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Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

The article on binary option trading strategy was useful. Thanks sharing for valuable information about binary options. Thanks for the article. Are you referring to building a strategy multi-step indicators in a trading platform? Does the starting point and ending point of your 50 candle low have to be the same color candlestick too?

You from tradingstrategyguides, could you create an indicator with these settings for us binary traders. That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this. And thank you so much for that knowledge. Please log in again.

The login page will open in a new tab. After logging in you can close it and return to this page. Binary Options Trading Strategy — Best Seconds Strategies by TradingStrategyGuides Aug 8, All Strategies , Options Trading Strategies 21 comments. And that, my friends, is the real beauty of binary options.

What are Binary Options? So, the first thing you need to decide upon is to select the asset to trade. Trading binary options require you to correctly forecast two things: Whether the market will rise or fall.

Your forecast needs to be accurate during a certain time frame — called the expiration time. The Best Binary Options Strategy Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. Use the second chart 1 Minute TF The 1-minute binary options or the seconds time frame is the best chart for trading binary options.

See below: Step 2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. See below: Step 3: Look for a bullish divergence to develop between the RSI indicator and the price. See below: Step 4: Buy a Call Option after the first candle that closes above the high of the 50 candle low The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line.

If you want to buy Put binary options, use the same binary options guide, but in reverse. See below: Conclusion — Binary Options Trading Strategy Before learning how to make money trading binary options you need a great Binary Options broker.

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Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to popular stocks, such as Google and Apple. The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website.

Trading cryptocurrency via binary trades is also booming. The volatile nature of cryptos makes them a popular binary asset. Bitcoin and Ethereum remain the most traded, but you can find brokers that list 50 or more alt coins.

The expiry time is the point at which a trade is closed and settled. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available.

Some brokers even give traders the flexibility to set their own specific expiry time. While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include:. There are also regulators operating in Malta, Japan and the Isle of Man.

Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation.

Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers. Recently, ESMA European Securities and Markets Authority moved to ban the sale and marketing of binary options in the EU. The ban however, only applies to brokers regulated in the EU. This leaves traders two choices to keep trading: Firstly, they can trade with an unregulated firm — this is extremely high risk and not advisable.

Some unregulated firms are responsible and honest, but many are not. The second choice is to use a firm regulated by bodies outside of the EU. ASIC in Australia are a strong regulator — but they will not be implementing a ban.

This means ASIC regulated firms can still accept EU traders. See our broker lists for regulated or trusted brokers in your region. There is also a third option. A professional trader can continue trading at EU regulated brokers such as IQ Option. To be classed as professional, an account holder must meet two of these three criteria:. We have a lot of detailed guides and strategy articles for both general education and specialized trading techniques.

Below are a few to get you started if you want to learn the basic before you start trading. From Martingale to Rainbow, you can find plenty more on the strategy page. For further reading on signals and reviews of different services go to the signals page. If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options:.

The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, settlement, and expiration date. All trades have dates at which they expire. In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types. Expiry times can be as low as 5 minutes. How does it work?

First, the trader sets two price targets to form a price range. The best way to use the tunnel binaries is to use the pivot points of the asset.

If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. If the price action does not touch the price target the strike price before expiry, the trade will end up as a loss. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. There are variations of this type where we have the Double Touch and Double No Touch.

Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration Double Touch or not touching both targets before expiration Double No Touch.

Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels. Some brokers offer all three types, while others offer two, and there are those that offer only one variety.

In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set.

Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version on the traditional websites. Brokers will cater for both iOS and Android devices, and produce versions for each.

Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are.

So, in short, they are a form of fixed return financial options. The steps above will be the same at every single broker. Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value , they can open a call. But where they expect the price to go down , they can place a put trade. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in.

As a financial investment tool binary options are not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers.

The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing. Binary trading strategies are unique to each trade. We have a binary options strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts , indicators and price action research.

Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. This will depend entirely on the habits of the trader.

With no strategy or research, then any short term investment is going to win or lose based only on luck. Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits.

So the answer to the question will come down to the behavior of the individual trader. Any investment or trade will be a gamble if done with no skill or knowledge. If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: these markets carry a lot of risk and it is very easy to be blown off the market.

Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds.

This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. A binary trade outcome is based on just one parameter: direction. The trader is essentially betting on whether a financial asset will end up in a particular direction.

In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss.

Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets.

The trading field is full of opportunities for those who seek to grow their assets. With the help of the right trading methods, even a new trader can multiply assets and gain more profits. While trading, it is always a primary need to be careful of what type of securities you invest in. By investing in the right securities, one can expect better returns.

It is a fact that online trading is one of the most convenient ways to trade. When it comes to online trades, even a new trader cannot ignore the potential of Binary Options.

We can say there is only a narrow chance for any other method to grow as progressively as Binary Options has grown. Since the past few years, it has become one of the popular ways of investing. Before entering the binary market, it is useful to know about the Binary Options OTC and how it affects the trade.

Over the counter is nothing but a process in which securities are traded through a network of brokers and dealers. It differs from the financial exchange because of the presence of this network. And because the latter is centralized as well. We can understand the broker-dealer network in simple terms as a person or sometimes a firm present in buying and selling.

The main purpose of a broker-dealer network is to buy and sell securities on behalf of its customers. They are required to do so with their accounts. Therefore, a customer can be free of all worries.

