In forex trading you don’t know how much you will gain. You don’t know how much you can lose. With digital options these variables are decided before even opening the trade and as such digital options eliminate a lot of the guess work involved in trading. So instead of having to know both the direction of the market and the stop point, time needed to realize profit, how much is the right amount of profit, volatility, and many other variables needed to fully grasp in order to be successful at forex or stock trading – all you need to choose is the direction and how long you want the option to stay opened.

The digital option will remain open for the life of the “expiry�. You choose this in advance with digital options and in addition you can see the payout % available on each digital option. Meaning you see the actual amount you will earn if the digital option reaches expiry above or below the market, depending on your decision to take either an above or a below digital option.

Digital options are called digital because they are based on the idea of how a digital image or character a printed on a screen. Meaning, digital means a technology that effectively turns on or off a light that later is translated into a series of lights that when on or off create a recognized image that our eye can understand. So basically, digital options means on or off. So when something is digital it is also known as binary – again meaning it’s either on or off. With digital options on or off are translated into right or wrong. This is the case because there is no middle ground. With a stock trade you can be right but there is also an issue of depth or rather how right am I? With digital option, once you are right, the financial result is already known in advance making digital options a very easy means of trading financial instruments.

You can trade forex, commodities, stocks, and stock indices with digital options. You can trade digital options with an expiry as low as 60 seconds and as high as end-of-month digital options.

What do people say constitutes a binary options scam? Most of the time, a customer of a binary options broker will use the word “scam� for a number of reasons. These generally fall into the following categories (in order of frequency of complaints of binary options scams).

1. Withdrawal related issues
2. Trading issues
3. Deposit related issues
4. Support issues

Withdrawal related issues are probably the most prevalent reason for labeling a binary options broker a binary options scam. Traders need to understand the process of withdrawals prior to depositing. More times than not, a customer is unaware of broker policies regarding withdrawals and as such claims that the binary options broker is a scam. For example, bonuses are not known to be capable of being withdrawn and as such, if a trader who has $1000 in his account but received $250 in a deposit bonus (meaning the actual deposit was $750, assuming no trading was done) and yet requests a $1000 withdrawal – will be DENIED. The customer can get angry about this and start venomously disparaging the broker as a binary options scam on every web site that will listen. But had he read the terms of the bonus, he would have known the truth.

Again, there are loads of bad apples out there. A bad broker might not want to send funds based on the winnings of a trader. This is obviously a binary options scam and should be shouted from every rooftop. But we recommend reading the terms of business at the broker you trade with before opening an account so you don’t get mixed up in a bad situation where you end up entering forums just to say you experienced a binary options scam.

Trading issues are another source of binary options scam claims. Many times a trade is not honored or an attempt to close a trade failed. Traders need to try to be objective. Technical issues occur at every broker and every company in the world. This is not necessarily a binary options scam.

Deposit related issues are rarely labeled as a binary options scam and neither are support related issues. But sometimes these issues raise a red flag that causes traders to associate the broker with the possibility that they are in fact a binary options scam. Such signs include a live chat button that is never answered by anyone. A telephone number that simply leads to an answering machine or answering service. A deposit that doesn’t get an automated receipt message.

These are the reasons many find themselves labeling brokers as binary options scams.

Binary options traders will likely tell new traders that demo trading is not real trading and little can be taken from training in this way. However there are many lessons to be learned while binary options demo trading. For example, new traders in the world of binary options need to full familiarize themselves with the actual trading platform and how it works. There is no reason to be shy about the fact that you don’t know how to use the trading platform. 99.9% of traders are not necessarily familiar with binary options trading platforms and obviously can’t help in the training process. This makes paper trading via an online binary options demo platform very useful. If only to learn where the buttons to open and close are. Think about it this way, do you prefer learning how to use a trading platform with your money or with the broker’s money?

Obviously the answer should be the latter and as such, binary options traders have the unique ability to use a demo to hone skills and make sure that all functionality is understood completely prior to opening a real funded binary options trading account.

