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How a beginner can start making money on binary options and how experienced traders do it. Basics of making money on binary options for beginners

Until recently, binary options were not available to a wide range of people. Serious changes occurred in 2008, when the world's largest stock exchanges - Chicago and American - opened their platforms for this type of trading. Since then and to this day, this has been a common type of transaction, available to everyone online. IN recent years earning system binary options is developing rapidly in Russia.

Simple but profitable

The demand for options is associated not only with the large income that users expect. The key advantage of the system is ease of learning. You cannot be born a trader; you become one after mastering the technologies of betting. However, to achieve success on the stock exchange, you will have to study for a long time, but real earnings on binary options is available almost immediately, you just need to master the basic concepts.

Trading binary options is a simple task. The trader is offered two options:

promotion;
demotion.

All that is required of the participant is to decide in favor of one of them. No charts, graphs, complex strategies, calculations, or an abundance of tabs. When concluding a transaction, all a person has to do is press one of two keys.

There's no risk

Binary options are a method of earning money in which the user has to make a decision: is the asset profitable at the current time? If you succeed in guessing, you can count on receiving money. If you are wrong, the money will be lost.

You know right away how you can earn a lot. How much you can lose is agreed upon in advance. A trader who buys and sells options knows with the highest accuracy how great his risk is. It is this feature that distinguishes strategies for making money on binary options from classic stock exchanges. By the way, these days this is the only method of legal earnings on the stock exchange in which the loss does not turn out to be greater than the value of the asset. But if the transaction is successful, earnings on binary options range from 65% or more of the amount. It is also not uncommon for a participant to win 91%.

Fast and profitable

A significant advantage of binary options is the short duration of time from the moment of investing money to receiving the result. It only takes a minute to sell or buy an option, and a forecast can be made for a minimum period. This manipulation allows an interested person to quickly earn a good amount by making many short-term transactions for small bets.

However, a novice trader must be careful. Excessively short-term rates are associated with certain specific risks.

Available to everyone

Why are so many Internet users concerned about the question: “Binary options - scam or earnings?” It’s simple: because everyone understands that they have the power to try this path. To start your own business, you do not need serious investments of money, which generates public interest. However, distrust is in the blood of our compatriots; we are too accustomed to the fact that they are trying to deceive us from all sides. It’s hard to believe right away that such a simple and accessible method to everyone can be honest. And the reviews, it must be admitted, are very contradictory.

What do we see in practice? From the experience of many, we can say with confidence: it is possible to make money on options. To try your hand, you first need to choose a suitable broker. The services of some of them are provided for ridiculous money - about 10 dollars. The most famous exchanges do not differ too much in their threshold value - you can start trading with $20. Such earnings on binary options without investments can bring benefits on the very first day, and it is available to everyone.

Don't forget to study!

Learning, as they say, is light. If you try to learn binary options from scratch on your own, neglecting the training programs available to the general public, it is likely that you will fail, after which you will become convinced that this whole idea is nothing more than an attempt to extract money from honest people. This is where reviews come from, claiming that the entire system is just a deception.

Remember that trading provides ample opportunities to make money, but you need to know how to use them, and this is taught by masters of their craft who have already achieved success. How to master binary options? The way to earn money becomes clear if you look at the free courses, fortunately there are many of them. Many brokers offer a demo account, which costs nothing to open.

What is better: casino, Forex or options?

When playing in a casino, winning largely depends on skill and how well the player has mastered the system. With high skills, the profitability of the casino is higher than that of options. But there is reverse side medals: you need to learn this first, and here mastering will be much more difficult and will require more time and money.

As for Forex, the situation is similar: this system is very difficult to master. At the same time, remember: when playing on the stock exchange, you are constantly competing not only with other similar players, but also with brokers, although this is not so obvious, because it is on your failure that they make good money.

As for binary options, time becomes the factor that both attracts and leads to failure. It is indeed very difficult to make a correct forecast, especially when we're talking about about serious amounts, you feel a burden of responsibility.

Forex and options: an example

There is no secret to making money on binary options as such. You just need to gain experience and master the exchange, gradually developing skills. Probably, if you already know Forex to a high level, you don't need options. Why? Below is a clear example.

Let's say there is bidding for shares of a certain company. You predict that the price will rise, and you also have an approximate idea of how quickly this will happen. If you managed to guess the direction of the price change, when working with Forex you have already made a profit. With options, the case will work out when you also managed to guess the speed of the price change process.

How to make money?

If you study the stories on the Internet, it becomes clear that huge number people are convinced that they earn tens and hundreds of thousands on binary options every day. How does this happen? Is this real? How can you make that kind of money by choosing binary options? Strategies for making money with a small deposit are interesting and attractive, but they do not answer the question.

It’s very simple: the more people a successful broker attracts to its platform, the greater its benefits will be. As long as you are one of the recruited newcomers, you should not expect significant profits. But when you turn into a market shark and you yourself can receive a percentage from all the winning and losing people who came to options through your efforts, you begin to receive big money.

How to spot deception?

Earning money on binary options without investments attracts users World Wide Web, like jam - flies. Of course, there were many who wanted to warm their hands on this. In some cases, the deception is immediately obvious, in others everything is disguised very carefully.

