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Banc De Binary
The Ultimate Guide to Binary Trading
Table of contents
Foreword ............................................................................................................. 6

Letter from the CEO .......................................................................................... 8

Binary options 2011 ........................................................................................ 10

Introduction to Banc De Binary
	    We’re the global leader in binary options trading .................................. 12
	    We don’t think of it as a history, we think of it as a legacy .................... 13
	    A breadth of truly global assets ............................................................... 14
	    Client service that’s second to none ........................................................ 15
	    Banc De Binary is on your side ................................................................ 15

Introduction to binary options ..................................................................... 16

Binary options basics
	    The asset ................................................................................................... 18
	    The contract .............................................................................................. 18
	    The prediction .......................................................................................... 19
	    Amount staked ......................................................................................... 19

Who trades binary options?
	   Professional organizations ...................................................................... 21
	   Individual traders ..................................................................................... 21
Benefits of trading binary options
	   All conditions trading ............................................................................... 22
	   High return ............................................................................................... 23
	   Calculated risk .......................................................................................... 23
	   Tax exempt ............................................................................................... 23
	   Wide availability ....................................................................................... 24
	   Any time, anywhere trading .................................................................... 24
	   Simplicity .................................................................................................. 25
	   Small investment friendly ........................................................................ 25

How to trade binary options ......................................................................... 26
	   Making a trade ......................................................................................... 27
	   Type of binary options ............................................................................. 28
	   Digital binary options .............................................................................. 28
	   One touch options ................................................................................... 29

Analyzing binary options
	   Introduction to technical analysis ........................................................... 30
	   Trend following ........................................................................................ 31
	   Momentum ............................................................................................... 31
	   Mean reversion ........................................................................................ 32
	   Pattern recognition .................................................................................. 33
	   Support and Resistance ........................................................................... 33
Introduction to fundamental analysis
	    Fundamental analysis considerations ..................................................... 34
	    Company Information .............................................................................. 35
	    Industry News ........................................................................................... 36
	    Natural Events .......................................................................................... 36
	    Fear Factor ................................................................................................ 37
	    Market Conditions .................................................................................... 37
	    Economic Performance ............................................................................ 38
	    Economic Indicators ................................................................................. 39

Binary options trading strategies
	    Reversal ..................................................................................................... 40
	    Trend Reversal .......................................................................................... 41
	    Straddle ..................................................................................................... 42
	    Knock-on effect ......................................................................................... 43

Risk management
	    Analyze and research ............................................................................... 44
	    Learn from your mistakes ........................................................................ 45
	    Follow trends ............................................................................................ 45
	    Risk and reward ........................................................................................ 46
	    Familiarity ................................................................................................. 46
	    Limiting your trades ................................................................................. 47

Choosing a binary options broker
	   Trading platform ....................................................................................... 48
	   Ease of use ................................................................................................ 49
	   Keeping it safe .......................................................................................... 49
	   Service and support ................................................................................. 50
Frequently asked questions ......................................................................... 52

Taking a trading bonus — pros and cons ....................................................56

Banc De Binary – types of trading bonus
	   Deposit matches ...................................................................................... 58
	   Sign-up bonus .......................................................................................... 58
	   Banc De Binary – rebate bonus ............................................................... 59
	   Refer a friend ........................................................................................... 59

Personal broker program
	    Program features ..................................................................................... 60

VIP Platinum program and platform ........................................................... 62

Affiliate program ............................................................................................ 64
	     CPA payment plan (monthly) .................................................................. 65
	     Revenue share plan ................................................................................. 65
	     Super internal affiliate tiered revenue share plan ................................. 65

Banc De Binary platform rates ..................................................................... 66

Platform security ............................................................................................ 68

Deposits and withdrawals with Banc De Binary ........................................ 70

Types of accounts ........................................................................................... 72
Dear Valued Trader,
Welcome to the exciting world of binary
options trading, one of the fastest
growing sectors of the finance industry.
In this e-book, we’ll provide you       Our trading platform is designed to
with the basic information you          be easy to use, while still powerful
need to start trading. The basics can   enough to offer unique money
be learned within a few minutes.        management features, such as
However, there are numerous             fast and convenient access to the
advanced strategies that traders        Forex, stock, and commodities
and investors can utilize in order      markets, advanced research tools,
to increase the probability of high     and account maintenance, all
returns on their investments. In        in one consolidated web-based
addition, we’ll cover the different     environment. No software to install,
types of binary options trading         just login and take action.
available on the market, and
introduce you to the benefits of        We are proud to describe our
trading with Banc De Binary.            brokers as the best in the industry.
Established in 2009, following the      Our stringent recruitment process
major financial crisis of the last      ensures they are of the highest
decade, Banc De Binary has grown        calibre. We provide them with the
exponentially to become a world         best technologies and analytical tools
leading binary options broker. We       available to ensure their split second
offer an exceptional trading platform   decisions are as accurate as possible.
where investors can trade binary        In addition, your money is in your
options in a low-risk, informed, and    hands. You choose the options and
safe environment.                       are always in control. Our expert
                                        team of brokers is simply here to
                                        advise and assist whenever you need them.


Foreword                                                                    6
Foreword
Your money is in your hands.
 You choose the options
 and are always in control.




For more information, please contact us at
support@bbinary.com

or call us directly at
1-(800)-656-6163

Wishing you every trading success.

Sincerely,
The Banc De Binary Team

 7
                                             Banc de Binary
Letter from the
Dear Valued Customer,
Welcome to our global online banking community.

I’d like to take this opportunity        us who maintain a constant focus
to share my enthusiasm and               on advancements in technology,
excitement for the innovative, state-    communications and new product
of-the-art investment, trading and       development, the future is bright,
banking enterprise that is Banc De       inspiring and awesome in its
Binary.                                  potential.

Over the past few years, it has          At Banc De Binary, we are firmly
become apparent that the old ways        committed to developing and
of doing business in this increasingly   delivering cutting edge products,
interconnected financial world are       services and security in a world that
no longer viable. For the hundreds       demands constant innovation and
of banks, brokerages, investment         attention to the needs of the modern
houses and other financial               investor and trader.
concerns that foolishly cling to the
obsolete models of conducting            As such, you will notice that the
their business, the result has been      performance, products, trading
chaos, devaluation of assets and         platforms, customer service and
equity, and in many cases, oblivion.     educational tools at Banc De Binary
Unfortunately, this trend persists to    are evolving on an almost daily
this day as we continue to see bank      basis, with continuous upgrades
failures, defaults and depreciating      and enhancements to our online
value of many of the biggest names       global operations. With that in mind,
in banking over the past 50 years.       please know that each and every
                                         Banc De Binary customer is our most
For those that refuse to see or          important customer and that we are
do not comprehend the changes            here to serve you 24/7, with regard
in global economics, business,           to any and all of your banking and
investment and trading, the future       trading needs.
                                                                          8
holds little promise. For the rest of                    Oren Laurent
e CEO




        “The future is bright,
        inspiring and awesome
        in its potential..”
 9
                  Banc de Binary
Binary options enable inve
in the toughest market co
In the past couple of years, binary       many resources at their disposal
options have carved out a niche that      (namely, specialized personnel and
focuses on straightforwardness,           computing power) have an advantage
known risks, and a de-emphasis            over the competition. They quickly
on volatility. Many of the other          capitalize upon traditional asset
asset classes in today’s markets are      trading opportunities far before the
quite different. They involve a large     best retail investors are even aware
amount of painfully complex factors,      of them.
which increase the margins of error
and the likelihood of costly mistakes.    In combination with rising volatility
                                          and a staggering increase in the
Today’s markets are quite different       number of investment vehicles
from financial markets of the past.       available in recent years, it is easy
The digital age has revolutionized        to see why many retail investors
them, allowing for an explosion in        find themselves overwhelmed by
asset types, contracts, and strategies.   today’s market. In fact, many view
While this can be seen as a positive      the idea of speculative trading as far
in that it provides opportunities for     too risky and riddled with hidden
wealth creation, more frequently,         complexities. In a sense, they’ve
it has set the average trader at a        been unduly pushed out of the
disadvantage. Large institutions with     market.