Things you need to learn about the trading platform include the following:

1. Learn how to open a trade. Opening a trade should be rather simple with binary options but you should have a very clear understanding of how to do so, where to click, and how exactly it will look and feel in the real platform
2. Learn how to close the trade. Many brokers offer “closable� trades. What this means is that once you open the trade, you don’t necessarily need to wait until the expiration of the option in order to take a profit (if the option is already “in the money� or stop a loss and retrieve some of the investment. This is a very important feature that needs to be well understood prior to trading for real and we recommend understanding the basics of how to do so with your broker.
3. How to choose an asset to trade. You should know in advance what you like to trade but sometimes the binary options demo can offer you a look at many assets you never thought about trading. Usually binary options brokers offer many assets to trade ranging from stocks and stock indices to commodities and forex pairs..
4. How to open different option types. Make sure you take the time to learn how to open both Above/Below options as well as Touch and Range options before opening a real account.

What a trader want to see occur in this option type is the market remaining within the range at the time of expiry. Why is this such a powerful option? Well, for starters, it is a cheap and effective means of hedging risk that traders may have in other financial instruments or trades. For example, a trader may find himself in a forex trade on the EUR/USD and has bought (meaning the trader expects that the forex pair EUR/USD will head higher). The thing is, with forex trades, the trade last indefinitely – it has no expiry. So, as long as the trader’s stop loss has yet to reach – the trade is alive. But there are periods in trading where markets get very quiet. This is when “trading volatility� becomes effective. Why? Because a trader can take a Range option during this time frame of quiet markets.

This is how the rnage will look like on your charts.

By using a Range option during this period, you can stand to earn money during the quiet. If the market does in fact remain in the range, then you warn the payout % fixed at the start of the trade. If not, it’s very likely that your forex trade is making money now cause the trend continued.

But how can you earn using Range options without hedging?

Quite simply, if you see the markets are relatively quiet and think that within the coming hours or even days the quiet will remain, then take a Range option. We always recommend trading small amounts with Touch and Range options as the risk is much higher than the Above/Below options. But rewards on these binary options types are higher as well and can reach 400-500% on your investment.

That means that if you invest $250 on a Range option, the payout could get you 500% on that trade or a profit of $1000 !!!

Range options are simply a great option for binary options traders to make serious profits on in short order. The other great feature while trading these options is the fact that the trade rolls-over for an entire week. So if you opened on Monday and the trade didn’t earn, it will roll over to Tuesday and until the end of the week at which time you have either made money on the binary options trade or not. It’s easy and can be amazingly profitable.

You will not find a faster or easier way of making money than with online binary options trading. Look for more articles about binary options strategies.

1. What market to trade? (forex, commodities, stock indices, stock)
2. What direction do you believe the market is heading in? (Higher, choose Above or Call. Lower, choose Below or Put)
3. How much to invest? You can trade as little as $5 and as much as $1000 on any 1 trade. Some brokers let you even trade more in 1 trade.

So once you have made your choice, you just click submit and you are in the market. The Above/Below options are delimited by time which is called the expiry.

Expiries on this type of option have a wide range and are based on your broker’s offer. But most let you trade as little as 60 second binary options and as much as end-of-month binary options. Each of these expiries, and all of the available expiries between, have advantages and disadvantages.

When the time of the trade has ended, what defines a profitable trade is whether the strike price (the price of the market at the time of the trade opening) is above or below the price of the market at expiry.
So if you chose an Above option, you need the market to be higher than the strike price at expiry

If you chose a Below option, you need the market to be lower than the strike price at expiry

There are 2 other option types: Range options and Touch options.

Nearly all binary options brokers provide at least one of these option types where the Touch options are much more readily available.

The way touch options work is still very easy. As opposed to the simplicity of the above/below options which simply require directions, Touch options require more accuracy in your judgment.

Here, you will need to decide whether the market will at least reach one level (can be above or below the current market price). Obviously this is a more difficult task and payout % on these trades can be as higher as 400 and sometimes even 500%!

Some brokers even offer Double Touch options where you as a trader can trade options that are based on the market reaching not one but rather 2 predefined levels.

The idea behind these options is what is called “trading volatility�. What this actually means is that you don’t really know what trend is in place or what direction the market is really headed to. But you do think that the market is volatile enough to reach the levels in the option made available. Trading volatility can also come in the form of a No-Touch option and these are sometimes called Range options. We will discuss this option type in the another article.