The presence of a BD network forms the basic structure of the OTC. It can involve equities, debt instruments, etc. It can also include derivatives.

A derivative is nothing but a type of financial contract. The value of a derivative depends on an underlying asset or sometimes a group of assets.

The sheer importance of over-the-counter trading can be seen with the securities missing a standard listing. In many cases, securities cannot make it to the listing due to not meeting their demands. For, instance a standard market exchange like the New York Stock Exchange may require strict demands for its listing. In such cases, these securities have an option that can prevent them from losing value.

And they can go with the over-the-counter method. Moreover, such securities can be called OTC securities. But, OTC trading does not mean that it is exclusive for OTC securities. For example, it can include both the equities listed on exchanges and stocks and those not.

With the help of OTC, trading stocks of smaller companies can get a safe alternative. Even after failing to make a presence in the listing, they can still trade their stocks. The first step for a trader to take before dealing in any OTC transaction is to identify the specific security.

The trader must know which security is ideal for purchase in an OTC market and decide the investment amount. A trader can find relevant information through various markets that provide details of various securities. Only after obtaining the correct information, the trader should engage further.

Following a respected marketplace in OTC is the best way to do so. The next step needs the trader to find a broker who can provide you with the OTC security or an OTC Binary Option. Then, it may be required to create an account and fund it with a certain amount of capital unless it is a demo account.

Therefore, it can be convenient to have a regulated and trustworthy broker. The Binary options OTC is ideal for trade, especially when the official markets are not open. It may be so that the binary options may miss the listing.

And trading in such securities is made possible in a Binary over-the-counter. The Binary Traders can look at it as a parallel option to trade with financial assets. An OTC market is an unregulated marketplace that deals with securities such as Binary Options, which are not listed under the rules of a stock exchange.

Usually, we can say that the small companies that do not have the resources to qualify the stock market conditions prefer to go for OTC. But, some companies trade their assets outside the normal market hours to gain more advantage.

The stock market is organized with strict regulations, so the trading opportunities are limited. Whereas entering into an unorganized market opens new doors with unlimited opportunities to trade.

OTC is not limited only to Binary Options. Even the forex assets, otherwise known as currency pairs, use this. The OTC Binary Options are used in trades outside the regulated market. Therefore, the official places to trade in Binary Options are out of the question.

Over-the-counter trades happen either when the market is closed or done with their normal hours. Therefore, if a trader wants to get an offer in OTC Binary Options, the ideal source is a Binary Options broker.

The operations concerning OTC take place directly within the platforms of various Binary brokers. Their platforms manage the trades completely. It includes the assets or the options and the hours of operation. A trader must know that since it is not an official marketplace, the prices of assets do not follow the same rules as a stock exchange.

They can rise and fall within the platform due to demand and supply. So, there is no official price, and as a result, the demand and supply come into play. Eventually, they fluctuate the prices. A trader can view the OTC binary broker as a market in itself. Therefore, finding the OTC Binary Options from a market or the broker conveys the same meaning.

Trading is the art of multiplying the assets to the maximum. Therefore, it should be continuous and should not stop. The primary reason for a person to embrace trading is to increase wealth.

To earn more in profits is the essential objective. However, trading only in official marketplaces like the stock exchange limits the potential. It is because they have fixed hours and working days. Trading in Binary Options OTC enjoys freedom from all such limitations, and as a result, offers a trader with more trading opportunities. The best part of it is that it can supplement the weekdays trading.

That means a trader can trade in official markets during weekdays and then switch to OTC on weekends. The only concern a trader might acquire is its unregulated nature. But, even that can be resolved by gaining relevant knowledge and expertise. Moreover, binary brokers play a major role while trading in OTC. Therefore, choosing a regulated broker can effectively reduce any chance of unwanted risks. That makes it a good choice to trade in Binary OTC. By analyzing the pros and cons, a trader can gain insight into Binary OTC.

In addition, it will help assess where an issue may arise and how far it can be helpful. Going for OTC in Binary Options trading is surely an alternative to the standard method.

It offers an additional opportunity for the traders seeking new ways. And regarding the safety of the Binary OTC market, we can say that as long as the Binary Options brokers are regulated , there is little to no need to worry.

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What Does OTC Signify? Trading in OTC Market The first step for a trader to take before dealing in any OTC transaction is to identify the specific security. OTC in Binary Options The Binary options OTC is ideal for trade, especially when the official markets are not open.

Where to Get OTC Binary Options? Therefore, the traders are themselves responsible for the falling and rising of the prices. Should You Trade in It? Pros and Cons By analyzing the pros and cons, a trader can gain insight into Binary OTC. Pros Binary OTC provides access to even those options or securities not present in standard marketplaces.

The small companies can offer the options at reduced rates, which is better than not getting anything since they are not listed. It is helpful for the customers in getting more choices of options. OTC trading involves very few regulations. It allows even those companies to enter who cannot make it to the exchange list. In Binary OTC, speculative traders can also get significant returns. It happens through the low-cost penny stock. Cons Few regulations can lead to low availability of information to the public.

Since there is no disclosure of the deal from both parties, there is a high possibility that the parts of the contract are not honored by either of the parties. Binary Trade is a high-risk market, so it is better to invest what you can lose at the start of your trade career. Even after failing to make a presence in the listing, they can still trade their stocks. Then you can sit back and wait for the trade payout. Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? We have a binary options strategy section, and there are ideas that traders can experiment with. Google Maps.

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