                                                                          10
Binary options
estors to compete
onditions.
  These circumstances are precisely         However, with binary options, the
  why binary options are such an            set price and “all or nothing” nature
  exciting development. Brokers             of outcome brings risk out of vague
  choose well-researched and                territory and into the figurative light.
  understood underlying assets, giving
  retail investors information access       With exact risk known, binary options
  that rivals the professionals. Perhaps    traders are able to make wiser
  most importantly, risk calculation on     decisions about money and account
  binary options is understandable.         management. Not coincidentally,
  With more traditional assets, every       these are the areas where traditional
  single price movement affects             asset traders often stumble and
  potential gains and losses. When          lose. By eliminating these added
  additional complications such as          entanglements, binary options give
  leverage are factored in, it’s easy for   traders the ability to focus solely
  a prospective trader to lose track of     on making correct predictions and
  their exposure in a given investment.     consequently, making money.




   11
                                                               Banc de Binary
Introduction to Banc De B
We’re the global leader
in binary options trading

In 2008, the SEC approved the             banking and finance to a wide range
listing of binary options. This ruling    of customers, including corporations,
led Banc De Binary to successfully        hedge funds, individual investors,
predict a period of growth in binary      banks and governments, in a simple
options trading.                          yet secure online environment.
Our vision was to be the pioneers of
a new kind of bank, one focused on        Banc De Binary provides its clients
providing high quality binary options     with a unique value package: state-
trading services and solutions to         of-the-art technology; extensive
both the experienced trading              knowledge and unparalleled service
professional and those new to this        levels from our highly skilled team;
market.                                   alongside a modern and accessible
                                          range of financial services and
The Banc De Binary Pro Platform           products.
utilizes the latest technology to offer




                                                                         12
Introduction to Banc De Binary
Binary
    We don’t think of it as a history,
    we think of it as a legacy

    With a legacy of over 100 combined     consumers, corporations and
    years in the foreign exchange          institutions alike with a broad range
    markets, Banc De Binary is a leading   of financial products and services,
    global financial services company.     including private banking, corporate
    We service more than 20,000            and investment banking, securities
    customer accounts and operate          brokerage and wealth management.
    in over 80 countries, providing




 Our goal is to bring fair and equitable
 pricing and order-handling practices
 to all our clients.
                                                            Banc de Binary
A breadth of truly global assets
Banc De Binary’s trading platform         offers further opportunities as their
offers more than 90 assets, which         performance is linked to other
constitutes the widest set of tradable    underlying factors unique to those
assets currently available from any       countries. For example, if strength
provider. With trading activity in over   is perceived in certain commodity
80 countries, we can offer emerging       prices, it would be helpful to have a
market and other less liquid              wide set of currencies on offer, from
currencies. This widens the range of      Australian and Canadian dollars to
tradable currencies, commodities,         the South African rand, Mexican
stocks and indices that you can           peso, and several other currency
choose from. Further, with a VIP          pairs.
account we can add any asset within
two business days.                        Banc De Binary’s Pro Platform offers
                                          liquidity in several Asia-Pacific,
Major benefits of trading in the          Middle Eastern, Eastern European
binary options market include the         and Latin American currencies. For
diversification and opportunities         more information on the full breadth
created by reduced correlation            of currencies on offer, access the
with other asset classes. Trading         live chat option on Banc De Binary’s
in emerging market currencies,            website (www.bbinary.com) and
commodities, stocks, and indices          speak to a broker.




                                                                         14
Introduction to Banc De Binary
Client service that’s second to none
Banc De Binary offers 24/7 service via dedicated specialists who are trained
to look after our clients’ trading and administrative needs.

Our investors have repeatedly identified client service as a truly
differentiating key feature from our competition. We believe high-quality,
personalized service is central to our offering and we always welcome
suggestions to further improve our levels of service.



Banc De Binary is on your side
Banc De Binary has deployed best
practices developed over decades of
asset trading into its Pro Platform.




 15
                                                          Banc de Binary
Introduction to Binary Opt
Binary options are high return,
short-term investments
Based on exotic options, which are      All markets - currencies, stocks,
only traded on private markets,         commodities, and market indices -
binary options are traded over the      can be underlying assets for binary
counter and are available 24 hours a    options. The degree to which the
day, 7 days a week.                     option closes in or out-of-the-money
                                        does not matter as it does with a
A binary option, also known as a        traditional option.
digital option or an all-or-nothing,
is a trading instrument with a fixed
return that is determined at the
outset of the trade. A trader will
receive a predetermined payout if
the binary option expires in-the-
money. He will lose a predetermined
amount of his original stake
if the option expires
out-of-the-money.

The beauty of trading binary
options is the inherent
simplicity. If a prediction is
correct, the trader receives
a refund of the stake plus a
return on investment that
is typically 71-88%. If the
trader is wrong, Banc De
Binary will return a small percentage
of the original stake.
                                                                      16
Introduction to Binary Options
tions


 Unlike traditional options, binary    utilize many more underlying assets,
 options do not have set prices: the   and have much more flexibility
 trader decides upon the amount of     in their timing, strike prices, and
 money he wants to risk and invests    contract options. Since 2009, they
 that amount when he buys the          have become very popular among
 option. Furthermore, the shorter      traders as a way to control risk in
 duration of these contracts makes     options trading, in turn allowing
 binary options more suitable for      for more dynamic strategies to be
 short-term trading than their         developed.
 traditional counterparts.
                                       Finally, constantly evolving
 In the past few years, online         technology better facilitates digital
 binary option trading has grown       trading and allows investors to make
 exponentially. Digital trades can     more lucrative trades.




 The beauty of trading binary
 options is the inherent simplicity.




  17
                                                        Banc de Binary
Binary Options Basics
One of the key benefits of binary options is simplicity.
Binary options trading is relatively easy once the
parameters of the trade are understood.

Each binary option is based on four distinct components:



The asset



               1
                         Each binary options trade is based on an asset
                         selected by the trader.
                         These are known as underlying assets, since
                         the trader doesn’t buy the assets and therefore
                         never actually owns them.

               All binary options brokers offer their own range of assets
               to traders, such as stocks, commodities, currency pairs
               and market indices. Some brokers may offer only a
               limited range, which will restrict trading opportunities.
               Although a trader may opt to specialize in an asset
               or a group of assets with which he is familiar, the
               ability to trade a wide range of assets offers increased
               opportunities to profit.




