Binary Options Explained

Welcome to CyberMentors.org.uk I am Collin Tyusm and this is my blog, dedicated to binary options trading and software. If you are here, that means you are interested in binary options and auto trading. You have reached the place that wants to put an end to malicious practices when it comes to trading with options.

The market is flooded with various and different systems that claim legitimacy and promise high profitability, enormous returns and fantastic success rates. But after years of witnessing and in the worst case – falling victims to numerous Ponzi schemes and losing a lot of our investments to fraud, we should know better.

A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all.

I created this blog in order to be of help to newbies as well as experienced traders. I want to provide you with a basic understanding on what binary options are, what is the difference between brokers and robots, and how trading works. If there are more things that interest you and you want explained, do not hesitate to contact me.

Our Recommended Binary Options Signals List

Binary options trading is a very attractive field since it seems very easy and intuitive. But traders should keep in mind that there is always risk involved. Risk, that should not be underestimated and investors need to take into consideration in order to make profits instead of accumulating losses. Having proper insights and understanding of what binary options are and how this unconventional type of trading works, can help one reap the juiciest fruit out of this field. If you are able to grasp the idea and the depth of binary options, you are all set to gain the exotic results that this trading opportunity has to offer. I have provided you with information on some of the most important things you need to know about the industry in order to get the best results out of your trading decisions.

One of the top binary option robots that have been working for years is the brit method system. It has a simple to use design and can be accessed online from  desktop and mobile devices. I also recommend Fintech LTD which generated high return ratio of stable 82.3% so far.

 

What are Binary Options?

Binary options are also known as mysterious options but at the same time they are extremely simple when it comes to their functions and using them. Through them, you can trade with currencies, stocks, indices and commodities. Unlike traditional investments, in the binary options industry you do not acquire the asset you trade with. There is no transfer of ownership involved.

There are numerous binary options types. The most common is the high-low option. It characteristics include type of asset and expiration time. The return is fixed and is realized at the moment of expiry. All you have to do is guess the direction in which the price of the instrument, influenced by market volatility, different financial indicators and economic changes, will move. The trade can end in on of two ways:

• In The Money (ITM) – this means that your prediction is accurate and at expiry the price of the asset has gone at the direction of your guess. For example, you trade with Apple stocks and according to you, their price will be higher at the trade’s expiration. You set your investment amount and then wait. The trade ends ITM if the price truly is higher than the one at the beginning. As a result, you make a profit, with a fixed return rate, provided by the broker you trade through.
• Out The Money (OTM) – this means that your prediction is incorrect and at expiry the price of the asset has gone in the opposite to your guess direction. Let’s consider the same Apple example – according to you, the price of their stocks will be higher at expiry. But the price drops (even if it is with just a little bit) at the moment of expiry. The trade ends OTM and you face a loss.

A very rare situation is for the trade to expire at an asset price that is the same as the one at the beginning of the trade. This situation is called At The Money (ATM) but the chance for this happening is a miniature one.

To learn more about binary options, you can visit Investopedia. They have very detailed articles about the industry and the concepts, what are the differences between trading in the U.S. and outside the States, some trading strategies and advice, and lots of other materials.

What is a Binary Options Broker?

The world of the binary options industry is vast and complicated. Stepping into this world, you will encounter too many to count platform providers and automated traders. Brokers are the ones who provide a medium for trading and the assets at your disposal are also determined by them. Different brokers offer different trading opportunities with different sets of assets. As traders, you can get access to more than 600 brokers, some of which operate worldwide, while others have some geographic limitations. The rapid increase in the number of brokers is very beneficial for investors, since it increases competition and forces platform providers to find innovative ways to enhance user’s experience.

Our Recommended Binary Options Brokers

Probably the most important decision you will make as a binary options trader is with which broker to open a trading account with. This can give a direction to your future trading endeavors and lead you on the path to success or failure. That is why it is extremely important to make thorough research before signing up. Traders, especially experienced ones, tend to open multiple accounts with multiple brokers, so that they can reap the rewards from diversification and to exploit more and different special features, offered by the different platform providers.

Regulation of Binary Options Brokers

Like I said, choosing the right binary options broker is crucial for your success. The most reputable and trustworthy platform providers are the ones which are regulated. Regulation is an essential feature of every profitable broker. It is also a very complicated job. Countries have a set of regulators who are assigned the job of regulating binary options brokers, stock brokers, commodity exchanges and everything you can think of that allows you to practice some sort of financial investment activity. For example, the member states of the European Union accept only those brokers that are listed with a country’s supervisory agency.

The binary options world has been hugely affected by the emergence of scams which are looking to make some profits at the expense of the traders they lure. It is no surprise that scam brokers are advertising themselves as licensed and regulated. You can check with your country’s financial authorities to see if they are regulating a certain broker. One of the most well-known regulatory agency is CySEC – The Cyprus Securities and Exchange Commission. You can learn more about it here.

Even though regulation is a characteristic that can attest to the broker’s reliability, some are still in the process of acquiring a license or do not have one at all, but are still a very good choice for your investments. One should keep an open mind and explore all possibilities. Special features, bonus schemes and guarantee of funds can play an important role when choosing a broker. You can check some the providers I really like here. In my experience as a trader, I have opened accounts with non-regulated brokers on multiple occasions and I have gain some insights on what is the plus side of using such a broker.

What is a Binary Options Robot?

Binary options robots are the so-called automated traders. Their purpose is to help you maximize your profits and are of great use especially for inexperienced traders, who are making their first steps in the field of binary options. How come? It is in their name – they work automatically and trade in your stead. Trading bots are in essence software which runs in the background, analyzing and summarizing enormous amounts of data, either available or gathered through observing market trends and movements. How will the system work depends on the algorithms created and set by the developers of the software. They use sophisticated mathematical algorithms and cutting-edge technology for the best results.

