2. Table of Contents
Master Binary Options Trading Resource.............................................................................................3
Broker Reviews.............................................................................................................................4
Signal Reviews..............................................................................................................................4
Broker Scams................................................................................................................................4
Social Networking.........................................................................................................................5
Master Ebook................................................................................................................................5
What Are Binary Options?..................................................................................................................6
History of Binary Options...................................................................................................................6
Why Are Binary Options So Popular Today?.........................................................................................7
Binary Options Trade Types...........................................................................................................7
High/Low....................................................................................................................................7
Touch/No Touch..........................................................................................................................7
Boundary (also known as Range).....................................................................................................7
60 Seconds...................................................................................................................................7
Binary Options: Online Trading Version 2...........................................................................................8
Why are so many CFD and Spread Betting Traders moving
over to Binary Options?
Binary Options Trading Strategies.......................................................................................................9
Bullish/Bearish Strategy................................................................................................................9
Money Management Strategy........................................................................................................10
Boundary Strategy.......................................................................................................................11
Binary Options Demo Accounts........................................................................................................12
24Option Demo Account.............................................................................................................13
OptionBit Demo Account............................................................................................................13
OptionFair Demo Account...........................................................................................................13
Binary Options Glossary...................................................................................................................14
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3. Master Binary Options Trading
! All binary options traders are advised to select a reliable source of information that
can be referred to on a regular basis. Master Binary Options Trading (http://
www.masterbinaryoptionstrading.com) is one such source. The website provides a
plethora of reviews, news, daily analysis, scam reports, trading education, and more. Both
new and experienced traders will benefit from quickly being provided with a list of the
most reliable brokers and what each has to offer. Those searching for the brokers who
offer the highest payout percentages need look no further as...
“...Master Binary Options Trading lists them all in
one place.”
The Master Binary Options Trading blog offers information for traders of all skill levels.
Entries cover topics such as strategy development, money management, risk assessment,
fundamental analysis, technical analysis, trading signals and more. Binary options trading
is an ongoing learning process that never truly ends. This blog will provide a constant
stream of new information that can be used to make trading even more profitable than
ever before.
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4. Broker Reviews
Reviews have become extremely important in the world of binary options. Master Binary Options
Trading provides accurate reviews that fairly grade various brokers. Both the positive and
negative aspects of each broker are revealed, allowing the trader to make an accurate assessment
of the overall performance of the broker. Elements such as the trading platform, user-
friendliness, customer service, minimum deposit amounts, and the withdrawal process are
broken down in each review. Each broker is graded based on these important factors.
Signal Reviews
Signal provider reviews are also offered. Trade signals are now used by many to reduce the
amount of time needed for research. The accuracy percentage of each signal provider is
extremely important. Since there is a cost to use a signal service, traders must know which
providers are the best. Automated trading, which is often used in forex trading, has also become
popular in binary options trading. There is risk in allowing a program to perform automated
trades. Reliability of these systems is critical.
Broker Scams
Though scams are not extremely common in binary options trading, all traders need to be aware
of any that do exist. Master Binary Options Trading provides current information in regard to
scam reports. With money on the line, one can never be too careful when selecting a broker.
Though extremely rare, good brokers can run into problems should a proper money
management system not be in place. Traders must be alerted to any red flags immediately in
order to avoid losing money. Binary options scams can be presented in several forms.
Fortunately, traders need not ever fall prey to a scam when current scam information is
monitored.
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5. Social Network
Do consider joining the Master Binary Options Trading community. This can be done via
Twitter (https://twitter.com/MaBinaryOptions) or Facebook (https://www.facebook.com/
MasterBinaryOptionsTrading). Either of these social media outlets will allow you to access the
latest news, interact with expert traders, and interact with other traders. While articles, news
reports, and educational tools are important, there are plenty of benefits to being able to directly
interact with those who can provide support, guidance, or friendship.
Master eBook
While we have covered a great deal of information within this eBook, there is more to be learned.
These basics will certainly point you in the right direction and help you get started trading right
away. However, this information is by no means all that must be considered when trading. With
binary options trading now becoming the preferred trading method of many, there is no end to
the growth of this industry in sight.
Visit Master Binary Options Trading to access the latest information that should be considered
when trading for profit.
Press the ‘launch success’ button at the bottom of any page and be transported to the
Worlds Number 1 Binary Options Trading Resource.
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6. What Are Binary Options?
! B inary options are a means of financial asset trading that does not require the trader
to purchase an ownership stake. Instead, traders are allowed to purchase a contract that
includes the trader prediction of whether or not the value of the selected asset will be at,
above, or below a set price at the end of the contract time period.