If you come to the landing page, it is almost immediately clear that there is no smell of honesty. The client always wins, and the further, the more more money he was promised. Surprisingly, but true: to this day there are people who are sure that this is exactly how everything should be. As soon as they come to some business, a golden shower will fall on them. No matter how much you would like this, this does not happen in life.

The next level, closer to reality, is demo versions of accounts. Here the probability of winning is relatively close to real. But there is also a peculiarity: it rarely happens that the quotes shown in demo mode coincide with the real situation on the market. However, there is a certain logic in this, because main goal demo versions - teach a beginner how to use the functions of the resource.

If you are trying to avoid dishonest dealers, choose reliable exchanges, and also realize that demo versions exist only to show opportunities, but not to actually earn money. You need to immediately understand that when working with real money, the situation will become stressful, and the complexity will increase significantly.

Important information

If you are interested in making money on binary options, reviews of successful dealers do not always bring real benefit. One of the most developed businesses that allows you to make money on options short terms is the sale of winning strategies. Some smart businessmen offer video courses, books, and programs that will help a beginner “earn his first million on the first day.” Of course, in such courses about this type of activity such as making money on binary options, the reviews are positive. But should we believe them? Try to think critically.

An option is an instrument that has an exact price and a predetermined amount of profit. If pre-agreed conditions are met, the trader receives money. But don’t expect golden showers to rain down on you. Options, although not Forex, are also a rather complex system that requires understanding. And even if you study it inside and out, no one can guarantee your success.

How to start?

To get your first earnings from binary options, you need to start working on the stock exchange. This is not difficult to do, largely due to the minimum entry threshold. The trading mechanisms are also simple.

Step by step instructions:

Choose a broker by analyzing special ratings.
Create an account.
Analyze the offer. The broker offers to purchase an asset for a predetermined amount, and the player makes a forecast whether this figure will increase or decrease over a strictly defined time period. If you succeed in guessing, making money on binary options is in your hands. Otherwise, the participant loses money.

The participant chooses the period for which the forecast is made based on his own preferences and considerations. You can bet for just a minute, or you can extend the bet even for a week.

How to improve efficiency?

As with any other earnings on the stock exchange, when trading options, the greatest profit can be achieved if you think through the strategy. You can compose it yourself by analyzing the logic of the system, or you can use the options that have been developed by professionals. Many well-known strategies have been tested by players around the world who have already made their money on binary options.

A good option was called “Sprinter”. This strategy assumes that the participant starts with 100-200 dollars. Options should be purchased five minutes before trading closes. If statistics on an asset show that there has been a stable change in price for a long period of time, most likely the trend will continue for the last few minutes.

To achieve success using this logic of asset selection, you will have to analyze the different options offered for purchase. It is preferable to go with those that are known for their stability. And, of course, you shouldn’t buy earlier than five minutes before the end of sales.

Debunking Myths

It is believed that making money on binary options is attractive, but involves a lot of risk, since if you fail, there is a high probability of ending up “in debt like silk.” With logical thinking, the reasoning looks quite ridiculous, but people still believe in it. So, the rule of binary options trading is that it is simply impossible to lose more than your existing deposit.

The only way to end up in debt after losing on options is to borrow money in advance and then behave incorrectly on the stock exchange. Therefore, experienced people advise beginners to start with an amount that they can afford, and be prepared for the possibility of losing money rather than making money. It is quite possible that such a negative development of events will not happen, but from the very beginning you will not have to be nervous again.

Another myth claims that it is impossible to make money on binary options. It is important to understand here that this is not a blind chance or roulette, but a systematized process in which all changes are subject to the internal laws of the market. Therefore, when working, you really have to earn money - with your head, the ability to foresight, the ability to invent a working strategy.

Is it worth starting?

If you're interested in binary options and have some spare cash in your wallet to risk, it's definitely worth a try. But if you can only start with borrowed money, then it’s better to refrain from taking risks and not getting into debt.

Don't rush. Don't run ahead of the locomotive and don't try to jump over your head. Invest in options only when you are sure that you understand the logic of how this system works. Use free sources of information on how to make money on options, study strategies, put them into practice and draw correct conclusions, and only then will success be yours.

Others compare options to the ability to swim. At first everything is simple, because you just go knee-deep into warm water, and the sun caresses you, everything seems simple and easy. But what awaits the swimmer? Swim over the dark and cold depths of the river, or even the sea. So it is with options - at first everything seems as simple as shelling pears, but behind this lies a powerful money-making machine that requires the ability to handle it. Just as you cannot cross a stormy river without learning to swim, you cannot invest significant funds in this system without the skills to work with options.

Summing up

Earnings on binary options will go to those who understand that this is not gambling, but work. Here everything is determined not by random luck, but by the ability to predict the situation and the ability to use the tools developed for this. Analyze purchase statistics, build charts - this will help you clearly understand what is happening in the market, as well as see the current dependencies and cyclicalities.

Try to avoid risks. Proper management of your money does not allow high probability loss. Under no circumstances place bets risking all or even half of your money. Time your trades so that you are prepared for several losses in a row.

