Most commonly, this reflects an online interface or mobile app, complete with tools for order processing. Every broker needs one or more trading platforms to accommodate the needs of different clients. Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 MT4 and MetaTrader 5 MT5 have been the industry standard, especially when it comes to automated trading.

Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading. The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.

By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market.

Read this Term or business, you must have a strategy to use in order to consistently be making money. Is binary options trading legal where you live? Click here for the full breakdown. If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling. Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment.

You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning. Strategies are generally categorized into two groups.

These categories are;. Start trading binary options now. This strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option.

You are trading a higher potential for a higher risk — if that is a good idea depends on your personality. If you decide to become a swing trader, we recommend using a low to medium investment per trade, ideally between 2 and 3. Only traders who like to take risks should invest more, but never more than 5 percent of their overall account balance.

Choose your expiry according to the length of a typical swing. If you expect an upswing and a typical upswing takes about 30 minutes, use an expiry of 30 minutes.

Choosing the right expiry is no exact science, and you will need a little experience to find the perfect timing. To identify ending swings, you can use technical indicators. Momentum indicators such as the Relative Strength Index RSI or the Money Flow Index MFI are popular choices, just like moving averages.

Trading gaps combines an intermediate risk with a good chance for high profits. The strategy is simple enough for beginners to learn it within a few hours. Gaps are price jumps in the market. At the end of one period, something influenced the market strongly, and the price jumped to a higher or lower level with the opening price of the next period. The most common gap is the overnight gap. When the stock market opens in the morning, all the new orders that were placed overnight flood in.

If traders were optimistic or pessimistic, there is a good chance that most of these orders point in the same direction. Such a gap is a significant event because the same assets are suddenly much more expensive. The market can react shocked, some traders might take their profits; or the market can push forward, providing the sense that this is the beginning of a strong movement.

The basic principle of all four gaps is the same. Gaps are significant price jumps, which is why many traders now have an incentive to take their profits or enter the market. Both forces push in the opposite direction of the gap and are likely to close it.

For a gap to remain open and create a new movement, the gap has to be accompanied by a high volume. This high volume indicates that many traders support the gap, and that there are few people who will take their profits or invest in the opposite direction immediately after the gap.

Even complete novices and beginners can find a simple but effective strategy that could make them money. With Binary Options A zero-risk strategy is the dream of any financial investor. While it is impossible with any investment, binary options can get you closer than anything else. When you invest, there is always some risk. Despite all efforts to predict what the market will do next, nobody has yet found a strategy that is always right. Sometimes, the market moves in unpredictable ways and does things that seem irrational.

In hindsight, we often find good explanations for these events. As a trader, you have to avoid letting this hindsight bias confuse you. When a trading day is over, it is easy to say that this event moved the market the strongest. But when a trading day begins, it is often almost impossible to predict which of the many events of the day will have the strongest impact on the market and how it will influence the market.

Even beyond the stock market, financial investments always include some risk. Simply put: a zero-risk strategy is impossible with any asset. But binary options offer a few tools that allow you to get relatively close to zero risk. Most binary options brokers offer a great tool: a demo account.

Demo accounts work just like regular accounts but allow you to trade with play money instead of real money. In the risk-free environment of a demo account, you can learn how to trade. You can try different strategies, find the one that suits you the best, and perfect it. You can wait until you switch to real-money trading until you have a solid strategy that you know will make you money by the end of the month. While many stock brokers offer a demo account, too, binary options have one great advantage: binary options work on a shorter time scale, which means that you learn faster and better.

Once you have traded a strategy with a demo account and turned a profit for a few months in a row, you know that there is a very high chance that you will make a profit when you start trading real money, too.

There will still be some risk, but binary options have helped you to eliminate as much risk as possible. For those still looking for zero risk trades, Arbitrage is another option. The breakout strategy utilizes one of the strongest and most predictable events of technical analysis: the breakout. Breakouts occur whenever the market completes a chart formation. These completions indicate significant changes in the market environment.

The market will pick up a strong upwards or downwards momentum, which means that many traders have to react to the change. Since most traders anticipate the payout, they will place orders that automatically get triggered when the market reaches the price level that completes the price formation. These orders intensify the momentum even more. Digital options offer a number of strategies to trade the breakout.

