What You Need To Know About Binary Options Signals

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  • Binomo
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Binary Options Signals

If you are looking for hands-free binary options trading, this is the place where you will find information about signal providers, robots and autotraders. Semi-automatic, fully automatic binary signals and robots, profitable or shady, they are all here somewhere. Read reviews, compare and choose what’s best for you!

Signals
Service name Membership cost Monthly signals Assets types E-mail alerts Sms alerts
UpDownSignals 97$ 30-40 forex & commodities Yes Yes
BinaryOptionsTradingSignals 97$/2Weeks 50-80 Currencies & Commodities Yes Yes
QuantumBinarySignals 149$/Month 40-60 Forex, Stocks, Commodities, Indices Yes Yes
ProBinarySignals 99$ /Month 50-80 Oil, Gold, Currencies, Indices Yes Yes
OptionBOT 97$-197$ Currencies Yes No
BinaryOptionsGo 97$ /2 Wee 50-80 Forex, Stocks, Commodities, Indices Yes No
Binary Options Pro Signals 97$ /Month 50-80 Forex, Indices Yes No
Binary Options Signals Europe 97$ /Month 50-80 Forex, Indices Yes No
Signal Coyote 150$/ Mont 100 Currencies, stocks, indices, commodities Yes Yes
Binary Options Live Signals $299/ 1 Se 48-60/ 1 Session Currencies No No
Cherry Coke $500/ mont 80 Stocks and Currency pairs Yes No
Signals Binary Free** 200 Currencies and Stocks Yes No
Signal Feeds 35$ /Week 100-120 Currencies, Stocks, Indices, Commodities Yes Yes
Million Dollar Insider Free* unknown unknown Yes No
Binary Options Experts 199$ /Mont 50+ Forex Yes No
Winner Binary Signals 49$ /Month N/A Stocks, Forex Yes Yes
AutoEABinary Affiliatio N/A Forex Yes Yes
Signal Push 100$ /500 N/A Stocks, Forex, Commodities Yes Yes
Profit in 60 seconds 997$ /Life N/A Forex Yes No
Binary Trading Robot 47$ /Life N/A Forex Yes No
Trade per Day Free 25-30 Stocks, Forex Yes No
The Binary Signals 97$ /Month N/A Stocks, Forex Yes Yes
Profit Binary Signals 199$ /Mont 40-200 Stocks, Forex Yes Yes
Binary Options BluePrint 77$ /Life N/A Forex, Stocks Yes Yes
BO Signals 50$ /Month N/A Stocks, Forex Yes Yes
Binary Options Bullet 68$ /Life N/A Forex Yes No
Binary Option Autotrader 100$-1000$ 80-150 Forex Yes No
VIP Binary Options Signals 299$ /Mont N/A Forex Yes Yes
The Real Binary Bot Free* N/A Forex, Stocks, Indices Yes No
Binary Matrix Pro 0.01$ /Sig 45-100 /Day Forex Yes Yes
Binary Options Trading Signals (Franco) 184$ 30-40 forex No No
KimSignals 2.0 60$/month 50 Forex No No
ZERO RISK Strategy 10$/month 100 Forex No No
BinaryOptionsArea 99$/month 100 Forex No No
Green Room Academy n/a >60 Forex, Futures No No
Auto Binary Signals 100$/month n/a Forex, Commodities No No
ITMSignals 125$/month n/a Forex, Commodities Yes Yes
Binary Options Signals Experts n/a n/a Forex, Futures Yes Yes
