Author:Vishal Doshi
Date:02-11-2017

What is Binary Options Trading?

  • As a trader, if you are dealing with binary options, you will have to make a CALL or you will have to buy a PUT, on the basis of your market study. This prediction will be for prices of binary options of a particular company, for a specific date, on a particular time.
  • If your prediction for a rise in prices (CALL) or fall in prices (PUT) comes correct, then, you will earn more than your invested money, irrespective of movement of the instrument. And, if your prediction whether a CALL or a PUT goes incorrect, you will lose all your invested money.
  • To earn money you have to buy a CALL, expecting the price to be above the Strike Price at the finish time. Or, you have to purchase a PUT, expecting the price to fall below the Strike Price at the finish time.

What do you mean by “Binary Options”?

You can deal with your short-term (that lasts less than 1 year) and long-term financial instruments (that lasts for more than a year), in form of ‘Binary Options’. There are fluctuations in the price of Binary Options. You will have to estimate and speculate these prices, a rise or a fall, according to your market study, during the particular time period.

What do you mean by purchasing a “CALL” and buying a “PUT” in Binary Options?

“CALL” and “PUT” are the two main deals in the Binary Options. CALL will let you deal a rise in price, whereas, PUT will let you deal a fall in price. Right estimation will earn you profitability up to 90% and will earn your investment back. But, you will lose your invested money by the wrong estimation. They are also called digital options (in Forex trade market), fixed return options (in American Stock Exchange-FROs) or all-or-nothing options.

What are the different types of Binary Options?

  1. Cash-or-nothing Binary Options: On expiration of cash-or-nothing binary options, it pays a fixed cash amount.
  2. Assets-or-nothing Binary Options: On expiration of assets-or-nothing binary options, it pays the concealed security value.

What is the meaning of “Binary Options Robot”?

A robot in binary options is nothing but an automated system that is helpful to you as a trader to deal in binary options prevailing in the market. They are also known as Auto-Traders and Signal-Providers.

How does Binary Options Robot work?

  • Binary Options Software run through automated software. They also provide various types of tools. This Robot deals directly into your Binary Options Broker Account. It finds reliable trading platforms and handles everything relating to the trade.
  • There are possible scams in the name of Binary Options Robot that you need to be aware of as a trader. Not everyone though. But, it is advisable to study the market risks oneself and make relying decisions by oneself to earn or to lose your money, as a trader or an investor.
  • After all, these Robots are nothing but automated signals that can be easily manipulated by the fraudsters. However, the genuine Auto Trading Robots charge you money, in form of their fees for a subscription to their service.
  • You can design your software to meet your trading bias and create algorithms to follow accordingly, within your criteria.Binary Options Robot collects past data and use for comparisons and to determine the prospective price movements of a concealed asset for a specific time.
  • Binary Options Robot makes the decision to trade or not by this progressive analysis. You can easily turn of auto-trade, if you want to do the task by yourself, at any moment. As a trader, you can configure the software with various indicators and signals to analyze the Binary Options market. Such options for configuration vary from each Binary Options Robot to other. So, you have to research well, for which Robot offers what you need.
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What is a Binary Options Trading System?

There are trading systems existing in the market, particularly for Binary Options which guide you people as traders and investors. The main supporters of these trading systems are Binary Options Trading Signals, Binary Options Trading Strategies, and its related Algorithms.

How are Binary Options Trading Systems beneficial?

In any case, the self-made market study can lead you to earn more precise returns. As an investor or an individual trader, you can develop your own strategies and follow your own rules according to your market research. And earn more benefits in the market of Binary Options. Binary Options Trading Systems are very much time consuming and laborious methodology. Hence, Binary Options Robot or automated systems are more convenient comparatively. They consume your lesser time and make your experience more meaningful and satisfying.

What are Binary Options Signals?

You require a lot of time in research to acquire knowledge of Binary Options Market. Binary Options Signals are alerts given by professional traders. They give you signals directly to your personal mail, in the required time. But, as a trader, you have to be alert over the closing time of such signals. It expires on daily basis, when a specific price of a particular asset is announced or when the market for a particular asset is shut.

Who is Binary Options Signal Provider?

