Putting Knowledge into Good Use with Binary Options Trading

26 Aug

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When it comes to binary options it is not a gamble. It is important to have good knowledge, take a good attitude and learn skills to be consistently successful. Knowledge in binary options comes in several forms. We will take a look at a few below:

Knowledge of Macro Events

It is important to understand the impact that macro events have on binary options. For example, hurricane Sandy had a massive effect on the markets. Most traders opted to stay out of the trade during the process of the storm. There was simply too much uncertainty involved. Macro events tend to be in the form of negative events unfortunately. The Twin Towers disaster is one of the most significant in the history of finance. Understanding the impact of macro events will ensure that a trader diversifies their portfolio and limits their exposure at any one time.

Knowledge of Asset Related Releases

Understanding both the asset being traded and the information that is released relating to that asset is crucial to trade success (at least for longer trades). In dynamic of the USD currency pairing with other currencies reports such as the Non Farm Pay Roll Report can cause volatility. Having the knowledge of when important reports are released, and what impact they will have, is crucial to trading certain assets.

Knowledge of Technical Analysis

Understanding support, resistance, bearish signals, bullish signals, reversals, candlestick patterns and historical price data for assets will inform trade decisions. Some trades are carried over a very short period of time, for example 15 minutes, and technical analysis will be the main research for the trader. At the least the knowledge of technical analysis tools, and specific knowledge about the technical behavior of prices, may confirm or disconfirm the hypothesis that a certain price movement is going to happen.

Knowledge of How to Trade

A trader must of course understand put, call, touch/ no touch and range trade options. They must have an effective strategy and they must know what the best trading platforms are. Then they must know how to actually physically make the trade. Thankfully for beginners it is perhaps easier to trade on binary options than any other vehicle. There is a very narrow learning curve in this area.

Knowledge is power. In binary options a trader must know what is going to happen related to an asset, why traders are taking their current positions, and how the prices are likely to move. They can then use a trading platform to place a successful trade. Without knowledge one is merely gambling on binary options. By using the massive amount of information at our disposal it is possible to make consistently good trading decisions.

About the author: Eleonora Marchetti is an expert on financial markets specializing in foreign exchange and trading in binary options. An honorary graduate of the SDA Bocconi School of Management in Italy, she provides consultation services to various economic powerhouses, including the globally renowned binary options trading firm, Banc De Binary.

82 Responses to “Putting Knowledge into Good Use with Binary Options Trading”

  1. Carlos February 19, 2013 at 9:19 am #

    i want to trade in binary forex option . But first of all i want to know that how binary forex option brokers earn. If they earn from loss of money of a client then it is scary. So i want to the method of earning of binay forex option brokers.

  2. Jamey February 19, 2013 at 9:23 am #

    Is it for people who don’t have the money or qualifications to get approved for a real options trading account? Is it for people who can’t figure out how to choose a strike price?
    I’m not sure either of you explained why people would trade them. Is it something that people normally wouldn’t do if they are adept at traditional options? Do people trade them if they can’t get the money together to open a real options trading account? Is it for quick-money gamblers? People who can’t price calls and puts?

  3. Precious February 19, 2013 at 9:28 am #

    Im tihnking about moving onto binary options to make some money, how easy is it to win on say banc de binary? Is it a scam in any way? how easy is it to loose?

  4. Evan February 19, 2013 at 2:07 pm #

    To start trading in binary options What requirements to be fulfilled for an individual in india?

  5. Byron February 19, 2013 at 7:21 pm #

    What is your chances of succeeding with these options?

  6. Gillian February 19, 2013 at 9:34 pm #

    I want to play the internet to make money, I have not tried online gambling as in casino games but i wouldnt mind. anyways…

    is it strait forward to make money on binary options? or are the odds against you? Please let me know all the details, some people make serious money from it, thanks…

  7. Roy February 19, 2013 at 9:51 pm #

    I know there are many binary option broker out there, but most of them don’t accept paypal, and even for the rare few brokers who do, the paypal option is not available for Singapore.