Binary Option Beast 397$ >50 Forex, Futures Yes Yes
Binary PowerBot 69$ n/a Forex No No
SixtySecondsOptions 40$/month n/a Forex, Futures Yes Yes
BINARY OPTIONS ROBOT Free 300+ Forex, Futures, Commodities Yes Yes
TrendXpert N/A 50-200 Forex, Futures, Commodities Yes Yes
Binary Option Robot (2nd one) N/A 200+ Forex, Futures, Commodities Yes Yes
Signals365 Free 150+ Forex, Futures, Commodities Yes Yes
John Anthony Signals Free 100+ Forex, Futures, Commodities Yes No
Disrupt Trading App Free* 100+ All No No
Binary Signals App Free 150-300 Forex Yes No
TheBinaryProfi No No
1K Daily Profit Free N/A Forex, Commodities Yes No
Dubai Lifestyle App Free N/A Forex No No
Option Robot Free 50-150 Forex Yes No
Tesler App Free >200 Forex, Commodities Yes Yes
Infinity App Free N/A Forex, Futures, Commodities Yes Yes
TAI Robotic Free 250 Forex, Futures, Commodities Yes Yes
Freedom Circle Robot Free 150-300 Forex, Futures, Commodities Yes Yes
HBSwiss App Free 200 Forex, Futures, Commodities Yes Yes
Bitcoin Robot 2.0 n/a n/a n/a No No
DesertMillionaire Free N/A Forex, Commodities Yes No
30KChallenge Free 150-300 Forex, Futures, Commodities Yes Yes
Binary Robot 365 Free 150-300 Forex, Futures, Commodities Yes No
Bitcoin Code Free >200 Forex, Futures, Commodities Yes No
Crypto Robot 365 Free 150-300 Forex, Futures, Commodities Yes No
Fintech LTD Free >200 Forex, Futures, Commodities Yes No
BitcoinMillionaire Free N/A Forex, Futures, Commodities Yes No
Bitcoin Trader Free >200 Forex, Futures, Commodities Yes No
Maximus Edge Autobot Free >200 Forex, Futures, Commodities Yes No
The Crypto Genius Free >200 Forex, Futures, Commodities Yes No
The Bitcoin Method Free 250 CFD, Bitcoin No No
Ethereum Code Free >200 Forex, Futures, Commodities Yes No
Bitcoin Loophole n/a n/a n/a No No
Blazing Trader Free >200 Forex, Futures, Commodities Yes No
FXMasterBot n/a n/a n/a No No
Delta Tech n/a n/a n/a No No
Maximus CryptoBot n/a n/a n/a No No
Profit Wizard Pro n/a n/a n/a No No
Bitcoin Focus Group Free 200 CFD, Bitcoin Yes No
Postero Free N/A cryptocurrencies No No
CryptoTrader n/a n/a n/a Yes Yes
CryptoUnlocked Free >200 Cryptocurrencies, Bitcoin No No
CryptoSoft Free >200 Cryptocurrencies, Bitcoin No No
Huber Free >200 Cryptocurrencies, Bitcoin No No
50K a Week Free >150 CFD, Options No No
Crypto Dukes Free >200 Cryptocurrencies, Bitcoin No No
CentoBot Free >200 Cryptocurrencies, Bitcoin No No
BinBot Pro Free* >200 Forex, CFD No No
BitcoinsWealth Free* >250 Cryptocurrencies, Bitcoin No No
Cryptocurrency Institute Free* >250 Cryptocurrencies, Bitcoin No No
iMarketsLive Free* >200 Forex, CFD, Cryptos No No
Gunbot Free* >150 Cryptocurrencies, Bitcoin No No
The Inside Trader Free* >100 CFD, Forex, Bitcoin Yes No
Bitcoins Wealth Club Free* n/a n/a No No

