Binary options trading guide

BitUptick’s binary option trading guide gives you everything you need to confidently dive in and make a great start in the binary options game. It is comprehensive, practical, easy to understand and can take you from being a beginner to long term profit.

Please sign up to top a crypto binary options broker to experience these topics first hand and put the theory you will learn in these articles into practice!

Getting started

Binary options 101 – A practical overview

Binary option trading is predicting whether something will or will not happen to the price of an asset within a predefined time frame or at a predefined time. They are called binary options because there are only 2 possible results.

Binary options – Investing or gambling?

Where do binary options sit on the spectrum from investing to gambling? Binary options are fun and potentially profitable however they are a unique and high risk instrument.

Binary options compared to investing and gambling

The pros and cons of binary option trading compared to other types of investments and other types of gambling.

Binary option scams

Binary options are a new area sitting between investing and wagering, where regulations are not always clear and new brokers appear constantly. Add to this the fact that it is possible to make of money, and the fact that all of this is happening online with crypto.

Identity verification with binary option brokers

A requirement of licensed government currency binary option brokers is that they must confirm all customers identities before any withdrawals can be made. This is solved by crypto.

Serious traders

Binary option strategies

A binary options strategy or trading system consists of 2 core components.

  1. A method for selecting options; that is to call or put on what asset.
  2. A method for deciding how much to invest per trade.

Break even point and required win rate

When you settle on a particular type of binary option and asset to trade on you should work out what % of your trades you need to win to break even. This is called your required win rate. This will give you a benchmark to track your performance against and tell you whether long term profit is possible.

How to be a winning binary options trader

Trading binary options can be a fun and enjoyable hobby for anyone who watches the markets or likes to bet. It only takes a bit of insight, preparation and discipline to win some of the money the more casual traders are losing.

Binary options underlying assets

There are 4 main categories of underlying assets you can trade binary options on. They are

  • Commodities
  • Currencies
  • Indices
  • Stocks

Binary option taxes and legalities

Find out if binary option trading is legal where you are, how broker licensing works and how profit should be taxed.

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