How to trade

Every binary option is based on three elements and includes the binary option contract, underlying asset, the and the forecast or prediction.

Most binary option platforms offer binary options on a variety of underlying assets. They include commodities, indices, currencies pairs and stocks. Traders decide to specialize in one particular underlying asset or area of the trading market.

The contract for the binary option can last anywhere from one hour to a 30 days, however, there are some trading platforms that do offer contracts for as little as 5 minutes. It is always important to know how much time is left until the contract expires before the option expires – like anyoption.

The goal of the investor or trader is to predict the direction the under lying asset of choice will go before the contract time expires. Traders who predict the asset price will increase should buy a Call option and traders who believe the asset price will decrease should buy a Put option. Predicting the correct direction the asset will move will bring the trader profits that are very high and can sometimes double the trader’s investment. If the trader does not predict the correct direction, the trader will lose their investment.

There is a close now ability which gives the trader the ability to cancel an option before the contract time expires. A trader may decide to take this course of action if the option does not perform as expected because the underlying asset chosen is not moving in the direction predicted. For example, if a trader bought a 60 minute Call option and after 52 minutes the price of the underlying asset begins to fall after being in a positive, upward swing, the trader could choose the Close Now option to ensure a profit is made. Another scenario is if the option has decreased steadily, the trader could use the Close Now option to minimize a loss.

Some binäre trading platforms include a feature called Roll Over. That allows the trader to extend the time of the contract to expire in the money and turn a profit. This is helpful if the asset is moving in the desired direction slower than anticipated. More on http://www.binaere-optionen24.de.

Metatrader 5 Certified by the Brazilian Exchange BM&FBOVESPA

The guys from MetaQuotes Software Corp. have been keeping busy tweaking and pushing the Metatrader 5 (MT5) platform these days. Just last week it was announced that MT5 has teamed up with HotspotFX to expand the platform’s pool of liquidity providers for forex and CFD trading, and a mere few days before that a major upgrade for the MT5 Android app was released and the application now features 30 technical indicators for enhanced trading.

It appears, though, that forex and CFD’s (More about forex and CFDs you will find on: Binary24)are not MetaQuotes Software Corp.’s only focus; the company is really pushing hard to establish its Metatrader 5 (MT5) platform as a leading software application for trading stock and commodities.

Just today, it was announced that MT5 has been endorsed by Brazil’s BM&FBOVESPA – one of the biggest exchanges in Latin America. The endorsement will allow brokerage houses that are members of the BM&FBOVESPA to provide trading services to investors using MT5 through a specially designed gateway.

In 2012, MT5 was certified by four more international stock exchanges: Dubai Gold and Commodities Exchange, Singapore Mercantile Exchange, Mauritius Global Board of Trade and the Russian RTS stock exchange. Having in mind the platform’s obvious advantages, this comes as no surprise: MT5 offers a complete solution for financial markets trading, including a flexible back office module, a state-of-art front end system, and technical analysis tools. Along with stock, the platform allows for the trading of equities, futures and OTC derivatives. Apparently, MetaQuotes Software Corp. is recognizing the potential of the region – back in May the company opened a representative office in Sao Paulo to reinforce its positions on the Latin American market.

“We have created a successful platform for high quality that meets all requirements of the BM&FBOVESPA and we will continue with our efforts to offer even more opportunities in our platform for the exchange members. This promising market has a strong demand for our technology and we want to satisfy you,” said Gaies Chreis, president of MetaQuotes Software Corp. The first Brazillian broker to start offering to investors trading via MT5 is XP Investimentos. Alexandre Marchetti, director of operations for XP, shared his enthusiasm of the news: “The Metatrader 5 platform will add tremendous value to customers of XP. It is a fundamental trading system for professional traders that will help our customers maximize their strategies and profit!”.

OneTwoTrade

OneTwoTrade is a Maltese binary options broker authorized by the Lotteries and Gaming Commission (LGA) in Malta. The broke uses the technology of SpotOption, which is one of the best platforms on the market. What I like about OneTwoTrade is the fact that they support detailed statistics of your account activity, thus helping you analyze your betting patterns and isolate the ones that are not successful.

Options Return

OneTwoTrade offers decent returns on binary option bets:

• For High/Low options, or SmartOptions as they are known at OneTwoTrade, the return for EUR/USD is 85%, for Gold – 80%, and for Oil – 80%.
• For 60 Seconds options, the return is 70% return for EUR/USD and Gold.

Let’s say you deposit $500 and start placing random bets of $25 each at a return of 85%. It will take a total of 260 games before you run out of money and need to deposit again. In order to be successful and make money at the same return rate (85%), you would have to win more than 54.1 out of every 100 bets that you make.

Bet size & refund

Bet sizes: The minimum bet size on OneTwoTrade is just £10, and the maximum you can stake on a single option is £1,500.
Refund: while refunds are typical of the binary options industry, not every broker offers one. With OneTwoTrade you will be getting up to 10% refund on the options that expire out of the money. Other brokers offer no refunds on the options that you lose (The german broker BDSwiss for example), and there are brokers that offer higher refunds – IQ Option credits back to your account 15% of each lost bet you make. Find here a complete IQ Option Review: www.binary24.de/broker-vergleich/iq-option.

Option Types

High/Low: at OneTwoTrade, these are called “SmartOptions” and you need to predict whether the price of a certain asset will go up or down, then wait for the option to expire (expiry time for this option type is 30 minutes). 60 Second: this is another type of High/Low options, only the expiry time here is 60 seconds. If you believe that you have noticed a steady price movement direction for a particular asset, you can make one or more 60 Seconds bets to maximize your payout. Once you buy a certain option, it will appear in your account. When this happens, OneTwoTrade gives you the possibility to use the Double Up or Roll Over features. The first one lets you double your bet size, while with Roll Over you can set a new expiry date for your option (in that case you need to increase your bet size by 30% or more).

Deposit and Withdrawal

The minimum deposit amount is £200 and you can fund your account via Visa, MasterCard, bank transfer, or Moneybookers/Skrill.
Cashouts are processed to credit cards or visa bank wire. Keep in mind, however, that for withdrawals of under £200, you would need to pay a fee of £39 plus a processing fee of £30 for bank transfer cashouts. If you’re asking me, this is simply outrageous. Credit card withdrawals over £200 are not burdened with any fees though, so at least there is a way to avoid these ridiculous costs.

Bonuses

Currently new sign-ups are offered a first deposit bonus of up to 25%. In order to withdraw the bonus, your account should have been open for at least a year and you need to wager the bonus amount at least 15 times. Fortunately, there are no restrictions on withdrawing the profit that you make with the bonus. For a full Bonus review: Hier klicken.

Overall Impression

As I said at the beginning, I do quite like the account statistics that show you your performance over time and help you improve your betting models. The broker’s customer support reps are always friendly and do their best to help, and the returns are also above average. On the other hand, though, OneTwoTrade imposes ridiculously high withdrawal fees and that is something I do not appreciate.