The longer you analyze the market, study its mechanisms and features, the higher your chances of success. You can’t give in to excitement and “play with fate”; there’s a casino for that. Options require a cool head. Having mastered them professionally, you will be able to earn money where others remain in the red. Your ambitions, motivation and determination are the main help at the first stage.

Hello! In this article we will talk about what binary options are and how to make money on them.

How much can you earn: You can go negative.
Minimum Requirements: none.
Is it worth doing?: No .

What are binary options

Before we figure out how to make money on binary options, let's define the term “option”.

Option - an agreement under which the option buyer receives the right to buy/sell a certain asset at a predetermined price and within a predetermined period. But the owner of the option may not exercise this right.

But the people who decided to introduce a new project “binary options” into the network decided to simply use the name of the exchange instrument and add a different meaning to it. The result was completely different. Binary options - predicting the behavior of the stock price in two directions: upward or downward.

That is, we can say that binary options are not options at all, but . Brokers are typical bookmakers, and traders are simply gambling “bettors”. If you call a spade a spade, the whole truth about binary options sounds exactly like this.

Now let's figure out how binary options work and whether it is possible to make money on them without risk.

How do binary options work?

The earning scheme sounds extremely simple: you see an asset that can either increase its value or decrease it. You “bet” on an event, and if it is successful, you receive from 60 to 90% of the profit. If not, you lose the entire amount. Let's look at an example:

Currency pair: dollar - ruble. The dollar is trading at 58.6967 rubles. You bet $100 that the price will go up. After 30 seconds the price will be 58.6971. You will win $180. If the price were 58.6966, you would lose $100.

But in reality, this approach is just a coin game. You have two events that can happen with equal probability. At the same time, most companies' schedules move chaotically. Now it goes up, now down, strange figures are formed that have nothing to do with real stock trading.

At the same time, you should understand that when playing at a long distance, you will not be able to make money on options. This is the principle of the casino. If you bet on red/black, even if you guess with 50% probability, the house will still have some of the money because there is a zero.

Also here. For a successful bet you will receive not 100% profit, but 60 - 90%. This means that the cost of an error is much more expensive than a successful solution. And this is exactly how most deposits in binary options are lost. It is almost impossible to achieve a guaranteed profit. You have to be on the same page with the schedule and have psychic abilities to win at a distance. In any other case this is impossible.

Who is suitable for making money on binary options?

Making money on options is suitable exclusively for gambling people who are used to working with. It will be almost the same, only instead of teams there will be exchange assets. The same odds are 1.6 - 1.9, the same chances, with the only difference being that in a bookmaker’s office, with certain odds, you can predict the results, but here you can’t.

Binary options are gambling, gambling and nothing more. That’s why, if you don’t want to spend money in a casino, but still want to spend it somewhere, then binary is a great option. After it, you will at least have a chance to say “I tried to trade on the stock exchange.”

Binary options strategies are essentially reminiscent of attempts to systematize bets from bookmakers like “bet certain amounts on odds above 2, raise them,” etc. It doesn’t matter how you bet or what. Over a long distance, you will consistently find yourself in the red under the current trading system.

How much can you earn on binary options?

It is really possible to make money on binary options. Only if they are not in the form in which they exist now. On at the moment, as mentioned above, this is just gambling - a game of chance. You play roulette, where there are only two outcomes - an increase or decrease in the indicator. And even if we assume that the company plays fair and does not draw graphs, the probability of winning will be 50%, and the winning rate will be 90%. This means that the company remains in the black based on the difference in your assets. And if you play for a long time, you will definitely lose.

You can make money on binary options if:

the company will play fairly;
play for a period of 1 day;
stick to the strategy and use technical analysis.

But since most users are offered short-term games from 30 seconds to 10 minutes, it is simply unrealistic to predict the movement of assets. Trades are made every second, and no trends can be discerned at such a short distance.

Technical analysis teaches you to discern market sentiment by studying charts. What mood can the market have when it exists for 30 seconds? Only random trades that move the price by a few hundredths of a point. Therefore, you should not even try to make money on binary options.

That is, it is possible to make money on binary options when trading for long periods. As far as I know, very few brokers provide this opportunity, but to find real reviews it is almost impossible to know about the work of brokers in binary.

When trading on long term earning strategies will be more powerful. It will become easier to predict the behavior of an asset; you will be able to look for minimum and maximum points, moments where the chart will move in a different direction. But over a short distance, all this is so insignificant that any random interference will ruin your plan.

How to make money for a beginner

You won't be able to make money with binary options. This is not real income, but a game of chance.

It will be easier for a beginner. Many companies publish educational materials, trading strategies and try in every possible way to stimulate the development of their players. But even this way it’s almost impossible to make money.

You can make money on binary options only if you are a very lucky person. If you play in bookmakers and can get some kind of profit, then you are closer to this way of making money than currency traders on Wall Street. If you want to try making money with binary options, why not. There are people who win even in casinos.

But once you've satisfied your curiosity, don't make another deposit. And do not listen to the persuasion of managers who will certainly call you and ask you to make a deposit in exchange for a personal strategy. These people work for a percentage.

