How to trade binary options
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  1. #1
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    How to trade binary options

    Roboforex company had launched binary options – new innovative financial product, it is now available in new Robooption platform. So, let’s go through concept of binary options, it may seem confusing for some traders unfamiliar with it, but in reality this type of trading is easier than trading with conventional currency pairs.

    What is binary option?

    Binary option - agreement between buyer and seller, it can bring fixed amount of profit to buyer of the option in case some conditions are realized at expiration time.

    Everything is quite simple: you define specific time period (from 1 minute to several days, weeks or months), and have to choose if price will be located above or below certain price (strike price). At the moment you execute a trade, you pay a premium for the option (fixed amount of money), in case your forecast is valid you receive payout (it usually covers premium and gives you around 70% profit per risk), in case it’s not – you get nothing, but your losses are limited by the size of the premium paid.

    You can watch educational videos here to deepen your understanding of binary options traded in Robooption platform.

    First of all, to successfully trade binary options, you have to analyze underlying currency pairs. Binary options are not isolated – they fully depend on behavior of price of underlying asset.

    But, there are significant differencies between conventional forex trading and trading binary options. Binary options have limited risk, amount of risk is defined before the trade, also you have predefined size of the profit, even if price is located just 1 pip above or below the strike price.

    Binary options trading does not require sophisticated trading strategies – they are simple, easy to execute, trading platform is intuitively understandable and doesn’t have to be installed on your computer.

    We have to mention that binary options and traditional options are different financial instruments. Traditional options are much more complicated. We will cover differencies between them in separate thread for the sake of your education.


    How to trade binary options on RoboOption


    When you execute a trade – say, intend to buy an option, you give away premium (bet). If conditions of this trade are realized at the time of expiration, you receive your premium back as well as payout (up to 85% depending on instrument traded and other parameters). If conditions of the trade are not realized, you are not receiving premium back (as well as payout), but your losses will never exceed your bet.

    To start trading binary options, you have to do several simple steps:

    1. Register on a website RoboOption, we can open demo account to practice.

    2. Deposit cash to your trading account choosing payment system of your favor , or setting amount of money for demo account;

    3. Prepare for trading:

    - Login to account;

    - Choose trading instrument;

    - Choose amount of premium;

    - Press «Call» or «Put».

    Interface of Robooption trading terminal looks like shown below:

    binary_options1.png

    - at the upper side of the platfrom we choose type of options: Binary options, Long terms, Sixty seconds;
    - in the "Asset" field you can choose underlying asset for the options;
    - in the field "Expiry" you can choose expiration date and time;
    - in the field "Amount" you can choose amount of bet (premium) for your trade;
    - also you can view a chart of underlying asset and "Call"/"Put" buttons;
    - in the column below "Amount" you can view potential payout and premum;

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    Last edited by Value trader; 09-03-2014 at 02:21 PM.

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    At lower side of trading terminal you can watch history of your trades.

    As you see, trading process is quite simple on binary options – you have to estimate time required for your trade, choose destination by clicking corresponding button and expect outcome.

    But remember that you goal as a trader is to have more profitable trades than losers. As you don’t have asymmetric opportunities (you can’t expect to have profit 3 times greater than a loss), you have to be right more often that wrong. We will cover aspect and nuances of binary options trading in a separate thread.

    Share your ideas about binary options strategies with the community!

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    Hallo admin, on binary option from robo expiry time only 60 second, 120 second and 180 second? Can I use expire time 30 minutes or 1 hour?

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    Quote Originally Posted by ngalapreceh View Post
    Hallo admin, on binary option from robo expiry time only 60 second, 120 second and 180 second? Can I use expire time 30 minutes or 1 hour?
    Currently you have several choices - if you trade short-term options, they allow to open positions up to 180 seconds, "long term" expiration dates allow you to open position for 1 day or more. Explore the platform

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    I visited robooption website before I opened a real account. I tried to get some idea and feature of this option trading. E book and videos really help me to understand many thing about binary option trading. I found almost interesting when trading in demo account. Then I opened a real account and traded. Luckily I won more than I lost which bring me about 17$ profit in my 50$ invest in a day. I am really happy and good to learn how to trade binary options.

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    I am new on tis forum and I like to these kind of sharing because this kink of knowledge promoting to improve over trade I like so much this kind of trade so thanks to all who is sharing this.

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  7. #7
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    i had played a touch and no touch game on binary options. there are two price level any one price level you have to select to play the game. if price touch your selected level you will gain money.

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    i think binary options is helpfully matter of roboforex company.when i started this treding i need to help the binary option.its work do very easily.many hard work thats my problem for every work.but its work system is so good that i do understand very easily.

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    I don't recommend option trading for newbies. Its best if we start trading in regular pairs and just feel how the market and trends moves. Later on you can try to trade scalping. Then if you are making money in scalping you can try option. Because in option theirs a time expires and usually even if you have good looks for long term trend but you don't know how to compute volatility you can end up getting loses.

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  10. #10
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    Quote Originally Posted by budado View Post
    I don't recommend option trading for newbies. Its best if we start trading in regular pairs and just feel how the market and trends moves. Later on you can try to trade scalping. Then if you are making money in scalping you can try option. Because in option theirs a time expires and usually even if you have good looks for long term trend but you don't know how to compute volatility you can end up getting loses.
    First of all - binary option is just a trading instrument, understanding behavior of price of underlying asset is mandatory. It's impossible to trade options if you don't know how price of particular currency pair is going to move. But in options trading, your risk is predefined that's why sometimes it's easier to trade because you can be careless about "stop running" for example.
    Of course, there are also some disadvantages - for example, it's impossible to let profit run with binary options.

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