I will describe it in very simple words. I feel that I have to because even Wikipedia explanation is so vague that a regular person would think it is a rocket science. Well, it is not a rocket science. Actually it is the simplest form of betting (Yes – it is betting and don’t let anyone mess up with your head telling you Binary Options are just another form of an investment) . The essence of Trading Binary Options is actually the whole beauty that attracts us to it. Like Asian Handicap, like ATS or Totals – Binary Options too have only two possible outcomes to bet on: the price of a certain asset of your choice will either go up in a preset time frame or will go down. Let’s say the price of Gold is at 1358.00$ for an Ounce and it is 14:32 GMT (that is a time zone the trades and expire times are conducted by). You have options to choose from different expiry times like 15:00, 15:15, 15:30, 15:45, 16:00 etc. You think, or are convinced based on some info you just received, or you got tipped by some broker, or you received a Signal (like a tip in sports or a pick) that Gold price will plummet for the next half an hour… So you choose PUT option, and expire time of 15:00. Then you choose the Sum you are ready to risk to support your trade. Usual odds in binaries are plus minus -125 (American) or 1.80 (Decimal). So, now you have – let’s say a 125$ on PUT option on Gold expiring at 15:00. If the price will indeed be even a penny less than 1358.00$ at 15:00- let’s say 1357.75$ – you win 100$. If the price will be higher than the entry price – then you lose the entire sum. Like in sports. And if you actually chose the CALL option and the price of the asset you chose went up – you win. Imagine yourself Over/Under betting to understand that better. So your question should be – why with such odds I should choose Binary Options over the Sports Betting? Well the answer is very simple – Because of the Variables influencing the outcome. Unlike in sports – the number of the Variables factoring the final outcome is much less than in sports. In sports you have Home/Away, Players form, Refs, Bias, Wise guys, Million stats to deal with etc.. In Binaries – if there is a logic behind the price change – it will happen and no one will miss a free throw or a field goal, no one will be injured during the first quarter and mess up all your projection, no one will buy the direction of the price on the asset of your choice thus influencing the outcome like in a sports game. Nothing besides pure financial logic drawn from absolutely open and available info can influence the outcome of the trade. On the contrary – in Binaries the Majority wins.
The signals in Binaries are like sports picks but Live ones – so being connected all the time to the source providing the signals is a must. In the very near future – matter of weeks – we will have an automated trading system VOL1 enabling automated trading, ready for beta testing and you will be the first ones to enjoy it and test it free of charge and earned money to keep. ‘Till then – we all are enjoying implementing VOL1 system trades manually and in order for you to get into the trading position effectively – you will have to receive our signals with minimal lag time between our signal and your trade. Therefore you must follow us on Twitter not only @rainmaker365com, but also each signal provider: @sportsmavin, @phixerphixer, @livegamestips and @kingmidastouch1 as the tweets provided by above are specifically pointing out as what asset, at what price, entry time and expire time and trading sum to take.
Please remember that Money Management is the most important aspect of successful trading summary at the end of each trading day, week, month or year. VOL1’s most important feature is the tool enabling the user to enjoy an automated money management. Here too – ’till we will have the system ready you should stick to one money management policy: no matter how big or small your bankroll – you always will conduct your initial trades with no more than 5% of your bankroll (2.5% through 5%). Our smallest trading amount is 250$ and your trades will be according to the ratio between our trading amounts (if the second trade on the same asset will be 700$ through 750$ – so for you it means that if the first trade was 2.5% of your bankroll following our 250$ trade – if our trading amount will be 750$ – your trading amount will be 7.5% of your bankroll).
In the next episode you will also receive precise instructions/recommendations as to when to begin withdrawing the earned profits and how to constantly grow your bankroll
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