Even cryptocurrencies such as Bitcoin or Ethereum can be traded. The main difference between more traditional stockbroker trades, and binaries, is the clear identification of risk and reward before the trade is made. An investor knows exactly how much is at risk, and crucially, also knows the exact value of any potential returns. No calculator, formula, or maths degree is needed to work out profit and loss on a binary option.

The only decision for a trader is if the value of the underlying asset will rise or fall. The degree of the price change is not important.

The trader is purely speculating on whether the price will be higher or lower than the current price, at a specific time in the future. Short term price movement can be triggered by news stories or headlines, quarterly statistics, buyout rumours or even global security fears. Where trades can be closed, redeemed or sold mid-trade, payouts have absolute figures of 0 and and prices move between as the market dictates — until closure.

Every binary option is offered with an expiry time. This is the point at which the trade will end. Generally however, a binary option is used for short term trading — usually under 30 minutes 5 minutes are the most popular. Longer term expiries — and the element of fixed risk — does make them useful tools for hedging or diversifying other holdings. Payouts change dependant on the asset and the expiry time. Differences can be significant so traders looking to use binary options long term, need to shop around to find the best payout for the asset class or classes they intend to trade.

When watching video tutorials, ensure you know the source or creator of the video. Brokers may produce promo videos that appear to show profits being made easily. Although binary trading is in a period of growth, it remains a relatively unknown product. Over time, this is likely to change. As digital options as they are also known offer a very simple fiscal arrangement.

They are a legitimate way to play the financial markets. There is however, no leveraged exposure with a binary trade, so the risk and reward ratio is also simple to manage.

Binary options suffer from a poor reputation. This is basically a result of dishonest and irresponsible marketing and cyber crime, more than an issue with the product itself. With tighter regulation, and a better understanding by the wider public, these options can — and will — move into the financial mainstream.

Which was where they originally developed. While FCA regulated agents and businesses may still have their flaws and faults, they are not fraudsters. Read our section on avoiding scam brokers below. Many of the advantages of using binaries are related or linked. Here we list some of the benefits to using this form of investment — not just for the retail investor, but also to the market makers or brokers:.

Managing risk when trading binary options is clear cut. The amount of the trade is the full amount that is at risk. This clarifies the risk not only for the trader, but for the broker too. Their pricing model reflects the accurate knowledge of their liability. The certainty of risk provides a solid foundation for brokers to work within and manage.

This leads to low trading feed, tighter spreads and higher payouts. To protect themselves further, they may use a liquidity provider or hedge their own positions. The expensive broker costs of clearing houses becomes unnecessary. Leverage, or gearing, is not generally available with binary trading. This benefits the broker again, as it means all trades must be funded in full. In other words, no trader can default on a trade.

With leverage, if things go wrong, there is a real risk of the broker not being paid. This is a big difference vs spot forex or spread betting.

Layers of complexity can be added to the standard fixed payout option. A binary trade offers the greatest level of flexibility. They even provide a mechanism to speculate on a market remaining flat, arbitrage, or to take a view on the trade volume of the underlying asset.

Again, these robots attract many of the undesirable operators, and the automatic nature of the trades increasing risk further. New traders should be especially careful. An alternative approach is for traders to build their own robots using their own entry points. A growing number of brokers now offer traders the ability to put their own trading robot or program together, using simple tools. Binary trading itself is legitimate, and not a scam. There are however, brokers and signal providers that are untrustworthy and operate scams or frauds.

It is important not to write off the concept of binary trading, purely based on dishonest brokers. These fraudsters continue to drag down the image of this form of trading.

Regulators, and rule makers are slowly starting to get to grips with these operations and the industry is being cleaned up. If you want to complain about an operator to our watchdog, please let us know via our Contact Us page. Being aware of the above methods should help those new to binary trading to avoid the less responsible brands.

Improved regulation and more awareness should hopefully reduce these types of complaints. This in turn can allow binaries to move forward. Already fallen victim? The services of MyChargeBack. com might be of help. The recent ban of binaries in the EU is ill-thought out, and could well end up pushing more traders towards scams. Our strategy pages covers over 20 known systems, drawn from a range of forum and club chats, plus expert tips and advice. From high risk Martingale, to intricate systems like the Rainbow.

We also cover more specialist subjects, like forex , technical analysis , the best price action indicators, trading signals and winning strategy. All this is aimed to help you gain an edge, and win. Signals are an alert, sent to traders. They are designed as a trading tool, helping traders to spot opportunities. They can be communicated via a range of methods — email, SMS or from a live signal website or group.

