Best Binary Options, Trading & Winning advice

Binary Options trading is quickly becoming the go-to trading method for people just starting out in the market. This is due in large part to the inherent simplicity of this method of trading. What is not simple is understanding the difference between U.S. based Binary stock trading, and trading Binary stocks outside of the United States. We will get into that later, though, so, for now, we will just focus on the basics of United States-based trading.


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Binary trading gets its name from the dual nature of the trading itself. A person will either “bet” that the stock will finish lower than when they bought it, or whether it will finish higher. People sometimes squirm at the term “bet”, but that is essentially what it is when a person is first starting out. When a person becomes more knowledgeable at this craft, then they are not betting anymore, they are making educated guesses which are essentially what anyone on Wall Street does.

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Where this gets confusing is the price a person wishes to put on a stock, versus what the stock is worth. A Binary Broker, an individual or company licensed by the Federal Trade Commission to trade stocks for other people, typically puts the cap, or limit, on what can be traded, at $100 U.S. Dollars. This cap also reflects the maximum amount of money a person can make a trade What the stock is worth, be it ten dollars per share or one thousand dollars per share, is irrelevant. When a person is trading with the Binary method, they are “betting” that the stock price will go up or down within a predetermined time frame. That’s it.

For example, if a trader thinks the price of Gold will be above $1,000 per share at 2:00 pm and it is now 10 am, they have 4 hours to wait to see if it will end up that way. Let us also say that they put $50 on this trade. If at 2:01 pm the price per share is $2,000, they just “inherited” $100 from the stock market. Stock brokers get a fee out of every transaction, or trade such as this, so let’s say the fee for the trade is $20. A trader put in $50, paid a fee of $20 which equals $70 out of pocket. The trader “won” $100, so subtract the $70 that was paid out and they are “In the money” for $30.

Two things that are needed to keep in mind here. Thirty dollars for 4 hours does not seem like a lot of money being made. This does not have to be the time frame, though. Most brokers go all the way down to 1 minute. So if a trader did the same thing and put the time frame at 30 minutes, they mostly made $60 an hour. Also, the share of a stock does not have to double in size for them to make money this way. If it only goes up one dollar, they still made the same amount of money. This method of Binary trading is called a “buy” A “sell” works the same way, only backwards.

When a trader puts down, for example, $50 on a “sell”, he or she is anticipating the price of stock to decrease in value. Everything else explained in the previous paragraph is the same. The only difference is that a trader can only lose what they traded for, whereas when a trader “buys” they can make more of profit. For the sake of clarity and for the benefit of those who do not know exactly what the difference between a stock and a share is, here it is. Look at the stock of a company as pie. When a corporation goes public, they may offer up one hundred shares of that stock for sale. Each share is a piece of the pie. As if someone cut the pie into one hundred pieces. Each piece is a share. All the shares, when put together, comprise a stock.

What a Binary trader does is anticipate that the stock as a whole with either increase or decrease in value over a certain amount of time. If this all sounds confusing, that’s okay. After five trades, people will start to see it all in a clearer light. This is why it is suggested that first-time traders start with low bids or offers. A bid is a buy, a sell in an offer and traders see these terms all the time.

Binary Options Trading

The world is changing- technological evolution some call it. The way things were done in times prior seem almost comical when compared to the approaches available now. It has become a dance between traditional methods and modern technological systems. It waves from the creation of smart devices to smart houses and every other thing in between.
The business world has been affected as well. Being physically present for a transaction to take place is no longer necessary except in exceptional circumstances. One of the hallmarks of the technological advancements in the 21stcentury is Binary Trading.
Binary options trading has been a stable part of the financial industry since early 2008, drawing in investors from all over the world. It has redefined how stocks, currencies, and shares are handled and transferred. Trading Binary Options is straightforward and easy and can be done from the comfort of a couch with a laptop. Trading is not limited; can be carried out at any time or day. The option exists to either trade long term or short term; this is all dependent on one’s schedule and interest in a market or asset.
What Is Binary Options Trading?
Two options comprise binary options trading, a yes or a no. In simpler terms trading Binary options mean predicting the value of an asset over a set period and placing a wager to that respect. Nicknamed ‘yes or no’ investments because of its nature which allows one to buy into a trade they believe will be favourable with a ‘yes’ or a ‘no’ when they think it will fall below expectation. It is a gambling exercise, and care should be taken. Some factors go into making these predictions, but none are a 100% fool proof. Research is paramount in this and will be a determinant factor in losing or winning.
Doing the following will reduce risk and increase proficiency on any

Binary platform

• Make use of software analysis tools gives that will make you an edge as a newbie. Some devices track progress and other nuances that may be missed by the untrained eye.

• Study and understand the market you are involved in. It is wise to stay on the market and thoroughly trade and know the ins and outs before taking on another.

• Demo accounts are available for practice. Being new to this means practice should not be shirked but rather taken religiously.

• A track of trades should be recorded for reference. The platform will hold a record of all trades, but it is also advisable that a particular notebook is kept for this purpose. Outlining failures and successes is a good way to learn and narrate experiences that will inform future decisions.
Getting started with Binary options is natural to an extent. The entrance fee is not much. Contracts are either at $0 or $100 and for every correct prediction made there is a loser on the other end. It should be noted that binary options only place a wager on the movement of the prices of investments and not buying into the investments themselves. Earnings and losses are capped at $100 on a contract, and this significantly reduces the risk thrown at a person.

How Binary Option Trades Work

There are three steps to Binary options trading:
1. Choose a broker
2. Register with the broker
3. Start trading based on preference
They are interwoven one into another making each dependent on the other. Considering them all at once may seem too much but given time, the connections become evident. A breakdown will follow below, with emphasis on what to consider when starting a trade.
Choose a Broker & Register
There are a lot of brokers to choose from, and the binary options world is full of scams. So, this is a close business. Do intensive research in this area and compile a list of trusted brokers. Finding testimonials to that effect would not be hard. It would be wise to try out different brokers and register on various platform. Making use of a variety of brokers builds experience points and assets value.

Start Trading Based

1. Trading platforms provide assets such as stocks, commodities, currencies and indices to trade within a market. Choosing what asset to bet on is in the hands of the trader and the conditions attached to the asset should be properly considered.