                                                                   18
Binary Options Basics
The contract/time of expiration


        2
                    Each binary option trade is a contract and each
                    contract has a set expiration time. Although
                    many types of traditional trading require an
                    investment for several months or years before
                    a reasonable return is achieved, in the case of
        binary options, trades can expire in a matter of weeks,
        days, hours or minutes.
        Using Banc De Binary’s trading platform, an option can
        be purchased up to five minutes before it expires. It is
        important that the trader always knows just how much
        time is left before the option expires so that he can
        improve his chances of making an accurate prediction.


The forecast or prediction



        3
                    The job of a binary options trader is to
                    determine in which direction the price of
                    an asset will move before or at the time of
                    expiration. For the simplest binary options
                    trades, the forecast will be based on whether
        the price at expiry will be higher or lower.
        The trader will purchase a Call option if he believes the
        price will close higher or a Put option if he believes the
        price will fall. A correct prediction will result in a return of
        71-88% on investment – nearly double the original stake.


The amount that is at stake



        4
                   Each binary options trade is for a fixed amount
                   that the trader specifies at the outset of the
                   trade. This puts the trader’s money firmly in
                   his hands at all times giving him the control to
                   minimize losses and maximize returns.
19
                                                   Banc de Binary
Who Trades Binary Option

Trader types
For many years, binary options were     the first exchange to publically
treated as simple over-the-counter      offer binary options, and the CBOE
instruments. As a result, an actual     followed suit in June of the same
liquid market didn’t exist, and there   year. Both of these market-traded
was no regulation whatsoever in         binary options are highly limited
place. Binary options were only         when compared to the types of
one small part of a larger complex      binary options available to online
contract. Specialist brokers were       traders.
engaged to trade on the clients’
behalf. Naturally, these brokers        The greater availability of binary
charged a commission fee for the        options and the increasing number
service.                                of organizations that support them
                                        have led to an exponential growth in
This all changed in early 2008, when    the number of people trading these
the SEC approved a rule change          options. This number continues to
allowing binary options to be traded    grow on a daily basis.
on major markets. In May 2008, the
American Stock Exchange became          There are two trader types:




                                                                      20
Who Trades Binary Options?
ns?

  Professional organizations
  Some of the organizations that operate as binary
  options traders include options traders who have
  diversified their portfolio. They are attracted to
  the potential for high volume trades giving the
  opportunity to achieve significant returns in a
  relatively short timeframe. Additional benefits
  include the availability of extensive assets to trade
  and risks that are controlled, eliminating much
  of the uncertainty associated with traditional
  options trading.




                                     Individual traders
                                     At the other end of the scale, individual
                                     investors trade binary options due to
                                     the provision of comprehensive trading
                                     platforms and the availability of high levels
                                     of support, information, and accessible
                                     advice. Day traders in particular are
                                     attracted to the flexibility of binary options
                                     trading. Internet-based trading platforms
                                     create a true 24/7 trading environment and
                                     traders can access their accounts securely
                                     any time anywhere, using any suitable
                                     device with Internet access.
      21
                                                              Banc de Binary
Benefits of Trading Binary
Binary options offer an extensive           situation is solely either gain or loss.
range of benefits to all traders,           Therefore, to finish in-the-money, all
whether they are new to the market          a trader really needs to predict is in
or experienced professionals.               which direction the asset will move
                                            before the time of expiration.
The simplicity of binary options
trading is perhaps the most                 Additional benefits associated with
appealing factor compared with              trading binary options include:
their traditional counterparts. Every




All conditions trading
In traditional options trading,             Trading foreign exchange enables
investors usually only make money           a trader to finish in the money by
when markets and prices are rising.         forecasting a fall or rise in the value
However, a binary options trader            of one currency against another.
can make money in any market                With the constant changes to
conditions, because predicting a fall       rates and the number of available
is as profitable as predicting a rise. In   combinations, this gives almost
fact, volatile markets offer increased      limitless opportunities to achieve a
opportunities to profit due to the          return.
large swings that can occur in each
direction. The key is to be alert to        All markets follow trends and a
changes in market conditions, follow        trader can profit on an up trend by
the signs and then profit through           buying Call options as well as buying
correct forecasting.                        Put options when a downward trend
                                            is underway. To reiterate, it’s simply
                                            a matter of forecasting in which
                                            direction a market will move.
                                                                              22
Benefits of Trading Binary Options
y Options

  High return
  Traditional investments usually          A typical option will expire in a
  necessitate a long-term outlook, with    matter of hours or even less and
  assets often held for months or even     will often yield 71-88% if predicted
  years before a significant return on     correctly. With a series of successful
  an investment is achieved. Binary        trades, a trader can quickly
  options, on the other hand, are          accumulate substantial profits.
  short-term, high-return trades.



  Calculated risk
  Although an incorrect prediction         trading to continue until a return to
  can result in the loss of a proportion   profit is achieved. This contrasts with
  of the original stake, the trader can    other forms of trading where large
  determine at the outset what this        amounts of money are at risk and
  will be. Therefore overall exposure      it is easy to lose control over how
  can be relatively small, allowing        much is at stake.



  Tax exempt
  Binary options brokers do not            vehicles. Some countries, such
  withhold taxes from payouts.             as the USA, treat the profits from
  Furthermore, the UK tax authorities      binary options trading as short-term
  treat any gains from binary options      capital gains. However, traders may
  as tax exempt. This is a clear benefit   offset gains with any losses for tax
  to all UK-based traders when             purposes.
  compared with other investment
   23
                                                             Banc de Binary
Wide availability
Binary options are now an accepted      countries. This constitutes the widest
means of trading and are widely         set of tradable assets currently
quoted on markets, with a number        available from any provider.
of brokers providing extensive yet      Trading in emerging markets and
easy-to-use trading platforms that      less liquid currencies offers further
any subscriber can access.              opportunities to profit as their
Banc De Binary’s Pro Platform is        performance is linked to other
able to offer more than 90 assets       underlying factors unique to those
with trading activity in over 80        countries.




Any time, anywhere trading
Trading platforms generally provide     platforms are web-based, traders
access to a variety of global markets   can access their accounts and make
covering stocks, commodities, and       trades using any device with Internet
foreign exchange. This allows 24/7      access. This combination gives
trading with at least one market        traders the ability to trade however
generally open at most times.           they want, whenever they want and
Additionally, since most trading        from wherever they are.




                                                                       24
Benefits of Trading Binary Options
Simplicity
Whereas some types of investment          If the outcome is correct, the trader
and trading can be complicated,           will receive a payout in the region
binary options trading provides a         of 71-88%. Further, binary options
straightforward process that involves     do not require more than one pip in
a number of simple steps. Traders         order to be in-the-money.
simply choose the asset they want         Forex trading and other forms of
to trade, predict the direction of the    online trading require three pips just
price movement by the stated time         to commence trading.
and indicate the amount of the stake.




Small investment friendly
Unlike traditional investments,           Furthermore, careful diversification
which require a significant amount        can help build a buffer against
of capital upfront, binary options        potential losses.
traders can invest as little or as much   As stated earlier, your money is in
as they wish. No significant deposits     your hands at all times.
are required in order to start trading.




  25
                                                           Banc de Binary
How to Trade
Binary Options
In order to trade binary options, a      Several account types may be
broker is required. Not the specialist   available with different minimum
broker of old who would trade on         deposit requirements. The features
an individual’s behalf and charge        and benefits of each account should
commission fees, but a modern            be examined carefully in order
binary options broker, providing         to choose the right fit. It is often
a trading platform. This gives the       possible to start small and then
investor complete freedom to trade       upgrade to another account at a later
at his convenience.                      stage. Once the trader has registered
Having identified a suitable platform,   his details online and completed his
the trader must open an account.         deposit, he’s ready to begin trading
                                         binary options.