Is it possible to make money on binary options without investments? What earning strategies are suitable for beginners? How to trade correctly and where is the best place to start?

Hello, dear readers of the business magazine HeatherBober.ru! With you is Alexander Berezhnov, one of the founders of the site HeatherBober.ru.

In this article we will talk about investments, or rather about a very profitable and interesting financial instrument - binary options.

Now people have a great opportunity to earn money in the financial markets without leaving home.

Students and pensioners, businessmen and employees play on the stock exchanges and make a decent income from this activity.

Most people start from scratch and only after some time achieve success here.

Do you also want to be one of them? Then sit back and read the article to the end!

1. Binary options - is it possible to make money on them?

Development of financial markets peace is coming With huge strides, technology, naturally, also does not stand still.

New and new trading instruments are appearing. Along with the now classic options, binary derivatives* appeared, which also became no less popular than trading on the Forex market.

You can find out more about what Forex is and whether you can make money on it.

Derivative is a type of financial contract in which the parties have the right or undertake obligations to perform certain actions with the underlying asset.

The underlying asset means securities, goods , currency .

First of all, using binary options is an opportunity to make a profit by trading on various markets around the world through a broker*.

Broker– specialized company ( legal entity), which carries out transactions in financial markets on behalf of the client, since individuals by law they cannot play on the exchanges on their own.

The meaning of binary options is not to purchase an asset (stock, currency, commodity), but to purchase a special contract that has certain expiration dates. All operations are carried out via the Internet.

There are several types of binary options (derivatives):

60 seconds. It is a type of standard option with an expiration date* of one minute. Quite a popular type of option among scalpers* and short-term traders*. This type of option is not recommended for beginners due to its high level of unpredictability.
Expiration– expiration of the contract (option).
Scalper– a stock speculator (trader) who plays on minor fluctuations in the price of an asset, trying to make money on each minimal price movement.
Short term(day trader) – a speculator who carries out trading operations on the stock exchange, usually with an open position from 1 to 3 days.
Digital option. A classic type of derivative that involves making a forecast where the price will be after a certain time interval: above or below the current level.
One touch. The option is characterized quite high level profitability (within 400%).
Range. The principle of operation is simple, whether the price remains within the set price range or not. If it remains, the trader makes a profit.

Complex binary options:

Constructor(OptionsBuilder). Allows you to record the profit/loss ratio;
Black Dragon(Pro Options). Represents professional look options, which gives the trader the opportunity to exit the market at any time required, regardless of the expiration date. An excellent tool when using a position hedging strategy.

2. A real example of the profitability of the binary options market

The example uses the classic “Up-Down” option. The graph shows that the exchange rate of the US dollar to the European currency is constantly changing.

The trader, having previously familiarized himself with the trading situation, makes a forecast based on which in ten minutes the US dollar exchange rate will fall and be lower than its current level.

An option worth $1,000 is purchased with the expectation that the price of the asset will decline.

If the forecast turns out to be correct and the dollar exchange rate has decreased, the broker pays the trader, on average, 70% of the profit (or more) of the bet amount invested in the transaction.

Ultimately, by investing just $1,000 you can earn 700 dollars total in 10 minutes trade.

This example clearly shows what a trader does to successfully play financial market. Although, without risk, you definitely won’t be able to earn such amounts every time. This is a warning for those who still have rose-colored glasses.

How to learn how to truly profitably trade binary options will be discussed in the article.

3. Trading binary options - where to start and what to pay attention to

By following these rules, your probability of making a profit will increase many times over, and the risk of making a loss will decrease, so go ahead, friends, to the heights of stock trading!

Try it, because as you know:

He who doesn’t take risks doesn’t make money on the stock exchange :)

Step 1. Select a broker for trading

Before starting trading, a trader should choose the broker that is most suitable for him.

Brokers in the binary options market are quite diverse; there are both reliable companies and not so reliable ones.

The most important thing is to follow simple rules and make the right choice.

How to choose a binary options broker:

the broker must work for at least one year;
have permits and certificates;
have good customer service and a clear interface of the trading terminal (programs for making transactions).

When choosing a brokerage company, be sure to pay attention to customer support, as well as the possibility of opening a minimum deposit.

The broker meets all these criteria.

Olymp Trade– a reliable broker who has a license from the Russian regulator TsROFR, and is also a member of the international Financial Commission. This is confirmation high quality services, and guarantees each trader deposit insurance, comprehensive support and prompt resolution of all emerging issues.
The company won the “Fastest Growing Broker of 2016” nomination in the binary options category according to ShowFX World.
International experts appreciated the qualitative leap in the development of the Olymp Trade trading service in 2016. For example, payments to traders have increased 9 times compared to 2015, the number of assets has doubled and new functions have appeared on the platform.

It’s convenient that a novice trader can order a free call from an Olymp Trade manager. A personal manager will tell the trader about trading strategies and answer questions.

In some cases, you can find brokers who give you the opportunity to try yourself in the binary options market without investing.

In order not to invest money and just try yourself as a trader, just open a demo account and practice trading on it.

Watch this short video on how to make money on binary options with Olymp Trade:

Step 2. Open an account

We open a trading account with one of the binary options broker companies.