    Does anyone know of any binary option broker that accepts paypal transactions (at least for payments) for Singapore? Please don’t tell me to use credit cards (I don’t have a credit card) or other payment processors (Paypal is easier to transact for my bank)! Thank you.

  8. Dione February 21, 2013 at 8:57 am #

    Binary Options is a legit opportunity but it is impossible to find a legit company online because of all the scams. Does anyone know how to find a legit Binary Option broker? My understanding is that there are none in the US only abroad. I am looking for one that is regulated by the CFTC -Thanks, David

  9. Fletcher March 4, 2013 at 6:15 am #

    I want to start making money trading binary options. What Is The Best Binary Option Trading Service?

  10. Buster March 4, 2013 at 4:18 pm #

    I’m looking for a Binary Trade Simulator that I can use when the market is down. I would like a simulator that feels kind of like Trade Rush. I’m still new to trading so I’m just trying to test out how I am with trades. If anyone knows a free simulator like this please link it to me.

  11. Maurine March 5, 2013 at 12:09 pm #

    Different Brokerages offer different bonuses. All of them pretty much have the same assets available. What is important when choosing a brokerage?

  12. Tad March 5, 2013 at 12:19 pm #

    I just started trading on empireoption.com and other than showing me which way other investors think the stock will go, I don’t understand how to make an educated decision on whether the asset is going to go up or down.

    Any tips or suggestions are helpful 🙂


  13. Tammie March 5, 2013 at 10:13 pm #

    Looking for a trading platform, that runs locally off the computer via a software package. Everything we have come across is web-based and runs via java and flash. The site locks up constantly, and we lose trades. We are trying to trade large amounts of cash in 1 minute on binary options. Anyone know of a trading platform similar to a Forfex?

  14. Lucas March 5, 2013 at 10:21 pm #

    I tried recently to change my activities from a full time employer to a binary options trader.I opened an account with a broker but the problem is that I am losing .Can any body give me some hints to make some gains ?Pehaps we can share the same activity and work together?

  15. Seth March 5, 2013 at 10:21 pm #

    hi, i ve recently gotten into binary options on 24option.com. i was wondering what other sites are recomended. obviously im trying to avoid scammers. thanks

  16. Izola March 6, 2013 at 3:08 am #

    I want to try trading in binary options, but I want to try this with fake money first. Is there any website where I could do that?

    Thank you. 🙂

  17. Mark March 6, 2013 at 8:13 am #

    Online would be great. Is there one out there that will convert a negative decimal number into hex or binary?

  18. Carmel March 6, 2013 at 1:09 pm #

    I recently heard about a new style of online trading called binary options. Where is the best place to trade binary options? Which is the best company?

  19. Sharolyn March 6, 2013 at 7:02 pm #

    Some web site say that Binary Options can make you a great deal of money. Other say it is just like gambling, and that most people loose money. Is there a reality.

  20. Marhta March 7, 2013 at 2:20 pm #

    I want to know who pays a rader when he is trading binary options.If the company he has his account with ,then I can assume that he will never make any benifits .They will not let things in his favour.But if a third part does .perhaps things will be different.

  21. Garth March 8, 2013 at 10:16 am #

    There are some forex company that will predict the movement of currencies such as USD/JPY, EUR/USD, EUR/AUD at the moment and withing the next few hours, please if anybody knows one provide it as it gives 90%-100% assurance of you betting and winning your bet on Binary Option. Please don’t post answers that woun’t help.

  22. Howard March 8, 2013 at 3:31 pm #

    Options of its answer are the following:-
    A: An organism having elongated nucleus with constriction in between
    B: An organism having two nuclei with constriction in between
    C: May be any one of the above
    D: None of the above

  23. Jordon March 9, 2013 at 1:25 am #

    i recenetly came acroos a revolitionary stockng system called as binary option trading i have done my research and still doing research how realiable is it?? help me out guys. And which website offers the best?

  24. Sheila March 9, 2013 at 8:07 am #

    I’m thinking about investing into a Binary Options company to begin trading. However comments on the web seem to be mostly conflicting. So can any Binary options websites be trusted? such as anyoption.com. Also if some can be trusted please could you recommend them to me


  25. Alfonzo March 10, 2013 at 11:16 am #

    Hi, I would like to know how much money can I make with the binary option and some good sites
    Thanks !