What are binary options?

With the advent of the internet, binary options have become a real choice for retail traders. But exactly are these binary options?

The way they work is really easy. Either you are right (and earn a fixed % of your investment) or you are wrong and as such you lose your investment. Obviously, every investment is summed up by being right or wrong. The difference here is that you need to be right or wrong within a predefined amount of time, otherwise know as the “expiry�. So a binary option is defined by time and direction. Choosing to trade a binary option means that you have an opinion on the direction of the market and want to make money on this opinion. So if for example your analysis of a market like the EUR/USD or even Apple (APPL) stock leaves you of the belief that an increase is on the way, you would choose an Above or Call option. Yes, Call and Put are terms that come from the options market and quite simply refer to the direction of your trade whereby Call equates to an increase and Put equates to a decrease in price.

Every trade in the binary options market are predefined with a fixed payout. So if you choose to make that Above option on the EUR/USD, you will see a payout % in the amount of 70-90% (depending on your broker). So if you decide to stake $100 on a trade, you stand to earn 70-90% in profit if at expiry your option trade is correct.

So let’s go over the way to trade in 5 easy steps:

1. Choose a market to trade (forex, commodities, stock indices and even individual stocks are available at all binary options brokers)
2. Choose Direction – now you need to think whether the market is going up or down. You can see the payout % if you are correct at this point
3. Choose expiry – do you think the market will remain above the strike or below the strike in the 1 minute, 5 minutes, or by the end-of-day ?
4. Choose Investment – Now choose how much you are willing to risk if you are wrong. The investment size multiplied by the payout % equates to your profit.
5. Open Your Trade – Go make some money

The great thing about trading options is the your risk and reward are known in advance. You don’t need to worry about setting a stop loss or other hidden fees or issues. It’s an easy and straight forward means of investment and is now one of the most popular trading vehicles in the world.

Binary options trading with EUR/USD 6/3/2012

XOM est un autre métier d’intérêts possible les négociateurs d’options binaires. Nous avons été à la suite de ce stock en raison de sa dépendance à la hausse des prix du pétrole. Mais avec le stock de la hausse hier, malgré la chute des prix du pétrole, nous sommes optimistes que le stock peut pousser plus élevé aujourd’hui passé de la résistance 87.5. Toute rupture de ce niveau permettra binaires les négociateurs d’options à prendre une option ci-dessus. Rappelez-vous que comme pour tout le commerce de stock que vous faites avec les options binaires, vous validez la pause avant de prendre l’option. Il suffit de mettre RSI et le MACD sur le graphique et assurez-vous qu’ils se dirigent plus et non l’inverse. Si elles sont un renversement de signalisation, ne pas utiliser ce signal de trading et de passer à une autre occasion.

However, binary options traders need not be very concerned as there is no major news expected today. This should allow trading to remain focused on technical indicators and trading signals. As such, there are a few assets we are watching closely these days.

With the EUR/USD virtually unchanged over the last 2 days, we believe that it is time to utilize smart strategies with binary options. As such, we recommend trading “range options� today as the currency pair is in a range seen earlier last month. With range options, you as a binary options trader are taking a much higher risk trade. Truth be told, the brokers do a nice job of pricing these range options aggressively and thus allow traders to earn 300-600% on their investment. But take into consideration the actual boundaries of the trade that your broker prices in for the range option. Each broker can provide slightly different boundaries, and if those boundaries look to easy to reach in the time period (strike) of the option, move on to a different opportunity. The whole idea of range options is to make money in the market but still to take a calculated risk.

See the graph below, those are the boundaries in the market. So if the broker is providing significantly different boundaries, move on.

Binary options trading with EUR/USD 6/3/2012

XOM is another possible trade of interest to binary options traders. We have been following this stock because of its reliance to higher prices of Oil. But with the stock rising yesterday, despite falling oil price, we are optimistic that the stock can push higher today past the 87.5 resistance. Any break of this level will allow binary options traders to take an ABOVE option. Remember that as with any stock trade you make with binary options, you validate the break prior to taking the option. Just put RSI and MACD on the graph and make sure that they are heading higher and not the other way around. IF they are signaling a reversal, do not use this trading signal and move on to another opportunity.

