What is Binary Options and Forex? Free Download Best Binary Indicator ~ AM Trading Tips

What are binary options?

A binary option is essentially a bet about whether the price of a financial asset will go up or down in a specified time period. We bet a fixed amount of money that the price will go up or down in a specified time period. If we predict correctly then we win money and if we don't we lose. Typically if we predict correctly we will win whatever we bet plus around 70% (the 'payout percentage' is determined before we bet and is clearly stated by the company we are betting with). If we lose the bet then we usually lose whatever we originally bet.

This is best explained with a couple of examples:
Example 1 – 60 Second Binary option - WIN
We place a bet of $25 that the price of Gold will increase. When we placed the bet the price of Gold was $1311.6 and after 60 seconds the price has risen to $1312.1. We have therefore won the bet and we win $17.501 and receive our original stake back of $25. This means that we receive $42.50 in total ($17.50 + $25 = $42.50)

Example 2 – 60 Second Binary option - LOSE
We place a bet of $25 that the price of Gold will increase. When we placed the bet the price of Gold was $1311.6 and after 60 seconds the price has fallen to $1311.0. We have therefore lost the bet and we lose $25

What are the benefits binary options?

As we can see, binary options offer an exciting new way to bet on price changes in the financial markets. Binary options have simplified the way that people are able to trade and have made it easer for home traders to enter the financial markets. The beauty of binary options comes with their simplicity. Traditionally when a trader wants to profit from the price fluctuations of a financial product, they will need to make four key decisions before entering a trade:

a. Whether they think the price will go UP or DOWN
b. The price they want to enter at
c. The price they will exit if they are in profit
d. The price they will exit if they are at a loss

Trading financial products this way can be profitable and there are some traders who are very successful at this. But this type of trading is not for everyone and this is why binary options were developed. When trading with binary options we only need to decide whether the price will go UP or DOWN.

What is Forex?

Binary options can be used with many different financial assets but the system discussed in this guide is designed to be used on Foreign exchange (Forex).

Forex is the term used to describe when one currency is exchanged for another. For example when we go on holiday we will need to exchange our local currency for the currency used in the country we are visiting.

The 'exchange rate' determines how much of one currency we get when exchanging it for another.

Example 3 – Exchange rates
If we exchange 100 Euros for US dollars and the exchange rate is €1: $1.42, we will receive $142 USD (1.42 x 100).

The exchange rate is often referred to as the 'price' of the currency pair being exchanged and in the above example the price of the Euro : US Dollar currency pair is 1.42. This price changes with time depending on the supply and demand of the currencies in the pair. It is this price (exchange rate) that we will be betting on using binary options.

The price of a currency pair is usually expressed to 4 or 5 decimal places2. For example, at the time of writing the exchange rate of the Euro and the US dollar was 1.39265, a typically currency will change by around 0.01000.0200 per day.

When discussing currency pairs the name is usually shortened to a six character reference and this is what we shall be doing for the remainder of this guide.
The following list has the names of the major currency pairs:

EURUSD: Euro – US Dollar
GBPUSD: British Pound – US Dollar
AUDUSD: Australian Dollar – US Dollar
USDCAD: US Dollar – Canadian Dollar
USDCHF: US Dollar – Swiss Franc
USDJPY: US Dollar – Japanese Yen

Why we trade Forex with binary options?

The price of currency pairs changes every moment of every day and this price movement presents an opportunity for traders. If we can successfully predict whether the price will rise or fall, we can then use binary options to profit from this price movement.

However, the price movement and predictability of different currency pair varies. The 01 Binary System you have purchased has been developed to follow the movement of five of the most widely traded currency pairs EURUSD, GBPUSD, USDCAD, AUDUSD and EURJPY. We have chosen these currency pairs because the price changes of these pairs can be large and we believe is the most predictable. These currency pairs can also be traded with almost all binary options brokers.

How we trade using binary options

We will now move on to the more practical aspects of trading Forex using binary options. Before we can trade binary options we need to open an account with a binary options broker. There are many different brokers to choose from and it is essential that we chose the right one to trade with. Some of the most important things that we need to consider when choosing a broker are:
1. The payout percentage
2. Ease of use of website
3. Deposit / withdrawal charges
4. Range of markets
5. Deposit bonuses
6. Telephone / email support
7. Regulation

When trading with binary options the higher the payout percentage, the more money we could win if we correctly predict the price movement. So it is extremely important that we choose a broker that offers a high payout percentage. We regularly assess and reassess all the brokers that offer binary options trading to ensure that we are using the best broker IQ option. The email you received from us provides links to the brokers we are currently using, and we suggest you IQ Option take a look at these brokers before entering any trades.

Hello Trader
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Characteristics of Indicator
1. Platform - Metatrader 4.
2. Asset - Major Currency Pair.
3. Candle Timeframe - 1 Min.
4. Expiry Time - 5 min.
5. Trading Time - European And New York Session.
6. Don't trade on Medium Impact and High Impact News Release Time.
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About AM Trading Tips

Hello Trader, My name is Ankush. On the blog "AM Trading Tips" contains Indicators and Trading Systems for Forex and Binary options. With a variety of trading (Forex and Binary indicators,trading strategies for different trading styles,and also Expert Advisors) that can be absolutely free