2. Take note of expiration dates. A majority of platforms allow you to sieve through contracts based on their life cycle- be it in a day or a couple of hours. Most expire by the end of a trading week unless they are tied to an economic event.

3. It is crucial to decide which way to go; to buy or sell the binary option. Decisions should be guided by the stake price and expiration date. A strike price is a middle ground set by the trading platform. If a trader believes the asset will go above the stake price, he buys into the option. If he thinks otherwise, he sells the binary option.

Although starting the trade was broken down into 3, they can easily be broken into four easy steps:
1. Select an asset to trade
2. Predict price movement
3. Decide on the amount to invest
4. Collect the winnings

Diverse Trading Options

There is a variety of binary trading options, each with its set of advantage and disadvantage. The most recognised are the High-Low Call Put option because of its straightforward approach to trading.
High Low / Call PutMany people believe that this is the simplest form of binary options trading available. The only action required on the part of the investor is to predict if the price of a given asset will appreciate or depreciate within a time frame. Then proceeds to select Call if the prediction is an appreciation in price or Put if it is depreciation.

One Touch

The investor makes an educated guess that the price of an asset will reach a particular range before the end of the allotted time.

No touch

This a reverse on the Call/Put, in this case, you choose a price an asset will not reach before a specified time expires.
For example, let’s say Facebook’s share price is at $540 and the trading option is at the No Touch price of $570 with percentage returns estimated at 77% If the stock price does not touch 570 dollars after the time allocated then the investor gains.

30 Second trading

This trade as the name suggests is within 30 seconds. The investor has the option to predict a Call or Pull on the value of a given asset, all within 30 seconds!


Few brokers offer this trade which has the possibility of being bought back. Option+ is only possible for options that are classified as in or out of the money but are a significant variable among brokers.
As with anything else on this Earth, there exists pros and cons, in Binary options trading. However, one thing it does present is a unique and straightforward method of trading price changes on assets in various markets across the globe. They provide very high rewards for the investor that dares to step into this territory and succeeds despite the overwhelming fear of loss. Returns can get as high as 91% with the lowest margin of 65%. Knowing what the return rate is on the market before committing to an investment should serve as a guiding light.

Choosing the Best Binary Broker

Binary options have allowed some investors from day traders to brokers, and even novice traders to capitalize off the market simply by bidding on anticipated market prices. However, when it comes to purchasing and trading binary options, there are some binary brokers, each with their platform, returns, bonuses, and other promotions, that can make choosing the right one to seem overwhelming, especially for new traders.

To help take the guesswork out of selecting the right binary broker, simply incorporate the following tips:

The Broker has Sufficient Capitalization

When choosing a binary broker, it is important to consider the broker’s market capitalization, meaning, does the broker have adequate capitalization to hedge against the risk of losing all capital if the trader places a winning trade or the broker goes bankrupt.

When a firm is regulated in the U.S., they are required by the Commodity Futures Trading Commission (CFTC) along with the National Futures Association (NFA) to have at least $20 million in capitalization to function. To check if a firm is sufficiently capitalised, directly refer to the CFTC website.

Furthermore, some firms underwrite their risks with third parties to afford to compensate winning trades. Some brokers also trade larger trades at another brokerage house to hedge against losing a considerable amount in a single trade.

Ask the broker about their capitalization and whether they hedge their risks using third parties.

The Trading Platform

Entering a binary options website is similar to walking into an investment firm; it should be neat and well-organized.

Upon entering the site, inspect that it is professional and fully functional. Check that all links are working properly and that the site is compatible with various PCs.

Examine the trading platform and design. This aim is not to search for the best looking site, but rather to determine how compatible it is with various skill levels. For example, new traders may require a trading platform that is relatively straightforward and easy to use; whereas, the more experienced trader may need more advanced features.

Ideally, the trading platform should offer charts with a good history time frame, preferably spanning as far back as a week. It is also important that the platform has no slippage. Slippage refers to the time between placing a trade and the actual execution of the trade, in which case, even just a second can make all the difference, especially when trading via the 60-second option. Likewise, be sure the broker experiences little downtime on their server.

Traders should also determine if they would like to trade via a non-web based platform, which requires users to download a piece of software and can only be used from that particular PC, or if they would prefer a web based platform, which can be accessed from anywhere. Some brokers also offer mobile trading, which enables traders to access their platform via their Smartphone or iPhone with a downloadable app.

It also helps to have an idea of the desired assets to be traded, for example, commodities, stocks, indices, currency pairs, etc.

Lastly, a good broker will offer registration free of charge.

Supports Many Currency Combinations

Traders who are interested in capitalising off the volatility of the Forex market should be sure the trading platform supports multiple currencies trading. An excellent trading platform supports numerous pairs of currency combinations, which is often a good sign that the broker takes their business seriously. In fact, as a rule of thumb, the more currencies included, the more severe the broker.

The Trading Platform is Encrypted

As with any web-based transaction, it is important to ensure the site is secure to conduct a safe transaction. When selecting the web based trading platform option, be sure the site is encrypted with at minimum a 128 bit SSL encryption key to safeguard the user’s financial information.

Research Reviews, Information, and Customer Feedback

There are some binary options brokers lists available on the web that includes information, reviews, and customer feedback regarding various brokers, which can be used to create a list of potential brokers. Also, search for complaints, scam alerts, and frauds, etc. to ensure the broker is legitimate.

The Platform Includes Learning Tools

Binary options education is crucial for success, especially for new traders. A good binary options broker understands this and will provide a free demo account, in addition to educational material and binary options guides to help ensure success, which shows the broker’s concern for their traders.

Also, it is also strongly recommended that traders further their education by researching various other websites for more in-depth information, including educational resources, strategies, indicators, money management, and more to help ensure success.

They Provide Good Customer Support

A good broker will offer various ways to contact customer service, including live chat support for immediate assistance with trading issues and other problems. Try out the live chat support to evaluate response times and to receive more details about the brokerage. Also, check that the platform offers a fair amount of languages.

Before contacting customer service, jot down a list of questions to assist with asking the right questions. Be sure the questions are specific, well thought out and prepared. For more precise answers, try contacting customer service via the phone option. Be sure to inquire about welcome bonuses and current trading promotions, as well.

Check out the Terms and Conditions

Many brokers have strict conditions that hinder traders from withdrawing money, including bonuses.

