Binary Options FAQ – Binary Options Frequently Asked Questions

Welcome to my binary Options FAQ section! You still got questions about binary options trading and how to choose the best binary options broker for your needs? Keep on reading to find the frequently asked questions about binary options and how to trade them!

Binary Options Faq´s Answered

What are binary options?

Binary Options are a fixed return financial trading instrument limited to two possible outcomes, In the Money (Won option) or Out of the Money (Lost Option). You can read a detailed explanation here!

When can you trade binary options?

This depends on the asset you are trading, there are currency pairs, stocks, indices and commodities you can trade as binary options. Normally you can trade while the markets are open, this depends on the form of asset you are trading!

Is it legal in my country of residence to trade binary options?

This depends mainly on your broker. In most countries it’s legal, but many brokers don´t accept trades from all countries! If you live in the USA for example, it becomes hard to find a broker accepting clients from the US!

Do I need any software to trade binary options?

Normally not really, but I highly recommend a real-time chart software like the Metatrader 4 or 5 for example! Depending on your Broker its also possible to download a trading desktop application or mobile app, so for example IQ Option!

Where to trade binary options?

This depends on the country you are living on the one hand and what you want to trade exactly. Other points to consider are the amount you want to invest and what assets you want to trade mainly! You can check out my broker tests to find the best binary options broker for your needs!

How much do I need to invest to trade binary options?

This depends mainly on your broker and your money management. Never trade with more than 5% of your overall account balance in a single trade. So if you plan to invest 200 USD into binary Options, you need a broker with a minimum trade amount not higher than 10 USD (200USD * 5% = 10USD)!

Can I make money trading binary options?

Basically yes, but not without the requirements needed to use binary options! Its needed to control your emotions as well as proper money management and knowledge about technical analysis and trading strategies/pattern.

How to predict market movements in order to trade binary options?

There are 1000s of methods to analyze and predict market movements, so-called trading patterns. The main problem is not to find the best, but to learn when to use wich trading pattern for best results! Anyway, you will never win all your trades, loses are a part of trading!

How to choose the right expiry for your trading pattern?

This depends on many factors like the trading pattern, the time frame and the kind of asset you want to trade! Ensure to test new pattern first inside a demo account (Check out my IQ Option review to get one) for a few days at least! After some time you will get some kind of feeling to choose the right expiry!

What does “In The Money (ITM) and Out of the Money (OTM) mean?

In the Money means that the binary options expire in your odds. If you trade a call option, the price needs to rise till the expiration, if you trade a put option the price needs to decrease till the end of the expiry time – In the case, an option ends in the money, you get back your investment as well as the additional profit! Out of the Money means the direct opposite, the option expired against your prediction, and you lost your investment! Read more about ITM and OTM here!

How much can you win if your trade expires “In The Money”?

This depends on your broker, but also on the asset you are trading as well as the expiration time you have chosen! You will know how much you can potentially earn before you enter the trade!

Are there good books for binary options?

There are only a few books about binary options trading, but many books about technical analysis and how to analyze the financial markets! Ensure to check back on this website in the near future for book reviews and more…..

DO I need to invest in order to try out the binary options principle?

No, you can open a free demo account at IQ Option for example in order to test binary options without risking any money – of course, you won´t make money this way!

I am new to trading and would like to start. Can you give me some advice?

Sure, just browse this website and learn more about the basics of binary options trading! Do not miss to search on youtube and Google for additional information about binary options trading!

What is the best “binary options trading pattern/strategy”?

There are too many factors define the best trading pattern for binary options! One reason is that the majority of a trading pattern is designed for a specific market situation. get this wrong and you will lose your money in most cases!

I’d like to trade binary options. Do I have to be 18 years old?

Yes, all regulated and the most un-regulated broker require a trader to be 18 years old or older!

How much can I earn trading binary options?

This depends on various factors! In the case you are an experienced trader it mainly depends on your performance, how much trades are you winning out of 100 on average? The other important aspect is your capital, the more you can invest in one trade, the higher your potential win in the case the option expires in the money!

Shall I lend money to invest in binary options?

No NEVER! Only invest the amount of money you can afford to lose! Even experienced Traders can lose their money!

Questions not answered in my binary options FAQ Section?

No problem! Just use the comment form on this binary options faq page and ask whatever you want related to binary option or trading in general! I will do my best to answer your questions as soon as possible!

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