Today, many people dream of earning money on the Internet. And it is worth understanding why most beginners choose binary options to earn money on financial markets. It is believed that anyone can master them in the shortest possible time. And this is true, but still not without nuances that can turn the opportunity to earn money into a guaranteed financial fiasco. To avoid this, you need to have at least a minimal idea of what this tool is and how it works. You will learn all this and much more from our detailed guide, which will help you avoid common mistakes and successfully start trading binary options.
Content:
- Binary options are easy!
- Where did binary options come from?
- Which type of binary options is ideal for you;
- How to choose the best broker: everything beginners need to know;
- Is it really possible to make money on binary options? Reviews that will surprise you!
- Pros and cons of binary options;
- Conclusion.
Binary options are easy!
Binary options are a financial instrument that allows you to bet and earn on changes in the price of an asset: gold, oil, company shares, cryptocurrency rates or currency pairs. Let's imagine that we are playing the game "heads or tails". 
If it lands on heads, we make a profit, if it lands on tails, we get nothing. In the case of binary options, this mechanism works as follows: the trader selects an asset and predicts the future price change, whether they will be higher or lower than the current level after a certain period, called expiration time (from the Latin "Expirare" - "expire").
If the forecast is correct, the trader will receive a profit of up to 95% (determined by the binary options broker) of the bet, if not, he loses the entire amount of the initial investment. This approach makes binary options attractive to beginners due to their simplicity and minimal requirements for initial capital.
This financial instrument is called binary because there are only two transaction options: "higher" - on the growth of the analyzed instrument price or "lower" - on its decrease. In this case, the bet on the growth of the price is made by buying the Call option, and on the decrease by buying the Put option.
What makes binary options stand out from other instruments?
If you compare binary options with classic exchange instruments - stocks, futures or currency pairs, the difference is obvious. In traditional financial markets, open transactions can be held for an unlimited time. While the term of a transaction with binary options is strictly limited by the expiration time.
In addition, binary options are distinguished by the fact that transactions with this instrument are known in advance:
- Future profit (if positive)
- Potential losses (in case of a negative outcome)
- Position holding period (expiration time)
Due to this feature, binary options traders do not need to place stop-loss and take-profit orders. There is no need for this, since limiting losses and fixing profits are built into the options mechanics themselves. At the same time, all the possibilities for conducting technical analysis of financial instruments on different timeframes are still preserved. Also, do not forget about competent capital management based on specially developed risk management rules.
However, many newcomers, coming to the binary options market, see it as an easy way to get rich, which is more like a game of roulette than serious investments. However, if you still think that binary options are a scam or a casino, and not a difficult job that requires certain knowledge and experience, we advise you to carefully study this review to understand all the intricacies and advantages of this financial instrument.
Unlike a casino, where everything is based on chance, binary options allow you to deeply explore the market, having at your disposal the tools of technical and fundamental analysis. By studying charts, news and economic indicators, traders try to predict future price movements, rather than relying on luck.
To understand how to make money on binary options, you need to constantly learn and improve your skills. Trading is a process that requires constant development and adaptation to changing market conditions. Learn to analyze market trends and use reliable strategies for binary options. Constant training and practice will help you become a successful trader and minimize risks, making binary options trading more profitable and effective.
Where did binary options come from?
Although options are considered a relatively new financial instrument, their history goes back far into the past, to the times when trade was still in its infancy. The first mentions of this instrument appear in ancient Chinese sources. Later, around the middle of the 17th century, Dutch merchants began to use them to insure risks, determining the terms and price of delivery of their goods in advance.
However, the main development of options began with the creation of the Chicago Board Options Exchange (CBOE) in 1973. This event became a turning point in their history, as it was then that they acquired their modern form and became a standardized financial instrument. 
As for binary options, they appeared as a separate class of assets much later, already in the era of active development of Internet trading. Their popularity began to grow rapidly since 2008 due to their simplicity: the trader only needs to predict whether the price of the underlying asset will rise or fall over a certain period of time.
In addition, traders are attracted to them by promotions, bonuses, tournaments and all sorts of competitions of binary options brokers. Thanks to them, these digital contracts have become even more popular.
However, do not give in to the excitement and think that in just a few days you can accelerate the deposit using aggressive strategies. Remember the risks and the possibility of partial or complete draining of the deposit.
Which type of binary options is ideal for you?
The binary options market offers a wide range of tools for making profits to the novice trader. Many brokers offer clients different types of contracts, so it is very important to understand them and study their features before starting trading. However, despite such diversity, most binary options trading platforms offer standard up/down contracts, which, as a rule, serve as a starting point for most traders.
In 2024, brokers offered clients at least 16 types of binary options. However, in this review, we will only look at the most popular of them in detail:
- Above/Below – this type of binary options is the most well-known among traders. When opening a deal, for example, with the broker Pocket Option, the trader bets that the price at the time of expiration of the contract will be "Above" or "Below" the opening price of the option. To make a profit, it is enough for the price to change in the direction of the forecast by at least 1 point.
- Pending trades by price – allow you to place trades when the asset price reaches a certain level. In this case, you set the price level, payout percentage and expiration time of such a contract yourself. In other words, your trade will be placed after the specified parameters are met. You can also close a pending trade before it is placed without any losses.
- Deferred transactions by time are similar to the previous type of options, with the exception that the moment of opening the transaction is determined not by the asset reaching the set price level, but by the time specified by the trader in the contract parameters.
- Express trades are a composite forecast based on several events for different assets. A winning express trade can give a payout of more than 100%! When the express trading mode is activated, each click on the green or red button adds your forecast to the express trade. In this case, the payouts for all forecasts are multiplied many times, which allows you to get a much higher profit compared to using one forecast. Please note that in order to place an express trade, you need to make at least three forecasts for different assets. In our example, we bet on the simultaneous growth of shares of three companies: American Express, Boeing and Facebook. If our forecast comes true, we will receive a payout of 608%!
