for you. Here though, you need to incorporate the software with you binary trading platform.  Awesome isn’t it. All this you will find packed in software that is sold as third party to those in need of it. As well most are designed to run on all of the known operating systems both in PC and Smartphone segments.

The hurdles to be jumped

There exist a number of challenges that exist in the process of finding a binary option robot that will work for you. This is mainly because of the many fraudulent ones that exist. The creations of equally fraudulent and unscrupulous developers, you would be wise to weigh all your options, and consult widely to avoid getting caught in one of the related schemes. Knowing how to choose the most effective ones is also a challenge. This because there is no need to stick to a product that gives you a lower return when there is one with a higher profit in the same market.

But how did it start you wonder?

007Originally, automated trading was meant to help markets deal with the high trade volumes rather than for use as tools in speculative investing. Conversely, automated trading of a speculative nature was made popular with introduction of online trading. Somewhere along the way some geniuses were hit with an eureka moment realizing they could mix the two aspects up and bless us with the marvel that is binary robots. Today, more than half the trading in Wall Street is through algorithmic trading.

And they are a blessing indeed to those that are able to find genuine ones and use them appropriately. It has helped many rookie traders make better trades earning a higher return and making less in losses. Worth noting however is that they are not substitutes to the work that traders will do in seeking out trades. Rather, they are helpers meant to reduce your work load in finding worthy trades.

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What are Binary Options?

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An easy way to trade price fluctuations in various global markets is binary options, but a trader has to understand the rewards and risks of these frequently misunderstood instruments. You should know that binary options are different from traditional options. And if traded, one will find these options have different payouts, risks and fees, not to talk about a completely different investment process and liquidity structure.

Binary options traded outside the United States are also usually structured in a different way than binaries available on United States exchanges. Binary options are an alternative when considering hedging or speculating, but only if the trader fully understands the 2 potential outcomes of these exotic options. The United States Securities and Exchange Commission warned investors about the possible risks of investing in binary options in June 2013 and charged a Cyprus-based company with selling them illegally to United States investors.

What Are Binary Options?

Classed as exotic options are binary options, yet binaries are very simple to understand and use functionally. And the most frequent binary option is a high-low option. Providing access to indices, stocks, foreign exchange and commodities, and high-low binary option is also called a fixed-return option. And that is because the option has an expiry time/date and also what is called a strike price. The trader is paid a fixed return regardless of how much the instrument moved if a trader bets properly on the market’s direction and the price at the time of expiration is on the right side of the strike price. A trader who wagers in the wrong way on the market’s direction loses his/her investment.

He or she would purchase a call if a trader believes the market is rising. He or she would buy a put if the trader believes the market is falling. The price must be above the strike price at the expiry time for a call to make money. The price must be below the strike price at the expiry time for a put to make money. The expiry, strike price, payout and risk are all disclosed at the trade’s outset. For most high-low binary options outside the United States, the strike price is the current rate or price of the fundamental financial product, such as the S&P five hundred index, EUR/USD currency pair or a specific stock. For that reason, the trader is wagering whether the future price at expiration will be lower or higher than the current price.

Foreign vs. United States Binary Options

Binary options outside the United States usually have a fixed risk and payout, and are offered by individual brokers, not on an exchange. And these brokers make their money from the percentage inconsistency between what they pay out on winning trades and what they gather from losing trades. As there are exemptions, these binary options are meant to be held until expiry in an “all or nothing” payout structure. Many foreign binary options brokers aren’t legally allowed to solicit United States residents for trading purposes, except that broker is registered with a United States regulatory body such as the Commodities Futures Trading Commission or SEC.

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