How To Win More Quickly, Easily and Consistently With Forex Binary Options
“Including profitable trading strategies and concepts that are simpler and less stressful than what you're doing in forex right now!” now!”
RISK DISCLOSURE STATEMENT
Trading any financial market involves risk. This e-book, the website and its contents are neither a solicitation nor an offer to buy/sell any financial market. The contents of this e-book are for general informational and educational purposes only (“contents” a lso means the website and any email correspondence or newsletters related to said website). Although every attempt has been made to assure accuracy, no expressed or implied warranty is given as to its accuracy and no liability is accepted for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will, or is likely to, achieve profits or losses similar to those discussed in this ebook. Past performance is not indicative of future results. By reading this e-book, subscribing to associated mailing lists or using the website, you will be deemed to have accepted these terms in full. The author, the e-book, the website and its representatives do not and cannot give investment advice, nor do they invite customers to engage in investments. Every effort is made to ensure that the website is available 24 hours per day, but no liability will be accepted if, for any reason, the site is not available. The information provided in this e-book is not intended for distribution or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject any associated entity to any registration requirement within such jurisdiction or country.
Hypothetical performance results have many natural limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses, are material points which can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results, all of which can affect actual trading results. The right to change these terms and conditions without notice is reserved. You can check for updates to this disclaimer at any time without notification. The content of the website and this e-book are copyrighted and may not be copied or reproduced.
Introduction This e-book is intended to help both beginning and experienced forex traders understand how binary options can enhance, improve and even replace some of your current forex strategies.
What You’ll Learn in This Exclusive Report
They're still a relatively new phenomenon – that's why most “traditional” forex traders don't know a whole lot about them. In fact, it's only been since mid-2008 that trading platforms have been offering simplified versions of exchange-traded binary options to the retail trader.
Understanding Binary Options Basics: Concept and Terminology
Their growth has been very fast though, and today there's around 90 such platforms (including white label products). What they all have in common is a new way for you to secure more consistent profits for less time and effort than what you're used to.
The Special Advantages of Binary Options Trading in Forex
And isn't that what trading is all about? Making more money for less work? That's why you'll find binary options to be a terrific addition to your arsenal of top trading tools. They're an excellent, simple way to make money faster. They're very easy to understand too! In the few minutes it takes to read this e-book, you'll know all the critical points needed to successful trade and profit with them. Let's start with the most basic stuff first and advance quickly ...
What Exactly Are Binary Options? If you're not familiar with options at all , an option gives you the right (but not the obligation) to purchase the underlying asset on which the option is based ... at a specified strike price ... on or before a specified date or time period.
A Sample Trade: It's So Much Simpler Than “Regular” Forex
Some Useful Trading Strategies For Binary Options
The Best Choice for the Fastest Binary Options Profits
Final Words and Advice
You acquire that right by paying a premium to the seller of that option. You then make a profit if the asset price exceeds your specified price target before it expires. (We'll explain all this in more detail in just a momen t.)
Now, binary options are the simplest kind of option available because the payout is always one of two scenarios. With binary options, you either receive:
The fixed payout determined at the time your option is purchased
OR
Nothing at all (you lose the amount risked in the trade)
There's no in-between. You lose a fixed amount or win a fixed amount. Therefore the "binary" in binary options refers to the fact there's only two possible outcomes. Which explains why binary options are also referred to as all-or-nothing options ... digital options ... and fixed return options (FROs) too. (They're all the same thing but you'll encounter the 'binary options' name most often when doing any kind of web search.) Other types of options can be much more complicated and difficult to understand. But binary options are literally a point-and-click operation and require no complicated math or formulas to implement.
A Few Quick Terms You Should Know Here's a short list of terms you should know to understand binary options better. We've mentioned a couple of them already ... Asset: The currency pair upon which the option is based. e.g. EUR/USD. This can be any commonly-traded currency pair, or maybe one of the more exotic pairs. The availability of any exotics depends what your binary options broker has to offer. Premium: The fixed fee you pay to acquire an option. This is the amount you forfeit if the trade is a loser, and there are NO extra fees associated with this amount. Expiry Date: The time or date at which your option expires and the price is examined to see if you are in, at or out the money. With Forex binary options, this time and date can be very flexible! Strike Price: The asset price at which your option will be in, at, or out of the money. Again for this see below ... In the Money: If you win with your trade, you're “in the money” because the price moved past the strike price of your option before it expired.
Out the Money: If the price doesn't move enough (or it moves too late) you're “out the money” and you have a losing trade. At the Money: If the price at expiration is identical to your strike price, you're neither right nor wrong and your investment is returned in full with binary options.
e.g. For a EUR/JPY binary option, your chosen strike price could be at 142.75 and the expiry at 22:00 hours today. It really is that simple! And you'll have your choice of pairs to pick from too. EUR/USD, USD/JPY and so on are all readily available. In general, the availability (and liquidity) of binary options is about the same as for the underlying Forex pair.