Binary options trades are often referred to as, "yes or no trades." This is due to the fact
that most trades require only the prediction of yes, the value will rise above the strike
price within the designated time period, or no, it will not. This simple form of trading can
easily be mastered by anyone who invests the minimal amount of time required to learn
how to trade.
In order to complete these trades, the trader will need to partner with a broker. The
broker will provide the trading platform that will be used to purchase contracts. There are
plenty of brokers to choose from, with each being responsible for paying earning to
traders.
History of Binary Options
! M any think that binary options trading is a new concept. In reality, this form of
trading has been around for quite some time. The Chicago Board of Options Exchange
was established in 1973, paving the way for binary options trading to grow and expand.
Prior to this time, this financial instrument could only be found in closed markets. Trades
were not standardized at this time, instead being over the counter types of trades.
The most significant changes would occur in 2007. During this year the Options
Clearing Corporation would work towards bringing binary options mainstream.
Proposals were made to, and accepted by the SEC in 2008. Soon after, the the American
Stock Exchange and CBOE would become two of the first to offer binary options to the
general public.
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7. Why Are Binary Options So Popular Today?
Google Trends - Binary Options 2004 > 20012
!
! T his form of trading offer several benefits that simply cannot be ignored. For
starters, binary options trading is straightforward. The trader knows the exact profit
percentage on each trade, as well as the potential loss amount. Traders will never lose
more than their investment amount on any trade.
“This straightforward approach renders money
management a simple process.”
The simplicity of binary options trading is another draw. In a time when there are almost
too many options for trading, binary options allow anyone to quickly learn how to trade
and to begin profiting immediately. There is no lengthy learning curve to prevent traders
from trading immediately. In fact, it is possible to profit within the first few minutes of
trading.
The volatility of the markets today is yet another reason. In traditional trading, the trader
can only profit if they value of their assets rises over time. Binary options allow traders to
profit regardless of whether the value rises or falls. With so much economic uncertainty
surrounding the markets today, binary options remain a solid option for trading that is not
negatively impacted by these conditions.
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8. Binary Options Trade Types
! T here are several types of trades to consider with binary options. Note that different
brokers may offer different types. However, the following are commonly used and found
within many trading platforms.
High/Low (also known as Call/Put) - The simplest trade type. Traders
need only predict if the asset value will higher or lower than the entry
price at the end of the contract time period. When an increase is
predicted, the "call" option will be selected. Should a decrease be
predicted, the "put" option will be selected.
Touch/No Touch - Another simple trade that requires the trader to
predict whether or not the asset value will reach, or not reach a
predetermined set price at any time during the contract time period.
Touch profits are earned should the asset value touch the set price at any
point during the time period. In order to profit from No Touch, the asset
cannot touch the set price during the contract time period.
Boundary (also known as Range) - In this trade type, two asset price
levels will be set, both high and low. This establishes a boundary. In order
to profit, the asset value cannot exceed either of these amounts during the
contract time period.
60 Seconds - Must the same as High/Low, but with a shorter contract
time period. A call or put option must be selected, with the outcome of
the trade known once the 60 seconds have elapsed. This is currently the
fastest form of trading.
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9. Binary Options: Online Trading Version 2
! B inary options trading has quickly become the preferred trading
method of those who participate, or have participated in CFD Trading or
Forex Trading. Niels Vahman, Chief Executive Officer and Executive Director
at licensed Binary Options Market Makers, SpotOption summed up the reason
that so many have switched over in a recent statement.
“The Binary Options industry is where forex was
10 years ago. As I see it as the new forex, the
possibilities are endless," said Vahman.
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10. Both CFD and Forex traders find a great deal of comfort in trading binary
options. This comfort comes from knowing that nothing more than the
investment amount of each contract can be lost.
This allows the trader to only risk the amount that he or she is willing to part
with should the trade end out of the money. In comparison, standard CFD and
Forex trading never allow the trader to know up front the exact amount of
money that may be lost.
Binary options offer traders the ability to trade globally. This presents virtually
limitless trade opportunities to explore. Any knowledge learned from CFD or
Forex trading can be directly applied to binary options trading. Those who
have never participated in any form of trading are not left out, as binary options
trading basics can be learned in a very short period of time. Both experienced
and novice traders can begin trading immediately with the knowledge that they
have the power to limit risks.
Market volatility does not impact binary options trading in the same manner
that it impacts traditional trading. In fact, many who trade binary options profit
greatly from volatility. It makes no difference whether the asset value rises or
falls, only that the correct prediction is made. The ability to profit from
declining asset values is something that is not seen in other forms of trading.