Before deciding on a broker, it is crucial to find out how the program works as well as all restrictions that apply. Thoroughly research the broker’s terms and conditions to learn important details, such as the payouts offered, how the deposit works, and the charges included.

It’s also important to check out the bonus. Most bonuses offered by binary options traders come with inclusions. For instance, it is not uncommon for brokers to detain funds until a certain trading volume has been reached. This volume differs from broker to broker.

About Extras

Some binary options brokers have some extras that set them apart from other brokers, which can be exciting; however, this should not be a deal breaker. In fact, there are many brokers who do not offer extras but still provide an excellent service. In other words, view extras like a nice addition, not a determining factor.

Making a Decision

Finding the right binary options broker is a process; therefore, be patient when deciding on the right one. In the meantime, test out the service. Begin with the demo account to become familiarised with the platform and help build confidence. Once it is determined that the site is legitimate, start with a small deposit. Also, test the withdrawal process in addition to the customer service. Over time, increase the deposits as preferred.

Using Binary Options to Trade the Forex

Forex trading is the largest trading asset class in the world. It involves the trading of currencies against one another. You decide for instance if the U.S. Dollar will trade higher or lower against the British Pound. Currency prices change regularly based on some different factors. Traders may expect the dollar to weaken against the pound. This means it takes more dollars to buy a pound. If the dollar strengthens against the pound, it takes less of them to convert to a pound.

In our global economy, the fluctuations between currencies are critical. Companies doing business internationally follow the currency markets regularly, because the changes can affect their profits. If they buy foreign products and pay for them with lower valued exchange, they can make money from the difference between the two, in addition to their regular business profits. This is why the Forex markets are so popular today. This is just a simple example of how Forex trading takes place in real time.

Forex trading is a global phenomenon that takes place 24 hours a day, around the world. Big banks, institutional investors, traders and multi-national corporations are active in this marketplace daily. There is a daily turnover in the Forex market of about $4 trillion on a daily basis. Some use the Forex as a business tool; others use it purely as a speculating vehicle.

If trade number 1 is on the long side of the EUR/USD and trader number 2 is on the short aspect of this trade, trader 1 wins if the dollar gains against the euro, and vice versa. Trader 2 losses if the dollar gains against the euro. Traders use economic news and other indicators to decide which way they feel currencies will trade against each other. When trading, a broker matches buyers against sellers, making a market for the currency pairs. The Forex market trades five days a week, just like most other markets.

Binary Option Trading

Now that we understand the Forex market, we can move onto the binary options market. In the Forex market, traders are trading the moves of one currency against another. In binary options trading, the trader is basing moves on the behaviour of the currency pairs, not the amount of change, between them. These behaviours include:

• Will the pair trade higher or lower than a particular price level?
• Will they pair trade above or below a specific price level?
• Will the pair trade inside specific price ranges?

Trading the Forex Using Binary Options

If you are not familiar with options trading, there are two types of options. The call means going long a trade (thinking the numbers will increase) and a put is similar to going short or thinking that the numbers on a trade will decline. Binary options are a little different than regular options. A binary option has two possible results; all or nothing. You either win the trade or lose everything.

An example of a binary options transaction on the Forex is to buy a call option on the USD/EUR, with an expiration at the end of the day. If the US dollar moves higher against the euro between the time you buy the option and the end of the day, you win the amount designated at the beginning of your trade. It stays the same or goes down against the euro during by the end of the day; you lose your money.

So, you first select which currency pair you want to trade. Next, choose the length of time you want to trade for. Depending on the option, it could be for one hour, a day, a week or some even have options up to a month. Next, decide on which direction you feel the asset will move, up or down and purchase either a call or a put on the asset. You will know at the time you buy the option, what you can gain if you are correct in your prediction. If you lose, you simply lose the premium you paid for the option.

Trading in binary options is a fairly simple process. You don’t need a lot of trading experience; you just need a keen eye for what is going to happen shortly. Trading the Forex using binary options, you just need to have a feel for which way currencies are likely to move.

Useful Binary Option Trading Tips

All About Binary Trading Commodities

Many people trade within the binary options sector. These people frequently trade within the commodities sector as well. This practice is becoming hugely popular. Trading predominantly with commodities is on the rise among classic retail investors out there as well. There are a good number of advantages that are associated with trading commodities. People who do so often have a lot of freedom. This trading can be beneficial for those who want to have many choices in underlying assets. It can be advantageous for those who want to trade various commodities such as oil, coffee, wheat, gold and sugar, too. People who want to be successful in binary trading can do a lot to boost their skills and outcomes.

They Can Establish Clear Bet Limits

Bet limits can do wonders for people who are involved in binary trading. Binary traders can set clear limits that can save them from the dangers of betting 100 percent of their money all at once. Risking everything for one lone position can be problematic. People shouldn’t focus on the possibility of a fast and sizable payout. That can often be highly destructive. It can sometimes even take them down negative spirals. People who want to start out nice and small can opt to bet anywhere between 10 and 15 percent of their available balances. People who are feeling a bit more daring, on the other hand, often choose to bet a lot more. Newbies should try to be as safe and cautious as possible. It can be wise for newbies to start with between five and 10 percent of their available budgets. They can move gradually up their bets with some time. Experience is invaluable for traders who want to make bolder decisions.

They Can Take Charge of Their Feelings

Trading can often be quite an overwhelming process. That’s why it’s most fitting for people who are calm, relaxed and composed. People should never let binary trading get the best of them. Trading beginners often falter when they give their feelings the power to take over their lives. Traders who are successes follow their brains. They don’t follow their hearts. Logic is essential for people who want to do well in the binary trading world. Binary options trading, in a nutshell, is a process that calls for in-depth assessment. It’s a process that demands a solid grasp of the international scene. It’s one that calls for intricate and detail-oriented calculations as well. That’s precisely why binary options trading isn’t suitable for people who give in to their emotions quickly. Binary options trading isn’t appropriate for individuals who tend to wallow in unpleasant moods. It’s appropriate, though, for people who have the ability to focus well. It’s also suitable for people who genuinely understand the value of time.