What Kinds of Binary Options Are Available? All binary options pay out the same whether the price is 1 or 100 pips in your favor. They all pay out a fixed loss if you're wrong – there's no middle ground. But there are of course a couple key difference between certain binary options:
Whether a given option is a call or a put
How long it will be until the option expires as a win or a loss
Let's discuss the call/put difference first:
A Call/Up option is what you buy when you expect the price to rise. It's equivalent to buying the underlying currency pair.
OR
A Put/Down option is what you buy when you expect the price to drop. It's the equivalent to shorting the underlying currency pair.
So you can go long or short simply by buying the appropriate binary option. The second difference between options is how long you have until they expire. Binary options are also offered in fixed durations which vary by broker: The shortest time frame is 60 seconds (yes, 1 minute). That's the fastest one possible for quick profits!
There are also other increments ranging up to 30 minutes, an hour and even the close of the trading day. Which interval you trade depends on what a given binary options broker offers you ... ... and of course YOUR expectations of what the price will be at a certain time. The expiry of binary options is where you have the greatest flexibility. If you have an opinion about the day's direction in a given pair, you can buy the appropriate call or put that expires at the end of the day. If you're confident about where it's going in the next hour , you buy that call or put instead. And if you playing the shortest possible fluctuations, then take the 1-minute calls or puts for quick gains. It's completely up to you which timeframe you want to work with, but 1-minute options offer some unique opportunities not available at the longer intervals.
What Special Advantages Do Binary Options Have? As you've probably noticed, the key advantages of binary options are simplicity and flexibility. There are no bid/ask spreads ... leverage ratios ... deposit margins ... stop-loss strategies ... hidden transaction fees ... or interest rate differentials to worry about. This provides you with some exceptional conveniences not available in any other kind of trading. For example ...
Have you ever been killed on a widened spread during expected (or freakishly unexpected) news that forced you out when the spread exceeded your stop loss?
That can't happen with binary options.
How about being handed an unusually big loss from a huge move that went way past your stop before you were filled?
Again, that can't happen with binary options. Those tragedies are due to volatility and in regular forex trading, too much volatility can be a disaster. But in contrast, volatility becomes your friend when you trade with binary options!
Binary options allow you to strictly define and minimize your risk in ways you simply can't with regular Forex. You'll enjoy greater success simply by being able to manage your risk exposure with a high degree of precision. All you have to focus on is getting the direction of the next move correct. The magnitude of the move isn't important as long as it passes your strike price. A move that exceeds your strike price by even 1 pip gives you a full payout! Now isn't that a lot simpler than what you're doing now? It all boils down to these key points: Simplicity: Binary options are simple to understand and straightforward to trade - you only need to worry about the direction of the currency pair. Will it close above or below the target price? That's it! Transparency: With binary options, there are no surprises in the form of unexpectedly large losses. This lets you trade with less stress and enables you to m ake better decisions overall. Which in turn lets you generate a higher percentage of wins! Limited Risk and Predetermined Payout: Your payoff is fixed and pre-determined so your potential risk and reward is always known. Fast Payoff: With 1-minute binary options in particular, you can take your profits very rapidly and move on to the next opportunity immediately. This means that with accurate forecasting (a.k.a. great signals), you can build account equity faster than with any other kind of trading.
Now we're going to talk about the incredibly flexibility you get with binary options: selecting a suitable expiry time. But that fits best with trading strategies, so let's move to the nex t section.
How To Trade Binary Options For Maximum Profit All the fundamental and technical analysis skills you've used for regular Forex trading apply to binary options trading too. Trading off news, chart patterns, indicator signals and so forth is just as valid as before. You're just using a different instrument to get the job done. One with far fewer “moving parts”. The “one outcome or the other” proper ty of binary options makes trading a whole lot easier because your decision-making has been simplified. In fact, the following steps are all you have to worry about:
1. You select the currency pair you want to trade. Let's say it's EUR/USD and the market price is 1.31041. 2. You pick the direction you think it will go. You're bullish, so you click Call Option (or UP, depending on the broker interface) 3. You enter a trade amount . We'll use $100 here, although many brokers will allow you to risk as little as $5 a trade. 4. You select an expiry time. You feel a strong move in the next minute is imminent, so you select 1 minute timeframe. 5. You confirm the trade. After that, the broker will have your Open Position data displayed as the time counts down. And when time is up, you'll have your result:
A loss of $100 if you're wrong. And a $175 win if you're right. That's because payouts on binary options 75% of the premium. So this means you'll pocket $175 on your $100 trade if the EUR/USD price is higher than 1.31041 just one minute from now. Yes -- that's 75% profit ($75 in this example) in just one minute. Can you see the incredible power of this type of trading if you're skilled at predicting the market direction? In just 30 minutes, you could rack up a huge amount of profit with as little as a 2:1 winto-loss ratio. And things only get better if you're good enough to deliver an even higher ratio than that! But let's keep it at 2:1 (a 66% win rate) for this example. In 20 days at 20 trades a day (easy to do when each trade is just 1 minute long), you could turn $200 into $3,570! Here's a simple table showing you exactly how fast your account would grow:
And note that this is very possible even when risking a small 5% on each trade. That's just $10 on a $200 account. You can play the short hops and blips in the market with no worries that you'll get sideswiped with a huge loss. If you're wrong, it's over with quickly. And if you're right ... you're set up, paid out and ready for the next profit ASAP! Note that you didn't have to spend a single moment fretting over the spread, paying a commission, adjusting a stop loss or a profit target, or exiting the trade in this example.