Binary Options Signals List 2020

In Binary Options, CFD and Crypto trading, trading signals refer to suggestions made by experts or automated robots specializing in Binary Options trading. Therefore, trading signals are trade recommendations made by analysts after their assessment of the market and the identification of certain opportunities. Trading signals are more likely to expire in the money as traders who suggest them have years of experience in the trading field. Therefore, with trading signals, you can achieve an increase in the overall return on investment. While using trading signals you must take into consideration certain factors in order to make the signal work.

One of these factors is time. A Binary Option trade needs to be placed at the right time; immediately after receiving the signal from your signal provider. After all, a good signal has no value if it is executed later because market conditions can change very rapidly and that might invalidate a signal. This is quite important as a Binary Option and CFD usually expires within a very short period. Therefore, traders have to be very fast in buying the right options.

Example of a Binary Options Signal

Asset: EUR/USD = 1.150

The trade: Call Option

Expiry time: End of the day

When: on a daily close above 1.150

Are Binary Options Trading Signals a Scam?

Overall, good signals could, in fact, provide great opportunities for new and advanced traders. The problem is; it can be an opportunity, but it is also a risk. There are indeed good signal providers, but many crooks are offering fake trading signals. I truly hope we’ll see more legitimate signal providers in the near future. If I was a newbie, I wouldn’t pay more than 60 to 80 dollars a month for such signals. Also, I wouldn’t rely solely on these signals. I would first practice strategies, learn my game, use good judgment and turn to forums and professional sources for advice.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

Trading Signals Providers

Signals and signal service providers fall into two categories; those that suck and those that don’t suck. And just because the type of SSP you choose may fall into the general category of not sucking doesn’t mean that it doesn’t suck. You have to be careful with signals and understand them for what they are. Some are tips, actionable advice that you can follow through if you so desire. These tips are a great way to find possible trading opportunities that you might otherwise miss. Other types of SSPs are automated services aimed at taking the risk out of trading. They claim that by automatically following their trades you can make profits. These types of signals are not so great. You should never blindly follow any tip, signal or service. If you need someone to trade for you then you don’t need to be trading binary or any kind of option.

There are several Binary options trading signals available in the market. Most perform this service online, therefore, you can access them from the comfort of your home. Some will provide you with trading signals in exchange for a monthly subscription fee for this service. After choosing the most suitable Broker for you, only then you can start looking for your right signals provider.

Monthly subscription fees often range around 30 to 200 dollars (in accordance with the number and the quality of signals given by the suppliers). This is indeed a small price to pay to increase your returns on your investments. However, the trading signals are not completely foolproof; they don’t always guarantee returns. According to an analysis by various experts, it came out that the trading signals could increase your level of returns by up to 60%.

To be on the safe side, check on their past trading signals achievements to determine how accurate the providers are at predicting market trends. Professional Trading signal providers strive to hand out only accurate signals in order to maintain their customer loyalty. Some Binary Options signal providers have become more prominent and reliable than others, yet one must be aware of Binary Options signals scams. ThatSucks.com will continue to monitor and recommend only the trusted signal providers available.

Many trading signal services are offered on the market. Few of them are given free of charge and the remaining percentage is delivered to traders who have subscribed to their service. Subscribing to their service is the best way to guarantee that you will receive the best trading signals they have to offer. But as I stated numerous times already, some SSPs are bad for your wallet, either because they are straight up scams or because they are not as experienced as they would want you to believe. That’s why next we will give you 5 tips to help you avoid the “bad apples” of the signal service industry.

4 Things You Need to Know in Order to Avoid Signal Service Providers Scams

1. Always Know What You Are Getting

There are a lot of different types of signal service providers. Things like newsletters, blogs and forums are great. These are a basic form of SSP, usually free and offer a wealth of knowledge and experience for traders to take advantage of. I read several different newsletters each week as part of my routine. A step up from newsletters is the dedicated signal providers. These guys, some free some not but all with a cost, in the end, provide signals you are intended to follow. Some make it easy with auto-trading, others force you to keep up with them on your own. Still, others install software on your computer that tracks the markets and can even make trading decisions for you. Because there are so many types of signal providers out there, you have to know exactly what yours does: if you sign up for a newsletter, don’t expect it to put trades for you (duh!). If you sign to a manual signal service, make sure you are in front of your computer, ready to put on trades when you receive a signal. If it’s an automatic signal service, make sure you monitor it constantly.

2. Paid Versus Free Services

When a service asks you for money, a credit card number or even just your basic personal information you need to take a step back and decide if it is really worth it. Free Signal services are one thing. You can take it or leave it as you want with no worries (… almost no worries, but more on that later). When you pay for a service there is a higher expectation of profits. If you choose to use a paid service be sure to pick a trusted source. There are a lot of chances to get scammed on the internet, especially with binary options. Getting scammed sucks. You need to know what the motives are that drive the website. And you need to be aware of another thing too: some paid signal services offer you a free trial. Being free, it costs 0.00$ but in order to sign up, you still need to give them your e-wallet account or credit card details. Don’t worry, they won’t charge you anything… but once the trial period is over you will be charged the full fee of the service if you don’t cancel your subscription and remove your CC from their website. This information is usually given to you in very small letters, somewhere at the bottom of the page (they are required by law to provide it but of course they don’t want it to be easily seen). So the advice is: if you subscribe to a free trial for signal service, make sure you cancel the subscription once the trial period is over.

3. Robots are Scary

Auto trading is an attractive feature of some Signal Providers and robots Auto trading is an attractive feature of some Signal Providers and robots are an extension of this. The scary thing is that you have to download software onto your computer. The software will take control of your trading account and enter trades based on signals provided by the parent company. This is completely nuts to me. It’s like downloading a virus onto your computer on purpose! Robots and auto-traders only increase your risk in my opinion. You have all the risk of trading plus you are letting someone else make your trading decisions. The scariest part is that a computer program is in charge and you know what happens when a computer program goes out of control… “Dave, this is HAL…”.

