| − | <br>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.<br><br>As such, there may be some confusion as to what financial market to participate in. Forex has caught a lot of attention because the promises seen on the sales pages of forex brokers and vendors seem to point to it as a way of easy money. However, because this market has some peculiarities which traders must be thoroughly at home with, many unprepared traders have seen themselves at the wrong end of the market.<br><br>It’s important not to get too caught up in the promotions offered; you should keep trading at a level where you can manage potential losses. Never start betting on high-risk trades if it could wipe out your account.<br><br>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. This is not the case with other markets. 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.<br><br>Advantages of Binary Options Trading! The world is filled with a plethora of financial markets, and advances in technology have made it possible for each of these markets to be accessible to the average person who has an internet connection and a computer or mobile device.<br><br>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 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. This restricts the access of everyday people to such markets. However, binary options have much lower entry requirements, as some brokers allow people to start trading with as low as $1.<br><br>Risk Disclosure: before starting to trade on currency exchange markets, please make sure that you understand the risks connected with trading using leverage and that you have sufficient level of training.<br><br>Technical indicators suitable for [http://ironlaw.org/__media__/js/netsoltrademark.php?d=www.Cspcc.org%2Fwiki%2Findex.php%3Ftitle%3D4_Best_Binary_Options_Signals_Providers%3B_Reviews_%25E2%2580%2593 binary options] trading should incorporate the above factors. One can take a binary option position based on spotting continued momentum or trend reversal patterns. Let’s look at some of the popular binary option technical indicators.<br><br>If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learned one thing: these markets carry a lot of risks and it is very easy to be blown off the market. Too many parameters affect trade outcomes that traders have to battle with. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. This is why trading the currency and commodities markets is a risky venture. 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. This reduces the risk in binary options trading to the barest minimum. Unlike what obtains in other markets, many brokers return a fraction of the amount used in purchasing contracts when the trade is a losing one.<br><br>The CCI calculates the current price level of a security relative to the average price during any given timeframe. The average price level is usually the moving average. Time periods can be selected as desired, allowing the trader flexibility in choosing when a binary option expires. The CCI is useful in identifying new trends and extreme conditions of overbought/oversold securities.<br><br>The payouts per trade are usually higher in binaries than with other forms of trading. Some Binary Options brokers offer payouts of up to 95% on a trade. This is achievable without jeopardizing 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).<br><br>The differentiator is the settlement price that remains fixed at $0 or $100, depending on the option condition being fulfilled. It keeps the net profit (or loss) fixed. The option premium also remains between $0 and $100. (Related: Guide to trading binary options.)<br>
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