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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!

Option+

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.

The NASDAQ

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.

If you need a helping hand on how to start trading, check this out!

Just because a person knows the basics of trading, it does not mean they have the necessary knowledge to make a profit. Trading is an exact science and to truly make a profit from it, one must know the ins and outs. While some people dedicate their entire lives to understanding trading and learning to make a profit, it is possible to get a head start via an online trading course. There are dozens if not hundreds of options available, just an internet search away, but finding the right one can be a challenge. The best online trading courses will offer reliable information, providing the tools you need to make successful trades. Consider the following courses as they span a range of materials, offering something for everyone’s needs.

Bulls On Wall Street

This is an online trading academy that offers classes spanning several months. The great thing about this particular online course is that it includes personal mentor ship, simulators, and webinar. In other words, students receive the same type of training they would with an in-person course, but from their home regardless of where they live via the internet. In addition to an introductory course that is free, there are additional courses that provide live training for over 60 hours. Students also get lifetime access to the courses, so they can return to them to check information in the future.

Lynda.com

Although Lynda.com is designed as a general learning website, their online courses for trading are excellent. Their database includes courses for stock trading and all the material is recorded by experts in the field as well as teachers. A free trial is available for those who want to confirm that this website delivers the course material in a way that they are interested in and with information that is focused on the ideal aspect of trading.

Online Trading Academy

The Online Trading Academy is an excellent option for those of any level of experience. Those new to online trading will discover the basics, tips, and more while those who have been trading for years will still find themselves gaining insights. Each of the instructors covers a wide range of subjects so students are able to select those that they are most interested in. The available courses deal with stocks, Forex, futures, and more, featuring core strategies, extended learning for those who have completed the basic courses, and access to the Mastermind Community for those who have completed multiple courses. This community allows investors to take their investments to the next level with additional daily information. Those interested in supplementing their online courses will also find in-person ones around the country, making it likely that some are within a short drive.

TechniTrader

TechniTrader is another online trading course that offers a range of levels and for those of different needs, appealing to a range of students. Courses include those focusing on methodology of training to part-time traders to full-time traders. Other courses focus on a specific topic, such as option trading, allowing students to become experts at whatever aspect of online trading is most interesting to them.

TradePro Academy

TradePro Academy is another company that offers a variety of online trading courses, helping them secure a spot among the best. They offer a series of courses geared towards beginners as well as those that focus on options and day trading. As such, TradePro academy is a top online trading course for those interested in these particular aspects of trading, although those interested in a different aspect may want to consider an alternative listed above.

Other Ways To Learn Trading

While taking one of the top online trading courses can be an excellent tool for understanding the market and improving your chances of success, it will not provide success by itself. For the best results, read relevant books, magazines, online articles, and newsletters; search for a mentor with experience trading; or even consider using a simulator before investing your real money. Also take the time to simply watch the market, monitoring it online and seeing how it moves over time. In combination with the top best online trading courses, these strategies should put you on the path to successfully making money through trades.


ETX Capital – Bonus & Promotions

ETX Capital Trading Bonus

Claim the Latest Promotions!

Customized Promotions for Your ETX Capital Broker Account
Starting or continuing your journey with the right brokerage choices is not just high on your list of priorities, it should be tip-top. Trading is a competitive, high-energy field that can be extremely rewarding. There are many options with ETX Capital that could be just what you’re looking for- and more.

History and Foundation

The company began in 1965 as part of Monecor London Limited (part of the London Stock Exchange) and was later officially launched with the trading name ETX Capital. They have over 5,000 markets that are accessible for trade, and is regulated and authorized by the Financial Conduct Authority.

Platforms and Spreads

ETX has 3 platforms to choose from, all with demo options available. The platforms offer fixed and variable spreads, stop losses and trailing stops, limit orders, one-click trading, and Straight Through Processing broker options.

Many Payment Options

ETX also offers a wider-variety of payment and withdrawal options than other companies.

  • Credit cards
  • Wire transfer
  • Bank transfer
  • Online bank transfer
  • Skrill
  • Neteller

Competitive Features
ETX Capital has low pips and points starting out on many of their spreads, and spread-betting tips, tricks and strategies. They also have high customization on their platforms as well as Android, iPhone and iPad apps. There are so many features packed into ETX, and many more that make this broker unique.

Promotions and Bonuses

Promotions are an excellent way to add a treat to your brokering needs or wants. To find out what promotions are available, you need to contact your Account Relationship Manager.


