Binary Options Traders Questions That Frequently Pop In Every Mind
Generally, you will find some fundamental questions of every binary options traders mind that frequently asked by traders, especially who are less familiar with binary trading.
Whether you just about to start trading binary options or for the sake of knowledge, getting to know about this style of trading will always be an advantage.
So, it’s never too early to go through the basics binary options trading definition. In case if ever there is a desire to trade binary options, this certain information will come handy.
We love to take questions from our traders that inspire us to build unique articles with necessary information. From curiosity, our team decided to visit different platforms and got a bunch of queries on binary options.
In this article, we will try to clarify almost everything that traders are curious about and also from our private mailbox. As we will not follow any particular order, so we will request you to read till the end so that you won’t miss anything.
Top 12 Frequently Asked Binary Options Traders Questions
Binary trading stands on all or nothing preposition where you will get a fixed payout after every right prediction. Conversely, traders will get nothing if they predict the wrong asset future price movement.
After deciding to trade binary, make sure the broker you are looking to invest, is regulated and not blacklisted. If you do not invest capital in the right binary options platforms, it’s more like wasting money in water.
Go through the feedback data, reviews, and suggestions that we made for you to pick the best from the available ones. It’s alright to take assistance from other traders to learn about binary options but don’t depend on them to book your trades.
Get to the basic, do research, go through the demo account trading, test strategies, gain confidence, and then start booking trades.
We will now screen you all questions one by one which are highly recommended for novice traders.
Ques 1: Are Binary Options Regulated?
Trading binary options are legal and regulated in many countries by both famous and non-famous regulatory bodies. As long as the broker is regulated, you will get a transparent trading environment without any scams.
However, in some countries, trading binary options is prohibited wherein few countries trading binary is allowed with in-house brokers such as US binary options trading market.
At the same time, we also recommended traders to engage with regulated platforms for bringing the ultimate success. On the flip side, those countries where binary options are not regulated yet, technically, it is legal to trade binary.
Unless there is no law specified that the trading term is illegal, you are allowed to trade options.
But check the broker regulation carefully before proceeding and to protect your money from scammers.
Ques 2: Why It Is Necessary To Start Step-By-Step?
It is necessary to take binary trading slowly and step-by-step process. Instead of being a hurry to make money in binary options at the initial stages, concentrate on doing right trades on the right assets.
Also, understand your style and what you are comfortable with. Similarly, you can also check out how to trade binary options profitably article to get a proper guideline.
Do some trading arrangements so that you can get regular returns. It is wise to trade with a single instrument before being a master in trading. As a trader, keep your patience and wait for the right moment.
Moreover, don’t be in a hurry to book trade and get yourself 200% comfortable before taking the risk into your plate.
Ques 3: What Should Be The Investment?
Many new and experienced traders have this question in their mind, though there is no exact figure that can be suggested. The investment capacity depends on traders.
A certain percentage of savings can be considered for this type of investment. While creating a financial portfolio for your personal life just like other savings options such as fixed deposit, mutual funds, gold, keep a portion aside for investment in binary option.
Out of this investment, use only 2% of the initial capital in each trade. Binary options need consistent dedication, time, and effort from the investor. If you are unable to meet these requirements, then it is not your cup of tea.
Also, note that traders can start trading binary options by investing only $20. However, the initial deposit amount will depend on brokers.
Ques 4: What Is An Ideal Expiry Time Frame?
The expiry of a binary option can be even a second, minute, hour, day or couple of months. It can be set as per the requirement of the trader.
Moreover, traders consider that the longer you stay, higher will be the benefit. Irrespective of how long you hold an asset, in binary option a decent trade without any wrong move can make at least 74% returns. Because binary trading itself is a very high in return percentage compare to other trading instruments.
Again the span of the trade is also at the basis of which underlying asset you are trading on, as you can not hold all assets for a long period. We recommend traders to select long expiration time so that they can minimize the trading risk.
Ques 5: What’s The Need To Use Charts?
No just in trading but in all industry, interpreting information through charts and graphs is much easier, accurate, and less time-consuming. Trading trends, strategies, market analysis, and so on are shared through charts in trading.
To be a successful trader, knowledge of understanding and interpreting charts is crucial.
