March Special Offer: Get a guaranteed 100% Free First Deposit Bonus at Wynn Finance #1 Ranked US Broker: Get Free Bonus Here!

Binary options trading can be highly rewarding for those traders who understand this concept and are able to make the right choices and are careful. Binary trading isn’t gambling and by using binary options strategies it’s possible to increase one’s winning ratio and generate profits.

In my binary options strategy article series I'll be teaching you how to win at binary options. Using the tips and strategies I have provided, you’ll be able to increase your winning ratio to a level on which you may able to generate profits over the long term. My experience has proven, on multiple occasions, that if you follow certain guidelines you’ll be able to generate income in financial trading (however, you have to understand that in binary options - or any kind of trading that exists - nothing is "guaranteed").

In this article I'll be talking about basic binary options strategy. Please read this page first before you go on to learn about my advanced binary options strategy guides. Understanding the basic notions talked about in this article is imperative in understanding the more advanced guides.


MIN DEPOSIT

PAYOUT

Understanding how Binary Options Work

The first and most important thing to understand before you begin trading is how binary options actually work. In binary trading, you will have to predict the outcome of a situation. This type of online trading is called “binary” options, because a trade can have two outcomes. (Source: Investopedia)

For example, a typical trading contract of this kind might look like this:

– Apple’s stock price will be higher than $500 at 16:00 today. The broker promises a payout rate of 90%.

Now, a trader might either invest for or against this statement. Investing in favor of the statement is called “buy” while investing against it is called “sell”. If the trader’s prediction turns out to be true, then the trader will win the sum that was put at stake plus a sum that is the amount at stake multiplied by the payout rate.

For example: If the trader purchased the above trading contract for $100 and he or she predicted the right outcome, then he or she will win a sum of $190, of which $90 are profits. If, however, the prediction turns out to be false, then the trader will lose all the money.

Underlying assets

Underlying assets in binary options trading are the assets on which traders will have to purchase an option. The most common underlying assets in financial trading are Forex currency pairs, commodities, futures and stocks of various companies. (Source: Investing Answers)

Payout rates

In binary options trading, payout rates are the rates that will determine the money traders will win if they accurately predict the outcome of a trading contract. In the above-mentioned example, the payout rate was 90%.

Winnings in this form of online trading are calculated the following way:

W = B + B * (P/100)

W = winnings

B = investment amount

P = payout rate

So, if the investment amount is $100 and the payout rate 90, then it’s W = 100 + 100 * (90/100) = 190 – as in, $190.

Expiry times

Expiry times are the times at which options expire. These are the moments in time at which traders’ predictions will have to turn out to be accurate. If at the expiry time of an option traders’ prediction is accurate, they will win; if not, they will lose.

Understanding the Different Types of Options

There are multiple types of trading contracts being offered by binary trading brokers. The example that I gave you above is just one way to trade binary contracts of this kind. It’s important to understand the differences between these types because they all offer different winning odds and payout rates.

High/low options – High/low contracts are the basic form of financial trading in the business. The above mentioned example in which traders will have to predict that Apple’s stock price will reach a certain limit is a high/low option.

High/low options are the contracts that can be predicted the easiest.

One touch contracts – These option types allow traders to trade on the likelihood of an underlying asset to reach or “touch” a predefined price range at the time of the expiry. These options are a bit harder to predict than high/low options.

Range contracts – Range or boundary options have two lines. Traders can trade on the likelihood that the price of the underlying asset will stay between the two lines or will breach one of the lines by the time of expiry. Ex: Will Apple’s stock price stay between $590 and $610 at 16:00 today? Traders can predict that the stock price will stay between these limits or that it will either go below $590 or above $610.

These types of contracts are much riskier than the other ones but offer the highest payouts.

(Source: FX Empire)

Binary Options Winning Tips and Strategies

Now that you understand how this form of financial trading works, you’re ready to learn some basic binary options winning tips as well. After understating the things below, you’ll be able to move on and read my more advanced binary options strategy guides.

Bankroll management

One of the most important things to learn in financial trading is to manage your bankroll. In this type of online trading you aren’t gambling and, as such, you should always have a clearly defined strategy on how you’ll handle your money when you trade.

The first thing to remember is to decide in advance on a sum of money that you would like to invest. Under no circumstance should you go above this sum, even if you’ve lost everything (unlikely if you trade smart) or even if you have won all the contracts purchased.

Financial trading has to be emotionless. You’re there to make money. You’re doing business. Don’t get overexcited if you win because it can blind you and determine you to place trades that have not been well thought out. Also, don’t get disappointed when you lose and don’t run after your money. You may lose even more if you’re sad about losing.