  26. Tamatha March 14, 2013 at 7:33 pm #

    well, i understand how users (traders) make money. but my question is : since they( option companies) don’t take commission on the transactions how do they make profits?

  27. Geraldo March 18, 2013 at 2:12 pm #

    THE QUESTION IS…… are there any brokers that allow you to invest more than $10000, $100000 or even more at a trade? If yes, which binary option broker can I use? I know its a lot to trade, but I really need to know if there is any.

  28. Ines March 26, 2013 at 9:48 am #

    What is the best Binary Option Broker in 2012 ? I’m looking for some information about the best Binary Option Broker in 2012. Tell me the best Binary Options Broker in 2012.

  29. Lucinda March 26, 2013 at 6:11 pm #

    I’ve been trying to find one, but they’re all a joke. I want to learn a method that works. Does anybody know where I could find a website that has strategies that work and not just affiliate links. I know trading is never 100% but is there any strategies I could learn that work.

  30. Eleonora Marchetti March 27, 2013 at 2:24 pm #

    Ines & Lucinda,if you visit Banc De Binary, you will find an awards list under the ‘About BDB’ tab, there you will see that BDB has been the most accredited binary options trading firm in 2012.

    As for trading strategies, if you visit bancdebinary.com you will find BDB’s ‘binary options school’ right there on the homepage, that’s basically a really comprehensive strategy & learning center focused on every aspect of the trade.

    I could recommend others of course, but why settle for less when you get the best?

  31. Susanne March 27, 2013 at 4:47 pm #

    I was reading a blog that kept talking about binary options trading instead of options. It said that binary options trading was a lot easier especially whne trading in the Forex Trading markets.

  32. Jaime March 28, 2013 at 9:17 am #

    So lets say you short a stock at $20 and you then call a “call” binary option at $18 to buy back the shares you shorted, is that a possibility?

    A more in-depth example:

    Lets say you Short Intel (INTC) at $21.00 (Meaning you borrowed the shares off the brokerage or a shareholder and then sold them, without owning the shares), and then you called for a “call” option (meaning automatically buy the shares for you, when it hits a certain price) at lets say $19.00… Can you do that…

    I was thinking you can because it’s basically the opposite of a long call… and a call is just “the right to buy” and a “stop” is a right to sell….

    Anyone know if this is valid?

  33. Shelba March 28, 2013 at 3:20 pm #

    Hi everybody. I’m planning to invest my money on trading binary options online but many brokers wants me to send scanned copies of my IDs and I’m afraid that they may use it in identity theft scams or doing crime and use my identity. Has anybody had bad experiences with binary option brokers?

  34. Judith March 29, 2013 at 9:08 am #

    1.Mitosis involves two rounds of divisions, whereas binary fission only involves one round of divisions.

    2.Mitosis takes longer because it involves more chromosomes and is a more complicated process.

    3.Binary fission involves multiple chromosomes, while mitosis only involves one circular chromosome.

    4.Binary fission takes longer because prokaryotic cells are more primitive and slower than eukaryotic cells.

  35. Jerri March 29, 2013 at 2:49 pm #

    I value answers both from beginners and experienced traders but not from people who never traded binary options.

  36. Darci March 29, 2013 at 8:43 pm #

    I can’t stress enough how little of a damn I give about how “difficult” or “pointless” writing a program in binary is.

  37. Cherise March 30, 2013 at 9:03 am #

    I would like to know if anyone has had any good outcomes with binary options or even bad ones. But then tell me why you it happened that way. Just describe your situation please. Thanks!

  38. Carroll April 2, 2013 at 7:23 am #

    I’m looking to get into binary option trading but I am having a hard time finding a good place to start. I am going to start small and only start with 100 to 150 dollars until I have enough experience to do more.

  39. Celestine April 6, 2013 at 6:41 am #

    can someone tell me how Binary options trading works? What do you do how can you tell what the markets are going to do. Whats a good thing to invest in ? how do you make money from it?

