Trade Forex, Commodities, Stock, Options with Binary Options
Secrets of Binary Trading
If you are looking for ways to make money online, then you have come to the right place. Binary options trading is a liquid trading market which involves traders and investors around the globe. Investors and traders participate in the Foreign Exchange Market through the Internet and here on www.xforextrade.com. Options trading can be practiced anywhere from a home based business which can be pursued by an individual or by massive hedge funds. New investors and traders are coming to the binary option market via electronic and online means.
The online binary trading market does not work like stock trading. It has day traders which buy or sell foreign exchange, commodity, and stock through broker platforms. Binary options trading has surged in popularity recently as it can offer quick ways to make money.
Stocks and futures are traded through exchanges and are conducted by market makers of major banks. Big and small brokerage firms are located around the world which makes markets run 24 hours 5 days a week. It is open to the financial network which earns billions of dollars daily in average turnover.
Options trading includes trading of currency in pairs or forex. EUR/ USD is an ideal pair for the Foreign Exchange Market. The buyer of EUR/USD pair is about buying Eurodollar and selling US dollar at the same time.
Traders can lose just like in any other market. The reason for loses varies but in the majority of cases it is a result due to lack of good binary trading means. This is followed up with risk management principles and sound money practice which are lead by undisciplined trading behaviors. Incorrect mindsets and motives for the forex market also play a large part in loses. Understanding the market trend and what role they play in a trader’s life is followed with the notion that the “trend is your friend.”
Options trading is a ‘wild wild west’ so it can create a lot of confusion, but the strategies and tactics can be skilfully learned through the various articles online and through experience. This information is known by some traders. The foreign exchange markets requires determination, regulation and will power. The binary market leverages strength which can be excessive by arranging a correct and suitable trading strategy which is a blend of combinations and indicators. The indicators and studies calculate the trends, support and confrontations in the binary market.
More over, the binary options market is not magical. It deals with human psychology. You can better understand the supply and demand through various tools that are offered. Every trade market has its own peculiarities. Understanding the basics of human feelings and what drives the markets will help you succeed. It is a fact that the daily market controls 95% of emotions of live traders.
Trading binary options is advantageous comparatively with other kinds of financial instrument such as commodities, bonds and stocks - it is risky in the sense that any market is risky, but in actuality binary trading is less risky that other markets in that the prediction is only a call or a put.
It is recommended to understand the basic binary options knowledge and terms which are used. These basics can be learned right here on www.xforextrade.com through the vast literature and online resources that we provide
If you are looking to make money from home, and open up a new trading career that can add extra income for you, than watch our video and start to trade binary options today!
Binary Options - A growing trend in the market.
Why is market trading so difficult? Many traders don't realize that the reason they fail in the stock market or in the forex market is because there are so many variables to keep track of in order to make a profit in a trade. Usually in a market trade, there is an entrance price, a target level, and a stop loss. In order to make money with the trade the price needs to reach your target without hitting the stop loss.
Often what happens is that the price moves in the direction of the target, almost reaches it, but then falls back down and hits the stop loss. In this case, you almost could have made money, but it just didn't quite get there and you lose money on the trade.
Even worse (psychologically) is when the price falls triggering your stop loss and then jumps back over your target price. There is no profit in this trade as well. There are many different variables that are involved with in order to make money off of a trade and that adds to the complexity of being successful in these markets.
Binary trading offers a unique system whereby you can get rid of all the in between details, and all you need to know in order to win on a bid is whether the trade price will be above or below your entry position by the end of a certain time period. If you are looking for ways to make money then binary options can be an excellent way to get supplemental income.
With options trading, you only need to guess the direction of the market - up or down, even by one pip. Getting the market trend correct means you win. Getting the market wrong means you lose. In traditional trading you need to guess the direction and in addition you also need to guess the amount that the market will move in that direction – I.e. your target. In addition there is the problem as mentioned before when your stop loss is reached before your target is reached. All these extra variables make trading more difficult.
With binary options, Forex, Stocks, indices and commodities can be traded on the same platform. Binary Options trading simplifies the trading process in the following manner:
After having analyzed a Forex chart, for example, Euro vs. Dollar, you believe that price is going to be above the current market price by the end of the day. Then you would buy a call option. It doesn't matter if at the end of the day the market is up by 1 pip or 100 pip - if you predicted the market trend correctly then you win. You can choose the time limit of the binary options trend choice whether it be an hour, day or week. Now with some of our top binary options brokers, you can make 60 second trade. The phrase make money online is given a whole new definition with this amazing new option that platforms are offering.
The unique part about binary trading is that you decide your time period of the trade. If the market closes and your prediction was correct, then you win. Again it doesn't matter how much you were correct. If you believed that the market would close below current market prices by the end of your time period, then you would buy a put option. It's either up or down. Again, it is important to emphasize that if you predict the correct trend correctly you make money. If you get it wrong you lose money. The most significant part of binary options is that your win/loss ratio is significantly improved since predicting the overall market direction is much easier than predicting everything - the correct direction, entry point, target and stop loss. The binary option market gives you only two options, call and puts.
In addition to regular binary trading there are also one touch binary options. There can be tremendous returns on this type of option. What "one touch" means is that if you believe that the market will touch a certain point, whether it be up or down (call or put) then you win. The returns on these types of options investments can be massive and up to 350%. The best part about options trading is that your risk is 100% controlled since you only loose what you have defined for a particular trade.
For example, let's say you want to invest $100 that before the trading period is over the price will reach a certain level. If it does you win, and if the market doesn't you lose. It's that simple! In addition you can make 350% the amount of initial investment. This is a massive win ratio. Furthermore, traders do not need to be concerned with stop losses. The market could drop, and then shoot back up, and trader could still win.