                                                                       26
How to Trade Binary Options
Making a trade
Making a successful trade involves a number of simple steps:


Choose the asset
Most trading platforms will have a      or currency pair. For each asset,
range of available assets. A trader     the current price will be displayed,
will generally select an asset type     along with the expiration time of the
with which he is familiar, whether it   option and the percentage payout
is a stock, market index, commodity     for a correct prediction.




Predict the Price Movement
The trader will select a Call option    which are explained later in this
if he thinks the price will rise by     chapter. All he needs to do is enter
the time the option expires or a        the amount to be traded and
Put option if he expects the price      confirm the trade.
to fall. Alternatively, he may trade
variations, known as touch options,



Wait for the option to expire
If the prediction is correct at the     It is important to remember that
time of expiry, the trader will         unlike Banc De Binary, some
receive a return that’s equal to his    platforms are really all-or-nothing. In
initial stake plus the stated payout.   those cases, the whole of the original
If he’s wrong, he’ll receive a small    stake will be lost.
percentage of his original stake.

 27
                                                          Banc de Binary
Type of Binary Options


Digital binary options
These are the simplest and most          of his stake in return; if he had
common trades and are sometimes          purchased a Put option he would
known as all-or-nothing options. As      profit and receive a return of $175
described above, the trader is simply    (his original stake of $100 plus a 75%
predicting whether the price will rise   payout).
or fall by the stated expiration time.
                                         As explained previously, the
An example follows:                      incremental price movement
Google’s shares have a current price     itself does not matter as it does
of $535.50. The trader decides to buy    in traditional options trading.
an option that expires in two hours      The trader must correctly predict
and pays a 75% return on success.        whether the price will be higher or
He stakes $100 on his prediction and,    lower at the expiry of the contract
at the end of the two-hour period,       – the price may move in either
the price stands lower at $534.10.       direction by as little as one pip.
If he had purchased a Call option, he
would lose and receive a percentage




                                                                        28
How to Trade Binary Options
One touch options
A one touch option is a binary option    For example:
that pays off if the underlying asset    The current commodity price is
reaches a specific level by a specific   $80.50 and the trader sets a limit of
time.  In this case, the trader is not   $81.00. If he purchases a one touch
just choosing whether a price will       option, he will be in-the-money if
rise or fall by a stated time, he is     the price touches that level before
deciding whether it will touch a set     the option expires. When it does hit
barrier at any time during the period    the limit, the option closes and the
of the trade. Due to the additional      trader receives his payout; it doesn’t
specificity involved, this type of       matter what happens to the price
trading can attract returns as high as   after that. If the price does not reach
500%.                                    the stated level before the expiration
                                         of the contract, the trader will lose
                                         and forfeit his stake.




 29
                                                           Banc de Binary
Analyzing Binary Options
To improve the chances of accumulating consistent profits from binary options
trading, there are two types of analysis that traders can employ: technical
analysis and fundamental analysis. Fundamental analysis looks at how outside
influences can affect asset prices; technical analysis focuses on how a price has
moved in the past and how that can determine future movements. Both types
of analysis are essential tools for traders.


Introduction to technical analysis
Technical analysis is the study           established trends, and other
of asset prices in the attempt to         elements are clearly visible in any
determine the future direction of a       chart. Most price charts plot price
market. Traders who use technical         movements over time or by volume
analysis tend to believe that the         of trades. Charts are often formatted
majority of available information is      via a trend line so that price direction
already incorporated in the value of      can be easily read. Bar charts or
an asset. Consequently, prices will       candlestick charts are also used to
always move in a consistent manner        display the high, low, open and close
and identifying the ways assets have      prices for each period.
moved in the past will give a guide to
the way they will move in the future.     Technical analysis can be particularly
                                          helpful in assisting an investor with
Much time and effort for technical        entering, exiting, and managing
analysis is taken up with studying        the risk of positions. A number of
charts. Practitioners believe that the    analytical tools are available as
factors that influence prices, such as    described below.
the effects of supply and demand,




                                                                           30
Analyzing Binary Options
Trend following
Trend following analyzes historical      averages. If the moving average
data in order to establish whether a     for the shorter period crosses
sustained movement in a particular       significantly above or below that for
direction is occurring. This normally    the longer period, then an upward or
involves looking at different periods,   downward trend has developed.
such as 2-day and 7-day moving



Momentum
Tracking momentum is sometimes           If the short-term averages are larger,
known as Moving Average                  momentum is increasing, while
Convergence Divergence (MACD)            larger long-term averages suggest
and determines whether an asset’s        a decreasing momentum. Slowing
momentum is rising or falling. It is     momentum indicates the rate of
used to track the daily changes in       change will decrease and may
short-term and long-term averages.       eventually reverse.




 31
                                                          Banc de Binary
Mean reversion
Mean reversion involves identifying         A second group of technical
an asset’s mean and then                    indicators that are used to measure
determining if the asset price is           mean reversion are Relative Strength
settling back to that point. It is rather   and Stochastic indicators. Both of
like testing a rubber band to see how       these technical indicators measure
far it will stretch before it snaps back.   how fast a market has moved in the
                                            short term, relative to movements
Analysts employ technical indicators        over a longer period. Stochastic
such as Bollinger Bands to measure          indicators, in particular, are based on
mean reversion. Bollinger Bands             the principal that in an up trending
employ various statistical factors,         market, stocks tend to close near
such as supply management, in               their highs and in a downward
order to generate a set of bands to         market stocks tend to close near
contain the price action. Bollinger         their lows. These indicators create
bands allow any trader to instantly         an index that is used by traders to
view price on a chart relative to its       determine if a market is overbought
volatility mean over a period of time.      or oversold.
Volatility is the rate at which the
price of a currency pair moves up           In general, technical indicators
and down in the market. When high           are successful because of their
volatility can be seen, the upper and       popularity among traders, which is
lower Bollinger bands widen and             based on the reasoning that “volume
when the price fluctuations decrease,       generates movement”. The logic
the bands contract. The price usually       follows that the more investors who
bounces off the range whenever it           are trading in a certain direction,
touches the upper or lower band.            the more that direction is set to
                                            continue.




                                                                            32
Analyzing Binary Options
By utilizing these indicators,            Fundamental analysis looks at how
a trader is essentially trading in the    outside influences can affect asset
same direction as many others.            prices; technical analysis focuses on
This insight can be useful when           how a price has moved in the past
trading short term.To improve the         and how that can determine future
chances of accumulating consistent        movements. Both types of analysis
profits from binary options trading,      are essential tools for traders.
there are two types of analysis
that traders can employ: technical
analysis and fundamental analysis.



Pattern recognition
In this type of analysis, the trader is   move.  An example of this type of
looking at specific patterns within       pattern is a head and shoulders
the price action. This will help him      pattern in which two shoulders and a
determine whether any recognizable        head can clearly be seen. In general,
patterns reveal a predisposition          the market will fall after forming the
for him to forecast a specific price      second shoulder.