“This unique feature opens up even more
profit possibilities”
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11. Small in size and self-contained in nature, binary options provide the perfect
outlet for testing CFD or Forex strategies without risking large amounts of
money. Though many switch to exclusively using binary options to profit,
those who choose to also continue traditional trading may find this form of
trading more profitable when using binary options tools and testing.
With minimum deposit and investment amounts typically low, binary options
trading becomes affordable to a large group of people. Minimum Forex or
CFD trading minimum deposit and investment requirements tend to be quite
high. The eliminates the average trader who wishes to profit from trading.
Minimum deposit amounts with binary options brokers can be $100, or less.
“Some brokers will also offer no
minimum investment amount on each
trade.”
The profit percentages offered by brokers must also be considered. These
typically range between 70-85% of the initial investment amount. Some
brokers may even offer percentages higher than this. High yield trade profit
percentages can be as high as 400% or more. Many binary options brokers
now offer a 10-15% return of the investment amount on trades that end out of
the money. A return is something that never occurs in traditional trading.
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12. Binary Options Trading Strategies
! T rading strategies are something that all traders will need to consider. The following
three are widely used due to their simplicity and success level:
Bullish/Bearish Strategy
! T his strategy is based on the overall market condition at the time of trading. A
bullish market is one in which trading is strong and active. During this time, asset values
are likely to rise. A bearish market is one in which investors are more hesitant to invest,
causing the asset values to move little or decline. Either of these market conditions will
allow the binary options trader to profit.
Based on market conditions and general sentiment,
the trader will need to first determine whether the
market is bullish or bearish. This can be done by
referring to financial data over a specific time
period. The time period is important, as it will be
used to select the correct contract expiration time.
For example, if market conditions have been bullish
Bull Market: Prices Consistently Trend Up for a short period of time, the trader may wish to
assume that asset values will continue to rise in the
short term. Long term market conditions can also
be a strong indicator.
Fundamental and technical analysis are required for
this strategy to work well. Fundamental analysis will
include a consideration of current news and events
related to the specific asset class or underlying
Bear Market: Prices Consistently Trend Down asset.
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13. Technical analysis will include reviewing charts and graphs to see how the asset has
performed in terms of rising or falling value.
“These two analysis types are used in nearly all
strategy types, and are certainly not limited to the
Bullish/Bearish strategy.”
The final consideration when attempting to profit from either of these market conditions
would be the include pivot points in the strategy. Pivot points as applied to overall market
conditions are simply the point at which the market switches from bullish to bearish, or
bearish to bullish. Many binary options traders are able to profit greatly from learning how
to predict such a shift before it occurs.
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14. Money Management Strategy
! T he main benefit of a money management strategy is that it allows the trader to
correctly manage funds. This strategy can prevent the trader from ever losing more money
than the wish, keep more funds for re-investing, and prevent the need to be making
frequent deposits with the broker. A money management strategy is not applied to just
one trade type, but all trades.
Money Management’s basic aim is to increase wealth
over an extend period of time
Once example of this strategy would be the establishment of a maximum percentage of
funds that will be invested in each trade. A lower investment percentage amount, typically
10%, is set and not exceeded. This would mean that if the trader currently had $300 in
their broker account, no more than $30 would be invested on any one single trade.
This reasonable spreading of funds will allow losses to be easier to absorb. It should also
allow funds to still be available for performing profitable trades that will offset losses and
grow total profits. One of the biggest mistakes in binary options trading is investing huge
amounts on single trades. Regardless of how certain the trader is that the prediction is the
correct one, there will always be a level of risk.
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15. The money management strategy should also include diversifying so that the trader is not
at the mercy of a single asset type not performing as expected. By building experience
within all four of the major asset classes, the trader should always have several trade
outlets to choose from. At any given time one of these could be easier to predict than the
others.
“A diverse approach removes limitations.”
Money management is something that all binary options traders must consider. The 10%
maximum investment amount may not be right for everyone. However, some investment
limitations should be in place to prevent a total loss of funds and subsequent need for
making another minimum deposit.
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16. Boundary Strategy
! A good boundary strategy relies heavily on research. Boundary trades require the
trader to select an upper and lower boundary that the asset value will remain within during
the contract time period. As long as the asset value remains within these two numbers
while the contract time is active, the trader profits. Should the asset value be out of the
boundary range, either above or below, a loss is the result.
The Boundary across a period of time
This strategy can be put into action by reviewing historical financial asset data to see how
the asset has performed in the past. In doing so, certain price ranges should become
apparent. A maximum high and low value should be noted, as the asset value is likely to
break out of these. Between these two, however, should a range in which the asset value
often hovers within. Spotting this range is critical.
“Fortunately, charts and graphs will make this task
easier.”
