How to make money on binary options - tips and strategies in 2021

Tell you how many times I have seen articles, videos and advertisements with titles like “Best Returns. Earn up to 80% on a deal!”? Yes, you yourself have probably seen many times tempting offers to turn 100 dollars into 1000 overnight.

This is all about binary options. They appeared recently, but have already acquired a bunch of rumors, myths and fables. So I suggest choosing the topic “is it possible to make money on binary options, reviews” and dig deeper.

Top binary options according to the editors in 2021

Getting to know binary options

First, let's figure out what it is? This is a kind of contract with clearly defined conditions regarding the direction of changes in the price of an asset over a certain period of time. If the conditions specified in the contract are met (the value of the asset for the specified time behaves exactly as specified in the option), then the buyer of the BO receives a certain reward, the amount of which is also indicated in the contract. If the agreed conditions are not met, the participant's loss is equal to the cost of the option.

For example, you know that currently 1 EUR costs 1.1734 USD, but you think that this price will not last long and in just 10 minutes the euro currency will rise in price. In order for your premonitions to bring you profit, you enter into an agreement for, say, 50 “bucks” with a profitability percentage of 80%. 10 minutes pass and the rate actually rises (by how much, it doesn’t matter), which means for you a profit of $40. Well, if you didn’t guess correctly and the euro fell in price, then you lose your fifty dollars. Sometimes, although very rarely, the price remains at the same level, then the buyer gets his money back.

The mechanism, you see, is very simple and understandable, which allows even beginners to earn money. Although, there are quite a few subtleties and features here, mastering which requires special training, so don’t relax, no one just gets money.

Why do I make money online?

There are no “more worthy” and “less worthy” people. Everyone can succeed, everyone can find a prestigious and favorite job, accompanied by high pay. With the advent and spread of technology, these words have become especially relevant. It doesn’t matter whether you have connections and acquaintances; an education diploma in a specific specialty is also unimportant. Your business qualities are important, perseverance and determination are important, a lively mind and a desire to earn money are important. From scratch to a level where you feel financially independent – ​​it is possible, and I’m telling you the truth!

The global financial market is a gigantic, vast structure. The daily turnover, even in not the most prosperous times, is billions of dollars. If you manage to “pinch off” at least one crumb from this billion - 100, 200 dollars a day - this is completely invisible to the market, but a very good help for you and your family. You will be able to allow yourself and your loved ones to spend money not only on what you need, but also to pamper yourself - by traveling to other countries on vacation, buying new things, and starting new hobbies.

I was not successful from the very first days. In addition to successful transactions, of course, there were many unsuccessful ones. There were lost deposits and very offensive miscalculations. But there were always close people next to me - I always felt the support of my family, for which I now say a big thank you to everyone. I took up binary options for the well-being of my family - and was able to turn it from an interesting hobby into a real job, into the main source of income. Now I’m not afraid of crises - because I always know that I can make a successful deal and increase the family capital!

Several main types of BO

The variety of brokerage offers regarding the terms of the contracts we are considering is very large. Having gained some experience, you will be able to choose the most attractive of them, but first you should understand at least the basic types:

1. Call/Put or up/down is one of the most common options, when purchasing which you only need to correctly predict the direction in which the price will move (as in the example we described). The percentage of profitability for such BOs depends on the selected currency pair, the time period for which the agreement is concluded and market conditions, and can reach 90%.

2. In/Out or range - here you bet that the value of an asset will be in the range you specify after some specific time. Profit in this case also depends on a number of factors, including the size of the range, the expiration date of the option, and the same market conditions.

When concluding an agreement, you indicate the specific boundaries of the range (upper and lower) and the time during which the rate, in your opinion, will not go beyond the designated boundaries. If after this time the price has not crossed either the lower or the upper limit, then you have won.

3. One touch or contact is a fairly highly profitable type of BO, since it is not enough to guess only the direction in which the value of the asset will move, but you also need to indicate the level that it will reach within a certain time. And even if during the designated time period the price rises above the specified level (or reaches it), and then falls again even below the initial value, the option will still be considered successful, because the main condition (reaching the specified mark) will be fulfilled.