Here are the three most popular strategies:. When you anticipate a breakout, wait until the market breaks out. If the breakout happens in an upwards direction, invest in a high option; if the breakout happens in a downwards direction, invest in a low option. Use an expiry equivalent to the length of one period. Trading the breakout with one touch options.

Breakouts are strong movements, which is why they are perfect for trading a one touch option. One touch options define a target price, and you win your trade when the market touches this target price. Once you see the market break out, invest in a one touch option in the direction of the breakout.

Trading the breakout with ladder options. When an asset breaks out, invest in a ladder option in the direction of the breakout. Choose a target price with which you feel comfortable but that still provides you with a high payout. All of these three strategies can work. Choose the one that best matches your personality.

There are hundreds of strategies that use Bollinger Bands. Regardless of which strategy you use, there is almost no downside to adding Bollinger Bands to your chart. Even if you do nor trade them directly, having three additional lines will not confuse you. On the contrary, it will subconsciously influence to make better decisions.

Nonetheless, we will now present three strategies that not only feature Bollinger Bands but use them as their main component. Understand these strategies, and you will also be able to use Bollinger Bands in your strategy. This is the simplest strategy, and the one with the least risk.

It can be explained in two simple steps:. There is one thing you should know, though. Since every new period moves the Bollinger Bands, what is the upper range of the current Bollinger Bands might not be the upper range of the next periods. A quickly rising market will push the Bollinger Bands upwards, too; and a quickly falling market will take the Bollinger Bands down with it.

Because of this limitation, the strategy works best if you keep the expiry of your binary option shorter than the time until your chart creates a new period. If there are 30 minutes left in your current period and the market approaches the upper end of the Bollinger Bands, it makes sense to invest in a low option with an expiry of 30 minutes or less.

If you want, you can also double-check your prediction on a shorter period. Switch to a chart with a period of 15 minutes, and if the market is near the upper range of the Bollinger Bands, too, you know that there is a good chance that it will fall soon.

If it is in the middle of this trading range, however, you might consider passing on this trade. You might also consider upgrading this strategy to trade binary options types with a higher payout. By adding a momentum indicator, you can invest in option types that require a strong movement. To understand how to add this indicator, consider the example of our next strategy.

The middle Bollinger Band has special characteristics. While it offers a resistance or support level, the market can break through it. When it does, the Band changes its meaning. Both events change the entire market environment. When the market breaks through the middle band, it suddenly receives enough room to move to the outer band. This means you know the direction in which the market is likely to move and the distance, which is a great basis for trading a high-payout binary option.

For this strategy to make sense, you have to use a one touch option with a target price that is within the Bollinger Bands. On the other hand, the expiry has to be long enough to give the market enough time to reach the expiry. Finding the right mix of closeness and enough time can take some experience.

You can also use momentum indicators such as the Average True Range ATR to provide a mathematical basis for your estimate. The market is highly likely to move beyond the outer Bollinger Bands.

This knowledge is a great basis for trading low-risk ladder options. Ladder options define a number of different target prices, usually five or six. Some of these prices are above the current market price; some are below it; some are close, some are far away. Ladder options allow you to make this prediction and win a simple trade. To execute this strategy well, make sure that the period of your chart matches your expiry.

Bollinger Bands change with every new period, and a target price that is outside the reach of the Bollinger Bands during the current period might be well within their reach during the next period. When you trade a ladder option with an expiry of one hour based on a price chart with a period of 5 minutes, so many things can change before your option expires that the Bollinger Bands become almost meaningless.

By matching the period of your chart to your expiry, you guarantee that the Bollinger Bands stay the same until your option expires. The volume is one of the most under-appreciated indicators.

Combined with binary options, a volume strategy can create great results. The trading volume is a simple yet important indicator.

The volume indicates how many assets very traded during a period. The direction of these trades is unimportant to the volume. As you can see from these examples, the volume only makes sense in relation to preceding periods.

A volume of says nothing until you know whether the preceding periods featured a higher, lower, or similar volume.