There’s another major issue that we need to talk about: auto-trading robots/apps have been around for quite a while now, they are nothing new, but out that massive horde, is there at least one that performs decently? And by “decently” I mean: does it make at least a small amount of profit every month? Forget about what they promise (thousands and thousands of dollars every day/month), and just point me to a single one that makes a profit every month. I bet you can’t… because there isn’t one. At least not one that I know of.

4. Don’t be Lazy or Stupid

Learn to trade for yourself. Binary options are a speculative instrument, if you want to get involved you need to do it yourself. Take the time to learn about trading, the markets, and the economy and you will also learn something about yourself. Look, if you want signal providers, we’ve given you lots to choose from in our List of Binary Options Signals, but just because we’ve given you a list, it doesn’t mean we say it’s a good thing to trust signal providers completely. Ultimately you are your best signal provider but to become that, you need to learn first. Don’t be lazy and start reading our Binary Options Trading School.

Wrapping It Up

Overall, Binary Options Signal service providers are not all bad. Some are truly in the business of helping traders. Nevertheless, ThatSucks.com do not put much faith in this kind of trading. It is imperative that you learn to trade for yourself. You have to take responsibility for your own trading or you will never reach the profits that are available.

Search Signals

If you haven’t chosen your Binary Options broker yet, it’s time for you to go back and pick the right broker for you. No use in a signal without a broker, right? If you already did, it means you have already seen a flashy “Make Easy Money” sign somewhere around the web. Look it up right here.

Learn about Various Signal Provider

Do you even know what a binary options signal provider is? If the answer is NO, go back to school and learn more about it. If YES is your answer, get ready for the fun. There’re so many Signal Service Providers out there, read our reviews carefully and check twice on our forum.

Binary Options – Everything You Need to Know About!

If you’re new in trading business and don’t know much about Binary Options, then you’re at a right place and reading a right article. As in this article, you will read everything you need to know about Binary Options which includes What is Binary Options and its related terms as well as the facts which will help you in understanding the Binary Options in a better way.

We are sure that after reading this article about Binary Options you will not become professional in the field, but you will have complete knowledge which you need while doing trading with one of your selected binary options trading system.

So without wasting no second why don’t you start reading about Binary Options

What is Binary Options?

Binary options is a part of the financial market and known as one of the easiest ways to earn a profit online. It is very easy to use and the features which these binary options provide have made trading much easier. Using binary options you can trade anything like indices, stocks, currencies, and commodities. Unlike old investment programs, in the binary options industry, you don’t need to get the asset you trading with.

Binary options have different types but the high-low option is very popular among investors. The reason why it popular is because it includes the type of asset and expiration time. The good thing about this type of binary options is that the amount you will get in return is fixed and you alway know about the amount which you’re going to get at the time of expiry.

All you need to do is to compute the direction in which the price of the instrument which is effected by economic changes, financial indicator, market volatility will move.

Whenever you trade using the Binary options it always ends in two different ways:

In The Money (ITM)

This means that whatever you have predicted about the trade is right and has gone in the same direction as predicted by you. Let us take the example of OIL Stock. You predicted that cost of the trade will be higher at the time of expiration and by keeping this thing in mind you have set your investment cost for the trade and wait for the expiration time. Now if the price of the trade is higher in contrast of the price at the beginning, then your trade ends as ITM. Even the broker will give you profit with a fixed return rate

Out the Money (OTM)

This means that what you predicted about the trade is wrong and the value of the asset has gone in opposite direction as predicted by you at the time of expiration. For Example, According to your prediction the cost of the trade will be higher at the time of expiration, but at the time of expiry your trade price dropped, then your trade ends as OTM and you have to face loss.

Advantages of Using Binary Options

There is a variety of reason why user prefers to use Binary Options, but the thing which makes it little different from other is that you always know how much you will earn or lose when you win or lose the trade.

What is a Binary Options Brokers?