Heat map

This system is suitable for those who like easier approaches. Experienced traders believe that the thirty-minute chart readings, which are built on the basis of a chart with this period, are most suitable for working on BO. Thus, it is worth trading with thirty-minute options. Plus - if you wish, you have the right to familiarize yourself with other ways to use a heat map.

Only green and red cells are significant signals. Other shades only indicate a weak trend and are a sign that it is better to stay away from the market for these instruments for some time.

Red indicates a new low and a possible price reversal. Therefore, an option is purchased to increase the value of the asset. A green cell indicates a new price maximum; a trend reversal or decline is expected.

Is it possible to earn money on BO and if so, how much?

Yes, we will tell you how to make money on binary options. But how much exactly, and what is needed for this, we will talk below. This financial instrument can bring a fairly high income, a maximum of about 90% of the amount you invested. But if this money were given very simply, then we would already be surrounded by only millionaires, and if nothing like this is observed, it means that there are pitfalls, features, subtleties - call it what you want. The main thing is that you understand that the simplicity and ease of making money like this is rather apparent, but in fact it requires knowledge, experience, self-discipline, and much more.

The first thing you should always remember is that this is not roulette, where bets are made at random and everything is decided by chance. It is because of this attitude that more than 90% of market participants “merge” in the very first weeks of work.

Judge for yourself. The most likely trading outcome in case of predictions made at random is 50/50. That is, half of the trades are profitable, half are unprofitable. But since the loss is 100% of the amount, and the gain is only part of it (within 75-90%), then the result, in any case, will be disastrous. This means that this activity is contraindicated for those who are not ready to spend time and effort on training and treat BO as serious work.

Of course, there are no 100% winning strategies in principle. But even the most simple of them can raise the number of successful transactions to 55-60 percent, or even higher. Thus, you can earn money, but this requires certain preparation, the presence of a profitable system and mandatory adherence to the rules of trading.

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Moreover, some binary brokers are already introducing transactions to the classic foreign exchange market of the Moscow Exchange. “It’s better to bring clients with large transactions to the exchange and have only a spread from them,” explains Art. — What if this big client wins? Then the broker loses a lot of money - it’s better for him to withdraw his three percent and sleep peacefully. Outright theft is also risky.”

Many companies also resort to customer triage. While the user is new and makes mistakes, why just lose his money when you can take it for yourself? Therefore, they work with newcomers in a “kitchen” mode, on their own sites. And when a person begins to trade normally, his transactions are brought to the classic market of the Moscow Exchange. To do this, it is enough to write a not very complicated program, explains Art. According to the expert, many brokers do this, but no one openly admits it - everyone will claim that 100 percent of transactions are listed on the exchange.

For now, mandatory registration of transactions with binary options on the exchange is just an idea. In its current form, binary options trading in Russia is more like a casino. Of course, you can play, but only if you have extra money that you don’t mind losing.

Probable income

So, how to make money on binary options and what kind of profit can you expect? The size of your profit will be greater, the larger the size of your deposit and the bet amount. But there are still risks to be aware of. After all, here you can either get rich or lose all your invested capital.

To avoid risking money in vain, practice on a demo account before starting real trading. And take your time, devote at least 1-2 weeks to such training, or even better, a month. And only after receiving consistent positive results, start trading for real. By the way, we do not recommend betting more than 5% of the deposit at a time; this is the maximum acceptable risk.

For those who want to at least roughly calculate the potential profit, we will give a clear example. Let's say your starting capital is 10,000 rubles. You listened to our advice and concluded a dozen transactions, in each of which you risked exactly 5% of the deposit (500 rubles). Out of 10 trades, 7 were successful, and 3 brought you losses. With a profitability of 80%, your profitable transactions enriched you by 2800 rubles (7 * 500 * 0.8), and on unprofitable contracts you lost 1500 rubles. Your net profit will be 1300 rubles or 13% of the initial capital. This is approximately how your income will be calculated in percentage terms (plus or minus). This is a normal indicator, and you should not neglect risks in the pursuit of excess profits.