Useful tips when trading with commodities

Binary options trading is a great way to achieve anywhere from a little extra money to a full time living and more. It’s even a great way to make tons of money in a short period of time. It all just depends on how the trading is done among other things. And having said this, the following are tips to use to achieve one’s success and eliminate the risks associated with trading:

1. Selecting a good binary option broker is important for assistance.– It makes a great difference finding a competent expert as a broker, and various, reliable sites are available for traders to compare and choose the right binary option for them.

2. Don’t ever overtrade.– Overtrading will most like result to losing one’s money quickly. There will be losing trades; therefore, it’s vital to manage losses in order to move on to other trades.

3. Keeping a clear head is essential to make better decisions.– While in an emotional state, it’s so easy to make the wrong decision.

4. Utilize the short term trend.– Because commodity trading is about percentages in the long run for success, one should continue to purchase strength and sell the weakness. Also, the probability of success will be higher when going on the path of the least resistance. A commodity hitting around a 20-day low or high will be considered a trend, but when the trend is about to near an exhausting period, one must stop going in that path. Besides, the 2% maximum loss rule applies when one is wrong is going in the direction of what is trending up or down.

5. Don’t ever add to a losing position.– Doing this will lead to losses much higher than 2%. In some cases, people’s trading accounts drizzled down to zero due to one or two bad trades.

6. Adopting a trading plan is important.– A predetermined, operational method is very important because emotional stress is subject to arrive in any speculative situation. The operational method includes rules set that are operated and adhered to, and thus, this will protect against oneself.

7. Don’t trade, if unsure.– A loss would most likely occur when trading under the influence of various unimportant and extraneous details.

8. Cut the losses and let profits ride.– some people have done the opposite and have experience detrimental losses.

9. Affording to win is only possible if one can afford to lose.– Losing sometimes is naturally a part of trading. Therefore, if one is not in a position to accept losses financially or psychologically, he/she shouldn’t trade. As a matter of fact, trading should only be done when there are surplus funds available that are not important for daily expenses.

10. When a market is too thin, don’t trade.– With lack of public participation comes the difficulty or impossibility of liquidating a position at or near a price desired.

11. Never attempt to sell the top or buy the bottom.– It’s only a better propensity of profiting when waiting for a developed trend.

12. A margin call should never be answered.– A margin call acts as a final warning that the position has severely gone awry.

13. It’s important to stay apprised of trading news.– Keeping one’s eyes and ears open for breaking news concerning the market condition will give the trader clarity of current situations which make it easier for him/her to trade during market crashes.

14. Hedging trades against one another is not a good idea.– Doing this will only decrease the probability of earning more profits.

15. Last but not least, enjoy trading.

Commodities

Commodities


The history behind Wall Street and how it became the financial capital of the US/the world

The history of Wall Street and its position as Financial Center of the US and the World

Wall Street and the New York Stock Exchange (NYSE) are almost synonymous with each other. According to FXCM, New York Stock Exchange boasts a market capitalization of $16 trillion, the largest in the world. As of 2013, there were about 1900 companies listed on the exchange, 1500 of whom were US companies. The daily trading at the volumes averaged about $170 billion at the same time. The NYSE is owned by the an American holding company called Intercontinental Exchange and regulated by SEC, the Securities Exchange Commission. The exchange was established back on 17 May 1792 by 24 stockbrokers from Wall Street, New York City.

The stockbrokers met under a Buttonwood tree and signed the famous Buttonwood Agreement. The agreement, among other things vouched for the formation of a centralized securities market in the US. The agreement set a commission rate and eliminated the need for auctioneers who controlled and monopolized commodities trading involving wheat, tobacco and other farm produce. On 8th March 1817, the name New York Stock Exchange was adopted from the broader New York Stock Exchange Board. The exchange traded in government bonds and bank stocks for most of 1800’s. It did not take long for NYSE to surpass the Philadelphia Stock Exchange, the first in the US as the largest financial center of the US.

Trading at NYSE was enhanced with the introduction of telegraphic communication technology in the buying and selling process. At the onset of the American civil war, participation in the market was buoyed by the discovery of various minerals including Gold in California. The exchange moved to a historical building at 11 Wall Street in 1895. The telephone communication installed in the building made it easy for investors to talk directly to brokers to discern their trades. The term Wall Street is widely used today to refer to the New York City financial district. The 8 block street runs from South Street all the way to Broadway. Aside from the NYSE, the other markets based here include NASDAQ, NYMEX and AMEX among others.

