Since there is risk involved, that means that you need to create a method to succeed. You can do that by studying up on our tips and strategies to win and practicing with a no risk trading account. We also recommend learning the basics of candlestick chart reading in order to judge price action.If you are ready to take the next steps and learn more about binary trading then jump back to our Binary Trading Guide list of lessons. To continue reading through the lessons and tutorials. You certainly want to learn to read a candlestick chart as well as find the right broker to trade with. 2015 - BinaryTrading.org, All rights reserved. Sitemap Binary trading carries significant risk. Never invest more than you can afford to lose. This site is not financial advice or any offer of financial advice. This site is for entertainment and informational purposes only. By use of this site you agree to hold us 100 harmless for any and all loss. Clicking on links to external sites may result in affiliate income for the publishers of this website. (NOTICE) - This website is not a binary trading website and is NOT owned by any binary options company. We are informational and entertainment only. No trading is offered or solicited by BinaryTrading.org USA REGULATION NOTICE: Binary Options Companies are not regulated within the United States. These companies are not regulated, managed, connected or affiliated with any of the regulatory agencies such as the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) or National Futures Association (NFA), or any other US Regulatory Body. Please take notice that any unregulated trading acitity by U.S. Citizens is considered unlawful. Trade at your own risk. Risk Disclosure: BinaryTrading.org does not accept any liability for loss or damage as a result of reliance on the information contained within this website this includes education content, example quotes and charts, and news. Please be aware of the risks inherent with binary options trading and trading the financial markets never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. BinaryTrading does not retain any responsibility for any trading losses you might face as a result of using the information hosted on this website. The quotes contained in this website are not provided by exchanges but rather by market makers. So prices may be different from exchange prices and may not be accurate to real time trading prices. They are supplied as a guide to trading rather than for trading purposes. See our entire Privacy Policy.New investing products appear more and more frequently. Some of these are good innovations, others are bad and some are bad now but may improve over time as interest grows. In this article I will cover an example of a product that fits the latter category. The product I am referring to are binary options. These are new to most individuals but marketing campaigns currently underway are working hard to create awareness amongst active traders.Binary options are designed to eliminate a lot of the complexity of traditional vanilla calls and puts. They are called binary options because they are typically all or nothing trades. If you buy a binary option you will either be paid the maximum gain or you will lose your entire investment.Most binary options currently available are further simplified by only having one strike price. If you buy a binary call and the market closes above the strike price you will be paid the maximum gain. If the market closes below the strike price then you will be paid nothing. The reverse is true for binary put options.Binary options are some of the most expensive trading instruments available to retail traders. The bid/ask spread can be up to 40 or more of the purchase price. This means you have to be right a lot just to overcome the spread. Trading costs can be a killer and right now the cost for binary options just seems way too high.Most short term traders lose money. Study after study has shown that actively trading in and out of stocks or other assets leads to below market returns. There is a great deal of random and unpredictable movement in the markets over short time horizons so if the best you can hope for is 50 accuracy then you will lose overall with binary options.The large spread on binary options can be partially explained by the fact that these are still very illiquid markets. Depending on where you are trading, once you buy a binary option you may not be able to sell it. You may have no choice but to sit on it until expiration. That is not an ideal situation for any trader wishing to remain flexible as the market changes.Overall, binary options fall into the interesting but not ready for trading category. Inevitably there will be traders willing to blaze a trail in these option contracts and it may be worthwhile to watch these markets develop. I think it is likely that eventually they will be priced fairly enough to make sense for aggressive traders. If you find them attractive yourself, try paper trading them for now.The example I used above was representative of how over-the-counter binary option dealers offer this kind of investment product. However, this is not the only way binary options are offered. Exchange traded versions available through Nadex and CBOE are more fairly priced, constructed differently and offer the flexibility in expiration dates and strike prices that traders need. I plan to publish a part-two in this article series to dig into those differences more thoroughly.I have also published a response we received from Dan Cook the Senior Market Analyst at IG Markets (Nadex). I thought he had a great point of view and I agree that in general, regardless of investing product, exchange traded versions are almost always better because they are more flexible, transparent and liquid. Dan and I also both agree that we hope the market continues to mature to make these options more productive for traders.Hi John, I appreciate your article however, I do not believe the sites you were trading on are at all representative of binary option trading.