A volume strategy uses the volume of each period to create predictions about future price movements:. Binary options are primarily short-term investments. But if you want to invest for the long term, binary options have a lot to offer for you, too. While binary options are mostly short-term investments with expiries of a few minutes to a few hours, most brokers have also started to offer long-term options that allow you to make predictions for the next months and the next year.

You predict whether the market will trade higher or lower than the current market price when your option expiries. A long-term binary options strategy should be based on trends. Over the course of a year, long-term trends dominate the market and dictate what will happen next. Identify these trends, and predict that they will continue.

To avoid weakening trends, you can use technical indicators such as the Money Flow Index MFI , which allow you to identify trends that are running out of momentum. When you trade a long-term prediction with regular assets, you can average a profit of about 10 percent a year. That is a great result, but binary options can do better. Assume that you have found a stock of which you are almost completely sure that it will trade higher one year from now.

Take a look at the current price charts of Google, Amazon, or Tesla. Such stocks would offer the ideal basis for such an investment.

When you predict that these stocks will rise with binary options, you can get a payout of about 75 to 90 percent — in one year. Regardless of how well these stocks do, when you buy them directly on the stock market, you will never make a profit that rivals this return. Now, of course, you have to account for risk. When you lose your trade — however unlikely you think that this event may be — you lose all the money you invested. This is why it is a bad idea to invest all your money in a single trade.

Spread your money over multiple stocks, currencies, markets, and commodities, and never invest more than 5 percent of your overall account balance in a single trade. Also, never invest all your money. With this strategy, you should still be able to make a return that is higher than what you would make with stocks, but you reduce your risk.

With digital options, the straddle strategy is easier and more profitable than with other types of financial assets. A straddle strategy follows a simple goal: it wants to make you money regardless of the direction in which the market moves. With conventional assets, this strategy was difficult to execute. Traders had to buy short and long assets at the same time and hope that the profit from the successful investment outweighs the losses from the unsuccessful one. With stocks, for example, traders would be a stock and short it at the same time.

They would then set up stop-losses for both trades. With conventional assets, this strategy was a mess. There were fees on every trade that complicated things, and it was impossible to make two investments simultaneously. The resulting time delay meant that a straddle was never perfect. Finally, the profit from the winning investment was often insufficient to outweigh the losses from the losing trade. Binaries have taken the straddle and packed it into one asset — boundary options.

Instead of having to invest in two assets at the same time which is impossible , boundary options allow you to create a straddle with a single click. Boundary options define a price channel around the current market price. Both target prices of the price channel are equally far from the current market price, which means that you automatically create a perfect straddle.

Many binary options brokers offer two types of boundary options:. Choose the type of boundary option that you like best, and you can easily trade the straddle strategy with binary options.

To execute a binary options strategy well, you have to ban all emotions from your trading and do the same thing over and over again like a robot. Some traders took the next logical step and let a robot do all of their trading.

A robot falls into the second category. Robots are computer programs. These computer programs are trained to execute a trading strategy and invest on behalf of a human trader. Robots monitor the market, 2.

Robots find profitable trading opportunities, and 3. Robots invest in these opportunities. When you use a robot, you outsource your entire trading process to a computer program. You can step away and literally make money while you sleep. Robots never miss an opportunity. Humans need sleep and have chores to do; robots do not.

They can spend the entire day trading, which means that they can take advantage of every opportunity. With a profitable strategy, more trades mean more money, which is great for you. Robots do not make mistakes. Humans get exhausted; robots do not.

They can execute a strategy for years without making a single mistake. Robots can monitor hundreds of assets simultaneously. Humans can only focus on one thing at a time; robots can focus on millions of things. This is why robots can monitor hundreds of assets. Monitoring more assets leads to more trades, and more trades, with a winning strategy, lead to more money.

Combined, these three advantages can make you a lot more money than if you traded for yourself. It does increase risk however. If a strategy starts to fail, a robot will not pause and allow time to make adjustments 0 it will continue making trades that fit the criteria.