To do this you will need to enter:

First name, last name;
e-mail;
Password;
Phone number.

You will also need to indicate your country and accept the terms and conditions of working with the broker.

After completing the registration procedure, you can open a trading account without any problems.

Step 3. We undergo training on a demo account

Before you start trading with your own money, you should definitely test your knowledge and chosen trading strategy on a demo account.

Such an approach will provide an opportunity not only to test yourself and protect yourself from unpredictable losses, but also to adjust the algorithm used (trading strategy).

It is worth noting that even many professional traders often use a demo account to test new trading systems they have developed.

One of distinctive features terminals for trading binary derivatives - is simplicity and convenience, which is perfectly combined with speed and technical knowledge.

On the left side are available assets, which, by the way, can be adjusted using a filter, leaving only the most necessary ones.

In the right corner of the terminal there is a price chart, which is simply irreplaceable for graphic strategies. All information about completed transactions is located immediately below the graphical display of the price.

It's over preparatory stage to start your binary options trading. By the way, approximately the same sequence of actions awaits you if you are planning to trade on Forex or the stock market.

And if you consider stock trading as one of the ways to make money (and not the easiest), we recommend that you read our article “”.

4. Trading strategies - what to choose for a beginner to trade binary options

All trading algorithms existing today are divided into several large categories, which differ from each other in the basic principles of making trading decisions by a trader:

simple strategies;
indicator algorithms;
graphic trading systems.

For a more precise understanding, let's look at them in more detail.

Simple Strategies

Simple trading algorithms are a collection of basic tools that take into account key market analysis.

They are based on the fundamental principles of pricing, and therefore relieve the trader of the need to establish additional systems analysis. Among the most popular are:

rapid daytime breakthrough;
strangle;
strategy 60 seconds;
trend reversal at the top or bottom point of the chart.

All of these strategies were primarily created for novice traders. They are simple and easy to practice, and do not require a significant amount of knowledge.

An excellent option for a profitable start in binary options.

Indicator Strategies

The basis for concluding a transaction using these strategies is the signal given by the technical indicator.

The most common indicator strategies are:

ChinkouSpan;
precise entry;
RSI index;
Ichimoku cloud;
MACD divergence.

Almost every novice trader gives his preference to indicator systems, due to the erroneous opinion that such trading is quite simple.

In reality, everything is done differently.

In order to trade profitably using indicators and oscillators, you must have significant experience concluding real transactions, and also have a good understanding of the sequence of operation of a particular instrument (technical indicator).

Graphic trading systems

Chart trading strategies in the derivatives market are based on careful analysis of the price chart.

Here, the trader’s task is to recognize in time the emerging graphic pattern (the figure that the price draws on the chart), and to use the latter in time for the benefit of his trading account.

Quite a few graphic patterns are now known, but the most tested are: Head and Shoulders, Pennant, Wedge, Doji and Three Indians.

All these schemes will help you make a more stable profit here.

5. Trading on a real account

Before you start trading with real money, you should know that no trading strategy will make a trader rich if he does not want it.

In other words, it does not matter how many indicators a professional speculator's algorithm includes.

Their only goal is to catch a trend, and this is where every beginner should start.

But before we move on to analyzing the strategy, let’s clarify what a trend* is.

Trend- unidirectional price movement, in which each subsequent maximum and minimum of the quote exceeds the previous one.

Downtrend in reverse order

The main point of trading with a trend is to buy cheaper and sell more expensive, or vice versa, when trading on a decline in price.

Algorithm of actions when trading with a trend:

1. First, you should determine the general direction of the trend, whether it is ascending or descending;

2. We expect a price correction to the lower resistance level of the price channel (in the case of an uptrend);

3. After the price has touched the lower level and pushed off from it, you can enter the market with the expectation that the quote will rise even higher. Therefore, a classic Call option contract is purchased.

If the work goes down, the “Put” contract is bought.

Example transaction:

We must not forget that the trend following strategy in financial markets works especially well over long time intervals - from several days to several months.

A logical continuation of trading binary options on the real world is capital management in financial markets. Below we talk about the basic rules for managing risks and your capital for novice traders, so that you avoid critical losses on your trading account.

6. Capital management (risk management)

One of the conditions for stable and profitable trading in the market is money management. No matter how profitable a trading strategy is, it cannot guarantee 100% profitability on every new trade.

Know that you cannot trade without risk at all, there is always risk!

The market is constantly changing, and therefore careless, aggressive and sometimes emotional trading can virtually nullify previous successes with just one unprofitable trade. To prevent this from happening, the following rules must be followed:

invest no more than 30% of the entire trading account size in one transaction;
risk no more than 5% of the invested funds (per one transaction order);
never try to win back, it is better to rest a little after a losing trade, and also be a little distracted;
at the initial stage, conclude no more than 3 transactions per trading session.

Following similar rules, will help you effectively protect your account from possible severe drawdowns.

7. Conclusion

Dear friends, summing up the review of binary options trading, we can conclude that earnings here are absolutely real, and in some cases it is even more than on Forex or when trading shares on the stock exchange.