  40. Garfield April 7, 2013 at 10:59 pm #

    What binary options trading platforms are available that trade using daily, weekly, monthly ladders?

  41. Ashley April 8, 2013 at 9:30 am #

    Need to trade binary options for $$$ but can’t find the right times.

  42. Scottie April 8, 2013 at 2:31 pm #

    There are some forex company that will predict the movement of currencies such as USD/JPY, EUR/USD, EUR/AUD at the moment and withing the next few hours, please if anybody knows one provide it as it gives 90%-100% assurance of you betting and winning your bet on Binary Option. Please don’t post answers that woun’t help.

  43. Tristan April 9, 2013 at 5:22 am #

    I am really interested in binary options, but i have heard about alot of scams, is this site legit? tell me your story.

  44. Jeanette April 9, 2013 at 8:07 am #

    i.e. 1001/10010.I know I can do this by using the scientific calculator option, but can you do this manually, pen and paper style?

  45. Karin April 10, 2013 at 3:52 am #

    So im 15, and I need some cash, because I want to buy another guitar. So I was wondering if investing with binary options is a good way to make money

  46. Slyvia April 10, 2013 at 7:54 am #

    I have a large piece of source code here at work. When we try to merge code using version control there is one file that always have problems. It returns an error something like: file not binary. We are guessing that somehow a character was pasted from MS word with special formatting or something like that making the file not binary text. How can I find this one character in tons of source code?

  47. Ernest April 11, 2013 at 2:32 am #

    I’m thinking about opening an account to start trading using the binary option methods. Pros?
    I understand that it is somewhat the Vegas of stock markets.
    Is there one site better than the other?
    Does anyone has success stories and/or strategies?

  48. Emely April 11, 2013 at 10:06 am #

    I am hearing a lot of bad things about Banc De Binary. So can anyone help me out and list some ligit USA trading platform sites?

  49. Wendell April 11, 2013 at 10:36 am #

    Trading binary options is a simple thing due to its binary characteristic. But making money consistently using this new kind of financial trading is another thing. That’s if you don’t want to trade like gamblers. Do you trade binary options? Do you have some kind of strategy or system that guarantee winning?

  50. Matha April 11, 2013 at 6:26 pm #

    I’m trading quick binary touch options on DAX 30, FTSE 100 and DJIA and I am often taken by surprise by unexpected volatility. I use forex calendars but it’s still not enough. I need a desktop news application to give me the financial news in real time, and with alerts. I don’t need a professional solution to give me all sorts of charts and other information, I just need live financial news with alerts so that I can duck when volatility is incoming.

  51. Nick April 12, 2013 at 3:35 am #

    It is a binary options sight that seams to be pretty legit.My problem is tho i don’t have a credit card and do all of my banking through pay pall so how do i deposit and withdraw money?

  52. Georgeann April 12, 2013 at 5:52 am #

    Have you had any luck with these investments? What should I look for?

  53. Kanesha April 12, 2013 at 9:04 am #

    Binary options are a simple and rewarding financial trading product. Binary options deliver a fixed return on every trade which is made, depending on whether the trade was “In The Money”, “Out Of The Money” or a “Tie”. Binary options — which are also referred to as digital options — are one of the fastest growing financial trading products in the world because their simplicity, together with the certainty which they offer on every trade, makes them an attractive trading tool for many financial investors.

    When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/”Up” option or a “Put”/”Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 5-30 minutes in the future, an hour ahead or at the close of the trading day.

    What makes Binary Options interesting is that the investor receives a fixed payout as a return based on whether the financial market is above or below a specific level at a specific time. This means that the option buyer can look for a specific payout based on a small move in a financial instrument. When trading standard options, the market has to usually move a great deal for there to be a payout. The structure set up for binary options provides the opportunity for a significant payout, with relatively small moves in the underlying market.

    The trading strategy that I used is known as “Graphic Trend Analysis” this is where you study a real time meta graph that is linked to the global stock exchange, and you look for a prominent Upward or Downward trend.

    Once you’ve established that an asset has an upward or downward trend, you then follow that trend by purchasing a set amount of that asset.

