How To Make Money On Binary Options
One of the simplest and most lucrative types of trading is trading binary options. With their help it is possible to increase your initial capital by 100% in a week. At the same time, the wrong approach to trading can very quickly reset your trading account to zero. How to make money on binary options and whether it is possible to earn on them at all – this is the topic of today’s article.
Binary options – an ingenious financial instrument or a scam?
Let’s start with the most important question – what are binary options, or global scam, or a real high-yield financial instrument?
Binary options as a type of stock exchange trading first started on the Chicago Board Options Exchange (visit website) in 1998, and was initially provided only to large corporate clients. In approximately 2003, binary options were first offered to private clients, that is, to you and us. The idea behind binary options is to correctly predict the direction of price movement within a clearly defined time. This allows you to obtain about 87% profit from the contract size. And the ability to trade with the “life” of the transaction set as a period of 1 minute gives you the opportunity to earn a decent amount of profit at least every 60 seconds! That in itself is brilliant!
In other words, binary options are a real exchange instrument traded worldwide by serious corporate market participants and professional traders. So, the question remains – how can you make money on binary options and join the “army” of successful market participants! Moreover, the principle of binary options trading is very simple!
How to make money on binary options – the secret to binary options
Wouldn’t you think that binary options are difficult, and only professional traders can capitalize on them? Not at all! The secret to binary options is that they are one of the easiest ways to make money in the financial market. The chance of correctly forecasting a trade for profit is 50%. After all, the trader only needs to specify which way the price will move – up or down. However, over the long years of stock trading, traders have successfully learned how to sway the prediction statistics in their favor. On average, when trading on a system, the trader makes about 70% correct predictions out of 100%. And this is more than enough to achieve stable profits!
The secret to binary options and, at the same time, the answer to the question “how to make money on binary options” is trading on a strategy. In other words, there are no secrets! Judge for yourself how simple it is. For our example, we’ll take the Binomo broker’s platform and one of the strategies based on technical indicators that are included in the standard delivery platform from this brokerage company.
For this, we apply the Moving Average and Bollinger indicators to the asset chart on the Binomo broker’s platform (visit website), and we will conclude trades at the time of price reversal inside the Bollinger channel, after its short-term exit outside. It looks like this on the quote chart:
As you can see, 3 profitable trades in a row and no losses. Anyone can trade like that – and that means anyone can earn!
How to make money on binary options without investing
Yet another important point is how to make money on binary options without making a significant investment. We’ll continue to describe the best way to trade on the example of the Binomo company (visit website). The minimum deposit at this company is $10. With this sum in your account, you can start earning right now on binary options. Of course, with that size of a trading account, your income won’t be significant for some time. But very soon, and this is for real, you can “drive” your account to more tangible dimensions, and your income will significantly increase. It’s all logical.
Moreover, there is no need to immediately deposit real money into your trading account to try out the principle of binary options and make sure that it is profitable and does in fact work. You can trade with the Binomo company without money in your account. This company gives new clients 20 free transactions to start your career as a trader. And we think that is the best option for beginners.