They Can Actively Seek Out Information

Knowledge is power in this world. No one can disagree with that. People who want to thrive in binary options trading should always be “in the loop.” That means that they should always actively seek information. Lack of current, fresh and updated knowledge can be highly detrimental to binary options traders. Real binary options trading is something that requires a significant amount of time and focus. It’s not a casual and comfortable thing in any way. People who want to flourish in the binary options trading universe should make a point to carefully read any and all news stories that pertain to the subject. They should do this on a daily basis, too. It’s also important to understand that the learning never ends. It’s in many ways a lifelong thing. That’s exactly why high commitment is so critical. An individual can’t become a binary trading expert overnight. He has to be 100 percent willing to learn on a constant basis. The binary options trading world is perpetually evolving and changing. It’s never stagnant even for a minute. Binary traders need to understand significant new changes in available trading platforms. They need to know about innovative technical devices as well.

They Can Take Their Time

Binary options traders can indeed benefit from speed. Speed should never be the only thing they prioritise, however. Prioritising speed and speed alone can sometimes be disastrous to binary options traders. Fast choices can often be inevitable. Pressure isn’t at all uncommon in the binary options trading realm. That’s not to say that it’s not a good idea to stay far away from pressure whenever possible, however, because it is. People who want to do well in binary options trading shouldn’t depend solely on their gut feelings. They should always rely on decisions that involve a significant amount of care, dedication and guidance. Carelessness is never a good thing in the binary options trading realm. Spontaneity isn’t a good thing in the field, either. The best binary options traders out there are the ones who have the ability to concentrate on technical assessments. Active binary options traders begin by reducing their losses. They then focus on getting their profits back up again, slowly but surely.

They Can Start the Right Way

It’s never a smart idea to rush into anything. It doesn’t matter if an individual is interested in aerial photography. It doesn’t matter if he’s interested in binary options trading, either. Rushing can often lead to unpleasant outcomes in life. People who want to thrive as binary options traders should always begin small. They should take the time to understand what they’re getting into beforehand as well. Binary options trading isn’t a great match for everyone. People who want to begin binary options trading have to sign up for trading accounts. They can’t do anything until they do this successfully. Signing up for a trading account typically calls for a little paperwork. Traders are asked to provide pertinent details including their home addresses, identification and latest bank statements.

They Can Seek Assistance From Others

A little outside support can always go a long way in the binary options trading world. The most talented binary options traders are the people who are more than willing to ask smart questions. People who are prone to feeling “stupid” and “silly,” as a result, often give up on this type of trading extremely quickly. It can be intelligent for beginner binary options traders to speak with others who are much more seasoned and experienced. Insight from an another individual who has been involved in binary options trading for years or perhaps even decades can be a lifesaver. It can often mean the difference between achievement and total failure as well. Aspiring binary options traders should ask questions that involve handling their feelings. They should ask questions that require starting out and what to expect. They should ask questions that involve navigating setbacks. Some extra knowledge can be amazingly helpful. A new binary options trader may know a capable expert from work or his neighbourhood. If he doesn’t, he may be able to find a talented binary trading aficionado using the Internet. Reputable online resources can also be a significant help to individuals who are looking for useful advice in the binary trading department.

History of Binary Trading Options

Binary trading options are a hot topic right now because of their rising popularity as well as the array of binary trading platforms available on the web. A binary option is one with two possible results – a trader buys an option and waits for it to expire, after which it either pays out (about an 80% profit on top of the initial investment), or the trader gets nothing. There’s a good reason for the popularity – binary options trading ranks among the easiest and most new trading methods on the market, and it requires microscopic initial investment. Since it started in 2008, binary options trading has captivated both newcomers to the stock exchange as well as more experienced traders. It’s also a bit controversial because of the all-or-nothing payouts that it offers to investors, and some traders can mess things up if they listen to bad advice or simply have no idea what they’re doing. On top of it all, the market is currently flooded with different brokers, and so it leaves new traders with a lot of risks if they don’t do their homework. At the same time, binary options are a thrilling way to dip one’s feet into the stock market, and they can also be quite rewarding if you know what you’re doing. But how did binary options trading come to be in the first place?

Binary options trading in its current form dates back to 2008 when the U.S. Securities and Exchange Commission approved this type of trading after the Options Clearing Commission had recommended the previous year that they should be made freely available for retail traders. Not long after their approval, both the American Stock Exchange and the Chicago Board of Options Exchange (CBOE) began trading in binary options. Before this, binary options trading had existed for many years but was only available to banks and other institutional traders as well as individual traders with a high net worth. The early form of binary trading was still fraught with complexities for retail traders, and only call options were available initially. Improvements to the trading platform combined with a wider array of options are what made binary trading take off, and the introduction of binary options in forex trading only contributed to its rising popularity.

Apart from binary options trading as it exists today, there have been various forms of options trading over the years that were similar if not essentially the same. Before the forex market was deregulated back in 1997, it essentially functioned the same way as binary options do today. The CBOE itself was formed back in the early 1970s as the first structured platform for options trading. For a long time options trading was not standardised, but over the years regulations would be added and eventually utilised to create a standard. As time progressed and more regulations were added, and there was more transparency, options trading became more respectable. But it still accounted for only a small amount of trades. Two other things happened in 2008 aside from the SEC’s approval that made it the watershed moment for binary options – technology now allowed for adequate online platforms for trading them, and the subprime mortgage crisis made investors look for a low-risk investment option.

Before the formation of the CBOE, various forms of options trading have existed throughout history, mostly hedged on various commodities markets. Early commodities and options trading was largely hedged on a future crop later in the season or the following one, to fund businesses. As time progressed, this was used to insulate against price fluctuations but mostly existed without regulation, and therefore investors could and often did back out on their whims. By the mid-19th century, there was a need for both bringing together investors as well as introducing regulations. The Chicago Board of Trade was set up in 1848 to help address this issue, and it introduced standardised futures trading in 1865. While this helped the market, illegal practices became rampant, and the Commodity Exchange Act was implemented in 1936 to address these issues and regulate the industry.

In the years since 2008, binary options have only continued to grow in popularity with traders. In 2009, the North American Derivatives Exchange launched binary options trading in the US, and since then the market has only grown around the world. There have been numerous warnings about fraudulent binary options since then by market regulators, and this has resulted in increased regulation of binary trading in various countries. In some cases, it has been banned as a form of gambling, while in places like the UK the increased regulations have legitimised it as a kind of investment. With the increased crackdowns on fraudulent brokers, binary options trading might have received bad press – but at the same time, this has led to a safer market for traders as well. Binary options have only grown in popularity around the world, and with the number of emerging economies, it’s likely that they will only continue to grow. After all, it’s more accessible and easier to get involved than ever before – and increased oversight gives potential traders more peace of mind.

