Binary Options: The 7 Benefits You Need to Know

Binary Options- The 7 Benefits You Need to KnowThe world of investments and trading are as interesting as they are varied. There are several different ways of trading including binary options. The following explains more about the benefits of this trading strategy and why you need to consider it.

1. Ease of Trading

One of the main benefits of binary options is that it is easy to use. You simply need to be able to guess which way the market will go for a particular stock of your choice. Selecting the correct direction is all that is really involved at the foundational level of binary options trading.

2. Return on Investment

With some stocks, the return on investment is minimal. Binary options can have a seventy percent return. This does not involve big stock moves either.

3. Restricted Losses

The return on investment is high but the risk is low in these trades. You cannot lose more than you original invested. Therefore, there is a clear and controlled risk.

4. Many Markets

A single account can do a lot in the binary options market. This means cross market stock options. As a result, there is more variety.

5. Strategy Changes

With some market and stocks, there are certain strategies that you need to stick to in order to be successful. This can make it frustrating for those that ant to mix it up. That is not the case with binary options where you can change as needed!

6. Smaller Initial Investment

There is a smaller initial investment possible with binary options. No big money contracts are necessary. You can spend a little and do not need thousands to invest.

7. Ease of Use

Some signup systems are involved. Not the binary options trading. You can sign up and quickly register with a binary options broker. That’s all you need to begin!

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How to Employ Compounding to Maximize Your Profits from Binary Options

How to Employ Compounding to Maximize Your Profits from Binary OptionsBasically, there is no perfect way of trading binary options as many self proclaimed trade experts say. Just like with any other type of investment, there are certain practices and theories that have been tested and found to work better than others in trading binary options. Anyone who is successful in binary options will tell you that most of the traders focus their attention on trading strategies, rather than on money management while trading.

Regardless of the many articles and e-Books you might have come across telling you to rely solely on your trading strategies, the truth is that money management form an integral part of any successful binary options investment strategy. Throughout this article, compounding– a money management and risk control method, will be addressed.

What Exactly Is Compounding?

Simply put, compounding is a mathematical formula that focuses on using your profits to profit even more. Currently, this technique is commonly used in pensions and the long-term Mutual fund growth, but many binary option traders tend to ignore it. The method is rather easy to apply and may be used with any binary options trading technique to maximize profits. Owing to the short time frame of the trading positions in binary options, compounding is a very suited formula. According to Einstein, a well renowned mathematician, compounding is among the greatest mathematical formulas ever discovered. So, how does the formula work?

Suppose, you deposited $1000 with your binary broker and then open five positions, each being 10 percent of the capital and win all the positions by the end of the week. This means that you get 70 percent on the invested amount and the total account balance by the end of the five positions will be $1350. With this as the capital, you open another five positions, each 10 percent of the capital ($135). If you win these positions with a payout of 70 percent, you will get a profit of $475 from last week’s profit. (70 percent of $135 is $95 and multiplying this by five gives you $475)

While you may not win all the positions, this is an example of how compounding can be successful. You have just risked 10 percent of you capital with each position and made a profit of $350 in the first week and $475 in the second week. This compounded increase in profits is sometimes refereed to as creating the ‘snowball effect’

Applying Compounding Effectively

As opposed to using a fixed stake to open positions, this money management strategy requires that you use a fixed percentage of the total capital in your brokerage account, like the 10 percent used in the above example. With compounding, you do not have to take great risks in order to make exceptional profits; all you need is time. With time, your profits will continue to grow, but the risk you take will remain to be the same.

Essentially, compounding is meant to minimize the short-term risks you have to take while trading in binary options and still get good returns from the trade, over the long run.

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Binary Option Robot Added New Broker on the List

binaryoptionrobotBinary Option Robot strengthen its position of a leading auto trading software on the market by adding new broker on the list of their supported brokers, now being list of ten trusted binary option brokers. New broker on the list is called Bloombex Options.
Bloombex Options is safe and ambitious brokerage satisfying the needs of both experienced and unexperienced traders. They are as well suitable for traders from United States which puts them in position of one of the most desired binary brokers to trade with.

As you can see already, Binary Option Robot is doing continuous effort to provide you possibility to trade with major brokers in order for you to reach your financial goals. It is well known, that in order to  have success in binary options industry, you have to choose the best brokers. Binary Option Robot did a great job for you, selecting only trusted brokers with fast and secure platforms and high payouts. That is something that you mostly want to see at your broker.