Support and Resistance
Support and resistance are among          the price from rising further. These
the most widely known and widely          levels act like a ceiling and appear to
used Forex trading concepts and           force price back down when it tries
strategies. These are the levels in       to break above the level.
the markets, which price has not          It is essential to bear in mind that
been able to break outside of.            support and resistance levels
Support levels are the areas which        are not exact numbers, but offer
price cannot seem to break below.         traders a clear indication based
If a break does happen, it is only        on past performance that when
temporary and the price soon              price reaches either a support or
returns above the level. Resistance       resistance level it is likely to bounce
levels are the areas, which prevent       back.

  33
                                                            Banc de Binary
Introduction to Fundamen
Fundamental analysis is based on the       A trader would need to study all
principle that assets are generally        levels of data, depending on the
priced incorrectly and that markets        asset he is trading, from company
are constantly attempting to correct       level through to industry and
them. These corrections are based          markets, on to country wide and
on outside events affecting asset          global level. Many events are inter-
price and therefore traders will need      related and can affect the price of
to continually check news items,           different assets and even different
company announcements and                  asset classes.
various publications.
                                           Each type of analysis will help a
This type of analysis can be               trader become more successful in his
subjective, because the investor           forecasts. However, it is important to
is forming a view based on the             note that a combination of technical
occurrence of certain outside events.      and fundamental analysis offers the
                                           greatest chance of success.



Fundamental
analysis considerations
Fundamental analysis assumes that          As such, both theories potentially
the market is rational and that a          turn a blind eye to important
security’s price will eventually reflect   external data. A stock that
the true value of the investment.          announces big unanticipated news
By contrast, technical analysis            is unlikely to continue to complete
assumes that the marketplace               a price pattern, or to move directly
will repeat past trends and that a         towards its underlying real value.
security’s price will eventually move      Some of these factors and variables
in the same way other investment           include:
prices have moved.
                                                                           34
Analyzing Binary Options
ntal Analysis
  Company information
  When using a company’s share price      •	 Book value as total assets less
  as the basis for a binary options          total liabilities
  trade, full information about the       •	 Price to book (P/B) compares the
  company is absolutely essential.           share price to the company’s asset
  Read news items and press releases         value
  and take account of analysts’ views.
                                          •	 Price to sales (P/S) to show the
  Use a company’s published accounts         share price in relation to annual
  in order to calculate certain figures      sales
  and ratios to assess the company’s
  worth and performance, including:       •	 Dividend yield as a percentage of
                                             the company’s share price
  •	 Earnings per share (EPS) that
     provides a measure of the value of   •	 Return on equity (ROE) to
     each share                              determine the effectiveness of
                                             using the money invested.
  •	 Price to earnings (P/E) to
     determine if a share is under- or    Be aware that any news or
     over-valued                          information about a company
                                          may have far-reaching effects. For
  •	 Projected earnings growth (PEG)      example, the announcement of
     to compare the share price to        a new product may increase the
     annual growth                        company’s share price while at the
                                          same time forcing down the value of
                                          its rivals.




   35
                                                           Banc de Binary
Industry news
No one company exists in isolation.       reflected in the company share price.
The performance of an industry            It is advisable to watch for industries
will affect the value of all those        that are on the upswing and to trade
companies that comprise it. A             companies that are part of them
successful company’s share price          accordingly. For example, one would
may be dragged down by an                 generally expect the price of shares
industry that is in general decline.      in renewable energy companies to
Conversely, a struggling company          be increasing as the market develops
may experience an uplift if the wider     and products become more widely
industry begins to improve. Although      available.
a company may perform better or
worse than its industry, it will always
be associated with it and this will be


Natural events
The price of commodities will, of         price of the company that supplies
course, be influenced by natural          the commodity may increase.
disasters and weather events. As          Conversely, a company that uses
such, all assets are affected by supply   a lot of the commodity will suffer
and demand. For example, a drought        a fall in profits and its share price
or severe storm that ruins crops on       may drop. A country that is a major
a wide scale will force the price to      producer will benefit through exports
rise. Similarly, a hurricane that shuts   and its currency may rise.
down an oil field can cause the price
to rise due to supply problems.
Some of the effects of natural events
are fairly easy to predict, but they
can have far-reaching consequences.
If the price of a commodity rises due
to a shortage of supply, the share

                                                                          36
Fear factor
Markets are often driven by             often they establish an upward or
sentiment, with prices quickly          downward trend that continues
rising and falling. Often, there’s no   for some time. A successful binary
real logical reason for the changes     options trader will follow the news in
and they can be driven by fear. It’s    order to identify events that are likely
difficult to predict how markets        to panic or calm the markets.
will move in these situations, but


Market conditions
Bull markets are established when       be affected by prevailing market
prices are rising, and the reverse,     conditions.
bear markets, when prices are
falling. These markets can become       Markets can also become range
established for long periods, often     bound, with prices moving within a
years, and help you determine           narrow band even when the longer-
the general direction of price          term trend indicated a particular
movements. This is useful when          direction. They may also become
trading an index but also provides      volatile, with prices varying wildly.
guidance for individual company         Studying events that influence the
shares. Whether a company is            market will give a guide to overall
successful or unsuccessful, it will     movements.




 37
                                                          Banc de Binary
Economic performance
In the short-term, it is acceptable       Budget deficits and falling currencies
for a country to run a large budget       obviously affect the prices that
deficit. However, if the deficit          countries pay for the commodities
continues for a number of years, it       they import. This can have an impact
can become a problem. Countries           on other parts of the economy, with
often devalue their currencies            share prices particularly affected
to make exporting easier and to           for those companies that import or
limit imports, thereby reducing or        export extensively.
eradicating the deficit. When the
currency floats freely, the value often
goes down against other currencies
that have stronger economies. The
Euro zone itself poses a difficult
challenge, because there are many
countries with different performance
levels but only one currency.
Countries themselves often use
interest rates as an economic
weapon. A rising interest rate makes
a currency more attractive and
generally causes its value to increase
in relation to other currencies.
However, different countries can
change their rates in the same or
opposite directions at the same
time, so it’s the difference between
the rates that sets the currency
pair values. Prices often move in the
expectation of an interest rate change.



                                                                          38
Economic indicators
Various economic indicators are published
that either analyze economic performance
or predict future performance. These
indicators have different timings in relation
to the way the economy changes:

                              •	 leading economic indicators are important
                                 in predicting price movements, because they
                                 change before the economy as a whole does.
                                 Stock market returns are one such indicator,
                                 because the markets, for example, generally
                                 rise before a recession ends

                              •	 lagged economic indicators follow on after
                                 the economy changes direction, such as the
                                 unemployment rate, which usually improves
                                 two or three quarters after the economy re-
                                 enters growth

                              •	 coincident economic indicators, such as GDP,
                                 tend to move in line with the overall economy




 39
                                                          Banc de Binary
Binary Options Trading Str
Reversal
Asset prices often follow a trend             When a reversal is indicated, a
for a set period moving only in               trader might buy an option that is in
one direction. When the trends of             the opposite direction to previous
price and volume move in the same             movements. He might, for example,
direction, it is an indication of a           purchase a Call option if the price
healthy underlying market direction.          has been falling and is now expected
However, when price trend is rising           to rise, or a Put option if the price is
but the trend in volume is falling, it        due to fall after an increase.
warns of a potential price trend reversal. 