Trading on Stock Exchange

Stock exchange refers to buying and selling of securities such as stocks or shares and bonds and other financial instruments. Stock exchange provides a central platform for buyers and sellers to conduct their transactions, but the securities must first be listed for the trade to take place. The central area helps in keeping records and keeping track of all the transactions with brokers at the centre of it all. In the stock market or the equity market, public companies issue and trade shares either through exchanges or over-the-counter markets. The Stock market is divided into two parts namely the Primary market where new shares are sold when the company offers its initial public offering. The other is the Secondary Market where subsequent trading takes place with both individual and institutional investors without involving the issuing company.

In the initial public offering, the price of the shares is set depending on the estimated worth of a particular company and also the number of shares being issued. The company only receives the money raised in the initial offering while the traders continue trading with the issued shares on the exchange market. The trading continues and investors can either get a profit or incur losses because the value of the company changes over time, making it difficult to predict whether the stocks will rise or fall shortly or in the long run. Some investors buy stocks from different sectors and keep them for a long time and then sells those whose value is perceived to rise increasing their chances of acquiring profits. Once an individual purchases shares of a particular company, they automatically have the rights to participate in making decisions on how the company should be run depending on their number of shares. Some of the major stock exchanges include the New York Stock Exchange (NYSE) and NASDAQ. A large volume of shares is traded in these exchanges making them among the most important in the world. With lots of daily volumes, these stocks attract many investors because they can sell and buy shares at any time.

Stock Prices

In the Stock market, different forces make prices to change due to the changes in demand and supply. If the need for the stock is high, the price goes up, and when the supplies increase, then the price falls. These changes reflect how investors feel about the value of a particular company. Some judge the value of a company with the stock price instead of its Market Capitalization. Market Capitalization is the stock price multiplied by the outstanding shares.
Another factor that affects the price is the company’s earnings which are its profits. If a company makes more, the higher the stock price and the less it makes, the lower the price. Public companies are required to make reports four times a year so that analysts can estimate their value and keep records.

Benefits of Stock Market to an Investor

Though often risky, it is worth to invest in the stock market as long as the investor has learned the tricks to manage the potential risks to avoid losses. Some of the benefits that come along with trading in stocks include:
Sense of Ownership
When an investor purchases shares from an issuing company, he/she automatically acquires the rights to make decisions as part of its management. Purchasing shares mean owning a piece of the enterprise, and the shareholder is allowed to vote in the board and other important agendas. Shareholders are also informed on the progress and the financial state of the company by being served with annual reports.

Income from Dividends

Not all stocks offer dividends, but those that do, deliver annual payments regardless of the value of the stock. Many stable companies retain part of their profits to re-invest back to the business, and the rest is divided among the shareholders in proportion to their shares. With this kind of income, investors can use it to finance their trade or buy more shares.

Investment Gains

Just like any investment, the stock exchange offers the chance to grow the investors’ money. They have an opportunity to invest in different stocks from various sectors. Keeping in mind that stock investments change value independently, different stocks can bring about rapid gains and lower the chances of incurring losses. If the company is stable, massive profits are raised for the investors.

The New York Stock Exchange

Founded in 1792, Today, NYSE is the most preferred market for most of the prestigious and the largest companies in America and globally. When trading, an investor approaches a brokerage firm and makes an order that then takes the order to floor brokers who then go to the trading post where the trading takes place. At the trading site, there is a specialist who matches the buyer and the seller, and once the trade is made, the investor is notified so that he or she can decide on the next step. The whole process is referred to as a Listed Exchange because most of the trading is done face-to-face and human contact. At NYSE, the exchange price is determined through an auction with the current price being the highest amount a buyer is willing to pay and the lowest amount a seller is willing to sell.


Being a competitor to the NYSE, it has attracted big companies like Microsoft, Intel, Oracle, Cisco, and Dell. Contrary to NYSE that prefers face-to-face trading, NASDAQ uses computers and telecommunications network to trade with no particular central location or floor brokers. Brokers in NASDAQ match the buyers to sellers directly and continuously provide bids, prices, and make the market. It is an over-the-counter market, the first electronic stock market, and the second largest stock market in America and the world. Founded in 1971, it helped lower spread which is the difference between the bid and the asking price of the stock.

America has been the home of the largest stock markets followed by London and Hong Kong. Apart from NYSE and NASDAQ, some of the other large Stock exchanges are the American Stock Exchange (AMEX), the London Stock Exchange in London and the Hong Kong Stock Exchange, among others.

Origins and operations of the worldwide stock exchange

The stock exchange provides enough excitement, advantage and financial adventure to simulate even the most hardened financial guru. The stock exchange is where global brokers and traders purchase bonds, stocks plus additional securities. Brokers and traders in the stock market function as a continuing market where buyers and purchasers conduct business from a central location, like the stock exchange trading floor. But, many people don’t understand the stock market financial system, how it works and the roots of its ancient beginnings. Here’s some of what you need to know about the stock exchange and its long-term history.

A brief history of the stock market:

  • The Dutch East India Company was the first company to offer shares of stock.
  • Amsterdam Stock Exchange as been in existence since the 16th century. Spanish Jewish trader, Joseph De La Vega wrote the first books on stock trading, Confusions of Confusions in 1688.
  • England issued its first government bonds in 1693.
  • Stock shares began trading in the United States in the 1790s.
  • The American stock exchange began in the 1800s under the title, the “Curb Exchange.”

The American stock exchange was officially formed in 1953. The NASDAQ became the world’s first electronic stock market trading over 2500 securities in 1971. 2007 saw the creation of the Financial industry regulatory authority (FINRa) when the NASDAQ merged with the New York stock exchange’s regulation committee.

