How to make money on binary optionsPosted by Kearney Thorsen on July 14th, 2021 binary options broker Binary options are a relatively new type of earnings in the financial markets. It appeared in 2008, but has already attracted many traders due to its advantages. In fact, binary options are a forecast of events in the financial markets. For example, if you think that the euro-dollar will grow in the next half hour, you can make money on it. How to make money on binary options without risk The first question that novice traders ask is something like this: where and from whom to buy binary options? There are special brokers that allow traders to buy binary options. The broker plays the role of an exchange for its clients, which is similar to the purchase of futures, where traders buy contracts or other financial assets from each other through the intermediary of the platform itself or brokers. Here is a simple example of how brokers and traders make money on binary options – where do high interest rates and money come from? Two traders invest in CALL and PUT contracts (UP and DOWN). The yield on the contract is, for example, 75%. One trader makes money on the contract, while the other loses money. As a result, one trader gets 75% and the broker takes 25% for himself. A trader whose forecast turned out to be incorrect gets nothing. All regulated companies are required to have insurance capital to cover such situations. In addition, binary options brokers, like Forex dealers, have their own liquidity providers. What conclusions can be drawn from all that has been written above? First of all, before making money on binary options, you should find only a reliable and licensed broker that will allow you to withdraw profit without any problems. Such a broker uses not only its own capital, but also works with liquidity providers. If a broker is not regulated by anyone, most often it operates at its own risk. In addition, it is very difficult to call such a broker reliable. Most likely, in any difficult situation, such a company will prefer to engage in fraud. There are plenty of cases when unregulated brokers deceived their clients. Therefore, if you do not want to become a victim of regular crooks, choose your company carefully. How to make money on binary options for a beginner? If you are interested in binary options, one of the main points that you pay attention to is how to make money. Immediately note that this requires consistency. Without it, you will not be able to make a stable profit on the financial markets. What does consistency mean? First, we are talking about a trading strategy. It is necessary in order to receive signals from the market and act on them. There are different strategies: simple and complex, indicator and non – indicator, fundamental and technical. There is no point in dwelling on them in detail in this article, since there are a lot of strategies, all of them are described in a separate section. And yet, we will also tell you something about strategies. In fact, a strategy is a specific sequence of actions that you just need to repeat constantly, for example, if the CCI and RSI indicators simultaneously enter the overbought zone – you buy an option with a decline forecast (DOWN). How to make money on binary options without a strategy? Of course, you can earn money without a strategy once or twice, possibly three or even four times. But that's not the point. Earning doesn't mean making money. And this is not a simple exercise in linguistics. Earning money means having a stable surplus in your trading account. This is impossible without a strategy. How do I determine where the price will go? The only thing you need to do to make money on binary options is to determine whether the price will rise or fall at the time of completion of the transaction. In order to do this, you need to analyze the asset. You can use a ready-made strategy, such as indicators, or even just trade according to the trend, but you can also analyze the asset by other criteria. Risk management to avoid losing money What else do you need to make a stable profit? In addition to the strategy, you should take care of minimizing risks and proper money management. In fact, it sounds quite formidable and seems complicated, but in practice it is not quite so. Imagine that you have received a salary and you have to live on it for a month. What will you do immediately? Properly-distribute it in such a way that your family budget is not in short supply, and you would not have to take out loans in order to "make ends meet". This is money management. In trading on the financial markets, everything is about the same. Your budget is the size of the deposit. Your expenses are the amount of funds that are invested in transactions. You need to calculate how much money you have and correlate the amount with the number of trades that you can open. This is the easiest way. If you have, for example, 0 and the broker offers a minimum investment of $ 25, then you will be able to open 20 trades, and it is better if you invest $ 100 and can open only 5 trades. Of course, this does not mean that they need to be opened immediately at the same time, but this is an indicator of your security, if your trade turns out to be unprofitable, you will still have a large margin in order to go into a plus without reducing trading volumes. Please note that the dynamics of the deposit will be constant. Therefore, you need to make a recalculation. And finally, we must not forget about psychology. What kind of psychology, you may ask. The fact is that the trader is constantly accompanied by various emotions in his work. These are both fear and greed, emotions that will force you to open a trade, being 95% confident, and not 100%, or emotions that will force you to open a trade with a large amount, which will increase the risks… There is also fatigue, which can also have a negative impact on the results. Learning to manage yourself first of all is one of the main tasks of any trader at the initial stage. What can greed and fear lead to? To receive losses, sometimes to a complete loss of the deposit. You only need to read reviews about binary options to understand how people easily parted with their money due to the fact that they did not know how to cope with themselves. How to make money on binary options without investing It's strange, but many people ask this question – how to make money without investing. Unfortunately, this is a financial market and without money you simply can not get here. To make a profit, you need to invest something. Binary options are not a virtual market, but a real one, and in financial markets, money is made not out of thin air, but out of money.Like it? Share it! |