                                                                               40
Binary Options Trading Strategies
rategies
  Trend Reversal
  A trend reversal may be indicated         trader who has been finishing in
  by a diamond pattern on a price           the money with Put options should
  chart and, although it may be not as      therefore change to Call options in
  common as other reversal patterns,        order to take advantage of the trend
  it can be a useful indicator. This type   reversal.
  of pattern comes in two forms —
  the diamond top and the diamond           This strategy is based on the concept
  bottom — with both types having the       that if an asset suddenly moves in
  shape of a diamond lying on its side.     one direction, it is unlikely to remain
                                            at that peak but will move back
  A diamond top forms at an up              towards its original position, if not
  trend’s peak, occurring when the rise     all the way. So, an investor should
  ends and the price remains flat for       buy an option, Call or Put depending
  a while. This can result in a series of   on whether the price has risen or
  waves that become taller and then         fallen suddenly, on the assumption
  revert to a lower level. At this point,   that it will soon return and stabilize.
  you should expect the price to break      Of course, no one knows when
  out to the downside. This is a signal     an asset has reached its peak. So
  to change the direction of your           close monitoring of the asset and
  trades.                                   researching why it peaked is vital to
  A diamond bottom is the reverse           deduce the likelihood and timing of
  effect, with the same reverse pattern     its return.
  but at the bottom of a downward
  trend. As the waves begin to
  flatten out, a change of direction
  is indicated and a breakout to the
  upside is due. Any binary options



   41
                                                              Banc de Binary
Straddle
The Straddle is a more complicated        the asset and then when the market
strategy, because it involves buying      drops, place a Call in the opposite
both a Call and Put option on the         direction as it returns back up. This
same asset. The investor straddles        means the trader always has at least
the asset at a low point as well as       one trade expiring in the money and
a high point, and therefore the           he will either take a minimal loss or
area in between the two options           gain a huge reward for landing both
can be twice as successful. This is a     trades for a large sum. The Call and
particularly useful strategy to protect   Put options do not have to be bought
oneself in volatile markets.              at the same time. Rather an initial
                                          option can be bought with a longer
If the price at expiry is somewhere       expiry and the second purchased
between the two levels, the trader        once the asset’s direction is more
finishes in-the-money on both and         established.
maximizes profit. In a worse case         Note that the straddle in binary
scenario, at least one prediction will    option trading is different from
be correct and the trader minimizes       vanilla options since the purchase
losses.                                   price and exercise rights differ
                                          between the two.
Although the setup itself can be
difficult, the straddle is one of the
best strategies in binary options
trading. The trader is looking to
place a Put as high as possible on




                                                                        42
Binary Options Trading Strategies
Knock-on effect
This is perhaps the most logical         In this case, a trader would buy
of all strategies, and is based on       a Call option on the company
the concept that a move on one           and Put options on all of its main
option will have a knock-on effect       rivals. The key is to understand the
on another. For example, the price       interrelationships between assets
of a stock may affect the price          and to correctly anticipate price
of the index in which it is traded       movements.
or if a country heavily relies on
a particular asset, then a change        The trader receives his payout; it
in that commodity’s price may            does not matter what happens to
affect the country’s exchange            the price after that. If the price does
rate. For example, a company             not reach the stated level before the
might announce a major new               expiration of the contract, the trader
product launch or a development          will lose and forfeit his stake.
breakthrough that causes its share
price to rise but also drives down the
value of the company’s competitors.




 43
                                                           Banc de Binary
Risk Management
One of the most important considerations for any trader is how to manage
risk. Although binary options offer low risk compared to other types of
trading, the possibility of loss is always given. While there is no strategy that
can fully avoid risk, there are numerous methods an investor can utilize to
minimize his financial exposure when he enters the market.



Analyze and research
Following a hunch will generally           Making successful trades is often
end in failure and a trader should         about getting in quickly; watching
never simply guess when he makes a         the news and announcements will
trade. The primary way to minimize         ensure a trader stays ahead of
risk is to undertake thorough asset        the market and understands how
analysis. Technical analysis will          events are likely to affect prices. The
establish price patterns that indicate     information a trader utilizes should
future movements; fundamental              always be current. A trader must act
analysis will identify events that will    quickly to predict price movements
cause price changes.                       before it’s too late.




                                                                            44
Risk Management
Learn from your mistakes
It is important to remember that trading
mistakes occur from time-to-time and it is
beneficial to accept each mistake as a lesson
and to try to learn from the experience.
Traders should build up a history of both
successful strategies and those that have
not worked, so that he can avoid repeating
the same mistakes in the future. Gradually,
over time, the investor will build up his
success rate overall.




Follow trends
Trying to beat the market does not usually
work. Investors should generally watch for
trends and try to follow them by purchasing
mainly Call options in a bull market and Put
options in a bear market. Traders should
also remain alert to how the market is
moving so that he can alter his tactics as
soon as a reversal looks likely.

 45
                                                Banc de Binary
Risk and reward
Trading is a balance between risk and
reward. A greater appetite for risk offers
higher returns, along with the reduced
probability of success. A safer bet will
increase the chance of a profit but will,
in turn, pay less and take longer to
accumulate significant profits.

The best strategy is usually to go for
a mix of trades. A trader should only
opt for a riskier trade if he has a firm
reason to believe he is correct in his
assumptions. He should opt for the
safer option if he is not totally sure.
Needless to say, if a trader entertains
real doubts about a trade, he should
avoid it altogether.




Familiarity
Risk can be minimized by trading             will be far too restrictive, and will
assets with which an investor is             limit the opportunities for trading
already familiar. For example, a             success. Trading different assets
trader who also works in the oil             in various markets will spread the
business should aim to trade oil             risk, so the best advice is always
on the commodities market or the             to gain familiarity in new areas by
shares of major oil companies.               performing sufficient research and
However, trading a single asset              analysis as outlined above.

                                                                              46
Risk Management
Limiting your trades
     Making a succession of bad trades, will
     quickly exhaust available profit. When a
     trader hits a bad run, he can simply stop
     trading. If he does that, however, he won’t
     know when his bad run has come to an
     end. The best strategy, therefore, would be
     to keep trading but with reduced stakes.

     A good risk management strategy is often
     to limit each trade to a set percentage of
     existing capital. A ballpark figure would be
     to never risk more than 8.5% of existing
     profits on one trade. This means a trader
     would have to make eleven consecutive
     bad trades before he completely expended
     his capital. It also means that the amount
     at risk gets progressively less when a trader
     is losing but then starts to increase when
     he enters a winning streak so that, in turn,
     he also stands to make more profit.




47
                                       Banc de Binary
Choosing a Binary Options
The growing popularity of binary          which will seriously restrict an
options trading has attracted a           investor’s opportunities to trade and
number of brokers to the market.          make money. A trader should look
All have key differentiating features.    for those brokers who offer plenty
Since a broker is a necessity in          of assets across a range of global
order to trade binary options, it         markets. In practice, this means
is important to choose one who            there will usually be at least one
provides the right level of service for   open market most of the time and
your needs.                               better opportunities and availability
Some brokers may offer only a             for trading assets of choice.
limited range of tradable assets in a
relatively small number of markets,




Trading platform
Following a hunch will generally          Making successful trades is often
end in failure and a trader should        about getting in quickly; watching
never simply guess when he makes a        the news and announcements will
trade. The primary way to minimize        ensure a trader stays ahead of
risk is to undertake thorough asset       the market and understands how
analysis. Technical analysis will         events are likely to affect prices. The
establish price patterns that indicate    information a trader utilizes should
future movements; fundamental             always be current. A trader must act
analysis will identify events that will   quickly to predict price movements
cause price changes.                      before it is too late.