Alternatively, a trader can decide to buy a "put" and at the end of the options trading period, if the market is below what the entry price was, the trader wins.
Binary options simplify the markets greatly. One of the best parts about it is that the game is reduced to one single question. Will price go up, or will it go down? Join today and you'll be part of a vast network of traders who make money online.
What are Commodities and How to Trade Them
Binary options commodity trading can be learned according to the latest market trends. Here's how to understand commodity trading: Trade is conducted successfully when the “trend is your friend”. It’s an old proverb which suits trading. Here the market trend is emphasized. Market trends are emphasized because of numerous reasons, but a fundamental reason is the price of a commodity which can be increased or decreased due to the supply and demand.
It is a simple concept due to which a rise or decrease in price can be observed for the most part. The supply and demand for a commodity is the root cause behind the set price of a good. This is the latest trend in the trade market which helps people traders move ahead in their careers.
A commodity is a basic traded good having numerous common properties. Previously it consisted of primary goods, i.e., goods which are not processed. Wheat and copper are good examples to understand what a commodity is. In order to trade commodities, there are international standards used for buying or selling.
How to trade commodities according to trends?
Price charts helps you know what is happening in the commodity market. Charts will also help you develop an understanding of how to become successful a trader. Keeping an eagle’s eye on the price chart for an absolute time span will help you draw your supply and demand chart and the price chart for your commodity. A price chart is the source to reveal price trends. These charts are similar to reading forex charts.
More importantly, price charts are eligible only for some time or different time frames, it varies according to the market trends. Interestingly, for commodity and future day traders, a long term trend’s time varies from 60 minutes or 24 hours. Moreover, for swing futures, the time span can be prolonged to a couple of days or a week possibly. For position traders particularly, the price trend can be measured for a month or 6 months time period.
By observing the commodity perspectives, you can learn all about commodity trends. It will reveal the most effective factor of commodity trading aspects: time. Correct time to observe the commodities market and then entering and exiting respectively can make your efforts successful without losing a penny.
How does trend trading effect commodity trading?
Now, one can establish learning and observing by using chart patterns to understand and execute trends of different commodities in a specific market. A commodity price chart can also be helpful to know when and how to exit markets based on resistance and support points or areas. If trending is high, you must look for the last support point to place a stop-loss order.
A stop-loss order identifies you and your broker. It will tell you at which point you have to exit a market. This usually happens when market trends move against your position and the price chart takes a downturn. It can cause a money loss. For commodity trading money management is a necessary skill which will help you in futures contracts. It is extremely difficult to learn commodity trading completely especially when you are a beginner. So as we always recommend do your research! Furthermore this is one of the main reasons why we suggest for beginner traders to move over to binary options as the market trends and requirements for making money are far easier to understand.
Binary Vs Stock
Binary Options Trading Vs Stock Trading:
Unlike the stock market, the binary options market is an over the counter (OVC) market without a central place where the actual currency trade occurs. The binary forex market is considered one of the largest and most liquid financial markets globally. There is no clearing house to match the orders in options trading.
Years ago, forex was only open to hedge funds and banks and it was not accessible for retail traders or investors. The trend has changed and in recent years it has opened up to investors as well through various binary options brokers
Stock trading is older than options trading. With recent advancements in technology it has become easier to access retail traders to trade stock and foreign currency from any part of the world. With the help of the Internet it has become easier to access these markets and the low commission has greatly increased the winning odds for traders. This privilege is offered in both binary option and stock trading.
To establish a conclusion it is necessary to compare the odds and benefits of retail stock trading with binary trading.
• Type of investment - Binary Option vs Stock:
The commodities which are bought and sold in options trading and stock markets are entirely different. In stock trading specifically, a trader is directly buying or selling a share in a particular organization of a country. As far as stock markets are concerned there are many types of stock markets around the globe. Numerous factors are responsible for the rise and fall of stock price.
Binary trading is about trading currencies, stock or commodities from another country. In a forex transaction for example, a retail trader purchases a currency from a country and sells that currency to another and the trader expects to earn profit on whatever currency he has bought, with respect to the currency he sells. Forex trading is about betting on economic prospects of one nation against another nation. Contrastingly, binary options forex trading is simply about determining whether the price of a given currency will go up or down from the purchased price. Thus the trader isn't looking to buy or sell a currency, but purchasing either a call or put based on whether he or she believes the currency pair will rise or fall
• Liquidity and Size of the market:
Foreign exchange is larger than any trading market. An estimate of over US $4 trillion in daily transactions is conducted. It absolutely dwarfs stock markets. In stock markets thousands of stocks are made available, but currency pairs in forex are few. Hence forex is less leveled to price manipulation by big players in comparison to the stock market. Forex offers liquidity due to huge market volume as opposed to the stock market and thus offers better price spreads to retail traders
• Working hours:
The foreign exchange market is open 24 hours while the NY stock market opens at 9:30 am EST and closes at 4pm EST. This shows the flexibility which is offered by currency markets. Another disadvantage of the stock market is that they are open to market makers for pre-market hours from 8:30 am to 9:20 am. Also the post market hours starts from 4:30 pm to 6:30 pm EST. These pre and post market hours are actually peak hours when the majority of the organizations release their earning results which impact stock prices rate.
Last but not least, while dealing in stocks a retail trader needs to have a good amount of capital in order to really see a ROI (return on investment); however options trading can be initiated with only a $250 deposit and the profits can be up to 85%. $ All in all binary options are more flexible than the stock market.
The above information reflects the viability of binary trading in comparison to stock trading. All traders must understand that there is inherent risk when investing in any market.
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