XOM with binary options today

إننا ما زلنا ننتظر أن يتجه سعر سهم إكسون موبايل (XOM) �وق المستوى 87.5. ومع ذلك، عندما يتراجع سعر الن�ط نحو 105، �إننا لم نرى حدوث ذلك �ي الأيام القادمة. وما نزال نوصي بمراقبة هذا السهم المثير للاهتمام حيث أنه بمجرد حدوث كسر أعلى من هذا المستوى، �سو� يرى تاجر خيارات ثنائية تجارة مربحة للغاية. والشيء الجيد �ي متابعة الأسهم مثل إكسون موبايل بغض النظر عن إشارة التداول هو حقيقة أنه مرتبط بسعر الن�ط. وإن كان، ليس ارتباط 100%، إلا أن ارتباط الاثنين أمر لا يمكن إنكاره. ولذلك المقصود من متابعة إكسون موبايل هو أنك تتابع الآن سعر الن�ط. وما هو أكثر أهمية هو أنه �ي حالة إذا قمت بمتابعة سعر الن�ط، الذي يجرى تداوله حالياً قرب المستوى 106.4، تكون عندئذ� بحاجة كذلك إلى معر�ة ما يحدث مع الدولار الأمريكي. و�ي معظم الحالات يتم متابعة الدولار الأمريكي �ي مقابل اليورو (اليورو/الدولار EUR/USD) الذي يجرى تداوله حالياً قرب المستوى 1.3200، حيث انخ�ض أدنى مستوى الدعم عند 1.3275 يوم الجعة التي ينبغي أن تكون ساعدت �ي د�ع سعر الن�ط عالياً بسبب ضع� الدولار، ويتجه سعر الن�ط إلى الارت�اع �ي القيمة والعكس بالعكس.

ولذلك قد يرغب تاجر خيارات ثنائية اليوم �ي التركيز على مجموعة محددة من الأصول. وأهم هذه الأصول اليوم ستكون على الأرجح حركة السعر على زوج العملة اليورو/الدولار EUR/USD. وإننا نتوقع أن التسعير يجب أن يظل أدنى مستوى المقاومة (الآن) عند المستوى 1.3275. و�ي الواقع أن زوج العملة الأجنبية يتراجع الآن ضمن النطاق القديم (النطاق الذي كان سائداً �ي أول شهرين لعام 2012) الذي يعتبر أخبار سارة لتاجري خيارات ثنائية �ضلاً عن تداول زوج العملة حيث أنها تقدم العديد من إشارة تداول زوج العملة اليورو/الدولار EUR/USD.

EUR/USD 5/3/2012

إن سهم أبل (APPL) لديه إشارة تداول متاحة لتاجري خيارات ثنائية الذين يرغبون �ي تحمل مستويات عالية من المخاطر. وباستخدام إشارة الشراء BUY المتاحة عند حدوث كسر للمستوى 548.21، قد ي�ضل تجار خيارات ثنائية هذه التجارة. إنها لم تقدم العديد من التداولات منخ�ضة المخاطر �ي الآونة الأخيرة على الرغم من حقيقة أن سعر السهم يواصل ارت�اعه، ولم يحدث دائما كسر للمستوى التقني. وعلى الرغم من حقيقة أن أي خيارات يتم اتخاذها إلى الجانب المرت�ع من شأنها أن تكون حققت مكاسب مالية، ومن الصعب دائما أن تقرر إذا كان هذا هو الحال أم لا. إننا أوصينا من قبل بعدد من هذه التداولات �ي الأيام القليلة الماضية، واليوم ليس مختل�ًا. �قط توخي الحذر جيداً عند التداول بهذه الطريقة، �هي تأتي مصحوبة بالمزيد من المخاطر.