Related article: Full guide on money management in binary options.

Analyzing markets and news

Again, I have to point out that binary options trading is not roulette. In roulette there are no ways whatsoever to increase your winning odds. However, in this type of financial trading you make your own success. If you watch news, if you like business and if you’re smart, then you can increase your winning chances to be beyond just random luck.

The best binary options winning strategies are built on knowledge. Watch the news, know what’s going on and you will increase your odds of winning. Almost every single major event that’s happening globally has an influence on markets.

You don’t even have to be an economist with a degree to see a connection between things. Everyone with some basic common sense and knowledge may predict the movement of an asset. The secret is to pay attention to the signs.

The best strategy that involves market analysis is this beginner binary options strategy that I wrote in 2013 and then expanded in 2015. Check it out.

Paying attention to major events

Apple is releasing a new product today at 10:00 AM? Then make sure to place a large investment on the fact that Apple’s stock prices will increase after 10:00. You can be fairly sure that your prediction will turn out to be accurate and you’ll cash in profits.

Sure, Apple may only release new products once or twice per year but most binary brokers offer the possibility to trade on the stocks of several dozen (or hundred) of companies. You just have to check when these companies release some new product and apply this strategy.

These things are also valid on other assets as well. Say, the US Federal Reserve announces that it has printed a large sum of money. Next thing to do is to place an investment that the USD will depreciate compared to other currencies such as EUR or GBP. And this is again a situation in which you’ll win most of the time, in my experience.

You can read in detail about the strategy just described on this page dealing with long-term binary options and news trading.

Winning at binary options trading is not necessarily that difficult. Most traders are just too lazy and believe that they don’t need to use binary options winning strategies to make money. These are the losing traders who make sure that the broker makes profits as well.

Do you want to be like them, or do you want to become a winner?

Choosing the Best Binary Options Brokers

One of the last binary options winning tips I’m going to give you in this article is to choose only the best brokers on the market. The best binary options broker is regulated in a reputable country, has a valid license and offers a very large number of assets as well as provides advantageous payout rates.

For example, the binary options brokers listed here all fulfil these conditions. I think that these are the brokers that currently offer the best online trading services in the business. Use the binary options trading strategies learned here at those brokers and make some money today.

Latest Binary Options Articles & Guides

Investment size per trade binary options

2015. 09. 10.

In this detailed and complete guide I will talk about how much money you should invest per trade when trading binary options. Too many websites claim that you should invest as much as possible but is this really effective... and safe?

Read more
Forex Binary 2015

2015. 02. 02.

Learn to use long-term binary options strategies in order to make money in binary options trading. Find out why these strategies are the easiest to implement.

Read more
Trade Stocks in Binary Options

2013. 06. 18.

Learn how to trade stocks in binary options. Trading stocks is one of the most difficult ways to make money in binary trading but if done right it can offer massive winning and payout opportunities.

Read more
  • AlohaFromHawaii

    Signup Bonus

    What are these signup bonuses that they want to match my deposit 100%? Isn’t that like taking credit from them that I will owe back if its lost? All I could find on one brokers site about it in their terms was a required rollover of 30 to every $1… So if they matched me $1000 sign up bonus doesn’t that mean I’ll have to have 30,000 trades before withdrawal? I’m so confused on that part and I keep saying NO THANKS and all the options sites keep putting up Yeah they offer Bonus… I don’t get it.

    • OptionsAdvice

      Hi there. Bonuses are just a mean to entice people to sign up and deposit. You can either accept or refuse to get a bonus, it’s not something that’s being offered by default (which is a good thing, as not all traders need bonuses).

      It essentially goes like this: If you deposit a sum, say, $200, you can get a bonus of 100% of the deposit, which is another $200, so your account balance will be $400. You can use this money to trade with.

      A few considerations:

      1. You do NOT owe money back if you lose the bonus. I.e. you got $200 in bonus money; if you lose that then you do NOT have to pay the broker back the $200.
      2. If you win with that bonus money, the money is yours but can only withdraw after you have invested the bonus amount an x amount of time, usually this is 30x. – This rule exists to prevent bonus fraud (i.e. you sign up, deposit $200, get another $200 as bonus, make a few trades and make $100 profit after which withdraw the $100 profits and the $200 deposit – this is essentially called bonus fraud, hence the 30 times investing requirements).
      3. You can still withdraw your actual deposit at any time provided you have enough money in your account even if you haven’t matched the 30 times investing requirement.
      4. You can choose not to accept a bonus. This is perfectly fine.