  • The main role of Binary Options Signal Provider is exactly to lessen your burden of this fatigue. Signal Providers encourage more and more profits for traders by receiving perfect signal.
  • In an Auto Trading Robot or an Auto Trader requirement of manual action is fulfilled. Auto Trading Technology serves here. It is beneficial during short-term Signals which are as short as 60 seconds sometimes.
  • Companies provide Binary Options Signals after a detailed underlying, practical, trading and statistical analysis of the value of assets, in the Binary Options Market. Trading done based on these Binary Options Signals is proven very beneficial with a low level of risk.
  • A newcomer (trader) can make use of these Signals to earn high profits, without knowing much of technicalities. Online service providers are the best Signal Providers because there are many fraudulent and non-reliable Signal Providers in this industry.
  • It is very risky to blindly follow any Binary Options Signal Providers existing in the market. Hence, a detailed self-analysis is very important, before making any big decisions relating to investments. You must be able to understand price charts, to interpret the functions of Binary Options Signals.

How do Binary Options Signal Provider Software work?

As a trader, you have to go through a keen observation of market trends, statistical, fundamental and technical analysis. You have to spot the differences if each minutely changing patterns in the price charts of the Binary Options.Binary Options Signal Provider Software makes this task of investors and traders very easy. It goes through all aspects in detail and saves you a lot of time and energy. Binary Options Signal Provider uses such software to report their studies and analysis. They send you to signal in your personal email account, immediately, as soon as they find a new trend or a new pattern.

Which “Binary Options Strategy” you need to keep in mind?

  • Binary Options Market is full of risks since the beginning of your investment.
  • As a trader, you must know that risk of losing money is limited to the amount invested by you.
  • By losing trades continuously, there are chances of losing the broker too.
  • Fake details in your trading account may allow broker platform of investigation to ban your account right away.
  • This provides safety to other traders united on the same platform.
  • During trade, dividend amount is pre-determined.
  • There is no option for trader other than to CALL or to PUT.
  • Binary Options Market is completely based on estimations.
  • Physical assets do not exist.

What is the role of Binary Options Brokers in the Market?

  • Binary Options provide a huge global market to transact your assets and cash. Different countries including the USA are indulged in this huge market of capital trading. Binary Options Market is not for traders trading with the greed of earning a large number of returns in single trade.
  • So, as an investor, you must be aware of pros and cons of the Binary Options Market. You must be aware of risks, returns, and deals that come forth time to time. Binary Options Market has many brokers to help you go through the risks of trade.
  • Brokers in Binary Options Market can be identified by different criteria which they provide to their clients. Binary Options Brokers provide you Minimum Deposit, Maximum Returns, Trading Platform that they follow and Bonus offered.
  • All of these brokers are not registered by the government. So, as a trader, you have to be very careful, while dealing with one. Review on websites of these Brokers can help you identify fraudsters if any. You must be able to find an authorized broker for your trade purposes.
  • Financial Industry Regulatory Authority (FINRA). is a non-profit organization who works in giving alerts against frauds.

Following are some of the best Binary Options Brokers in the world, offering different schemes to attract traders:

BROKER REGULATED/NON-REGULATED MINIMUM DEPOSIT MAXIMUM RETURNS TRADING PLATFORM BONUS
Binary.com Regulated $5 90% Android, iPhone, proprietary, and web -
BD SWISS Regulated $10 85% Android, iPhone, SpotOption and web -
BINARY MATE Non-regulated $250 90% Android, iPhone, proprietary, and web Up to $250, risk-free trade
365 Trading Regulated $100 85% Android, iPhone, proprietary, and web Up to 100%
MarketsWorld Regulated $20 90% iPhone, proprietary and web Up to $1000 start-up bonus; up to 100% on trade
eTORO Regulated $1000 * Android, iPhone, proprietary, and web -
ETX Capital Regulated £1000 100% Android, iPhone, MarketPulse and web Varies, personalized
Ayrex Non-regulated $5 85% Android, iPhone, proprietary, and web $30 no-deposit new account, up to 30% on trade
24Option Regulated $100 89% Android, iPhone and TechFinancials web Up to 100%
OptionFair Non-regulated $250 91% Android, iPhone and proprietary web -
EmpireOption Non-regulated $200 80% Android, iPhone, SpotOption and web Up to 100%
High Low Non-regulated $250 90% Android, iPhone, MarketPulse and web $50 upon sign-up
CMC Markets Non-regulated - Varies Android, iPhone and proprietary web -
Binary Tilt Non-regulated $250 85% Android, iPhone, SpotOption and web Up to 100%

Are Binary Options trading Legal or illegal?