Performance must be manually checked too. Read about specific providers on our robots and auto trading page. Boundary options deal with a range of price levels of an asset. In boundary options, predefined upper and lower price levels will be specified by your binary options broker. You are free to select the expiry period. If you select a larger expiry period, the range of the asset will expand i.

the upper price level will increase and the lower price level will decrease. One where the price is expected to go higher than the upper price limit and the other case where the price level is expected to end less than the lower price limit.

It is a method by which a broker can add to their own margins and protect themselves during particularly volatile periods, or from one-sided trading sentiment. A percentage figure will be specified by your binary options broker which indicates the payout.

If your prediction is correct you will make a profit equal to the predefined percentage of the amount invested. The profit is credited to your trading balance immediately after the result of the trade is decided. However, in case your prediction turns out to be incorrect, you will lose the money invested in the trade. The profit percentage depends on the broker and you may find different binary options brokers offering different payouts for the same asset. By now you you should have established that boundary or range options trading is based on the volatility of an asset.

It is different from the traditional High or Low trading because in that case the upwards or downwards price movement matters. No binary options signal provider offers boundary options signals and you will have to use your own knowledge and analysis.

If you want to trade boundary options, the first thing to do is to gather information about the asset you want to trade. First of all you should study how the price of the asset has been moving for the last few days. You should have an overall idea if the asset is volatile or stable. Next you must be aware of all the news related to the company. This can drastically improve your winning ratio. For example, let us assume that Apple is launching the next version of its flagship mobile phone today.

Now if the launch is successful and consumers like it, the stock price would go up. If the product fails to impress the audience, the stocks may take a dip.

There is a small chance that despite such a major event the stock prices stay stable. But if you are not aware of the launch of the new product by the company, you will miss out on the opportunity to make money. It is therefore, highly recommended to stay updated with all the news like quarterly report, hierarchy reshuffle, product launch etc.

related to the asset you wish to trade. As binary options markets have grown, so too have the demands and requirements of traders. Brokers were also keen to offer a product that could be traded in both flat and highly volatile markets. In most cases, the barrier level is set by the broker.

At certain brokers however, the trader can set the barrier. And the ending point of your candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low. When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart.

If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low. Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Keep in mind that in order to move to the next step, we need the 50 candle low.

We also need an RSI reading below 20 to happen at the same time. We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader. When trading reversals, you need to be as precise as possible.

The more confluence factors you have in your favor the more accurate the reversal signal is. What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction. If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other.

This signals a potential reversal signal. The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a second Call option. Before learning how to make money trading binary options you need a great Binary Options broker.

Secondly, you need a strategy-based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient. We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. Please Share this Trading Strategy Below and keep it for your own personal use!

Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

The article on binary option trading strategy was useful. Thanks sharing for valuable information about binary options. Thanks for the article. Are you referring to building a strategy multi-step indicators in a trading platform? Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? You from tradingstrategyguides, could you create an indicator with these settings for us binary traders.

That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this. And thank you so much for that knowledge. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Binary Options Trading Strategy — Best Seconds Strategies by TradingStrategyGuides Aug 8, All Strategies , Options Trading Strategies 21 comments. And that, my friends, is the real beauty of binary options. What are Binary Options?

So, the first thing you need to decide upon is to select the asset to trade. Trading binary options require you to correctly forecast two things: Whether the market will rise or fall.

Your forecast needs to be accurate during a certain time frame — called the expiration time.

Home » Strategies » Best Trading Strategy. On this site, I will show you my best Binary Options Strategy. You can easily use it in every timeframe like 60 seconds or higher expiry time. Also, it is possible to use the Martingale strategy to improve your results.

It works on every asset and in every timeframe. Learn to trade profitably in a few moments. Look at the picture below for the first impressions. If you only trade this style of trading, it is possible to make a lot of money.

In the next chapters, I will provide you with more information to win against the market! Binary Options Strategies can be different methods to trade the market. First of all, a Binary Options Strategy does not have to be difficult. It is possible to make money with simple ideas and methods.

Therefore it is important to use strict rules for trading the market. The most common mistake is not keeping to your own rules! In addition, a good strategy reduces emotional and irrational trading. Most traders lose their money because they trade without a proven method and strategy. Advanced traders know how the market work and they practice their own methods a lot.

