HOW TO EASILY

MAKE MONEY
BY TRADING

BINARY
OPTIONS
A basic guide for binary options traders
written by the team of xBinOp.com
Table of Content

Introduction..………………………………………………………….……………………....2
What are binary options? ............................................................... 3
How are binary options traded? ..................................................... 3
b) Long-term trading ........................................................................ 4
c) One-touch trading ........................................................................ 5
d) Currency pairs .............................................................................. 5
Choosing the right broker ................................................................. 7
Registration and depositing your first money ................................... 7
Options trading itself ........................................................................ 8
Currency trading ............................................................................ 8
Trading psychology ........................................................................ 9
Prudent money management ...................................................... 11
Minimisating of risks (Passive money management plan) ............. 11
Aggressive trading (Aggressive money management plan) ............ 12

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Trading may be profitable, but sometimes difficult. New methods of
investing money may seem to be strange, which is often due to the
quantity of web sites and trading platforms packed with information
seen by the beginners as devastating.

The goal of this e-book is to provide you with an insight into the
simplicity of trading binary options. Thanks to the structuring of the
book broken down into separate sections using real-life examples you
will easily understand how, when and why to trade binary options.

We hope that this simple e-book helps you

succeed in all your trading transactions!
xBinOp.com Team

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What are binary options?

Binary options trading is a way to easily and quickly make money. The system is
based on traders predicting the rise or fall in value of an asset on financial
markets.

Imagine that you are a trader: Try to predict whether the price of gold,
silver or shares will rise or fall. If your estimate is good, you will get a
reward worth up to 200% of your investment.

The described movement is relatively easy to predict enabling traders of binary

options to earn money.

How are binary options traded?

The binary options trading platform is the most popular way of trading
currencies. At the same time, it is the simplest and best available option for the
beginners. All what you have to do is to choose a currency pair you wish to trade,
place an investment and make a prediction for the currency at a certain time of
the expiry of option as “YES” above (rise) or “NO” below (fall).

The approaching expiry of a binary option for a particular currency pair may not
always allow the trader to enter the trade. In such a case you should wait for the
beginning of a new option (or select a later expiry time).

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a) Short-term trading

Most options with this type of trading expire within 60 seconds after opening the trade.
Typically, each investment has a per trade limit of $500. This trading method is usually
preferred by aggressive traders thanks to the incredibly quick feedback and the possibility of
making money within extremely unstable trading instruments.

If you see that the price on the chart is growing rapidly and you believe this continues open a
quick 60-second trade. Did you hit the target? Great! The money is yours!

b) Long-term trading

Binary options trading has always been synonymous with short-term, low-risk
and high-profit investments. The explosion of the popularity of binary options
trading is largely caused by its short expiry period and quick feedback to the
trader.

Nowadays, with the growing number of educated and experienced traders, long-
term trading of binary options is becoming more and more popular. So, do you
believe that you are able to forecast the market share of a specific smart-phone
manufacturer at the end of a given fiscal quarter or find the predicted growth
rate of China’s economy as exaggerated? Now, you can participate in the trading
of long-term binary options to monetise your broader view of global markets.

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Provided that your predictions turn out to be accurate and your trades successful
you will be rewarded by periodical accruals on your trading account throughout
the year.

c) One-touch trading

This method slightly differs from the rest of the offered trading methods. It
enables very high yields (from 250% up to 700%) in the case the given asset
reaches the target value. This means that if at any time between closing a trade
and its expiry the given asset exceeds the pre-set level your trade is successful
(In-The-Money) and you earn decent money.

d) Currency pairs

Have you mastered all types of trading? Have you gained profit thanks to
successful trading in all four types of assets? Are you seeking a new challenge?
If your answer is yes trading of currency pairs is the best option for you.

This type of trading allows you to choose two assets to forecast their future
evolution. Inspired by the trading of currency pairs, you can trade with the
relative performance of two commodities such as gold vs. silver, shares of
company A vs. shares of company B such as Apple vs. Google or two indexes
such as Dow Jones vs. FTSE.

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The door to a brand new world of trading is now open for each trader armed
with sufficient information. Have you participated in trading gold or another
commodity recently? If so, you are in a perfect position to close some profitable
trades when trading currency pairs.

Do not hesitate to use your expertise!

Step-by-step guide
If you want to easily learn how to trade binary options follow our guide, which
will take you step by step throughout the entire process.

Ideally, you should look at our updated on-line navigation for beginners. Click
here: Tips for beginners.

If you do not have access to internet right now, below you will see all the
information in a summarised form.

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Choosing the right broker

if you are a novice having just stepped into the world of binary
options you surely need some help or advice to be able to
choose the right broker meeting all your criteria.

Broker is just a web site to execute your trades on-line.

Remember that it is the one who you entrust your money
with. You should not ignore this but, at the same time, not
fear, either.

When choosing the right broker you should first ask the following questions seen
as the key factors:

 What method can I use to invest my money?

 What is the minimal investment (to start trading with)?
 Does the broker offer the language I understand?
 What types of options can I trade with the broker?
 Is the broker subject to the regulations of CNB and CySEC?

You will find answers to the above questions and much more details in our large
brokers database, carefully selected and checked by our team.

Registration and depositing your first money

After selecting a broker you must register at the broker’s web site and depositn
money that will be used for future trading. You will access the web site by clicking
VISIT BROKER at our website.

Then, you will fill in a registration form mostly placed on the front page. If you
don’t see it instantly, you will surely find an Open account button in the right
upper corner.

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After registering and signing in to the system, all what you have to do is to invest
some money and start trading. Do you have a payment card with you? We advice
you that you use it. Each transaction is processed within a few seconds, an
advantage compared with bank transfer, which may take 2 to 5 days.