Much of the irresponsible marketing associated with binary scams is linked to signals — or auto trading robots utilising them.

There are some very good providers out there too. However, in general, learning how to trade binaries is a safer route than using signals to compensate for a lack of trading knowledge. Sometimes, but rarely in isolation. Some providers deliver a combination of education alongside signals and that represents a good mix.

Traders must be able to fully assess a signal before they can judge the quality of them. We also highlight some of the best providers on the signals page. A binary option can be used in a number of ways, and across a huge array of commodities and markets. What is a Forex Trend? Much like any other trend for example in fashion- it is the direction in which the market moves.

More precisely and good to know, the foreign exchange market does not move in a straight line, but more in successive waves with clear peaks or highs and lows. There are three types of trends that the market can move in:. During any type of trend, traders should develop a specific strategy. The buying strategy is preferable when the market goes up and equally the selling strategy would possibly be profitable when the market goes down.

But when the market moves sideways the third option — to stay aside — will be the cleverest decision. In order to fully understand the core of the support and resistance trading strategy, traders should understand what a horizontal level is. A horizontal level is:. In order to develop a support and resistance strategy traders should be well aware of how the trend is identified through these horizontal levels. Range trading identifies currency price movement in channels to find the range.

This process is carried out by connecting a series of highs and lows with a horizontal trendline. In order to determine the upward or downward movement of the volume, traders should look at the trading volume bars usually presented at the bottom of the chart.

Using Multiple Time Frame Analysis suggests following a certain security price over different time frames. Through the Multiple Time Frame Analysis MTFA traders can regulate the trend both on smaller and bigger scales and recognize the overall market trend. The whole process of MTFA starts with the exact identification of the market direction on higher time frames long, short or intermediary and analyzing it through lower time frames starting from a 5-minute chart.

While technical analysis is focused on the study and past performance of market action, Forex's fundamental analysis focuses on the fundamental reasons that make an influence on the market direction. What and how people feel and how it behaves in the Forex market is the notion behind the market sentiment strategy.

Forex trading strategies can also be developed by following popular trading styles including day trading , carry trade, buy and hold strategy, hedging, portfolio trading, spread trading, swing trading , order trading, and algorithmic trading. Day trading strategy represents the act of buying and selling a security within the same day, which means that a day trader cannot hold a trading position overnight.

Day trading strategies include:. In the case of performing day trading, traders can carry out numerous trades within a day but should liquidate all the trading positions before the market closes on said day. Important Note: The longer a trader holds a position, the higher the risk of loss will be. Depending on the trading style chosen, the price target may change. Forex scalping is a day trading strategy based on quick and short transactions, used to make numerous profits on minor price changes.

Scalpers can implement up to hundreds of trades within a single day — and is believed minor price moves are much easier to follow than large ones. The main objective of following the Scalping strategy is:. Fading in the terms of forex trading means trading against the trend. If the trend goes up, fading traders will sell expecting the price to drop and visa-versa. Unlike other types of trading which target the prevailing trends, fading trading requires taking a position that goes counter to the primary trend.

The main assumptions on which fading strategy is based are:. The main concept of the Daily Pivot Trading strategy is to buy at the lowest price of the day and sell at the highest price of the day. Momentum trading is based on finding the strongest security which is also likely to trade the highest. The Momentum trading strategy is based on the concept that an existing trend is likely to continue rather than reverse. Traders following this strategy is likely to buy a currency that has shown an upward trend and sell a currency that has shown a downtrend.

Carry trade is a strategy in which traders borrow a currency in a low-interest country, convert it into a currency in a high-interest rate country, and invests it in high-grade debt securities of that country.

The principle is simple- buy a currency whose interest rate is expected to go up and sell the currency whose interest rate is expected to go down.

Hedging is commonly understood as a strategy which protects investors from incidence which can cause certain losses. The idea behind currency hedging is to buy a currency and sell another in the confidence that the losses on one trade will be offset by the profits made on another trade.

This strategy works most proficiently when the currencies are negatively correlated. Portfolio trading, also known as basket trading, is based on the mixture of different assets belonging to different financial markets Forex, stock, futures, etc. The concept is diversification, one of the most popular means of risk reduction.

