Basics
Here is where you learn to crawl.. walk.. run.. and hopefully sprint!
A good foundation is essential for a strong and stable building, just like anything else, building a strong foundation is important. Fortunately in Binary Options, its fairly simple. Unlike other investment tools such as forex, futures, stocks and bonds where you will need a relatively stronger understanding of things. Binary Option is straight forward and easy to grasp.
Common Terms & Their Meanings
  • BO
  • In the money (ITM)
  • Out of the money (OTM)
  • ROI - Return on Investment
  • At the money
  • Binary Options
  • Winning trade
  • Losing Trade
  • Return of Investment
  • Break even
Recommended Brokers by FME
  • Max contract : : $200,000
  • Lowest contract : $24
  • Demo account upon request
  • Non-US Traders Only
  • Up to 100% bonus. Bonus terms and conditions apply
Binary Option
  • Low start up as low as $250
  • Less things to learn
  • Shorter learning curve
  • Easy to understand
  • Simple platform
  • Ease of executing trades
  • Very short term trades
  • Low order amount
  • No leverage
  • (Less Risk)
Spot Trading
[forex/futures/stocks/commodities]
  • Med-High initial investment [$5000 - $10,000 minimum]
  • More things to be aware
  • Longer learning curve
  • Complex systems/strategies
  • Sophisticated platform
  • Multi steps to execute trades
  • Short-med-long term trades
  • Significant order amount
  • Leverage of up to 500
  • (More Risky)
What is Binary Option?
Binary Option is a financial tool in which you just have to decide which direction the selected asset will move in a given time.
Within Binary Options, there are a few different types of contracts to buy. But we are only going to look at the UP DOWN option(or high low). Since this is the most common one which you will be learning in the member's area.
First you choose an asset that you want to trade.
Then decide on the expiration time which is the length of the trade that will remain open. 3rd choose which direction you think the asset will move in that given time.
4th choose the amount in which you want to trade.
5th purchase it and let it ROCK N ROLL !
Asset
Choose an asset that you wish to trade
What are assets? In Binary Options, it just simply refers to the market you are trading. It could be silver, gold, oil, google, or any currencies etc. They can be categorized to Stocks, Indices, Currencies and Commodities.
Time
Choose an expiry time for the trade end
Unlike normal trading in markets like forex, stocks or indices where you profit from the difference in value between the entry and exit of a trade, Binary Option is focused on a the duration of the trade. So no matter what the difference in value is, once the trade expires in the right direction, you win a pre-determined fixed return.
Direction
Up or down? Choose a direction
Is that simple. Up or down, that’s it!
You could either lose, win or it closes right at the same level where you’ve entered in which case you will get a refund.
So all you need is the right direction, if the trade closes in the right direction you've predicted even by 1 point [0.1pip] you still get the same returns as you would if you had captured 100pips! Remember it’s regardless of the difference in market value, it’s just the direction and the duration of the trade that matters.
Amount
You reap what you sow
Although the phrase is more to a religious or philosophical context, it does make sense in trading as well. If you put $100 on a trade and you win 180% that gives you a return of $180. But if you put $1000 on the same trade you would have won $1800. Take for example our system that generates an average of 80% profits in a week. If you invested $250 as your initial deposit, you would get $200 in profits the 1st week. Whereas if you have invested $500 as your initial deposit, you would have yielded $400 in profits in your 1st week. BUT again, please test it on demo and start low. [It rhymes!]
Please also follow a sound money management system of 1-5% per trade at most.
If you are low on funds, you may start with 10% per trade. But do not go more than that.
Rock & Roll
Sit back and relax!
And i really mean that! Do not touch your trade, do not touch your mouse! Heck, don’t touch your computer! Okay I’m exaggerating, but what I’m driving at is consistency, after you have opened a trade, DO NOT interfere or close it prematurely. Stick to the system, stick to the plan. You can’t be emotional about it. If you close a trade half way, you will never know how well a system works.
Unless your system involves closing it prematurely, otherwise don’t do it. Our system taught in the member’s area do not involve premature closing of trades, but we do touch on situations where you can close prematurely.