None of that matters when you trade binary options – trading becomes as hassle-free as you'll ever find. Now let's look at a few strategies you can consider to make the most of binary options.
Some Useful Binary Option Strategies Worth Trying Scalping If you're particularly interested in scalping trades, using binary options is absolutely the best way to do these thanks to their limited loss property. This includes trading the news or any other “spectacular” event where the market can move very quickly. Sure, you won't get a huge windfall profit using binary options if the price explodes in your direction.
But your potential loss is capped – and ultimately that's much more important because you can't trade at all if you've been wiped out by a large loss. Meanwhile, there's nothing stopping you from entering one trade after another (1 minute at a time) once you're sure the market is going to keep its explosive momentum going and going.
Chain Reactions You can make even more profit by exploiting common chain reactions across different currencies in response to news or other events. What's good for the USD is often bad for the EUR or JPY (or gold, if your broker offers binary options trading in that asset too). And vice versa, of course. Because there's no margin or leverage to worry about, you can put on as many different trades as you want to take advantage of simultaneous price moves across different currency pairs. This is the quickest and easiest way to put on multiple trades without getting forced out due to a lack of margin in your account.
Trends and Breakouts Is the market moving in a nice trend? Or just breaking out from a tight range? Then enter one high-probability trade after another. Buy calls in an uptrend and puts in a downtrend. You can rack up a LOT of profits one after the other by following the trend. And yet your loss is limited if you're too late and the trend is truly over.
Trend Reversals Did the market fail to set a new high or low after a prolonged rise or decline? You can test it for a reversal with a small, low-risk binary options trade. If you're wrong, you can get back into the earlier trend after a limited loss. And if you're right, you've got your first profit in the new trend already. Then you can scale up your trading size once you're confident the market's truly gaining momentum. It's easy to become more daring about testing where the market's going next with flexibly-sized, limited-risk binary options.
Channels If the market has no trend and it's locked into a fixed range, binary options are an ideal way to play the support and resistance levels. Buy calls at support and puts at resistance. There's no more worrying that you'll get stopped out by a sudden price spike against you. As long as you've given yourself enough time to expiry, you'll get your profit as the price returns to the range you've identified. This works for the counter-trend surges within big trends too. Instead of w orrying about limit orders and stop orders to get in, you can just use binary options instead!
The Best Binary Option Choice for the Fastest Profits As you can see from the previous sections, there are a lot of ways to make money from binary options. The setup is simple as 1-2-3 and you don't even have to worry about exiting your trades once you're in – it's all taken care of for you. Get the market direction right by even 1 pip at expiry, and you've made 75% on your money. What's more, making profits doesn't get any faster than trading with 1-minute binary options. You can of course apply exactly the same principles to 30 minute, 1 hour or end of day options too. But you won't make money nearly as quickly as at the 1-minute level. Why wait longer to make a 75% return when you can do it in 1 minute instead? This is especially important if you're busy with work, family or other commitments that don't give you much time to trade. Because no matter how crowded your schedule, you can fit in a few minutes here and there to review the markets ... put on some 1-minute trades ... and then get back to whatever you were doing earlier, right? But it's totally up to you. If you prefer longer time frames, then there's nothing stopping you from making money at the pace you like best. Binary options work just the same no matter how long (or short) your personal profit horizon happens to be. The 1-minute version just gets you there a lot faster!
Final Words and Advice By now you should understand exactly what binary options are and how they can help you improve your trading. The fear of losing money is a powerful one – but binary options keep you from suffering a catastrophic loss if things go badly wrong.
You're also able to tailor the time-to-expiry of your option to match what you see in front of you. Never get stopped out again by an adverse move that slides against you before going in your favor as you originally forecast. As long as you've given yourself enough time, you'll finish in the money. And you can enter into a position immediately without worrying about stop losses, limit orders or other complications. Just pick a direction and an expiry time and you're done! If you're one of those traders who has problems staying in a trade due to worry and stress, then binary options offer yet another advantage for you: pick a suitably short time to expiry and then you'll exit the market at that very moment ... ... without you having to take another action. You'll be out automatically with your full 75% profit (or not). Not having to make that extra “exit decision” will not only save you a lot of stress, but also your mind will be free to concentrate on the next entry when you see it. That's peace of mind that will only improve your trading immensely . And if you're really new to the idea of risking real money in the market, you can get started with as little as $5 a trade too. It really is that simple and straightforward. So seriously consider taking the next step to improve your forex trading results with binary options. We have some recommended brokers and software platforms you can try when you're ready. Just email us for details and we'll fill you in!