The Buy and hold strategy is a type of investment and trading traders buy the security and holds it for an extended period of time. Pair trading spread trading is the simultaneous buying and selling of two financial instruments which relate to each other. The difference of the price changes of these two instruments makes the trading profit or loss. Spread trading can be of two types:. Swing traders use a set of mathematically based rules to eliminate the emotional aspect of trading and make an intensive analysis.

A false break occurs when the price looks to break out of a support or resistance level, but snaps back in the other direction, false breaking a large portion of the market out. When prices begin to breakout higher a large portion of the market starts to look for the resistance to break and will enter long trades, often setting their stop loss on the other side of the resistance.

This style of trading is normally carried out on the daily, weekly, and monthly charts. As position traders, traders will often be trying to use the overall larger trend to gain the best positions and capture long-running trades.

When the wick is longer than the body, Traders will know that the market is deceiving them and that they should trade in the opposite way. This is a short-term strategy based on price action and resistance. The trade is planned on a 5-minute chart. How to profit? Choose an asset and watch the market until you see the first red bar. Then wait for a second red bar. If the second red bar closes lower than the first red bar, then it's a win.

Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should open a short position. A few more tips that are great to follow in your forex journey include:. Get Started! Price and trade data source: JSE Ltd All other statistics calculated by Profile Data. All data is delayed by at least 15 minutes.

Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Top 4 Brokers. Comprehensive support and training, Global presence with a local feel, Uncompromising security, Advanced trading platforms. If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. If the price action does not touch the price target the strike price before expiry, the trade will end up as a loss.

Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration Double Touch or not touching both targets before expiration Double No Touch.

Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels. Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set.

Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version on the traditional websites. Brokers will cater for both iOS and Android devices, and produce versions for each.

Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading.

Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are. So, in short, they are a form of fixed return financial options. The steps above will be the same at every single broker. Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value , they can open a call.

But where they expect the price to go down , they can place a put trade. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in. As a financial investment tool binary options are not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest.

The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing.

Binary trading strategies are unique to each trade. We have a binary options strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts , indicators and price action research.

Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. This will depend entirely on the habits of the trader. With no strategy or research, then any short term investment is going to win or lose based only on luck.

Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the behavior of the individual trader. Any investment or trade will be a gamble if done with no skill or knowledge. If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: these markets carry a lot of risk and it is very easy to be blown off the market.

Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes.

The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. A binary trade outcome is based on just one parameter: direction. The trader is essentially betting on whether a financial asset will end up in a particular direction.

In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable.

The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets. Traders have better control of trades in binaries.

For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss.

The payouts per trade are usually higher in binaries than with other forms of trading. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout which never occurs in most cases. In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital.

For instance, trading gold, a commodity with an intra-day volatility of up to 10, pips in times of high volatility, requires trading capital in tens of thousands of dollars.

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What is Ripple? What is Litecoin? What is Bitcoin Cash? Is Luno Safe? Best Brokers. Forex No Deposit Bonus. FSCA Regulated Forex Brokers. One of the most powerful means of winning a trade is to make use of and apply successful Forex trading strategies for South African Traders. In this guide, we will show you step by step which are the best forex trading strategies and tips to apply for your style of trading.

The first strategy to keep in mind is that following a single system all the time is not enough for a successful trade. Each trader should know how to face all market conditions, however, is not so easy, and requires an in-depth study and understanding of economics. Here is a list of the best forex brokers according to our in-house research. Forex is a combination of foreign currency and exchange. Foreign exchange is the process of changing one currency into another currency for a vast variety of reasons, including:.

Forex, or foreign exchange, is explained as a network of buyers and sellers, who transfer currency between each other at an agreed price. By doing this individuals, companies and central banks convert one currency into another. While a lot of foreign exchange is done for practical purposes, the vast majority of currency conversion is undertaken with the aim of earning a profit. Learning how to trade Forex can be a complicated process for beginners. Most people have a dream of getting rich overnight, which may turn out exactly as unrealistic as it sounds.

The world of Forex trading can be overwhelming, especially when you are new to the game, and don't know or understand the rules as yet.

There are a lot of figures in regards to how many traders successfully make money and how many traders occur a loss of money. First, you will need:. Decoding the most common terms used in forex will speed up traders' understanding of the world of currencies:. Technical Indicators in Forex Trading Strategies Technical indicators are the calculations based on the price and volume of security and are used both to confirm the trend and the quality of chart patterns and to help traders determine the buy and sell signals.