Moreover, using those charts and other tools, you can create trading strategies that will bring an ultimate profit. We highly recommend real-time chart software like MetaTrader 5, for example.
Ques 6: Who Are Good Valid Binary Options Brokers?
In the beginning, we already mentioned a platform from where you will find a list of reputed and regulated binary options brokers. The ideal instruction is to start with a broker that is legit and allows a small initial deposit.
If you want to be a respectable trader and make a steady income from binary trading, you need to know how to choose a broker.
As we are working with the different broker’s terminal, based on some factors, we will highly recommend you the following brokers: Binary.com, IQ Option, and BinaryCent.
Our Recommended Brokers
BinaryCent
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Regulated: Yes
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Maximum Payout: 95%
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Demo Account: Yes (Paid)
Ques 7: Is Binary Trading Profitable?
We have heard many failure stories from binary traders. 90% of traders failed in trading because of their poor trading psychology. The trading type is profitable if you can open a successful path with knowledge.
Some basic rules can make you professional in trading. On the other hand, it is the easiest way to earn money and also the simplest way to lose funds. So, whether it is profitable or not will depend on you.
Moreover, it can be fruitful for both long-term and short-term traders. Lastly, binary trading without strategy is a pure gamble. You can be a millionaire within a very short time, but luck will not favour you all the time.
Ques 8: Can Binary Options Traders Become Millionaires?
Again we are repeating the same line, whether you will be a millionaire or not depends on your trading style. You have start trade by setting a realistic expectation.
There are some success factors that you have to build inside you. We will mention those factors in our phase. But it is also true that the trading form will not make you a millionaire overnight. Also, it is a long-term commitment that one should maintain to get future success.
Go to our strategy section and try those strategies by analyzing the marker aspects. Traders should use a practice account before dumping their money here and there.
Ques 9: Is It Possible To Minimize Binary Risk?
If you are struggling to minimize trading risk, then learn amazing and powerful 7 tricks to be an expert in trading. At the same time, investing money by maintaining the money-management rule also help you to reduce risk.
Here are some quick tips that will work as success factors. There are:
- Using a demo account to practice
- Make a trading plan
- Small investment decision
- Proper strategy
Ques 10: Is Binary Options Trading Gambling?
The common myth we all know that binary options are gambling. According to the Business Dictionary, “Betting (wagering) that must result either in a gain or a loss.” As binary options stand for all-or-nothing rules, people mostly consider it a gambling product.
But we found a different statement from many professional financial analysts that any trading investment is gambling without proper strategy.
Ques 11: What Are Good Strategies?
Binary options trading requires limited experience to start. However, in terms of strategy, there is no particular one that will work tremendously for you.
You have to pick the strategy depending on the market and asset price movement. Besides, in some cases, the same strategy will not work for all traders.
There is a popular quote that “Watch the market leaders.” You can follow extremely professional traders from different social trading platforms and copy their best strategies.
From our side, we will recommend the trend strategy to our traders along with the Hedging Strategy to set a minimum risk in trading. Whatever you choose, please don’t use a Martingale system, as it carries high risk.
Ques 12: Do I Need Any Software To Trade Binary Options?
It is not required for an expert to maintain trading software. However, traders prefer to use binary trading software that works on their behalf. The software will analyze the market automatically.
But you have to play a safe game here by using an automated trading bot both manually and automatically. To avoid high risk, do not run your bot all day long. Also, it is suggested to review the economic calendar before placing a trade.
We have tested the following trading robots, and we recommend these for auto trading: BinBot Pro, Binary.com Auto trading Bot, and DaxRobot.
Our Recommended Robots
BinBot Pro
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Returns up to 90%
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Demo Account: Yes
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Robot Profitability:300%
Binary.com Bot
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Returns up to 80%
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Demo Account: Yes
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Regulated and Trusted
DaxRobot
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Returns depends on trader
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Demo Account: Yes
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Fully Automated Bot
Final Thoughts
Finally, we are at the endpoint of this article. Our main goal was to provide that information which is critical and will help traders to make the right decision.
Except these, if you have any other troubling questions, you can simply ping us through our live chat options.
Do not invest an amount that you can’t afford to lose. Keep investing fixed money and increase the level of investment by depending on your experience.