According to Stock Market Laws, the early history of Wall Street can be traced to 1626 when Europeans began settling in the lower Manhattan area of NYC. Many historians believe the name was derived from the earthen walls that were laid to mark the boundaries of New Amsterdam Settlement. The wall was built by the Dutch to protect their settlements against attacks from Native Americans, the British and the pirates from the deep sea. Owing to its strategic importance, the Wall Street area soon became a center of commerce, attracting hordes of traders within and outside the city boundaries. As earlier stated, Wall Street was formalized as the location of the New York Stock Exchange in 1972 following the Buttonwood Agreement.

In 1789, the street was chosen as the site for the inauguration of the first US president George Washington. The other important early development was the unveiling of the Erie Canal at the beginning of 1800’s. The move catapulted Wall Street into a booming trading center and preferred port of call. Because of these trappings and additional investments made over the years, New York City stands out today as the most powerful city economically and leading financial capital of the world. NYSE also remains the largest IPO provider in the world. Most of the industries represented in the exchange come from financial services, consumer’s goods, healthcare, oil & gas, pharmaceuticals, beverages, telecommunication and technology.

In terms of architecture, an excerpt on Wikipedia reveals that the most dominant style of construction was rooted in the Gilded Age along with strong Art Deco influences. Lower Manhattan is divided into 3 main districts; the financial district, seaport and south of the World Trade Center. Some of the landmark buildings that don Wall Street today include; The Trump Building, 55 Wall Street, the Federal Hall National Memorial building, the Deutsche Bank Building and the NYSE building. On broader economic terms, statistics indicate that in 2008 close to 200,000 people were employed by Wall Street firms. Another statistics released in 2006 showed that close to 10% of the city’s workforce and 31% of the tax base was derived from the financial services industry.

WallSt


Useful Tips When Trading With Indices

Trading

Relevant Market Sectors Research

Before you start trading an index, it is important to examine the component parts of that index; does it compose of shares from various industries, or are most of its shares from a particular market sector? Answering these questions could be crucial to your understanding of ways that could influence the value of the index.

For example, FTSE 100 index listed companies are those that have the highest UK market capitalization representing an approximate 80% of wealth at the London Stock Exchange. This is why the FTSE 100 can be said to provide a good insight of UK companies market activity. In addition, more than 10% of all shares listed here are energy and mining stocks. Price changes of commodities that are related to these sectors could cause commodity-related stocks falling or rising, and so may significantly affect the index value.

When you are deciding on an index to trade, it is important to consider the number of listings making an equity index. – Number of listed companies on an index can vary widely; some will contain thousands, whilst others could contain only a few tens.

Study Relationships between Indices and Currencies

Another important thing is to understand the sensitivity of an index to currency rates. It’s typical to have a correlation between the strength of a currency and its domestic indices value.

For instance, if there is a US Dollars demand, American indices will generally increase in value. This could be partly because of foreign investment – as the number of traders investing in US stocks grows, they would need to first buy USDs to be able to purchase American stocks, which in turn causes value increase to the US indices.

Look for Correlations between a Country’s Domestic Index and Commodities

As commodity prices decrease or increase, the relative value of some currencies could be susceptible to change. For example, if the prices of oil drop, maybe, as a result of a weak global demand, then a country like Canada, which is an oil exporter, would have an economic disadvantage, but Japan, which imports oil, would benefit.

For this reason, it’s crucial to study commodity movements which may potentially affect value of an index you may be trading. Correlations could fluctuate from one day to the other, but in the long term, you can expect strong trends. Analyzing and searching patterns can help you make good trading decisions.

Changes to Index Listings

Over time, stocks that are listed on an index are typically subject to change as a result of factors such as mergers and acquisitions as well as market capitalization. These factors are described some more below.

Market capitalization:

Most indices will value companies in terms of market capitalization and not in total assets or sales figures. The total market value of a business’s issued shares is its market capitalization. This calculation is done by multiplying the current market price of a share by the number of shares issued.

Because an index’s total market capitalization is affected by the company’s individual share prices, the index’s value will change as prices fluctuate. For instance, as indicated above, the FTSE100 index on average represents share prices of London Stock Exchange’s top 100 publicly traded companies. To make sure it reflects these 100 top companies, the FTSE is revised on a quarterly schedule, in March, then June, September and then in December. This makes an index’s component stocks to change over time.

As an example, if one company’s market capitalization plummets, the company stocks could become too small for them to remain on an index they are listed on. This causes the company to be demoted from the index, and another company that has a higher market capitalization replaces it.

Mergers:

When mergers occur, there can be change on stocks listed on an index. When two companies combine to form one business, their various stocks also combine forming one tradable entity. One example of this is the merger of Dixons and Carphone in 2014.These previously separate stocks joined into Dixon Carphone.


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