                                                                           48
Choosing a Binary Options Broker
s Broker

                                           Ease of use
                                           Depositing money and withdrawing
                                           accumulated profits should be
                                           a simple, quick and inexpensive
                                           process. Traders should not be
                                           unnecessarily prevented from trading
                                           nor kept waiting for their money. In
                                           particular, look for a broker that offers
                                           multiple methods of depositing and
                                           withdrawing money, and where the
                                           process isn’t an over-complicated one.



  Keeping it safe
  Needless to say, security is              with over 200,000 business
  crucial. The broker should offer a        customers and more than 7,000
  safe trading environment. There           affiliates and business partners
  should be a privacy policy and            working to make the Internet more
  adequate authentication to prevent        secure. Any broker that has this level
  unauthorized access to accounts. It is    of security will provide the safest
  vital that all data and transmissions     possible trading platform. Check and
  are securely encrypted so that            compare what each broker provides
  personal information is not divulged.     and choose the one with the highest
                                            level of security.
  One of the most respected providers
  of online security and authentication
  solutions is the company Comodo,


   49
                                                               Banc de Binary
Service and support
However experienced a trader            Certain brokers, however, will
becomes, he is likely to want a         require a deposit even for a practice
degree of support at some time.         account. Superseding that, there
Brokers offer different levels of       should be a basic account with a low
service that are designed to meet the   deposit requirement right up to a top
needs of different types of traders,    of the range account that requires a
depending on the type of account        much higher deposit but provides a
that is selected. There should always   more personal and comprehensive
be a help line, an email address and    service.
a live chat facility in case a trader
requires urgent support. Look at        In light of the vast array of accounts,
the type and extent of information      brokers and platforms available, it
that is provided and how often it is    is absolutely essential to choose the
updated. Most importantly ensure        broker that is a good fit for you.
the information provided is accurate
and of the highest quality.

Some brokers offer different
accounts directly aimed at different
levels of trader from the novice to
the experienced to the seasoned
professional. It is sometimes
possible to start with a practice
account where investors can trade
without risking any money (although,
of course, without accumulating any
profit either).




                                                                         50
Choosing a Binary Options Broker
51
     Banc de Binary
Frequently Asked Questio
What is a binary option?
A binary option, also referred to as a digital option or an
all-or-nothing, is an option in which payout is determined
at the onset of the contract.
The trader receives a fixed amount of return if the option
expires in-the-money, irrespective of how much the price
of the underlying asset has moved. The trader never
actually owns the asset. It is the security upon which an
options contract is based.

                                      What is an underlying asset?
                                      A commodity, index, stock, or Forex pair
                                      that can be traded as a binary option.


What is a Call option?
An option that provides the trader with a predetermined
profit when the underlying asset is higher at the time of
expiration than at the time it was purchased.



                             What is a Put option?
                             An option that provides the trader with a
                             predetermined profit when the underlying asset
                             price is lower than when was purchased.


What is the investment amount?
The amount of money invested in the option.


                                                                        52
Frequently Asked Questions
How do I invest?

ons
                         1. Choose the asset that you want to invest in.
                         2. Choose a Call or Put option for the underlying asset.
                         3. Choose the expiry time for the trade.
                         4. Enter the amount of the investment. You may
                         cancel the selection by clicking “X“ any time before the
                         transaction is approved.
                         5. Click “Apply“
                         6. Approve the trade


  What return will I get for a successful investment?
  A successful investment will result in a guaranteed return. If the
  prediction is correct, the trader receives a refund of the stake plus
  a return on investment that is typically 71-88%.

            What return will I get on any given binary
            option trade in the event that the option expires
            out-of-the-money?
            You will receive a small proportion of your original stake. The
            balance will be deducted from your investment account.

  What is the minimum amount to
  purchase a single option?
  1 EUR/ 1 USD              What is the maximum amount
                            to purchase a single option?
                                       3,000 EUR/USD

               I tried to invest an amount for a single option
               but received an error message telling me I
               exceeded the maximum investment amount.
               What should I do?
               The maximum investment amount you see depends on various
               factors. However, you can purchase multiple options, one
               following the other, to achieve a higher accumulated amount.
   53
                                                              Banc de Binary
What are the levels displayed in the trading boxes?
A level is the quoted price for an option of an underlying asset.
The level changes and is updated frequently according to different
parameters that Banc De Binary proprietary algorithms take into
account. The levels we present in the trading boxes are those at
which Banc De Binary is willing to sell options and are Reuters real-
time market levels. For more details about how expiry levels are
determined, refer to the website (www.bbinary.com).




                What is the expiry rate?
                The expiry rate is the price of the underlying asset according
                to Reuters at the time of expiry of the option. This rate
                determines if the option has expired in-the-money or out-
                of-the-money. A different expiry rate is determined for
                each underlying asset. The calculation of the expiry rates is
                detailed on the Banc De Binary website (www.bbinary.com).




What is the expiry time?
The expiry time is the time and date when the trade ends.
If your forecast is correct at this time, you will be “in-the-money”.


         What is the difference between purchasing options
         in Banc De Binary and buying Put and/or Call
         options in the stock market?
         The options available in Banc De Binary are binary options (refer
         to the first question for a detailed definition). They are different
         to standard (“vanilla”) option chains that are offered by stock
         exchanges. The latter typically have longer expiry dates, significantly
         fluctuating yields, and can be sold before expiry. Binary options have
         a fixed return and are offered for different expiry points from the
         end of an hour to the end of a month.
                                                                         54
Frequently Asked Questions
What happens if the expiry rate of a given
                 underlying asset is identical to the rate at
                 which the transaction was made?
                 The option finishes at-the-money and the amount of the
                 investment is returned to you.



What is the time zone of the expiry time?
The site’s trading hours and expiry times are shown in a GMT time zone.



                 Are the profits taxable?
                 As a Banc De Binary customer, you are responsible for your
                 taxation liabilities, if any, at your place of residence. See our
                 general terms for more details.



Why can’t I invest?
All our assets are available during market trading hours. On rare
occasions, investments are not available for certain assets owing to
technical reasons. Usually, these problems are resolved quickly and
you may try again shortly. Other than this, you will not be able to
invest if you have insufficient funds in your account.




                       Where can I view the precise trading
                       hours of each asset?
                       A detailed list of all our available assets, their
                       description, expiry times, symbol and trading hours is
                       presented in the Platform Asset Index on the Banc De
                       Binary website (www.bbinary.com).
 55
                                                             Banc de Binary
Taking a Trading Bonus
Pros and Cons
Some brokers will pay bonuses to         As always, a trader should research
traders, for example, on sign-up,        and uncover the most enticing offers
which will generally be a percentage     for him.
of the initial deposit. Trading
bonuses offer great value and extra      However, just because the money
trading leverage, which will boost the   is essentially “free”, it should not
trader’s options to make a greater       be used recklessly by undertaking
number of trades and become              trades that are essentially gambles.
familiar with binary options trading     By all means, traders should make
more quickly.                            deposits in ways that will earn them
Matching bonuses may be made             the biggest benefits, but they should
on subsequent deposits so that the       not deposit more money than they
trader has further additional funds      can afford simply to get the bonus
available. The amounts of these          money.
bonuses may vary depending on
how the trader makes the deposit,
indicating that there are preferred
methods that the broker is trying to
encourage.
Bonuses are sometimes paid when
significant financial events are due
so that traders can take advantage of
the opportunities they present. There
are also rebate bonuses, where
traders receive a percentage of the
amount they’ve traded over a period.