Don’t forget that you can select and trade with more than one broker with Binary Option Robot, so even if you are already earning money with some other broker through Binary Option Robot, there is no reason why you shouldn’t try to trade with Bloombex Options, especially if you come from USA.

It is always worth mentioning that Binary Option Robot is a free software, with no hidden fees. It enables you to trade even when you are offline, away from your computer or mobile phone and still earn significant profits. Find out more about Binary Option Robot in our in depth review on this link here or sign up now, choose your broker and start making money with this simple and profitable autotrading software.

Effective Money Management Strategy for Binary Options

Effective Money Management Strategy for Binary optionsCurrently, there are tone of articles that have been published on various sites and online forums, regarding binary options trading strategies. It is also a known fact that the majority of traders spend about 99 percent of their time searching for the best binary options trading strategy, indicators and the best markets to invest in. While this is important, traders rarely take time to ponder about a most important aspect of trading binary options – money management. Since the trade is about either winning or losing it all, it is important that you exercise money management strategies. If you are to succeed in this trade, you have to explore the current strategies and settle on the one that will maximize your chances of profiting from the trade.

Risk and Money Management

While risk and money management have different meanings, they are closely related when it comes to binary options. This is mainly because the manner in which you manage your trading capital will determine the risk that comes with the investment choice. In this regard, you need to manage your capital in a way that minimizes the risk. For instance, you should avoid staking all your capital on one outcome because the risk is too big.

The Best Strategies to Manage Your Money

To set up an effective money management strategy for binary trading, there are various approaches that you may use. Among the simplest and most effective strategies is the ‘Kelly’ system. Over the years, this method of betting has become a preferred money management strategy among binary option traders. With this method, the objective is to maximize the chances of profiting from the trade while minimizing the risk that comes with the investment. In theory, the system suggests that minimizing the risks associated with your investment will put you in a better position to profit from the trade.

Implementation of Kelly System in Binary Options

When using this strategy to invest in binary options, it is advisable that you invest only five percent of your balance in any particular outcome. With a regular broker, this translates to a 5 percent risk against about 3.5 percent return on the investment. While this may appear to be a small investment, the method focuses on reducing the risk and maximizing the potential to grow in the long term. With this strategy, a string of losses will not put you out of business as you will still have money to invest.

Traders need to understand that there is a slight difference between trading and gambling. With an effective money management strategy in binary options, you increase your chances of profiting from the trade.

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Binary Options Scams

Binary Options ScamsThere is that ugly word again “scam”, it seems like it is used a little too easily lately; it’s almost like it maybe means something differently these days. A lot of times these misguided associations are attached to financial products such as binary options. It’s a little aggravating when this happens to an industry that is working hard to clean up an image that it never should have had in the first place.

I don’t believe that Binary options trading is fraudulent at all and believe me I have been around it a long time. Then again why would you believe me and take my word for it? You shouldn’t, that is why I am going to tell you how to protect yourself when trading binary options and some ways to do things to make sure no one can take advantage of you.

First of all it’s important to know what the word “scam” means. Dictionaries describe it as a fraudulent or dishonest means to get money from someone or something. I looked further and saw nothing about it relating to someone who made an uninformed binary options trade and lost their money or someone who was angry because they lost money after not taking advantage of everything that their online broker offered to help them trade successfully. As with all things, sometimes you have to consider the source before you believe something.

Things to Look Out for to Avoid a Possible Scam Broker

Becoming a binary options broker is not as hard to do as one might think; the trick is doing it well and attracting and keeping a lot of customers. There are only three major software platforms that can run a binary options trading site and anyone can purchase these; basically anyone with the knowhow can start a brokerage site. Here is how you find the reputable ones.

What are some of the Red Flags that Indicate to be Aware of a Broker?

  • Return on Investment

If the return on investment for a trade is unusually high or unusually low it’s a bad sign. Too high means the broker is trying to get new customers in a hurry and may go out of business in the process and your investment will go with them. When a return on investment is too low it indicates a site that is only interested in their side of the money equation.

  • Poor Funding or Withdrawal Processes

The money in your deposit account is yours and you should have access to it any time you need it. Charging fees is not a scam; all places that perform banking functions do that. With that being said, slow withdrawal times or repeatedly having trouble initiating a withdrawal are big red flags and you need to find a new broker.