What the stock exchange system is and how it functions

The stock exchange doesn’t owe any shares in stocks; it works like a market where stock buyers can contact and connect with stock sellers. The stock exchange has a global reach with exchanges located worldwide such as the United States, United Kingdom, Italy, Japan, and China to Brazil. Understand that stocks become available to the current market after a company conducts an initial public offering where companies begin to sell shares to a set initial group of public shareholders which are called the ‘primary market’. After the initial public offering group has had time to work with the stock, the units can then be sold and purchased on the exchange which is a secondary market.

Supply and demand help set the price for the stocks where the flow of the stock can be reviewed as a price action; this means for example that seeing a bid price of $55 on a stock means that someone is advising the exchange that he or she is willing to purchase the stock for $55. Asking prices such as $31 on shares means someone is willing to sell their stock for that amount, this difference between bidding and asking prices is referred to as the bid-ask spread.

Exchanges such as New York’s NASDAQ act in several different roles. Like raising capital for business by providing a place for companies to raise capital to expand by selling their shares to the public, mobilizing savings to invest in economic sectors like agriculture, commerce and industry to creating investment opportunities for small investors by allowing both small and large stock investors to purchase the same types of stocks.

Exchange listings have requirements

For companies to gain a listing on a stock exchange, certain requirements need to be met. The NASDAQ advises that a company must have issued 1.25 million shares of stock worth at least $70 million while also earning more than $11 million over the previous three years. While the London stock exchange advises minimum capital of over 1 million, three years of financial with sufficient working capital for at least 12 months from the date of listing on the exchange. Companies must meet individual exchanges requirements for trading to have their stocks and shares listed and these requirements vary by the exchange.

Invest wisely

Investing in stocks or company shares is a straightforward process which can be guided by an experienced financial planner. Many companies are authorised to work with major United States stock exchanges as well as U.S. foreign counterparts such as the London stock exchange. The businesses can connect potential investors with a qualified stockbroker that can make trade requests for a fee. Online financial services provide options for interested investors like online trading account from world-class trading companies such as Charles Schwab and Firstrade that allow users to execute their stock purchases. Take time to discover the best exchange markets offering the best company representation, and you’ll be on your way to a potentially brighter financial future.

Binary Options trading regulations and licences

Binary options trading provides a simple entry to the stock market and stock trading. Similar to day trading, it requires only a short-term investment. The trader chooses the investment term, ensuring you can free up your capital when needed. In binary options, the trader essentially bets on whether the stock will reach or exceed a particular value during a set time limit. If you bet on sports, it is similar to an over/under bet. If the stock reaches the amount the trader chose, the stock pays a return on investment or bet. If it does not, the trader loses the invested funds. The trader doesn’t buy stock in binary trading but speculates on what a given stock will do that hour, day, week, month, etc.

The Regulators

The United States regulates binary options trading via the US Commodity Futures Trading Commission. It hands out more fraud violations than licenses, though. Cyprus’ Securities Exchange Commission (CySEC) regulates most binary options brokers. Since Cyprus belongs to the European Union, all EU countries accept the CySEC license. In Australia, the Australian Securities and Investments Commission (ASIC) licenses binary options brokers. In Canada, all securities regulating entities have declared binary options were trading illegally in the country. Therefore no entity regulates this trading type. In the United Kingdom, its Gambling Commission regulates this kind of broker. Changes may occur soon, though. The UK conducted a stakeholder consultation exercise in 2015 and published its findings the following year. Stakeholder groups communicated to the government that they’d prefer binary options trading be regulated by the Financial Conduct Authority. The general public classifies binary options as financial instruments, not bets, according to Finance Magnates. While other jurisdictions may not regulate brokers for this trading type, they do allow residents to trade. CySEC does not allow US residents to trade with its brokers.

What does regulation mean?

According to the Cornell University Law School Legal Information Institute, securities regulation refers to state and federal laws governing publicly offered and sold securities in interstate commerce. In most countries, a company must register with the securities exchange commission of a country before publicly offering its stock (security) for sale. The regulation also includes full disclosure of specific financial and business-related information to prospective buyers. Security may be defined as any of the following:
* notes,
* stocks,
* bonds,
* treasury stocks,
* certificates of interest, collateral trust, pre-organization, voting trust, deposit for security,
* profit sharing agreements,
* transferable shares,
* investment contracts,
* fractional undivided interest in oil, gas, or mineral rights.
The Regulation also extends to matters of antitrust and fraud. The goal of regulation is a fair and honest market that serves and protects consumers.

Finding a licensed broker

Without a centralised, worldwide regulatory commission, no entity provides an official index of regulated brokers. Some binary options websites and blogs offer best of lists and reviews of regulated, licensed brokers, but ASIC warns some of these are not reputable sources. The best sources are the regulatory agencies themselves. The CFTC licenses NADEX as a binary options broker in the U.S. which makes it a simple choice if you live in that country. The CFTC also provides a searchable database of financial services providers. A search of CySEC using the search term “binary options brokers” brings up a link list of recent related white papers, licensed brokers, and brokers for whom CySEC revoked licensing. The ASIC search engine breaks things down by topic, so you’ll search a different database for financial advisors than for a company name. The best strategy is to search both the name of the broker you want to learn about and the names of its leadership and any staff who contacted you. The UK Gambling Commission offers an information portal on the regulation of binary options and links to its searchable database of licensed operators.

Make getting started with binary options a fun, easy task by protecting yourself and your investment funds by using only regulated, licensed brokers. Some of the leading securities exchanges in the world regulate brokers specialising in this emerging market. Each securities exchange commission provides information on how it regulates brokers and a database of licensed brokers.

Key Binary Options is a part of

Take your trading one step further..

Now that you are at a level of established career where there is enough worth in your stock, stable and toolbox to exercise master maneuvers in trading, it may be time to play the long game. And, the long game is binary trading. That is if you are not already doing so already. They say the great ones never forget the fundamentals when it comes to successful strategies. However, when it comes to electronic transactions over global markets, sticking to the old while drafting something new is never a bad combination of ideas.

It does not matter if you are well entrenched and informed when it comes to market trends, intelligence or unforeseen phenomenon, having a reliable binary options broker on speed dial is never a bad idea. The underlying idea is that you have a trustworthy relationship with someone with a little perspective to point out any “quicksand” that you may be unwittingly walking into.

Savvy and well versed and self-regulating professionals know that working skill sets need sharpening from time to time. It is no shame or a waste of time to occasionally sign up for training courses or acquire new reference material and mental tools to keep with the times. It is also a good idea to have separate levels of practice on both personal and professional levels, so financial experiments and learning curves on new ventures are never a problem.