    The theory behind this method is that when an asset is falling, it is likely to continue to follow that direction until there is a Changeable trend. Once a trend becomes changeable in the majority of instances it is simply the point in which it changes direction to an Upward trend.

    All this method teaches you is how to use this information to create a profit. You want make a profit 100% of the time, but by following popular trends and knowing which trends you should follow, you can regularly win trades far more often than you lose them. This is how all professional traders follow the markets. Visit: http://links.empiremoney.com/click.php?af=10700&pd=3&ln=110&pf=14117

  54. Kristeen April 12, 2013 at 8:27 pm #

    I want to start making money trading binary options.
    What Is The Best Binary Option Trading Service?

  55. Shin April 13, 2013 at 4:37 am #

    I just started trading on empireoption.com and other than showing me which way other investors think the stock will go, I don’t understand how to make an educated decision on whether the asset is going to go up or down.

    Any tips or suggestions are helpful 🙂


  56. Melania April 15, 2013 at 5:59 am #

    I was wondering can we seriously make money with binary option or is it just another fraud scheme. I have seen some people who claim they are making $500 every day. Well, there is nothing like easy money on the internet. Please advice.

  57. Linwood April 16, 2013 at 8:15 am #

    I recently started trading options with banc de binary and i would like to know what experiences others have had with trading on this platform as well as binary options trading in general.

    Thanks in advance for your insight?

  58. Rodolfo April 16, 2013 at 12:03 pm #

    I trade binary options, found in sites like EZTrader, AnyOption, StartOption, etc, in which you “guess” the movement of a certain stock within an hour and I need advice to make my predictions more accurate.
    Can anyone tell me where I can find some?

  59. Cassondra April 16, 2013 at 12:35 pm #

    i was just trying to download a software called APACHE ANT. in that there were 2 options.
    I just wanna know what the difference was.

    Thanks for answering.
    Have a nice day.

  60. Tomas April 16, 2013 at 1:40 pm #

    I know the brokers profit from the wins and losses in binary options from the investor but say for example if the member deposits 5,000 dollars and gets a 5,000 dollar bonus and say the investor lost his five thousand dollars but still has bonus money and makes alot more with that bonus money to make up for his lost money, How is the company/broker profiting and where is the winning money coming from when you win money on Binary options sites? I’m confused, does it come from the company but how are they going to let you just make money on their money?

  61. Joe April 17, 2013 at 3:09 pm #

    So, and this is a yes or no question, I am planning ti sign up for the Traderush binary options platform site, and I’m under 18. So i was wondering, since it has to do with money and making money, the terms and conditions say you can’t be under 18, or a minor. So will i get reported or will they not let me withdraw money from my account?

  62. Ted April 26, 2013 at 2:46 pm #

    Like Cedar Finance, Zoom Trader. Any Option EZTrader etc.?
    If so did the withdrawal process go smoothly?
    Do you feel like its rigged or a scam?

  63. Annabell May 2, 2013 at 5:27 pm #

    I want to trade with binary options and need serious LIVE stock charts. I know where i want to trade but their charts are bad (read crap). I need separate charts. using different site to trade is not an option.
    thanks 🙂

  64. Gillian May 20, 2013 at 4:44 am #

    Does anyone know if trading Binary Options online is legal in Malaysia?

  65. Leo May 22, 2013 at 2:28 am #

    I have heard of binary magnet, binary profit sniper and all sorts of robots for binary trading – what actually works out of these?

  66. Luigi May 23, 2013 at 1:42 am #

    The AM CAP camera in my laptop is not taking stills. It is o k for videos but there is no option for still pictures..My laptop is new and I don’t wish to expose it to virus.

    Suggestions please.

  67. Grant May 24, 2013 at 7:37 pm #

    I recently began using binary options. I have developed a strategy that depends on a forex pair (eur/jpy, eur/usd etc) alternating puts and calls over 30 minute intervals.

    Example: Eur/usd, goes from 1.3 to 1.4 between 10:00-10:30 (call) then 1.4 to 1.35 between 10:30-11 (put) then goes from 1.35 to 1.42 (call) between 11 -11:30.