The software is usually available for free. You can always upgrade to a VIP version, which will either cost something or will depend on the referral condition. This is up to the robot’s policy. Most programs do not require downloads, everything is web-based and runs on every known operating machine. Some binary options trading bots offer a mobile applications so that investors can trade on the go. Of course, using the desktop version is always a much better choice and guarantees the best experience you can get out of using the robot.

There is also auto trading software that is only available for investment via online streaming. This is not that uncommon. Different solutions usually offer different special features. They are something very important. Users should always be weary of them when trying to invest on the web. The more specific characteristics a binary robot software possesses, the more reliable it is. Like for instance providing 24/7 support. There is always a possibility that traders have not understood the certain specifics of a particular bot. So, there is a constant need for guidance and advice. Especially, if it is available in several languages. For instance, the best binary option robot would offer it in that many languages as to satisfy the needs of people from at least 5 countries.

In general, auto binary robots are a fine opportunity for regular people to increase their profits. But one should proceed with great caution when choosing a software.

How to Work with a Binary Options Robot

After you choose the binary option trading software you want to work with, you have to open an account with a recommended broker. Reliable binary trading systems provide the opportunity to sign up with a reliable broker. When you get to that step, make sure you choose the best possibility. Like I said twice already – the choice of a broker is crucial. In order to start trading, you have to make an initial deposit to your account. The amount of the required funds is determined by the broker’s policy. It will be used exclusively for trading purposes. After that, you are free to begin trading – either automatically or manually.

• In the first case, you have to tune the binary trading software’s settings to your preferences, activate the special features you want to use, and leave everything else to the system. It will generate signals, which include profitability levels and reliability, and will automatically execute trades.
• In the second case, you place the trades yourself, but you can use the information from the generated signals and base your trading decisions on them. The usual accuracy is up to 75% – 80%, with some exceptions. In very rare cases a bigger claim can turn out to be true.

There is a huge difference between legitimate and scam binary robot software. The second type is one that you would want to avoid at all costs. On this blog, I will provide you with detailed reviews on best binary trading software, too. This way you are going to be informed and succeed in recognizing the legit ones from the scams, which will open holes in your budget.

What are Binary Options Signals?

The aforementioned signals you can use to make investments and according to which the robot executes trades, are a summary of all the information needed to make a decision. No matter the market – for commodities, for stocks, currency or indices, you can get a signal on a certain asset. This alert specifies the direction in which a trade should be made so that you can reach the maximum profit. The signal’s most important characteristic is its reliability – the percent shows with what level of certainty a given outcome will be reached. Let’s take for example a commodity – oil. You have to choose whether its price will go up or down. The signal you get shows an 87% certainty of it going up at the time of expiry. This means that the chance of you guessing right if you trust the signal is 87%.

Different systems provide different types of signal services. There are those that do not even offer alerts. You can receive signals via e-mail or directly through the software in real time. Of course, different trading bots offer different ways for you to get access to those alerts. Remember, you will lose your whole investment if outcome of your trade is different from the predicted by the robot. That is why it is so important to choose a reliable binary options software. The reliability and authenticity of a system’s signals is crucial to your trading results, especially if you let the robot trade automatically. If want to place your own trades, you can decide on the spot whether or not to trust the predictions.

Learn to Avoid Binary Scam

The choice of a broker and a trading bot will chart the course of your investments. You can make a solid amount of money by trading with binary options or you can lose every last penny you invest. Scammers will do everything in their power to lure you into opening an account with them. They make flashy promises and huge claims, with the sole purpose of creating an atmosphere of exclusivity and reliability. In this way they outshine the brokers and robots that do not really need such a noisy advertisement and draw victims into their nets. Here are some useful suggestions to follow when choosing a system and a broker, that could keep you from signing up with a scam:

• Make thorough investigations before signing up. The Internet is full of reviews. You just have to be careful what you read, because a lot of affiliates will send you in the wrong direction.
• Join binary options trading forums and do not be afraid to openly discuss experience and voice your opinions. Ask for feedback from people who have tested the software you have concerns about.
• If possible – open a trading account with a regulated broker or make sure that users are satisfied with using the one that is recommended by your trading bot.

Scam Binary Options List

System With an Edge

When choosing your binary options automated trading software, you should take a careful look at the special features it offers. This is the thing that gives one system an advantage over another. Many useful features come free of charge when signing up. Even better ones are provided upon upgrading to a VIP account. What you should remember as well is that brokers also offer special functionalities. You should take this into consideration when opening a trading account with the recommended platform provider. The special features are another very important aspect of systems’ characteristics. They can give you an advantage while trading and help you get ahead.

Last, but not least, some binary options automated trading systems as well as brokers offer special bonus schemes that can increase your trading capital and give a starting boost. When you sign up and open an account, take the time to read carefully through the Terms and Conditions that are provided. You should be cautious when accepting welcoming bonuses and other similar “gifts”, because sometimes the consequences are not to the trader’s advantage.

Something From the Author

There is a rule of thumb that you should never forget if you decide to enter the binary options industry: Profits and Losses go hand in hand. The higher the risk of a trade, the higher the return, but so is the possibility for a loss. Success rate of a 100% is impossible to achieve and binary options brokers or robots that make that claim, are most certainly lying. But if you accept the possibility for a loss as part of the trading process, you will be able to play the game in a better way and with a calmer mind.

This blog was created with the sole purpose of giving you some insights and information on systems you might have questions about. I conduct thorough investigations and then summarize my findings in the form of reviews. I really hope that you will find the information on the blog helpful and that it will make your choosing task easier.