  • Too Many Bonus Offers

A company that gives you bonuses for everything on their site is a company that is confident they are going to be able to keep your money. You should be wary of a broker that always offers bonuses or establishes unrealistic conditions you need to fulfill before you have access to any bonus money.

Protect Yourself before Joining a Brokerage Site and be Smart about the Money You deposit

Here are some more ways you can avoid feeling like you were scammed:

  • Trade only with disposable income that you can afford to lose. You don’t think straight when you just lost your rent money on a trade.
  • Trade on sites that are regulated by binary options agencies such as CySEC.
  • Stick to trading with established brokers or if you like what a new brokers have to offer only invest a small amount of money with them until you are comfortable they are legit.

If every binary options trader sticks to these ideas and keeps an eye out for what was discussed, I will never have to write about binary options scams again because there won’t be any.

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Vodafone Shares Falls As Talks with Liberty Global Plc Are Confirmed

vodafoneOn Friday, the second leading mobile operator in the world, Vodafone, disclosed that it was having talks with the largest cable operator in Europe – Liberty Global Plc regarding. Earlier on, there were speculations that the two companies would enter into a merger, which could have turned them into a £100-billion telecoms powerhouse. This speculation caused Vodafone shares to rise by two percent. However, the disclosure that the talks were just to negotiate a possible exchange of certain assets, whose nature and location was not disclosed caused the shares to fall.

The merger would not have been a surprise as there has been a series of M&As between various cable operators and telecom companies in the region. While some analysts say that Liberty’s Virgin Media could be of interest to Vodafone, Liberty has pronounced that it does not have any interest in the emerging market business of the company. On Thursday, Liberty Global Plc shares dropped by 2.19 percent to sell at $54.60 on the NASDAQ. However, they soon surged by 6.21 percent. Vodafone Group Plc shares, on the other hand, dropped by 1.75 percent to sell at GBX 243.75 per share.

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Avago Share Price Soars High, Following an Acquisition of Broadcom Corp

avago-technologiesTo put the company into a better competitive position, Avago Technologies Ltd recently acquired Broadcom Corp at $35-billion. The company majors in manufacturing chips for wireless communication. This acquisition improved the value of the company to $70 billion and caused the Broadcom shares to surge by 20 percent, within a single day. Currently, the market share by Avago stands at 40 percent. This acquisition will improve this market share even further.

Prior to this deal, none of the two companies had a good individual competitiveness, mainly because of the large competitors, such as Qualcomm Inc and Intel Corp. Initially, the company was an established consolidator in the chip industry. The acquisition of LSI Logic at $6.6 billion back in 2013 helped the company to diversify into storage devices.

On Wednesday, the company recorded an improvement of 7.76 percent at NASDAQ, with each share priced at $141.49. However, the share prices dropped a few hours later to settle at $140.00.

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SABMiller Plc Shares Gained Following the Acquisition of UK Craft Brewer Meantime

sabThe leading brewing company worldwide, SABMiller, recently acquired Meantime Brewing Company for a sum that was not disclosed. This purchase gave SABMiller a firm footing in the rapidly growing craft beer market. Under the leadership of Nick Miller, the company reported that it would increase sales in the industry and even explore the exportation opportunities within the European markets. Since its establishment in 1999, Meantime has been a successful company, producing an array of successful beer brands in the country. This is according to SABMiller.

The acquisition of Meantime by SABMiller includes their retail sales as well as the brewery shop situated in Greenwich, the Beerbox and Greenwich Union pubs as well as the Brewery Fresh tank beer concept by the company. The acquisition is set to compliment the line up of imported premium lagers by SABMiller. As of 09:01 GMT, the SABMiller Plc was trading at 0.81 percent higher in London. This is an increase of 12.95 percent in a year. The current value of the FTSE 100 brewer is about 58.08 billion pounds.

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McDonald’s invents a New Menu

McDonald’s invents a New MenuFor the first quarter this year, the McDonald’s recorded a drop. Although the sales recorded at the end of this quarter was a bit low, the drop was not as much as it had initially been predicted. In a bid to reverse this trend, the McDonald’s has been making a number of changes, aimed at drawing in more customers.

To correct prior drops in sales, the McDonald’s stocks have appreciated in value. Among the corrective measures taken by the fast food restaurant was providing ‘bowl’ options, just like its competitor fast-food restaurants. Being a rather popular alternative in the country, this change was particularly meant to attract the younger generation to the fast-food restaurant, hence increase sales.

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