Binary Options Brokers provides you the platform where you can do trading. There are lots of Binary Options broker available over the internet. Ever broker has something new for a user with different benefits or advantages. Every day the new broker is introduced in the trading business. As per our data, there are 600 plus brokers exist on the internet out which most of them are available for user all across the globe, while the rest has geographical limitations (Like limited to Canada, UK, and the US)

Due to the great competition between existing binary options broker, every new broker that step into the trading world provides some unique features to investors. And this is the reason why trading is becoming easier day by day and user who don’t have much knowledge about trading can earn great by little efforts.

Importance of Binary Options Broker

Selecting a Binary Options Broker while doing a trading is the very important part. Winning or losing a trade depend on your selected broker. Even it is the duty of brokers to suggest a right path to an investor who decided to continue their trading journey with them.

The Internet is full of Binary Options Brokers, but not all of them are genuine and real. So before selecting your broker, it is highly advisable to do a research about them. You can also check your country financial authority to confirm how genuine they are, whether they are regulating a particular broker or not.

What is a Binary Options Robots?

Binary Options Robots is an Auto Trader. The main function of these auto traders is to assist you during the trading session and help you in earning a profit. Binary Options Robots are very useful for the users who are new in trading and don’t have sufficient knowledge and experience of trading.

Binary Options Robots is a type of software which run in the background of the system, analyze each trend, and provide you huge amount of data on the basis of analyses or fetched by analyzing the market trends and moment. These auto traders are totally based on an algorithm which is created by the developer. Now if the developer of the algorithm has great experience of trading, then he will definitely create a good algorithm. How better your Auto Trader will perform for you totally depend on how good algorithm is created by his developer.

Binary Options Signals

Binary Options Signals is a type of information which you need to make any decision related to trade while doing a trading. Binary Options Robots use these signals to execute the trades. It always alerts you with a percentage which gives you an idea about how far a given outcome will be reached.

Let us take an example of Apple. All you have to do is to select the price of the trade, whether it will go up or down. Binary Options Signals will give you an alert in the form of the percentage that this trade has 88% chances of going up at the time of expiry. Now it is all your choice whether you want to trade or not.

Signs of SCAM or FAKE Binary Options

You must follow these tips before selecting any binary options broker or software:

  • 100% Winning rate is not possible in Binary Options so avoid these type of brokers
  • No binary options can make you rich overnight, so avoid brokers who make these type of promises
  • Before selecting any broker or trading system make sure to check about him on the internet

We time to time expose fake and SCAM binary options available on the internet so regularly visit our site to read about latest SCAMS.

We are sure that after reading our this article on Binary Options you are aware of What is Binary Options, and how this all whole system works. Still, if you have any query let us know in the comments. We would love to assist you and answer your queries.

What You Need To Know About Binary Options Outside the U.S

What Do You Need To Know About Binary Options Outside the U.S?

Binary options let traders profit from price fluctuations in multiple global markets, but it’s important to understand the risks and rewards of these controversial and often-misunderstood financial instruments. Binary options bear little resemblance to traditional options, featuring different payouts, fees, and risks, as well as a unique liquidity structure and investment process.

Binary options traded outside the U.S. are also structured differently than those available on U.S. exchanges. They offer a viable alternative when speculating or hedging but only if the trader fully understands the two potential and opposing outcomes.

The Financial Industry Regulatory Authority (FINRA) summed up regulator skepticism about these exotic instruments, advising investors “to be particularly wary of non-U.S. companies that offer binary options trading platforms. These include trading applications with names that often imply an easy path to riches.” 

Key Takeaways

  • Binary options have a clear expiration date, time, and strike price.
  • Traders profit from price fluctuations in multiple global markets using binary options, though those traded outside the U.S. are structured differently than those available on U.S. exchanges.
  • Non-U.S. binary options typically have a fixed payout and risk, and are offered by individual brokers rather than directly on an exchange.
  • While typical high-low binary options are the most common type of binary option, international brokers typically offer several other types of binaries as well.

Binary options outside the U.S. are an alternative for speculating or hedging but come with advantages and disadvantages. The positives include a known risk and reward, no commissions, innumerable strike prices, and expiry dates. Negatives include non-ownership of the traded asset, little regulatory oversight, and a winning payout that is usually less than the loss on losing trades.

Understanding Binary Options Outside the U.S

What Are Binary Options?

Binary options are deceptively simple to understand, making them a popular choice for low-skilled traders. The most commonly traded instrument is a high-low or fixed-return option that provides access to stocks, indices, commodities, and foreign exchange.

These options have a clearly stated expiration date, time, and strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, they are paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.