The main thing is to adhere to a number of simple rules:

strict adherence to the trading strategy;
strict compliance with money management and trading risk requirements;
avoiding emotional trading and attempts to “win back” when losses occur.

And, of course, we should never forget to improve, including in the financial market, which, as we know, is fickle and always presents unexpected surprises.

It is difficult to make money on derivatives without investments, but you will still need money to start making a profit here.

The only exception concerns experienced traders who can take someone else's capital into trust* and receive a percentage of the profits he makes by trading with his investor's borrowed funds.

Trust asset management– this is a form of commercial interaction between the manager (in our case, the trader) and the investor (the person who gives money to management).

At the same time, the trader receives a percentage of the successful management of the investor’s account, but the investor bears the risk of losses, since he expects to receive a higher percentage on the invested capital than conservative investment instruments, for example, a bank deposit, can provide.

Binary options trading is one of the many ways to make money online.

If you are interested in the topic of making money online, be sure to study our article “”. The information in this article will expand your knowledge regarding ways to make money using the World Wide Web.

And for beginners who are starting to learn the basics of stock trading from scratch, we strongly recommend not to rush and not trade options with their last money.

Friends, if you are still interested in the question, is it possible to trade without risk at all?

Answer: 100% no!

This video clearly demonstrates a successful game on the stock exchange with a broker.

We wish you profitable transactions in the financial markets!

If you liked the material, like the end of the article and leave your comments on the topic.

If we talk about profitable work with options and other financial instruments, you need to understand that there is no strategy in trading “ golden grail».

Most traders will have a hard time accepting this, but it is true. This is due to the fact that there is huge amount traders, each of whom is an individual. No trading plan can be equally good for everyone. The basis for finding the ideal strategy is the investor’s internal understanding of the very principle of trading and his place in this process.

There is nothing more constant in the market than its variability, therefore, when considering certain strategies, we can only talk about the probabilities of income.

Before you make money on options, it is worth highlighting 3 main types of trading strategies:

Aggressive Strategies, which include the purchase of an outright “CALL” or “PUT”.
Conservative Strategies using the principle of low profit/low risk. This approach is well characterized by covered selling of a call option. The use of this strategy does not require the investor to form his own position on the market. In the event that a trader makes a slight mistake, he may still be left with a small profit. If the miscalculation turns out to be significant, then the loss will be critical for the deposit.
The third type has nothing to do with guessing the direction of movement. It dominates here neutral approach, which makes it possible to make money on options on a temporary premium. Best this method works on long corridor price fluctuations when a trend cannot form. A striking example would be the sale of straddles and the proportional sales of put and call options.

Video: how and how much you earn on options

Strategies for making money on options

There are concepts that combine several approaches at once, combining, for example, conservative and neutral strategies. A calendar bull or bear spread is traditionally a position with no specific direction. This strategy is characterized by the fact that the trader will wait for the market to move only after the expiration of the next one.

Almost all strategies related to the expiration of instruments and changes in the prices of subsequent contracts have the same operating principle. Income is generated through the sale of such contracts. The generated profit will compensate for the costs of purchasing long-term options on the same instrument. Consequently, long-term options for the trader will already cost less, and the break-even point upon entry is much closer than with regular purchase.

The most interesting thing is that most strategies can be implemented in several ways at once.

Example. Opening a long position in a stock and hedging it by purchasing a put option is an alternative to simply buying a call option on the same stock. Both options guarantee limited risk and unlimited profit potential. But the structure of these two approaches is strikingly different. Buying shares + put option requires much more funds in the account, while net purchase call option is due to much lower collateral.

There are pros and cons to each approach. In the case of shares, the investor will receive dividends. If the growing movement begins to be protracted, he may leave the papers for the long term.

Most alternative positions show the same dynamics. Buying a straddle and the reverse hedging method (opening a short stock and buying a call option) have commensurate dynamics of earnings on options (not to be confused with). If you modify the example described above, you can add the purchase of a call option to the long stock. In this case, a “straddle” + long position on the underlying asset will be formed. She will combine the two alternative options, while maintaining the receipt of dividends and the availability of the underlying asset in the form of shares. The risk in such a situation will be only slightly higher than usual (equal to the cost of the call option).

The most important thing in making money on options is that a trader must understand two factors: the essence of his chosen strategy (the circumstances under which he will make a profit) and his psychology (in which situation the market pressure will be the least for him).

The ability to choose exactly how to build your portfolio solves a key issue in the approach to . There is inherent risk in any market approach. If there was a “Grail”, but it did not suit the goals and capabilities of the trader, then this “Grail” would be useless. Despite this, it is impossible to build trading plan, based only on investment goals. Such aspiration is very often broken by the harsh reality of the stock market. Working strategy should represent synergy personal qualities trader and the current market situation. Even the most conservative strategies for making money on options can lead to losses.

Example. Let's look at the most conservative trading strategy with capital sharing 9 to 1. If an investor purchases a package of government bonds for 90% of the portfolio, and invests the remaining 10% in options trading, then if he loses the “options” part of the portfolio (even completely), he will receive a stable annual income that will cover his possible losses. On the other hand, some bonds may be restructured or even defaulted on. There is a chance that the income from the options will then cover the cost of the conservative part.