Did you encounter any problems with placing your investment? Let us know via
our discussion ..and we will help you.

Options trading itself

After depositing money onto your trading account, the trading process is fairly
simple. You just move to the broker’s menu page and click Trade Now. In most
cases you will see some charts and two buttons: CALL (UP) and PUT (DOWN).

By clicking the CALL button you will execute a trade assuming that the rate (price)
of a given currency or share goes up. The PUT button will do the opposite: You
will earn money if the rate goes down.

If your assumption or prediction is O.K. your profit will amount to about 90% of
your investment, depending on the profit offered by your broker, which varies.

Currency trading
Currencies can be traded any time when markets are open. This trading method
is globally known as Forex or FX (abbreviation for Foreign Exchange) determining
the current value of the world’s currencies. Forex markets are crucial for
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international trade since each international transaction requires some type of
currency conversion.

Next to its key role in the world’s trade, the majority of Forex trades fall in the
category of speculative investments. The value of currency directly reflects the
economic health of a particular country/block of countries using the currency.
Speculative trading is in fact buying a currency i.e. investment in the “shares” of
a given country or region.

Currencies are traded in pairs. Each currency is represented by a three-letter

abbreviation. For example, the EUR/USD pair reflects the strength of EUR vs.
USD, the former called BASE currency and the latter QUOTE currency. So if the
EUR/USD pair is traded at 1.3000 the figure shows how much of the quoted
currency you need to buy a unit of the base currency. Trades can be closed for
nearly any combination of currencies.

Trading psychology
Psychology and the recognition of the right time to exit a trade will differentiate
you from the rest i.e. 95% of brokers whose win/loss score is negative, barely
profitable or even loss-making.
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Conducting market analyses and predicting price movements is just one part of
your success. In real life, the very best traders differ from good traders in
discipline and their ability to manage stress. Regardless of your trading strategy,
you must never lose control over your emotions and stick to your “game plan”.

Make plans and stay disciplined

Discipline is by large the most important psychological aspect in the trading of
binary options. Identify a trading strategy that fits you and stick to it in your
trading. Professionals do their trades under a prepared plan while amateurs
follow their intuition including often impulsively reactions. If it happens to you
that you find yourself behaving impulsively you should take a short break.

Control your emotions

Adequate stress levels stimulate your brain but one should
beware when the stress exceeds the threshold. Always make
sure that stress works in your favour! Small amount of stress
can make you a better trader. It can help you maximise your
performance.

However, if you exceed your stress level you will start

making mistakes. Excessive stress triggers inadequately
offensive or defensive reactions. Hence, it is very important
to be able to recognise your stress threshold and make sure not to exceed it.

If you are not happy about how things are evolving, try to always refrain from
reacting too much emotionally. Being able to keep your head cool will be your
great advantage.

Now, let’s take a look at the winner’s and loser’s psychology. It may happen that
you have suffered a loss (your predictions failed). Traders’ natural reaction is to

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double their initial investment to immediately off set their loss. This, however, is
a huge mistake. You must always stay calm and follow your plan.

The same holds true for a successful trade. You must never become overly self-
confident and start risking and provoking luck. There is no good luck. There is
only your strategy.

Prudent money management

If you want to make money you must be able to take care of it. Although you
cannot control financial markets, you can still control your reactions to them.
Money management appears to be a very useful tool. To be able to understand
how to sensitively manage your capital is a big leap toward becoming a
successful binary options trader.

TIP: Click here: MONEY MANAGEMENT TIPS to read our best articles
focused on money management.

No matter how much experience you have, no matter whether you have $100
or $1 000 000 on your account there will always be some trades ending up in a
loss. Loss as such is no obstacle unless expected and managed without going
mad. However, if you risk too much in each transaction and, after each loss, start
panicking and rush to open new trades with the hope of eliminating your loss
you will go astray.

Instead, you should think ahead, anticipate. This helps you minimise your losing
streaks and maximise your profit from successful trades. The right money
management is absolutely crucial to ensure an efficient and long-term growth of
your capital.

Minimisating of risks (Passive money management plan)

This is a strategy preferred by the majority of traders. It offers “hints” and stop
limits to gain control over your trading and to secure yourself against losses. This
is the best way to protect your capital and to ensure its growth in the future.

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Of the two existing strategy, this one is less risky yet in the short run it may
generate lower profits. Passive traders follow the 5/15 rule, which means that
they invest the maximum of 5% of their capital per trade i.e. the maximum of
15% per trading session.

In a nutshell, when using this strategy you should not risk more than 15% of your
capital. You can keep one big trade open with 15% of your capital or three small
ones trades, each 5% of capital. It is natural that not everything runs smoothly
as planned.. From time to time, it’s the other way round. Then you must not
panic and, thanks to your impulsive behaviour, “purge” your account.

If you have on your account, for example, $5 000 you should invest per trade the
maximum of $250 (5% of your capital) to risk in one session no more than $750
(15% of your capital).

Aggressive trading (Aggressive money management plan)

We do not recommend this strategy to novices or traders with small
investments. Professional traders with large capital amounts appreciate the
strategy due to its great flexibility. It identifies the absolute one-off maximum
you are willing to risk.

Logically, with this strategy your risk more but you can expect bigger gains.
aggressive traders follow the 10/30 rule. This means that they invest the
maximum of 10% of their capital per trade i.e. the maximum of 30% per trading
session.

If you have on your account, for example $20 000 you should invest per trade
the maximum of $2 000 (10% of your capital) to risk in one session no more than
$6 000 (30% of your capital).

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Good luck! xBinOp.com Team

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