Trading Binary Options

Trading binary options is very popular among traders because it is very simple and can generate high returns in short time. Unlike classical trading where each point has a certain value which is proportional to the amount traded, in binary options you only have to predict the correct movement for a certain period of time. If you know the market will go up in the next 30 minutes, you buy a call option and you get 75% return on your investment. It doesn't matter if the market moved only by 10 units or by 70 units, the profit is the same. This is why binary options generate the highest profits of all types of trading.

A big advantage of binary options trading is the fact that you can make very strong strategies and money management techniques, due to its binary nature. You can make very precise calculations of your profits according to the number of trades and the winning ratio. You can stick to some specific values and make a steady profit.

Because of the way binary options work, you theoretically have a 50% chance to predict the correct outcome even if you don't make any kind of analysis. A simple uneducated guess will still have 50% winning chances (buying options without any information or analysis is called binary betting). Now imagine how much money you can make if your analysis takes your winning rate to 70%!

Another popular form of trading is the so called "auto trading" or "mirror trading". Although it has nothing to do with binary options, we know it is pretty popular among binary options investors. The best broker for auto-trading is Etoro, because of the special feature named Open Book. Etoro prides itself with a very large community of traders (over 1.8 millions of users) and the best traders that have outstanding results are listed in every month's hall of fame. The Open Book allows you to see other people's trades, and thanks to the Copy Trader technology you are able to copy all trades from the users you choose in real time, your account acting like a mirror of the trader's account, but with specific parameters like the amount of money you want to use to copy the trades.