But an experienced investor will notice

That there is always the possibility that a default on the bonds will occur simultaneously with losses from the speculative part. Yes, this chance is not great, but it exists. Just as there is a risk of bankruptcy of the bank where the deposits are located or physical destruction of the investor’s rental space. The difference is that one person will calmly endure losses on the stock exchange (in case of default), another will be satisfied with compensation after the bankruptcy of the bank (where he kept the deposit), and the third will sleep peacefully without worrying about real estate (which is slowly but surely depreciating ).

Separation by mathematical expectation

If you approach the issue of making money on options mathematically, you can make a small top strategy with a profit-to-loss ratio.

From the point of view of mathematical expectation, the first place is selling options, both straddle positions and one-sided ones.

The chance of making a profit here is very high, but the difficulty this approach is that the trader must feel the market very strongly so that, in conditions of sold volatility, he does not end up with an unlimited loss. This factor can be smoothed out by at least partial covering of opened positions. This is a very difficult strategy from a psychological point of view.

In second place is the concept of short loss and unlimited profit.

Examples here include both classic “” positions and versatile purchases of “put” and “call” options. Depending on the investor’s desire, the strategy can be complicated by purchasing the underlying asset in the form of shares or futures. The main idea is to limit losses and allow profits to grow. The limitation in this situation will not be the classic stop, but the option price, which is included in the risks.

In last place is the spread trading strategy.

It is built around the purchase of options " in money" And " out of money" IN more In-the-money contracts are purchased in order to obtain a higher interest rate while reducing the risk of losing your investment. The main disadvantage is the depressing effect on the position of the temporary premium, which will burn out each time before the option expires. The chances of making both large losses and large profits are the same, so the trader will have to beat both the market and himself each time, earning either before the premium disappears, or including this factor in the costs.

Making money on options - main conclusions

Even though the mathematical expectation of the strategy will be positive, the concept may not be suitable for the trader, since the most unlikely events tend to happen from time to time. TheoreticalProfit is also not an indicator of the suitability of a trading plan. The determining parameter is risk. An investor can start trading only if he is ready to bear losses when worst development events.

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Since you are reading this article now, it means you have heard out of the blue from friends, acquaintances, on billboards or from an intrusive banner on the Internet about the possibility of additional earnings on binary options. Moreover, for some, this additional income is several times higher than your monthly one. Naturally, the question arises - what is making money on binary options?

Let's take it in order. First, we want to bring you down to earth. It is possible and quite realistic to make big money on binary options, but you need to do a lot of work to do this. Don't count on easy money that will fall on your head on the very first day of trading. People have been studying trading for years, you are no exception.

Therefore, have patience and perseverance to go through all the stages of becoming a trader. But end result you won't be disappointed!
What is it like to make money on binary options? It's really simple at first glance. You need to guess UP or DOWN whether the price will go for a certain period of time and press one of the two buttons. You guessed it right - a profit of up to 90% of your bet is in your pocket. That is, if you bet $1000, you earned $900 in less than a minute!

This is what the terminal of any binary options broker looks like. Of course, each of them tries to make their platform special, but as a rule they differ only in design and the list of trading assets and indicators presented in the program.

In short, all earnings from binary options can be combined into 4 steps:

Open the Live chart or the window of your trading terminal at the broker.
You make a forecast regarding the future dynamics of a currency pair (stocks, indices or commodities) yourself, using indicators, graphical analysis, free signals on the Internet, etc.
You place a bet, for example, 100 rubles, then set the expiration date (the expiration date of your transaction) - this is the time after which the price, in your opinion, will be higher/lower than the starting price.
If your prediction turned out to be correct, then at the end of 15 minutes you will receive your well-deserved earnings.

In order for your earnings on binary options to become stable, you need to achieve results of 70% of successful transactions over a certain period (week, month). You will not be able to trade binary options every day for a profit, as the market is unpredictable and chaotic. The main thing is that after a specific period your net profit exceeds the drawdown.

It is almost impossible to achieve this in the initial stages - knowledge and experience are not enough. For beginning traders, the first goal is to master trading and improve the trading strategy on a demo account, trying to at least break even.

The truth about binary options - earnings or scam?

In fact, this is a completely logical question that all novice traders ask themselves. There are a lot of conflicting opinions on the Internet right now. Some say that this is a pure scam and not true, others prove their multi-thousand dollar account statements with screenshots.

People were divided into two camps - opponents and supporters. Opponents are trumpeting on all forums that the entire binary options industry is a scam, while supporters defend this type of earnings. The most important argument for the former is that making money on binary options is very similar to playing in a casino.

Here it is worth agreeing that when placing bets, inexperienced players really experience excitement. And any losing trade is tempting to re-enter the market to win back. But binary options are not a casino! If anyone claims otherwise, then most likely it is a loser trader who bet only on luck without using technical and graphical analysis.

Making money on binary options is a whole science, which will have to be learned throughout a trader’s career.

Therefore, do not believe such pitiful cries from losers on forums that binary options are a scam and a scam. They have not been able to achieve success in trading, and they blame everyone but themselves for this, although in fact they are to blame because they did not devote enough time to study and practice.