    Is there any financial indicators that I could use to choose which forex pair best exhibits this sporadic alternating pattern of puts and calls at 30 minute intervals?

    @ jerry thanks for your input, i understand the risk and regulation issues, i did not explain my method in detail, but it has been working so far so I intend on continuing.

    Id appreciate if future responses actually respond to my question rather than give me your opinion on binary options.


  68. Joyce May 30, 2013 at 11:36 am #

    I’m just wondering how long binary options will be around in the U.S.? Does anybody know any information about if they are illegal, and how long they will be around for?

  69. Vince June 4, 2013 at 5:26 pm #

    I want to be able to chose the individual day that the option expires for stocks. I’ve seen trading platforms like this, but not for stocks. Does anyone know of a good platform where you can chose the expiry time?

  70. Vernon June 11, 2013 at 5:37 am #

    Why do people invest money?
    What’s the stalk market?
    What’s binary options?
    What’s a smart investment?
    Is it smart to get into buying and renting homes?
    Anyway to make money online or the side?
    I’m a 17 year old ese student do I get any benefits from the government when I turn 18?
    Thank you all for your time 🙂

  71. Lacy June 13, 2013 at 11:38 pm #

    A Cyprus-based binary options broker is not returning my account money. If you do not know what a binary options broker is, Google it. This has become quite serious because we are talking around £5,000. My question is, is it possible for me to hire a British lawyer to take up my case?
    This broker, as with most BO brokers are based and regulated in Cyprus. All but one are illegal in the United States. An update – I already have a Cypriot lawyer on board!! The money will be returned, it’s just that I might have to end up taking them to court.

  72. Jay June 20, 2013 at 11:13 pm #

    Hi, everyone

    I would like where can i practice 60 seconds binary options without funding my account?
    Who offers demo accounts with this porperties?

  73. Mahalia June 21, 2013 at 2:34 pm #

    is there anyone giving live binary signals free?

  74. Hubert June 26, 2013 at 7:32 am #

    I need to trade binary options successfully, How?

  75. Isidro June 27, 2013 at 12:30 am #

    I’ve heard about all these binary options systems and mca postings. I just want to know what sites are actually decent. I’m not looking to get rich but I do need some extra income

  76. Salvador June 28, 2013 at 7:16 pm #

    Yes, I know binary options is super risky and all that, but for me its worth it.. I could really use the extra cash. Are there any sites that are legit?

  77. Hannah June 29, 2013 at 8:02 am #

    StockPair offers a bonus to binary options traders, and mentions a return of 350% on each trade. Have you already traded stocks and commodities on StockPair? Did you have a positive experience? And where can I find new bonuses for StockPair.

    I want to try both Binary Options and Pair Options.

  78. Miquel July 3, 2013 at 6:48 pm #

    This question is for experienced binary options traders ONLY! I understand what binary option trading is and am looking for constructive feedback as to which binary options brokers are best.

    Please don’t respond with the typical “binary options scam” response – I need useful feedback from experienced binary options traders.

  79. Mollie July 23, 2013 at 3:49 pm #

    I would like to find out how to trade in binary options by identifying and replicating the time that most traders make their put or call.
    To be specific, I would like to know how to identify and replicate when most institutional traders load or unload their shares.

  80. Floyd August 19, 2013 at 5:56 pm #

    Does anybody know how to make some money with Binary Options? I want to get more involved with this form of investing, but I haven’t the slightest clue on how to read the market and make some real money with this.

  81. Suzanne August 29, 2013 at 2:55 pm #

    Do I need a license to trade binary options for others using my autotrading software hosted in the uk ?
    I am planning to run an automated binary options trading platform hosted on a server in the uk. Client’s trading platform will be hosted on the server and trades will be executed on their behalf. Do I need a license and how do I obtain the license?

    Also i understand many binary option brokers don’t have there own open API, which from my understanding it shouldn’t matter i can still connect…

    Is there anyone on here that runs a auto trading service?

    Thank you

  82. Cruz September 5, 2013 at 6:14 pm #

    hi i am planing on trading in binary option. can anyone please give me tips and advice how to successfully trade them, with low risk and high profit.

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