Popular trading platforms

Brokerage companies are popular among traders, in terms of cooperation with which it is possible to invest small amounts in the monetary equivalent of several countries, in particular in dollars and rubles. Brokers with reviews from many satisfied clients are also welcome. The best representatives are shown in the table below.

Binary options - pros and cons

Making money on BO is becoming more and more popular, but this type of activity, like any other, has not only advantages, but also a number of disadvantages that you need to know about before deciding whether this activity is suitable for you or not. Pros:

1. The main advantage is probably that when concluding an agreement, you already know what your probable losses may be and compare them with potential profits. That is, you choose an asset, the term of the contract, the amount and type, take into account the profitability shown by the broker and can draw a conclusion about how the possible profit compares with the probable loss. In other words, you can manage risk, and that's worth a lot.

2. The second positive point is the availability of BO trade. You don't need to have a lot of money to open a deposit. With some brokers you can do this even with 10 dollars.

3. The good news is that here you can quickly increase your capital, up to 20% in a week, and this while adhering to a moderate level of risky operations.

4. Well, and what is especially important for beginners, the process of trading BO is simple and understandable, and does not require such a deep analysis of information as, for example, trading currencies. Of course, you can’t take it lightly, but, you see, simply predicting where the price will move next on a short time frame is easier than predicting its future value and not “missing” the optimal moment to purchase or sell an asset.

As usual, there are also some drawbacks, and they scare away some users, although, with desire and skill, they can be minimized. Minuses:

1. If we talk about dishonesty (fraud) of some brokerage companies, which actually occurs, then there is only one way out - to be more careful in choosing a broker, take the time to study reviews and ratings, as well as search for a company that meets well-known criteria ( time spent on the market, presence of registration, etc.).

2. Many are frightened by the riskiness of such a business, as discussed in every article on this topic (we did not fail to remind you of this point), but it is worth considering that an investment business without risk does not exist at all. Anyone who wants to work in this field must come to terms with this thought. And then, there is such a thing as risk diversification.

3. Or here’s another annoying drawback - in the case of BO, as a rule, it is impossible to close a deal before the expiration date. That is, when trading currencies and noticing a negative trend, a trader has the opportunity to close the transaction ahead of schedule and avoid more serious losses. But when buying a binary option there is no such opportunity, you have to come to terms with the inevitable losses. To avoid risking too much money, just don't bet large amounts.

Four screens

Proponents of this strategy believe that complex market analysis algorithms are often unsuccessful. There is an explanation for this: the need to track a lot of data leads to inaccuracies in calculations. This strategy makes it possible to do without many indicators, because it is based on information from the instrument’s charts on four time frames.

Trades are opened if similar signals are observed in all periods. Namely:

1. When all four bearish candlesticks close, an option to reduce the price of the asset is purchased.
2. With a growing trend, an upside option is purchased.

Experts do not recommend working with this system on short-term minute options. According to reviews, the “four screens” strategy will work best on options with an expiration period from 15 minutes to one hour.

Tips for beginners on how to avoid losing your deposit quickly

Of course, we cannot guarantee that following these tips you will trade extremely successfully, but they will protect you from some of the most common mistakes and allow you to stay in the market:

1. Monitor the market situation. Without knowing the market situation, you should not enter into transactions. And in general, before you get down to business, learn to analyze the market. Study the factors influencing fluctuations in the value of assets, do not miss important news, and try to draw the right conclusions from all of the above and predict the future behavior of the exchange rate. It takes time to learn these necessary things, at least about a month. To learn how to apply the acquired knowledge in practice, use a demo account. This way, you can hone the necessary skills before starting the actual work.