In Forex technical analysis a chart is a graphical depiction of price movements over a certain time frame. Read Review. Perhaps the major part of Forex trading strategies is based on the main types of Forex market analysis used to understand the market movement.

What is Forex technical analysis? Forex technical analysis is the study of market action by the primary use of charts for the purpose of forecasting future price trends.

Forex traders can develop strategies based on various technical analysis tools including:. Forex traders can conduct a Multiple Time Frame Analysis by the use of different timeframe charts. Technical analysis strategies are a crucial method of evaluating assets based on the analysis and statistics of past market action, past prices, and past volume. All the technical analysis tools that are used have a single purpose and that is to help identify the market trends. What is a Forex Trend?

Much like any other trend for example in fashion- it is the direction in which the market moves. More precisely and good to know, the foreign exchange market does not move in a straight line, but more in successive waves with clear peaks or highs and lows. There are three types of trends that the market can move in:. During any type of trend, traders should develop a specific strategy. The buying strategy is preferable when the market goes up and equally the selling strategy would possibly be profitable when the market goes down.

But when the market moves sideways the third option — to stay aside — will be the cleverest decision. In order to fully understand the core of the support and resistance trading strategy, traders should understand what a horizontal level is. A horizontal level is:. In order to develop a support and resistance strategy traders should be well aware of how the trend is identified through these horizontal levels. Range trading identifies currency price movement in channels to find the range.

This process is carried out by connecting a series of highs and lows with a horizontal trendline. In order to determine the upward or downward movement of the volume, traders should look at the trading volume bars usually presented at the bottom of the chart. Using Multiple Time Frame Analysis suggests following a certain security price over different time frames. Through the Multiple Time Frame Analysis MTFA traders can regulate the trend both on smaller and bigger scales and recognize the overall market trend.

The whole process of MTFA starts with the exact identification of the market direction on higher time frames long, short or intermediary and analyzing it through lower time frames starting from a 5-minute chart. While technical analysis is focused on the study and past performance of market action, Forex's fundamental analysis focuses on the fundamental reasons that make an influence on the market direction. What and how people feel and how it behaves in the Forex market is the notion behind the market sentiment strategy.

Forex trading strategies can also be developed by following popular trading styles including day trading , carry trade, buy and hold strategy, hedging, portfolio trading, spread trading, swing trading , order trading, and algorithmic trading.

Day trading strategy represents the act of buying and selling a security within the same day, which means that a day trader cannot hold a trading position overnight.

Day trading strategies include:. In the case of performing day trading, traders can carry out numerous trades within a day but should liquidate all the trading positions before the market closes on said day. Important Note: The longer a trader holds a position, the higher the risk of loss will be. Depending on the trading style chosen, the price target may change. Forex scalping is a day trading strategy based on quick and short transactions, used to make numerous profits on minor price changes.

Scalpers can implement up to hundreds of trades within a single day — and is believed minor price moves are much easier to follow than large ones. The main objective of following the Scalping strategy is:. Fading in the terms of forex trading means trading against the trend. If the trend goes up, fading traders will sell expecting the price to drop and visa-versa. Unlike other types of trading which target the prevailing trends, fading trading requires taking a position that goes counter to the primary trend.

The main assumptions on which fading strategy is based are:. The main concept of the Daily Pivot Trading strategy is to buy at the lowest price of the day and sell at the highest price of the day. Momentum trading is based on finding the strongest security which is also likely to trade the highest. The Momentum trading strategy is based on the concept that an existing trend is likely to continue rather than reverse. Traders following this strategy is likely to buy a currency that has shown an upward trend and sell a currency that has shown a downtrend.

Carry trade is a strategy in which traders borrow a currency in a low-interest country, convert it into a currency in a high-interest rate country, and invests it in high-grade debt securities of that country. The principle is simple- buy a currency whose interest rate is expected to go up and sell the currency whose interest rate is expected to go down.

Hedging is commonly understood as a strategy which protects investors from incidence which can cause certain losses. The idea behind currency hedging is to buy a currency and sell another in the confidence that the losses on one trade will be offset by the profits made on another trade.

This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders. The Bottom Line. Nasdaq Brokers FTSE Brokers FTSE Brokers. EXCLUSIVE: Binance Exec Says It Only Took 2 Hours To Know FTX Deal Was Dead — 'We Were Between A Rock And A Hard Place'. Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. ExpertOption is listed of for Forex Broker in South Africa. In addition, there are innovations available now to allow traders to trade on the go.

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