Most traders tend to agree that binary trading is something that profits best when the facts of the matters involved with a trade are not complicated or attached to other businesses. It is also a strongly held believe that the better way to go when making the all-or-nothing bet is to take the longer way around. But, that is not to say that having a good eye for hedging losses is never an option that you may want to look exploit. The only true problem to avoid is the over investment and stretching of funds.

It may seem like a simple and obvious piece of advice, but learning to keep your eye on the trading news and current events can save a ship on seemingly smooth waters from crashing hard into a corral of disaster. Of course this finger on the pulse mentality is easy to maintain by constant, but not obsessive, studying of up-to-date market graphs and charts. This means that you are going to need serious analytical tools and plans at the ready and expect the unexpected.

The best tools to have in the arena of binary trading are strategies. Each one has to be built from a proven model and design but at the same be tailored to perform just for you. You need to know from which angle to proceed and how to change modus operandi when needed.

Always a popular choice, you may choose to employ a fundamental analysis just to see whether a company is worth your time. Another way to gleam the information needed to trade well is a look at the past performance of a business through technical analysis. If you feel like employing the service of a broker, using a basic option strategy is strongly recommended. The results yielded can act as something like a control for executing more sophisticated actions.

The simple truth is there are signs to seek and interpret for successful trading. They are in some ways like full moons in the day sky, influential, completely visible and yet often ignored. Keep an eye out for price trends and volume reversals. They can make pinning down the direction of a good stock difficult. The trends to look out for are the diamond patterns that are either pointing up or down. Neither one is good or bad per say. It all depends on where you placed your order for a trade. Of course, depending on whether you are losing or gaining money on an order, these patterns tell you what action to take. The point is to recognize the diamond bottom or top before it grows too large.

For those who feel hearty enough and have the portfolio that says they really know there stuff, there is the straddle technique. And, it is not for the novice, fledgling or “nervous” trader. The concept is as simple as the name suggests in that both buy and call options are purchased at the same time. The trick is to pick the perfect high and low points when it comes to market volatility. It may seem like a doubtful thing to do, but it actually makes sure that a person can get into a market when nobody knows what is going to happen, without losing everything from the farm to the kitchen sink.


The craziest Wall Street stories we’ve heard of!

1. Insiders referred Bernie Madoff’s offices at the Lipstick building as the “North Pole.”

After the infamous Bernie Madoff got exposed by the federal authorities for his role in a $50 billion Ponzi scheme, some interesting facts emerged revolving the activities in the Lipstick building’s upper echelons in midtown Manhattan.

According to a 2009 report by CNN citing court papers, Madoff is alleged to have had people going out to purchase cocaine for company use.

Insiders dubbed the office “North Pole” because of the ridiculously high amount of cocaine found there.

The fraudster is said to have provided “topless entertainers who wore only G-string underwear serving as waitresses” according to the Daily Mail.

2. Hedge funder Eddie Lampert escaped after a gunpoint kidnap

Founder of ESL Investment Eddie Lampert was kidnapped by two men at gunpoint in 2003 as he left his Connecticut offices. The two men shoved a hood over his head before pushing him into an SUV.

The hedge fund manager was held for ransom in a motel bathroom, blindfolded and with his feet and hands bound.

Lampert’s captors told him that they were hired to kidnap him. They obviously knew him well so he knew he could not lie.

Lampert had to wait in the bathroom for a long 39 hours, during which he only had one meal and water and never once saw the faces of his captors.

He recorded a forced message to his wife, and then his captors made one serious mistake that ultimately helped Lampert out of his situation – they used his credit card to order pizza.

Lampert would later successfully negotiate with his captors telling them they were better off letting him go. They dropped him on a highway at 2 a.m. from where he walked to Greenwich police station.

His kidnappers were apprehended a few days later. They are said to have later pleaded guilty and sentenced to prison.

3. AIG execs caught at a luxury Arizona resort after receiving a government bailout.

After getting a $85 billion bailout from the government, AIG employees and executives spent some time at a posh Phoenix resort for a conference.

According to an investigative reporter, during the conference, the hotel staff was told: “not say a word.” There were also no AIG logos anywhere, which was said to have been on purpose.

Instead of having seminars, executives were caught red handed on hidden video camera as they lounged poolside, frequented the spa and stayed in luxury suites.

This was actually the second time the executives had been caught having a good time in a resort since they received the government bailout. A week after the bailout, they had also been found at a South California resort where rooms are said to cost $1,000 a night.

The incidents led to investigations as well as congressional calls for the CEO’s resignation.

4. A Merrill Lynch employee tracked the trading floor with fecal matter due to a crappy bonus.

In January of 2008, one employee in the fixed income research division at Merrill Lynch reportedly got furious with the whole bonus issue.

So what did he do? He is said to have inappropriately relieved himself and of course let everyone get a smell of his sentiment.

According to John Carney, who is today the owner of NetNet, he “took a dump in the toilet, stomped on it, and went ahead to drag it all over the trading floor by walking around the floor with it on his shoes.”

At the time, Merrill provided a different explanation to the incident saying that the guy was a victim of an unfortunate bathroom accident.

5. Over a hundred Wall Streeters were arrested during “Operation Buy and Cry.” cocaine bust.

Some months before the 1987 market crash, many wall street employees were said to be on a real high.

Earlier in the year, Wall Street, was rife with cocaine users and was as a result hit with “Operation Buy and Cry” drugs crackdown.

According to the Sun Sentinel, the operation was called that because those who would get caught buying the illegal drugs, would cry for having destroyed their careers.

In mid-April the same year, authorities had caught up with over one hundred in the operation. During one of the stings code-named “Operation Closing Bell,” a group of Wall Street employees was arrested for cocaine. The crazier part is that they were selling the cocaine for information and stocks.


The developments on the USD in 2016 on the stock market

The USD is rising in the stock market 2016 after a year that was rocky. Most people had lost faith in the USD and around the election, the markets went crazy. Investors did not know what to expect. The fact that it is gaining a major nod to this financial system. People want to make money and they know that investments are how that happens.