2. An important factor for successful trading is the number of transactions and their expiration time. This type of trading has the advantage of options expiration time, which is sometimes only 60 seconds. But there is also a certain danger here. With such a short time period, dozens of transactions can be concluded in an hour, and some traders do just that in pursuit of big money. But think for yourself, is it really possible to make so many balanced decisions based on thoughtful information in a short period of time? Naturally not. Therefore, you should not bury yourself and lose common sense, believe me, greed is your worst enemy. Ten and a half options a day is quite enough. After all, fast and extremely profitable short-term trading has a downside - a quick loss of the deposit and long-term disappointment.

3. Strive not for quantity, but for stability. If you are taking your first steps in the market, it is better to choose a broker with a small minimum deposit and an equally low minimum rate. Remember that at first the main thing for you is not to earn more, but to gain experience and preserve what you have. By the way, without risking a lot of money, you and the brokerage company will check for integrity and quality of service.

4. Should I follow the Martingale strategy? If you are not aware, this strategy involves increasing bets after losing trades. But professionals do not advise doing this, but doing exactly the opposite - reducing the volume of investments in BO so as not to lose everything.

5. Keep statistics. An individual deal, whether it's super successful or a failure, doesn't really matter. And even several successful or unprofitable operations in a row are also not an indicator; this happens quite often. You can evaluate your success only after fifty or even hundreds of transactions. If they collectively show a negative result, then you need to reconsider the strategy, identifying its weaknesses.

6. Control your emotions. If someone thinks that their emotional state has no influence on the success of trading, then they are deeply mistaken. It has, and even more than you can imagine. Ideally, a trader should be completely devoid of any emotions during work. But this is ideal, but in real life you need to learn to at least manage them.

Here are a couple of examples. Success accompanies you, transactions one after another bring profit and there is a temptation to earn even more (simply put, your greed is showing). And how to do it? Of course, increase the bet, or even risk the entire deposit. As a result, the strategy is on the side, deals are concluded chaotically and hastily. It all ends in complete failure and a nervous breakdown.

Another unacceptable emotion is fear of losing. It forces you to act out, increasing the degree of risk and ignoring the rules. Everything ends as in the previous case.

And finally, don’t forget about 5% per transaction (or better yet, even less). And also about the fact that the main thing is to learn to trade without losses, then profits will come.

Choosing a broker: criteria

The main criterion when choosing a brokerage company is the presence of a license. The permitting document obliges the organization to work according to the regulations of the regulator, which is primarily focused on protecting the interests of the client. The activities of brokers who have received it are conducted in accordance with international standards. The license format satisfies legal and market requirements. Reputable regulators are:

• CySec;
• MiFID;
• BaFin;
• FCA;
• CNMV;
• CONSOB.

The reliability of a licensed broker can be judged by the conditions under which a permit is issued. Companies that have been on the market for more than 3-5 years can count on receiving it.

The more regulators control the activities of an entity, the more customer confidence it will receive and the higher trading volumes will be.

Having selected licensed brokers, you need to evaluate them based on parameters such as:

• trading platform;
• proposed assets for work;
• features of the purchase contract specification;
• training opportunity;
• Availability of analytics;
• ease of working with the official website;
• methods for depositing funds and withdrawing profits, as well as the speed of transactions;
• 24/7 online support service.

The platform offered by the broker should be intuitive for the trader and not cause him discomfort when conducting business. Working in financial markets is distinguished by the possibility of diversifying risks through transactions with assets. If a broker offers a limited number of them, then it will be difficult to minimize risks by distributing them across different trading instruments.

For beginners, it is important to have training resources, for example, separate thematic courses with videos or webinars. It’s not bad to have the opportunity to visit training centers for free, read the proposed literature and consult on a controversial issue with the assigned manager. You can also learn from analytical forecasts, which will help you make decisions regarding future price behavior.

Russian-speaking traders are more comfortable working with a broker whose official page is provided to users in different languages, including Russian. Online chat consultants must maintain a conversation language that is convenient for the person contacting them. It's good if customers can count on receiving an answer to their question on the same day. You can select a suitable brokerage company via the Internet by entering keywords into a search engine or rating resource: reliable, licensed broker, binary options, minimum deposit or no deposit bonus.