- Turbo options are fast transactions with an expiration time of less than one minute. Each broker has individual conditions for such contracts, so we recommend that you study them carefully.
In addition to the most popular types of options described above, there are also exotic ones:
- Contract Expiry Inside/Outside Range
- Call/Put spreads
- Touch/No touch level
- Match/Difference (what will be the decimal number in the price at expiration)
- Even/Odd (even or odd quote)
- More/Less (you must specify how much the price will exceed the forecast (from 1 to 10) or vice versa the price will be lower than the forecast)
- Stays in/Goes out of range
- Reset Call/Reset Put (the price during half of the expiration period after the deal is closed should not go beyond the level at the time of expiration)
- High Tick/Low Tick (you need to determine which of the 5 ticks of the expiration period will be the maximum or minimum)
- Only Up/Only Down (the bet is on a consistent increase or decrease of a user-specified number of ticks)
- High-Close/Close-Low/High-Low (you need to define the range of a one-minute candle between the High-Close, Close-Low or High-Low prices, multiplied by the selected multiplier (from 1))
- Asian (at expiration, prices must move in the direction of the forecast and be above/below the average price range for the expiration period).
How to Choose the Best Broker: Everything Beginners Need to Know
Choosing a reliable binary options broker is the first thing a novice trader should start with. Not only the profitability of your trading, but also the safety of your investments will depend on this choice. Let's look at the basic rules that you should rely on when choosing an intermediary for trading binary options.
First of all, pay attention to the regulation of the broker you are interested in, whether it has a license. The presence of such a document indicates that the broker undergoes regular checks and meets certain standards of the financial industry. 
Next, you should collect information about the brokerage company's reputation by reading real reviews about it from traders on specialized forums and websites. Also pay attention to the length of time the broker you have chosen has been operating on the market. A long period confirms its stability and reliability.
After that, it is worth carefully studying the user agreement and the brokerage company's trading platform. The platform should be intuitive and easy to use, and the user agreement should contain information about the minimum deposit, the permissible size of transactions, the expiration dates of contracts, the range of assets, the range of interest payments on successful transactions, as well as commissions and fees.
Then talk to support to see how efficient and responsive they are to user requests. This will come in handy in the future when you need to urgently resolve an issue during trading. Also, inquire about the availability of training materials and a demo account from the brokerage company. A good broker always takes care of its clients by providing high-quality video tutorials, useful articles, and webinars.
We hope that our tips will help you avoid fraudulent brokers who use a variety of scams to steal your funds. Be vigilant and do not trust your money to dubious companies.
Is it really possible to make money on binary options? Reviews that will surprise you!
Before opening an account and starting trading binary options with a specific broker, you should carefully study the experience of other traders. Reviews will help you understand how reliable a particular brokerage company is, whether it pays out earned profits and fulfills its obligations.
In addition, reviews can tell you about the quality of customer service and the speed of response to problems from the support service, how convenient the trading platform is, whether there are any bugs in it, how honest the quotes are at a particular broker, whether there are price manipulations and other troubles.
By reading reviews of different brokers, you can get an objective assessment from users of these companies and, based on this, create your own rating of binary options brokers, which will help you make your own informed decision about opening an account.
Below are reviews from real users, from which you can get an idea of what newbies in binary options trading usually write.
Pros and Cons of Binary Options
Binary options attract many traders with their simplicity and potentially high profits. However, like any instrument, they have their advantages and disadvantages. First, let's look at the advantages of binary options:
- Simplicity . To make money, you just need to predict whether the price of an asset will rise or fall over a certain period of time.
- Fixed profit and loss . Both the potential profit and possible loss are known in advance before the transaction is made.
- Availability. Due to the small minimum deposit, binary options are available to absolutely everyone.
- A wide variety of assets available for trading. You can trade not only currency pairs, but also cryptocurrency, stock indices, shares and commodities.
- Flexibility: With a wide variety of binary options available, a trader can choose the one that best suits their trading strategy.
- High speed of profit making . Some types of binary options, such as turbo options, allow traders to make a profit literally within seconds.
Among the disadvantages of binary options we note the following:
- Loss is greater than profit . Typically, the payout percentage for binary options is in the range of 70-90% per trade. This means that in one trade you risk losing more than you earn. Therefore, to succeed in binary options trading, you need to ensure that the percentage of profitable trades for your trading strategy exceeds 55%. In addition, you need to learn how to manage your capital wisely.
- Possibility of price manipulation by brokers. Considering that trading is not conducted on the exchange, but with a brokerage company, manipulation of asset prices by an unscrupulous broker is possible. Therefore, we advise beginners to avoid trading OTC contracts.
- Weak influence of fundamental analysis on trading. As a rule, binary options trading is based on short-term forecasts and technical analysis. The influence of macroeconomic data is very insignificant. In fact, with the exception of the release of important news and the market reaction to it, long-term trends in the economies of different countries do not affect binary options trading.
Conclusion
Binary options are a dual-character instrument. On the one hand, they offer a simple and accessible way to invest, allowing beginners to quickly start making a profit. On the other hand, the probability of loss and the possibility of encountering unscrupulous brokers make it not without a certain risk. Before you start trading binary options, we recommend that you study the basics of technical analysis and choose a reliable broker.
To increase your chances of success in trading, we recommend that you undergo training, use a demo account, constantly monitor financial market news, and develop your own trading strategy. Remember that even experienced traders sometimes suffer losses, so always be prepared for various scenarios. And most importantly: never invest more than you can afford to lose.
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