It’s normal for stocks to fall during a time of uncertainty like the election that happened in 2016. Today, the major USA indexes are at an all-time high. It is the market, though, so nothing is ever guaranteed. The choice for the president seems to be an asset to the market. It makes sense, though. After all, this is Trump. If anyone is all about the market, it’s him. This has given a confidence in the market that made 2016 a strong year with a growth rate that is the highest it’s been since 2003.

The leaders in the market were oil companies, private prisons and pharmaceutical businesses. The promise to improve the country and the ability for people to get to work is helping this growth. Oil growth is the area expecting the most growth.

The best move for anyone in an election year is to wait it out to see what happens. The surprising thing about 2016 is that nobody did that as expected. The movement was active and people made money. If investors want to make the best gains they need to consider the global market and how it can change the USD.

Biotech investments remained one of the best ways to make money from the market tin 2016, and promise to be strong going forward. Trump winning had a great deal to do with that confidence. Investors know that he will be fair to the pharmaceutical world and this has helped to maintain strong value in these investments.

Healthcare in 2016 was a great concern for everyone in the market. Those investments stood a chance to take the greatest hit. Medicaid has expanded, which though good for the people receiving help, it can be disastrous for the medical industry investments. Insurance companies specifically took the biggest hit in the market. No real growth is expected, but all bets aren’t off yet. Trump has talked about a plan to help save this market specifically which could possibly help and make it a market to watch for growth and gains.

Education took a hit in 2016. Investments there seemed to drop to a low that was not unexpected, but is a concern. Growth is this area helps everyone win big. Some colleges declared bankruptcy, which is never a good sign in any line of investment.

Mexico has suffered a blow in 2016, that is due to the uncertainty of the presidential election. It might improve, but most investors aren’t willing to take that sort of chance to find out.

Analysts predict that gold is still the safest investment to make. Precious metals, specifically allow an investor to retain value in their investments that any market can never match. The problem is the growth of those assets. If nothing is invested, then nothing can be gained from it. So even though gold is stable and a great place to put money, it isn’t going to the place to make great gains.

What will make the most money is oil and investing in the United States economy. Trump wants this to grow and get stronger with time. If investments are made, then this will become a reality. One thing we all know in the market is that Trump never lets anything fail. That alone should help the growth from 2016 to go forward and be even stronger the following year.

The 2016 profits were there and growth has happened, but after the dust settles and the president shows his intentions for the growth of this financial market, only time will tell. Confidence in the USD is important if this growth is to occur.


Latest on Commodities

Commodities: Crude lower as markets anticipate inventories data, Fed rate call – DIGITALLOOK futures were lower on Tuesday afternoon as markets anticipated two sets of US inventories data due this week, and the US Federal Reserve’s interest-rate call on Wednesday. Markets were awaiting the stores data from the industry’s American … Commodities: Crude lower as markets anticipate inventories data, Fed rate call – DIGITALLOOK


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no 28/17 Nasdaq Commodities to go live with German Only Futures Contracts – GlobeNewswire (press release)

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Agri-commodities: Jeera zooms 72%, turmeric plunges 3.17% – Economic Times the National Commodity and Derivatives Exchange, turmeric for delivery this month declined Rs 192, or 3.17 per cent, to Rs 5,866 per quintal with an open interest of 16,950 lots. Similarly, the spice for delivery in June contracts lost Rs 172, or 2 … Agri-commodities: Jeera zooms 72%, turmeric plunges 3.17% – Economic Times


Expect Soybean prices to trade sideways to higher: Angel Commodities – Soybean prices to trade sideways to higher: Angel Commodities. According to Angel Commodities, expect Soybean prices expected to trade sideways to higher from the lower levels. The supplies have been lower while there is good demand from the … Expect Soybean prices to trade sideways to higher: Angel Commodities –


Commodities Say Silence is Golden in Pre-Holiday Trade – MarketPulse (blog) Say Silence is Golden in Pre-Holiday Trade. Posted 7 hours ago Share Print 0. Asia consolidates in quiet trading as the region prepares for the start of Japan’s Golden Week holidays starting tomorrow. CRUDE OIL. Crude fell by over one …FX Empire Commodities Say Silence is Golden in Pre-Holiday Trade – MarketPulse (blog)




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What You Need to Avoid When It Comes to Algorithmic Trading

There are quite a few advantages to algorithmic trading. Algorithmic trading helps traders to refine their strategy. Algorithm trading removes emotions from the trading world. The percentage a trader can make a good choice based on the backtesting increases, but that does not mean it is full proof.

Here is why.

This kind of trading is like anything else in life. Traders have to pay attention to what they are doing. There are just as many mistakes being made in algorithmic trading as there is with any other type of trading. Below are 6 pitfalls that every trader needs to take note of and avoid.

1) Some traders overfit. This is when the use a theory that has been backtested and apply it in real life. The only difference is the outcome is less than enjoyable. Not every strategy being backtested will perform well live. Traders need to set up some parameters or indicators to make sure the strategy will do well in both places. This will reduce the chances of overfitting. This will increase a trader’s chance at a profit.

2) Some traders tend to get a little overeager when they do this. They place all their strategies on a “sure thing”. Traders need to be skeptical of any results they see unless they are proven wrong in the live platform. In other words, do not place any bets on any kind of strategy unless the outcome is very good. This happens to all traders, even the seasoned pros go through this from time to time.

Do not rely on any assumptions. They will be misleading 90% of the time.

3) Systematic traders tend to override their research and guesswork. Traders need to stay away from doing this. Some start to second-guess their work and let their emotions, hunger, or fatigue take over. This is bad all the way around.

4) Anytime a trader back tests a short duration strategy for one minute, there is going to be a problem. Backtests which use ticks are going to require a longer period of time to configure the results. Traders need to adjust their timing accordingly.

5) Traders who fail to take something like a commission into account, they run the risk of choosing performance indicators that are poor. Traders should take into consideration all costs when choosing a trade. Poor performance indicators will result in losing money.

6) Traders should not pick a market based on backtested assumption and winning strategies in the past. This is called “cherry picking”. Cherry pickers rarely make out big in algorithmic trading. Traders need to treat algorithmic trading like all other forms of trading. Think about diversifying when possible. Do not settle on one field and one field only. Do some research. Take a broader approach with this.

There is no such thing as easy money. There never will be. Traders who wrap their heads around this, they will have more success.


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