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17. The expiry time period should also be considered. For example, if the underlying asset
has remained within a certain range for only a short period of time it should be considered
temporarily volatile. Alternately, should the asset have remained within basically the same
range for a day or more, it can be considered more stable.
“ The level of stability or volatility should be
considered when selecting between a broad or
narrow asset boundary range.”
The boundary strategy may seem complicated on the surface, but is actually one of the
easiest strategies to master. Analysis tools make it easy to see the typical boundaries that
an asset moves within. A final tip when using this strategy would be to not overlook
fundamental analysis when making boundary trades. Current news and events related to
the specific asset could easily cause the asset value to become erratic and leave the
boundary range very quickly.
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18. Binary Options Demo Accounts
!
!
! D emo accounts are offered by many brokers. These accounts allow trader to use the
broker platform to perform no-risk, fictional trades. Traders can use these accounts to
determine how well they like the platform that is being offered. Though there are plenty of
broker reviews available, these cannot replace the experience of actually entering into the
trading environment and making judgements based on first-hand knowledge.
Demo accounts are typically offered free of charge. Brokers offer these accounts with the
hope that those who use them will choose to partner and trade with them. This makes the
demo account beneficial to both the trader and the broker. No one loses in this case, with
both parties standing to gain something from the use of these free accounts. That said,
traders should note that demo accounts are typically not offered for long periods of time.
At the end of the account time period, the trader will need to decide whether to make the
minimum investment or not.
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19. The benefit of demo accounts to new traders cannot be overstated. Those new to binary
options trading must consider learning how to trader correctly. Since these accounts
allow the trader to enter into a "real-time" trading environment, they allow traders to
experience what it is like to trade. Though the funds are fictional, the experienced gained
is very real. No trader should ever begin trading without fully understanding how to trade
correctly.
Experienced traders can use demo accounts in a different manner. Often these accounts
are used when switching from one broker to the next, or in deciding whether or not to
partner with more than one broker. Experienced traders already understand how binary
options trading works, meaning that the training tools provided may not be extremely
beneficial. However, experienced traders are well aware of the importance of trading with
a reliable broker within a reliable platform.
“Demo accounts can provided the necessary insight
required to make decisions.”
The following are three of the binary options brokers offering attractive demo accounts.
While these are certainly not the only options, each of these can provide substantial
benefits to traders.
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20. 24Option Demo Account
This broker is a popular choice due in part to their user-friendly platform. Unlike some
demo accounts, 24Option provides demos within their extensive trading materials. This
is much more beneficial than simply having access to a platform and then not knowing
where to go from there. 24Option takes traders by the hand and then leads them through
the educational experience via not only written content but also training videos. Novice
traders, in particular, will benefit from opening a free account with 24Option.
OptionBit Demo Account
OptionBit offers a free demo account along with an educational eBook that is valued at
just under $40. Registration takes only minutes, at which point the trader can enter into
the platform and begin examining the tools. Though there is plenty of value in the demo
and educational tools offered by OptionBit, additional value will be had in the form of
lucrative bonus amounts offered to those who convert their demo account into a full
trading account.
OptionFair Demo Account
There is plenty to love about what optionFair is offering to those who have not yet tested
their platform. Fast and free registration provides traders with access to the platform,
plenty of educational tools, and binary options guide eBook. What makes optionFair most
unique is that they are currently the only broker offering free live webinars to provide
assistance to traders. These webinars are hosted by an expert binary options trade
instructor, with a number of important topics being covered.
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21. Binary Options Glossary
• Asset Class: The four main asset classes include Stocks, Commodities, Currency
Pairs (Forex), and Indices.
• Underlying Asset: This is any asset that falls under the asset class. (Ex. Starbucks,
which would fall under the Stock category).
• Expiry: The is the end date and time associated with each contract purchase.
• Call: A prediction of the increase in the value of an asset.
• Put: A prediction of the decrease in the value of an asset.
• In the Money: A trade that ends with the trader successfully earning a profit.
• Out of the Money: A trade that ends with the investment amount being lost.
• At the Money: A trade that ends with the asset value being the same as it was when
the trade was initiated. This results in the full investment amount being refunded.
• Payout Percentage: The percentage amount of the total investment that will be
earned should the trade end in the money.
• Current Price: The current value of an asset as determined by a major financial
news source such as Reuters or Bloomberg.
• Strike Price: The price linked to the contract purchase, or the contract purchase
price.
• Broker: The company with which trading contracts are entered into.
• Trading Platform: Provided by the broker, this platform is the area in which
trading is conducted. The platform will also include tools, banking functionality,
and more.
• Analysis: Research related to each asset. This is done in order to increase the
number of in the money trades.
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