The binary options trader buys a call when bullish on a stock, index, commodity, or currency pair, or a put on those instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.

The broker discloses the strike price, expiration date, payout, and risk when the trade is first established. For most high-low binary options traded outside the U.S., the strike price is the current price or rate of the underlying financial product. Therefore, the trader is wagering whether the price on the expiration date will be higher or lower than the current price.

Binary Options Outside the US

Foreign Versus U.S. Binary Options

Non-U.S. binary options typically have a fixed payout and risk and are offered by individual brokers rather than directly on an exchange. These brokers profit from the difference between what they pay out on winning trades and what they collect on losing trades. While there are exceptions, these instruments are supposed to be held until expiration in an “all-or-nothing” payout structure.

Foreign brokers are not legally allowed to solicit U.S. residents unless registered with a U.S. regulatory body such as the Securities and Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC).

The Chicago Board Options Exchange (CBOE) began listing binary options for U.S. residents in 2008.   The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Chicago-based Nadex also runs a binary options exchange for U.S. residents, subject to oversight by the CFTC.

These options can be traded at any time, with the rate fluctuating between one and 100, based on the current probability of the position finishing in or out of the money. There is full transparency at all times and the trader can take the profit or loss they see on their screen prior to expiration.

They can also enter as the rate fluctuates, taking advantage of varying risk-to-reward scenarios, or hold until expiration and close the position with the maximum gain or loss documented at the time of entry. Each trade requires a willing buyer and seller because U.S. binary options trade through an exchange, which makes money through a fee that matches counter-parties.

High-Low Binary Option Example

Your analysis indicates the Standard & Poor’s 500 index will rally for the rest of the trading day and you to buy an index call option. It’s currently trading at 1,800 so you’re wagering the index’s price at expiration will be above that number. Since binary options are available for many time frames—from minutes to months away—you choose an expiration time or date that supports your analysis.

You choose an option that expires in 30 minutes, paying out 70% plus your original stake if the S&P 500 is above 1,800 at that time or you lose the entire stake if the S&P 500 is below 1,800. Minimum and maximum investments vary from broker to broker.

Say you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiration determines whether you make or lose money. The price at expiration may be the last quoted price, or the (bid + ask)/2. Each binary options broker outlines their own expiration price rules.

In this case, assume the last quote on the S&P 500 before expiration was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. If the price finished below 1,800, you would lose your original $100 investment.

If the price expires exactly on the strike price, it is common for the trader to receive her/his money back with no profit or loss, although brokers may have different rules. The profit and/or original investment is automatically added to the trader’s account when the position is closed.

Other Types of Binary Options

The example above is for a typical high-low binary option—the most common type of binary option—outside the U.S. International brokers will typically offer several other types of binaries as well.

These include “one-touch” options, where the traded instrument needs to touch the strike price just once before expiration to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before the expiration date/time.

Meanwhile, a “range” binary option allows traders to select a price range the asset will trade within until expiration. A payout is received if price stays within the range, while the investment is lost if it exits the range.

As competition in the binary options space heats up, brokers are offering additional products that boast 50% to 500% payouts. While product structures and requirements may change, the risk and reward is always known at the trade’s outset, allowing the trader to potentially make more on a position than they lose. Of course, an option offering a 500% payout will be structured in such a way that the probability of winning the payout is very low.

Unlike their U.S. counterparts, some foreign brokers allow traders to exit positions before expiration, but most do not. Exiting a trade before expiration typically results in a lower payout (specified by broker) or small loss, but the trader won’t lose their entire investment.

The Upside and Downside

Risk and reward are known in advance, offering a major advantage. There are only two outcomes: win a fixed amount or lose a fixed amount, and there are generally no commissions or fees. They’re simple to use and there’s only one decision to make: Is the underlying asset going up or down?

In addition, there are also no liquidity concerns because the trader doesn’t own the underlying asset and brokers can offer innumerable strike prices and expiration times/dates, which is an attractive feature. The trader can also access multiple asset classes anytime a market is open somewhere in the world.

On the downside, the reward is always less than the risk when playing high-low binary options. As a result, the trader must be right a high percentage of the time to cover inevitable losses.

While payout and risk fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades cost the trader more than they can make on winning trades. Other types of binary options may provide payouts where the reward is potentially greater than the risk but the percentage of winning trades will be lower.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

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