You have to learn and get a higher knowledge of the market. From my experience, it is not easy to learn to trade successfully in a short time horizon. In the following article, I will give you strict rules for trading the markets and I will show you how the strategy is working easily and successfully. Learn more. Load video. Always unblock YouTube. False Breakout is an easy way to trade the markets. To trade breakouts does not work very well. I have tested it many times in the past I will show you the reason why it does not work well below.

After a breakout , the market comes back most of the time. If the market comes back you can go short put and long call.

It is universal. See the picture below! For this question, it is important to have more knowledge. At highs and lows are a lot of stop-losses from other traders in the market. Professional traders use this knowledge to get high liquidity for their own positions. They quit or open a trade where high liquidity is. In most cases they will fake this breakout or the market will turn because of closed positions. There are a lot of traders who will trade such breakouts.

Algorithms are programmed and triggered to make lose them money. New and fresh highs and lows are the best levels for this Binary Options Strategy! With several highs in a row, it is more likely that the market will break through this level. Search for big new and fresh highs. For the best results, the level should be created in the current day.

See the picture below. Furthermore, the best levels got the V-Form. I will show you the picture below. The V-Form is seen clearly by a lot of other traders in the market. They put their stop-losses on these levels. Also, it is possible to trade the V-form as support and resistance.

I rather wait for the false breakout of the V-Form. It works with a high hit rate and you can easily make money with Binary Options.

Risky traders open a position directly in the opposite of the breakout. In my opinion, there is a better way to get good results. In the picture below I will show your my exact entries. Select the level in the markets. If the market passes the level back, you can open the trade. It is just so simple as it sounds. Sometimes you will need trades to make a profit.

That is why I double my investment amount if I lose a trade. You can use any timeframe for this strategy. The time does not matter for your analysis. Only the price of the asset matters. No professional trader cares about the time. You will see that the small timeframes are more difficult to trade because you have to pay more attention to the market.

You have to react much faster than in higher timeframes. In conclusion only the price of the asset matters.

Money Management belongs to every Binary Options Strategy. Without the right money management , you will lose everything. Most traders do this mistake. So you can lose some trades without destroying your account completely. Money management depends on the trader, too. Some traders are very aggressive and take a lot of money to invest. In the end, you have to decide for yourself how much money you want to risk. In my opinion, it is insane to use this risk. Most professional traders use a risk of 0.

From my experience, you will get hard emotions by losing a huge amount of money in a short time horizon or a few trades. If you lose your trade, you can double your investment or use more than 2,3x of the last investment in the next trade. This is very risky, but with a successful strategy, it is a good way to work with. A martingale can blow up your account in a few trades. I only use it when I feel very safe for the next trade and I recommend that.

Another point of successful trading is the market economic news picture below. A lot of traders use this economic news to trade the market. In my opinion, it is like gambling, because you do not know the result of the news.

In addition, you are to slow to react quickly when the news appears. Orders are triggered in less sen 0,01 seconds. There are automatic trading programs which are faster than you! In conclusion, it is not a good idea to trade economic news. My advice to you: Stop trading 10 minutes before and after the news. The volatility is very high and in most cases, the market will jump right over your screen.

The market does not care about the numbers, because they are priced in already. I use the economic news of www. You will get the right news 0,1 seconds after they are released. In the table below you will find the best Binary Options Brokers. It is very important to use a broker with good charting software. It is useless to trade a successful strategy for a bad broker because maybe they do not pay out your profit. I tested several brokers and recommend them on my website.

You can create a demo account to practice this new method of trading the markets. My recommended brokers offer you a free and unlimited account. The conditions are the same as in the real money mode. Another relevant point is the trading software for the execution of your trades.

You should analyze the chart in the best way you can.

These pages list numerous strategies that work — but remember:. Read More. Before learning how to make money trading binary options you need a great Binary Options broker. For example, volume and market volatility might be expected to change significantly after a particular data release or event. For the next 5 minutes after the release of important news, however, you can be sure that the news will dominate the market. Dеspitе thе sοmеwhat nеgativе rеputatiοn, thе rеality is binary οptiοns arе lеgal. Binary trading requires accurate predictions.

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