  • Binary Options are getting more and more popular because investors now have an option to invest their large investments in form of different pools of financial instruments. There is a common market available for traders, to trade in assets or in cash.
  • In Binary Options Market traders can take help from Brokers available online. There are various Trading Platforms available to guide throughout the trading process. You can receive Trading Signals from Binary Options Robot (software) by subscribing to the same through your personal computer or even mobile phones.
  • Binary Options Brokers ask for transparency and hence, authorized Brokers. follow strict rules of verifying the identity of the investor. Many Brokers follow the regulatory framework of America’s Patriot Act, which is formed to block terrorism, fraud and manage international transactions, since 26th October 2001. They ask for ID Proof and Residence Proof of their clients for transparency.
  • All such facilities of Binary Options Market attract a large number of traders to invest their money and encourage their clients to invest in Binary Options Market for higher and faster returns.
  • There are countries in the world that have legalized trading in Gambling and Casino Games up to a certain level. Similarly, there are many nations in the world who consider trading in Binary Options to be nothing more than just a business, like Forex Trading. They have allowed Binary Options trading as Legal.
  • As a non-registered broker, fraudulently cheating your customers can put you in serious trouble. Yes, it is illegal to do trading in Binary Options in specific countries of the world. A country, from which you accept traders, must have Binary Options Trading legalized in their country.
  • For this the concept says, if a Binary Options Contract offers instance returns on the company’s security price, the contract itself becomes a security for the investor. Further, this contract cannot be sold without proper registration unless exempted. Registration of Binary Options Contract makes the trade legal. Without registration, such a contract is considered illegal.

Is trading in Binary Options in the USA legal or not?

  • CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) are platforms available to register Binary Options. But, there are many other Binary Options which do not follow US-based regulatory norms. Many Binary Options Markets work over internet-based trading platforms.
  • There are Binary Options Trading Platforms that working as unregistered brokers and dealers, and some work as unregistered securities exchanges. It is illegal for companies to trade in commodities like foreign currencies and metals such as silver and gold and agricultural products like corn and wheat, with citizens of USA. To trade in such commodities, transactions must be held on a Bonafide Foreign Board of Trade or on a Deputed Contract Market or an Exempt Board of Trade or are administered with U.S. customers having a net worth of more than $5 million.
  • If Binary Options Traders do not follow the applicable laws and purchase Binary Options, provided by Unregistered Platforms or Companies, then, they cannot take advantages of the safeguards of the Federal Securities and Commodities laws, which are made to save the investors. These safeguards are only for Registered Entities.
  • It is advisable to verify the company’s registration status and background, which you want to, invest into, by using FINRA’s BROKER CHECK and National Futures Association’s Background Affiliation Status Information Center (BASIC). If you find any doubt, do not take risks of sharing your personal details, or offering your bank details to share your money. You must not trade with such Unregistered Entities or Professionals.
  • USA has NADEX- an exchange that lists all the Registered Companies. The USA does not have any registered broker for Binary Options Market.

Are Binary Options legal in other countries of the world?

  • Securities Exchange Board of India (SEBI) is a regulatory body in India; do not have any licensed brokers for Binary Options.
  • There are Regulatory bodies in South Africa, United Kingdom, Australia, and the USA which manage the Binary Options Brokers in their respective countries.
  • Canada does not have any Regulatory bodies to manage Binary Options Brokers in their country. They do not have licensed Binary Options Trading market.

What about Binary Options Market in India, legal or not?

  • Binary Options trading is unregulated in India because it relates to Forex Trading. Forex trading Market goes against the legal norms mentioned under Foreign Exchange Management Act (FEMA). Prices in Binary Options speculate and these speculations are subject to market risk.
  • Reserve Bank of India (RBI) and Securities Exchange Board of India (SEBI) do not allow Indians to take investment risks based on such market prices speculation. But, Indian traders can deal with brokers belonging to countries, where Binary Options Trading is legal.
  • Binary Options being unregulated in India does not make it completely illegal. There are lesser constraints in Binary Options Market, in India, as compared to Forex Trading Market. RBI is trying to restrict outburst of INR currency.
  • India has not formed any legitimate structure for Binary Options Market being illegal. There is no Regulatory Authority in India, for controlling binaries. Securities Exchange Board of India (SEBI) does not provide a license to Binary Brokers in India because traders are actually dealing with formulae and not currency itself.