What's the difference?

In a casino, everything depends on chance, fortune, coincidence. Everything in the market is subject to patterns, which you can easily learn to predict when you study technical analysis. Any event on the world stage, any macroeconomic report can have an impact on a currency pair or the price of oil. Therefore, having also studied fundamental analysis, you can practically see the market through and through.

Another proof of the legality of the binary options industry are brokers. Leading companies have been working in the industry for the second decade! Think for yourself, could they deceive people and steal money under their noses for 20 years? Right! Of course, there are fraudulent companies that lure customers to their platform with numerous beautiful tricks in the form of bonuses, and then run away with the customers’ money.

This is why you need to choose a broker more carefully, because half of your success depends on him.

Don’t believe those people who write that they earned $1000 in one day with a minimum deposit of $10. This is pure scam. As a rule, they then offer to buy from them the very strategy by which they earn such huge money. Now think for yourself - would you sell your strategy completely to a stranger for 100-200 dollars, which are indicated in the price tag of this trading “genius”? Of course not!

In the binary options industry, it is important to learn to distinguish between what is a scam and what is the truth. Don’t be fooled by bright banners about a 100% indicator, a win-win options trading strategy, or large no-deposit bonuses.

There is no such Holy Grail, even professional traders on Wall Street make mistakes, let alone us. You should not be fooled by large bonuses, such as “replenish your account with $100 and you will receive another $200 as a gift.” In order to withdraw such a bonus in the future, you need to make a trading turnover that is at least 20 times higher than your $100... And where do newbies get that kind of money...

How to learn to make money on binary options?

If the first part of the article disappointed you, and you were upset and despairing. I want to assure you that I will become successful trader it really is possible. Now we will look at how to do this point by point.

So, your career begins from this point. Carefully study all ratings, read reviews on forums, find out all the trading conditions that the broker offers. Be sure to check for licenses from regulators - if they are not there, then most likely you will not get your money back, and the broker will disappear after a year. Better yet, go through the points from the article “”

Now all companies have a demo account. Thanks to it, you will be able to test the trading platform, see all the analysis tools that are available in the program, and verify the presence or absence of slippage.

Carefully study the financial aspects:

the size of the minimum deposit and the rate (whether you can afford them);
methods of depositing and withdrawing funds (are any of them available to you).

After you have decided on a binary options broker, register and fund your trading account.

2. Training in binary options trading.

A successful trader learns throughout his career. Start small - training courses that are available to every self-respecting broker. There are also many webinars on the Internet, both paid and free. They are more designed for practice, and this is the most important thing in options trading.

In your free time, read literature on technical and fundamental analysis, study graphical patterns and practice finding them on a live chart, understand the basic patterns from candlestick analysis, and so on.

Trading is a huge science, and if you decide to make money on binary options as your main income, you will have to work hard. The market does not like lazy people!

3. Trading plan and strategy.

To make consistent money from binary options, you must have your own trading strategy. You can take it from a large list of ready-made ones on the Internet, or you can create your own, which will satisfy all the features of your character and trading style.

You must write down a trading plan for yourself, in which you clearly outline the maximum amount of acceptable loss per day, a reasonable profit goal, after which you can complete trading and go on a well-deserved rest. And also, trading time, currency pairs, trading sessions acceptable for your strategy. In general, everything that you should never leave under any circumstances.

If you open the terminal, assess the market situation, and understand that the current market situation does not correspond to your strategy, then it is better to postpone trading until tomorrow.

Remember - the market will always give you an opportunity to make money!

Always keep your emotions to yourself, they are your biggest enemy in trading. Emotions give rise to envy, greed, excitement, despair, which entails a desire to get even. Ultimately, you will lose your deposit. This has already been tested on millions of beginners. The main thing is to learn from their mistakes.

Discipline and perseverance are yours true friends. Be calm, treat both losses and wins equally. Understand that trading is exactly the same tedious job as your office job. You also sit at the computer for a long time, analyzing the market using indicators, graphic models and news reports.

And the sooner you understand this and get rid of the desire to surf the ocean on your own yacht with a laptop in your hands, the sooner you will achieve success.

Be patient, not everything will work out right away. And one more important point- always set yourself realistic and achievable goals. Don't try to make a million overnight, you will never be able to do that. And if you fail to achieve such goals, you will simply be disappointed in yourself, after which you will begin to enter into losing trades, which will ultimately lead to losing your deposit and disappointment in making money on binary options.

Well, the last important point in establishing your successful career as a binary options trader is money management.

The golden rule of money management is to never bet more than 3-5% of your deposit amount at a time. This will protect you from draining it too quickly. There are people who prefer to hit the jackpot and put all their money on the line. As a result, they drain them all in a split second and are left with nothing.

When you deposit cash to your trading account, mentally say goodbye to them. Withdraw only profits from them, now this is your trading turnover, which you must increase as your profits grow. But never take it off.

Let's sum it up

Making money on binary options is quite accessible to each of us; it is possible to learn trading from scratch. The most important thing is to follow all the points described in the article. And then success in the market will not keep you waiting!