Nous sommes toujours en attente pour le prix de l’Exxon Mobile (XOM) à la tête de stock passé 87,5. Cependant, avec le prix du pétrole chemin du retour vers 105, nous ne voyons pas la survenance dans les prochains jours. Nous recommandons toujours le guet sur ce stock passionnant dès qu’il casse au-dessus, les options binaires verrez un commerce très rentable. Ce qui est fantastique à la suite d’un stock comme XOM indépendamment d’un signal de trading, c’est le fait qu’il est corrélé au prix du pétrole. Quoique, pas une corrélation de 100%, mais le fait que les deux sont liés est indéniable. Donc, après XOM signifie que vous êtes maintenant à la suite du prix du pétrole. Et ce qui est plus intéressant, c’est que si vous suivez le prix du pétrole, qui se négocie près de 106,4, alors vous devez aussi savoir ce qui se passe avec le dollar américain. Le USD est la plupart du temps suivie contre l’euro (EUR / USD), qui se négocie actuellement à proximité de 1,3200. Il est tombé en dessous du support à 1.3275, le vendredi qui aurait contribué à pousser le prix du pétrole plus élevé parce que le dollar s’affaiblit, le prix du pétrole a tendance à augmenter en valeur et vice-versa.

Options binaire EUR/USD 4/3/2012

Donc, aujourd’hui, les options binaires commerçants peuvent décider de se concentrer sur cette sélection de biens. Aujourd’hui le plus important sera probablement l’action des prix sur l’EUR / USD. Nous nous attendons à la tarification de rester en dessous de la résistance (maintenant) à 1,3275. Le fait que la paire Forex est maintenant de retour à l’ancienne gamme (celui qui a prévalu pour la plupart des 2 premiers mois de 2012) est de bonnes nouvelles pour les négociateurs d’options binaires, ainsi que le commerce de forex car il fournit de nombreux signaux de trading EUR / USD .
Apple (APPL) stock a un signal de trading disponibles pour les commerçants options binaires prêts à prendre des risques plus élevés. Avec un signal d’achat disponible à une pause de 548,21, les opérateurs binaires peuvent aimer ce métier. Il n’a pas fourni de très nombreux métiers à faible risque de retard que malgré le fait que le prix des actions continue d’augmenter, ce n’est pas toujours casser le plan technique. Ainsi, malgré le fait que près de toutes les options prises sur le côté élevé aurait fait de l’argent, il était toujours difficile de décider si tel était le cas ou non. Nous avons recommandé un certain nombre de ces métiers dans les derniers jours, et aujourd’hui n’est pas différent. Juste rester très prudent lors de la négociation de cette manière. Il est livré avec plus de risques

We are still waiting for the price of the Exxon Mobile (XOM) stock to head past 87.5. However, with the price of oil heading back towards 105, we don’t see the happening in the coming days. We still recommend keeping watch on this exciting stock as soon as it breaks above, binary options will see a very profitable trade. What’s great about following a stock like XOM regardless of a trading signal is the fact that it is correlated to the price of oil. Albeit, not a 100% correlation, but the fact that the two are tied is undeniable.  So following XOM means you are now following the price of oil. And what’s more interesting is that if you follow the price of oil, which is trading near 106.4, then you also need to know what’s happening with the US Dollar. The USD is mostly followed against the EUR (EUR/USD) which is currently trading near 1.3200. It fell below the support at 1.3275 on Friday which should have helped push  the price of oil higher because as the dollar weakens, the price of oil tends to increase in value and vice-versa.

Binary options trading on EUR/USD 4/3/2012

So today, binary options traders may wish to focus on this selection of assets. Most important today will likely be the price action on the EUR/USD. We expect pricing to remain below the (now) resistance at 1.3275. The fact that the forex pair is now back in the old range (the one that was prevalent for most of the first 2 months of 2012) is good news for binary options traders as well as forex trading as it provides many EUR/USD trading signals.

Apple (APPL) stock has a trading signal available for binary options traders willing to take on higher levels of risk. With a BUY signal available at a break of 548.21, binary traders may like this trade. It has not provided very many low risk trades of late as despite the fact that the stock price continues to rise, it doesn’t always break a technical level. So despite the fact that nearly any options taken to the high side would have made money, it was always hard to decide if this was the case or not. We recommended a number of these trades in the last few days, and today is no different. Just remain very cautious when trading in this manner. It comes with more risk

We are just the messenger, so don’t be upset with us. There are plenty of other events today to look forward to and loads of trading signals. So do’nt get too bogged down with a lack of major releases like the non farm payrolls .

Have a great trading day!