Binary Options: A Comprehensive Binary Options Guide

Binary Options – A Quick Binary Options Guide

Binary Options and binary options trading burst on the scene in 2008 and have been growing in popularity ever since. We put together this comprehensive binary options guide to help you navigate through this new trading world with the best binary options information on the market.  Please be sure to download our free binary options trading course by entering your information in the sign up box to the left to use as a companion piece to this guide. Welcome to the world of binary options trading.

What Are Binary Options?

binary optionsBinary options come in all shapes and sizes but the standard, most common form, is the high/low (or up/down) binary options. In this form traders are asked to select whether they believe a specific asset will finish either higher or lower than current levels upon expiration. If the trader believes the underlying asset will finish higher he would purchase a binary call option; if he believes the underlying asset will finish lower he would purchase a binary put option. The position pays off at expiration, which is most commonly on an hourly basis. However there are a variety of expiration times available within binary options trading, ranging from as little as 60 seconds to as long as one month. Winning high/low binary options positions typically yield returns of 70-90% dependent upon the asset and binary options broker.

Another common binary options vehicle is the touch option. Touch options have become more prevalent in the past year with most binary options brokers offering touch options in 1 of 2 forms: Daily or Weekend. I’m using the term ‘daily’ to represent anything less than the weekly weekend variety of touch options. In daily touch options traders select whether they believe an underlying asset will touch a high target level or low target anytime prior to expiration. This is an either or choice, meaning you need to select a high target or low target, you do not select both. The target distance is set by the binary options broker at the time of inception. Standard daily touch options yield winning returns similar to the high/low binary options. There are, however, high yield daily touch options available on a few binary options brokers platforms that offer winning returns in excess of 100% but obviously the touch options targets are set much further away from current levels.

Weekend touch options differ from the daily touch options in a number of ways. First, these touch options are typically only available on the weekend. Secondly, weekend touch options differ in the sense that the underlying asset needs to close (end of the day) higher than the upper touch target (if the high level is selected) or lower than the lower touch target (if the low target is selected). What the underlying asset does during the trading day is irrelevant; the only price that matter is where it closes. The beauty of the weekend touch option is that you have 5 days of movement for your position to yield a profit. And speaking of profit, the last main area of distinction is in the winning returns. A typical winning return for weekend touch options range anywhere between 250% all the way up to 700%! We discuss how to profit from weekend touch options in detail in our binary options cheat sheets.

The other popular form of binary options trading offered across the leading binary options brokers platform is range (or boundary) options. Range options require traders to select whether they believe a specified underlying asset will finish inside or outside a specified trading range upon expiration. In contrast to the touch options discussed above, the trader need only to select whether the asset will finish higher or lower than the target prices, not specifically whether it will finish higher or lower. This is basically a volatility bet, not a directional bet. Range options payouts typically range between 70% and 90% across leading binary platforms.

Hopefully now you have a basic understanding of just what are binary options, now let’s dig deeper into the major players in the binary options market…

Binary Options Brokers

binary options brokersThe binary options marketplace is littered with a multitude of binary options brokers, all offering pretty much the same type of functionality. Here at The Binary Options Weekly we try to cut through all the crap and really reveal what makes the binary options brokers different. You can check the Reviews tab at the top of site to read our comprehensive binary options reviews on all the leading platforms, but I just wanted to highlight the 3 platforms that really stand out form the crowd:

TradeRush: TradeRush is one of the newer binary options brokers on the block and as such has really taken binary options to the next level. TradeRush was the first platform to offer 60-second binary options. These ultra short-term “binary options” allow traders to more effectively capitalize on breaking news and other catalyst events. In addition to 60-second options, TradeRush offers the best weekend touch options trading platform with returns up to 700%. You can check out our full TradeRush Review by clicking on the following link: TradeRush Review.

OptionBit: OptionBit was one of the original pioneers in the binary options marketplace and one of the most highly respected as well. In 2010 traders named OptionBit the best binary options broker. The company maintains a good reputation mainly due to its user-friendly trading interface and the fact that it remains the lowest cost binary options broker in the business ($10 minimum trades). OptionBit’s sister platform OptionXP offers pretty much the same functionality as OptionBit as has been picking up steam of late as well. You can check out reviews of both here: OptionBit Review and OptionXP Review.

Anyoption: Anyoption was also one of the founding innovators in the binary options marketplace in 2008. Anyoption has been able to stay at the forefront of innovation by offering traders a multitude of trading modalities and the largest selection binary options assets available for trade. Check out our comprehensive review here: Anyoption Review.

Binary Options Trading System

Being a relatively new industry within the trading arena the binary options marketplace has not produced a lot of systems traders can use to profit from these short-term vehicles. One system (or should I say family of systems) has emerged to really take the mantle of binary options traders and has proven to be an effective tool. Striker9 is its name and we provided a full review of the Striker9 binary options trading system here: Striker9 Review.

Binary Options Signals

Over the last year 2 binary options signal services have emerged and produced consistently strong results. The Binary Options Pro Signals service launched early in 2011 and The Binary Options Signal service officially launched in October of 2011. You can check out specific details of both services, along with performance and pricing here: Binary Options Pro Signals Review and Binary Options Signal Review.

Binary Options Bonus

While binary options broker bonuses come and go, we here at The Binary Options Weekly offer traders who deposit with a new platform through our links a free copy of the Binary Options Blueprint, a free version of The Lazy Day Trader’s Binary Options Trading System along with over $1,000 worth of trading courses and systems highlighted in the Bonus of the Day box in the right hand column of the site. Simply click on any of the broker links in our reviews, sign-up for the platform, deposit the minimum amount, and forward your confirmation to the email address on our Contact Page at the top of the screen. Your binary options bonus package will be emailed to you upon receipt.

 

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