      Point 2. essentially brings up two consequences:

      a. If you are a beginner, then you should not accept a bonus because for you it might be difficult to match the 30-times investment requirements
      b. If you are already skilled then you can definitely match the investing requirements and as such you should accept the bonus, as that way you basically double your investing funds.

      So, in short, if you are a beginner or minimum deposit trader, then do not accept a bonus. if you are advanced and confident in your skills, then do accept the bonus.

  • Prithvi

    Very good tips. I read this article 15 days ago and have come back to comment to tell that the tips actually worked. I have $10,000 in my iqoptions account now!

  • kelvin robinson

    Binary Option Trade has been a real source of making more money for so many, Having been trading for years now, i have seen and learn so much about trading..I wont say am perfect but i can tell you i am making success using the most profitable strategy that was introduce to me by dwightholmies. i am willing to help anyone who is interested in making profit in his or her trade.Feel free to contact me if you need any assistance while trading…kelvinrobinson999@gmail.com

  • donald armstrong

    Trading has been the best thing that has happened to me, ever since i
    started two years ago,I lost a lot before coming across the strategy am
    presently using. I can say am now a successful man after making at least
    over 213 persons millionaires, my gratitude goes to those folks out
    there who shared their success stories with me. thanks a lot & for
    those who would love to use my assistance, you can email me
    with..donaldarmstrong999@gmail.com

  • jadel hamilton

    Are you tired of investing into binary option trading without any achievement or want to invest and do not know how to go about it? we are here to teach you or help you make good reward with the money you invested. i know investing into trading is a risk but with our software you are risk free if not 100%. Do not be scared investing because you can be as rich as u can ever think of like other wealthy investors. you can contact me on..jadelhamilton999@gmail.com

  • henry lewis

    If you think that you are not well versed in the art of Trading Binary Options , the straight art system that can help you as your digital FINANCE MANAGER is nothing but a good strategy .As a completely fresh/newbie trader or someone loosing his grands,contact me via..lewishenry999@gmail.com

  • lilian amaro

    Binary options trading requires you to know the basics of the whole process, as well as to build up a good working and effective strategy. Even though everyone has his or her own approach into analyzing binaries and the financial market movements, there are, though, several common strategies that almost every binary trader has at least once tried and remained satisfied with the final outcome This is what we are going to talk about today. See more details, helpful information, cool tips and suggestions about binary options strategies, free software, free tips and free PDF file all for your success, and if you have made profit and your broker(s) refuse to give all that you have traded for feel free to contact Mr michael roland a mentor of Binary and Forex trade who helped me in getting all from them and all his strategies am using right now via michaelroland727@gmail.com

  • Lilly Chater

    Financial freedom is available to those who learn & work towards it, those were the words of Robert Kiyosaki and this has been my watch word, when i got into the option market a few years ago, the first six months where horrible as loosing my funds seemed the only thing i knew how to do, lost almost $100000 until i came across a strategy which i learnt how to use in a few days, making me over $15000 weekly i cant say i’ve not been successful,Email me at lillychaters@gmail.com and ill show you what to do

  • birch joseph

    I will continue to Thank you Mrs Byrne Julian for making me what i am today with helping of trading for me and also manage my account , i never believed any post here on here because i have lost a lot to brokers and scammers all in the name of looking for a great strategy, but recently i saw her post and,i contacted her and she told me all i have to do and i follow her instructions, today i am proud to say that if not because of Mrs Byrne Julian i wouldn’t have become successful in the world of Binary options and Forex trade feel free to contact her, because i promised her i will tell people about her,you can reach her via (Byrnejulian26@gmail.com)and get the best strategy for binary trade success.

  • Lilly Chater

    Financial freedom is available to those who learn & work towards it, those were the words of Robert Kiyosaki and this has been my watch word, when i got into the option market a few years ago, the first six months where horrible as loosing my funds seemed the only thing i knew how to do, lost almost $100000 until i came across a strategy which i learnt how to use in a few days, making me over $15000 weekly i cant say i’ve not been successful,Email me at lillychaters@gmail.com and ill show you what to do…

  • elina marez

    i was able to retrieve my lost funds of $60,000 within few days from an unregulated broker who took my funds and refused to listen to me till i found this easy steps i used to get all my funds back. reach me on elinamarez16@gmail.com if you have similar issues of funds withdrawal with any broker. we must stop this unregulated brokers.

  • Joziah Tyree

    Looking for investment of $7k for profit of $53k contact MR kimberrivka339@gmail.com he has the best strategies and broker.
    he is my mentor on binary, if you have any issue of getting back your lost funds or you want to set up an account u can go on and contact him, he is open to anyone