                                                                        56
Taking a Trading Bonus – Pros and Cons
57
     Banc de Binary
Banc De Binary -
types of trading bonus
Deposit matches
An account will be given added           When trading with bonus leverage
value when a trader consistently         a trader must be cautious. It is truly
deposits funds. Banc De Binary           appealing to trade with $20,000
matches the trader’s real deposit by     when the initial deposit was only
a certain amount as per the following    $10,000, but there is a downside.
example:
                                         The trader may close higher
If Banc De Binary offers a 50%           trades and make more money
deposit match of up to $50,000,          initially (or in the long run), but the
which means that if the trader were      possibility of losing money increases
to open a new trading account and        exponentially. Options trading can be
make an initial deposit of $1,200,       risky; confidence and responsibility
Banc De Binary would instantly fund      are the keys to successful trading.
the account with an additional $600,
raising the account balance to $1,800.


Sign-up bonus
To help traders starting out with        market and more confidence using
binary options trading online, Banc      the Banc De Binary platform.
De Binary offers new customers a         After receiving the sign-up bonus,
trading bonus on their first deposit     traders are given several other
as well as re-deposit bonuses.           opportunities to boost their account
The sign-up bonus gives new traders      balance. Banc De Binary often offers
an extra boost to their trading          a broker bonus before significant
balance so that they can open their      financial events to enable traders
first positions with Banc De Binary’s    to take advantage of the market
bonus money until they accrue more       volatility at those times.
experience in the binary options
                                                                          58
Taking a Trading Bonus – Pros and Cons
Banc De Binary – rebate bonus
A rebate bonus is usually offered      and wire transfer. Banc De Binary
on a monthly basis and it is Banc      also has special agreements with
De Binary’s way of giving back         certain affiliates offering a free
a percentage of the trader’s           joining bonus in addition to the sign-
investment that month. We also offer   up bonus.
special trading bonuses to traders
depositing with certain funding
methods, such as Moneybookers



Refer a friend
Traders should check out Banc De
Binary’s Refer a Friend program to
see how referrals can be turned into
Forex bonus money.




 59
                                                        Banc de Binary
Personal Broker Program

The Personal Broker program makes use of Banc De Binary’s extensive
knowledge and experience and is aimed at institutional, high net worth and
retail clients. Our main aim is to enable those clients to make the maximum
profit from binary options trading with the minimum amount of effort.


Features of the program

                                 The main function of the personal broker
                                 program is to provide trading signals so
                                 that clients are advised what to trade
                                 and when. This means that all analysis
                                 is undertaken by Banc De Binary’s
                                 experienced specialists, which in turn,
                                 saves the client time and effort.



                                 As a member of the program, clients
                                 receive trading signals at any time of
                                 the day or night as and when they arise,
                                 although these will generally be between
                                 7 a.m. and 7 p.m. (GMT) when the US and
                                 European markets are open. These signals
                                 will advise a short or long position in a
                                 particular asset, indicating that the trader
                                 should consider a Put or Call option.



                                                                        60
Personal Broker Program
The personal broker program requires a
     minimum deposit of $5,000 US and control
     of the account remains with the client.
     Trading signals do not have to be followed
     and, if they are, the investor can decide on
     the amount of the trade.
     Money can be deposited and withdrawn in
     the normal way and clients can access and
     monitor the account 24/7.




      Personal brokers cannot access accounts
      and do not trade on the client’s behalf.
      They simply provide trading signals that
      are based on thorough research and so
      offer the best chance of trading success.




61
                             Banc de Binary
VIP Platinum Prog
                                       The Platinum Program is Ban
                                         account and requires a min

                                              The account offers a ran

     Access to individual competitive prices on
  options based on the investor’s trading volumes.

       Options offered on a first base service
     in order to provide the client with top bid.

      Optional free access to Banc De Binary’s
   independent personal Trading Advisory Team.

      A wide range of high level publications.




                                                            62
VIP Platinum Program and Platform
gram and Platform
nc De Binary’s top of the range
 nimum deposit of $50,000.

nge of benefits, such as:

                            Preferred access to client service
                            24 hours a day, five days a week.

                              A local telephone number
                      that routes directly into the dealing room.

                    A personal broker who will monitor the client’s
                       account on a bi-daily basis along with an
                                OptionTrend Analyst.

                    Eligibility for the MoneyBookers VIP Program.




      63
                                                       Banc de Binary
Affiliate Program
Our affiliate program offers            All commission rates are based on
traders the opportunity to become       Banc De Binary’s net revenues, which
introducing brokers to Banc             are calculated as gross revenue less
de Binary. For every new client         any processing fees, cancellations
introduction, we will reward the        and incentives given to customers
referring trader with a percentage      such as coupons and bonuses.
of the deposit. The more clients that
a trader is able to convey to us, the
higher the rewarded revenue will
be. Only initial deposits count for
remuneration as outlined below.




If you are interested in joining
Banc De Binary’s Affiliate Program,
please contact an affiliate manager:


Email: affiliates@bbinary.com
Telephone: 1(800) 656 6163
Skype: affiliates.bbinary



                                                                      64
Affiliate Program
CPA payment plan (monthly)

                Number of Clients Rate per Client
                0-50               $100
                51-90              $150
                91-150             $200
                151-250            $300
                251+               Up to $1,000

Revenue share plan

                Total Revenue      Commission
                $0–10,000          15%
                $10,001–50,000     20%
                $50,001–100,000    25%

Super internal affiliate
tiered revenue share plan

                Tier Level         Commission

                1st Tier           2.5%
                2nd Tier           2.0%
                3rd Tier           1.5%
                4th Tier           1.0%
                5th Tier           0.6%
                6th Tier           0.5%
                7th Tier           0.4%
                8th Tier           0.3%
                9th Tier           0.2%
                10th Tier          0.1%
 65
                                    Banc de Binary
Banc De Binary Platform R
The rates provided on a broker’s platform are
all-important. The source of these rates must
be completely reliable: the client’s money is
depending on it. At the end of the day, the rates
decide whether a trader will make a profit or
whether he will suffer a loss.

The rates that clients see on Banc De Binary’s
platforms are real live streaming rates, which
are displayed by us in real time. Our rates,
charts, and market information are provided
by Reuters, the world’s biggest and most relied
upon financial and news institution. All our rates
can be checked back with the rates published on
Reuter’s website. On request, we will gladly check
them against the rates of our dealing desk.




                                                     66
Rates




   The outcome is that your account
   is as secure as it possibly can be
   at all times.




  67
                             Banc de Binary
Platform Security
Banc De Binary provides the highest security
standards in all our financial transactions.

These security measures include:

              Non-disclosure of personal information to
              third parties except where legally obliged to
              do so.

              Online identity assurance ($250,000).

              Account authentication procedures ensure
              that only authorized users can withdraw.
              Banc De Binary provides the highest security
              standards in all our financial transactions.

              Adherence by all third party data-processing
              companies (i.e. when transferring funds) to
              the same high level of security standards.

              Application of the highest level of
              encryption to all communications to prevent
              unauthorized viewing of transactions.

              Investment in the latest technology ensures
              that the latest safeguards are always in place.

                                                        68
Platform Security
69
     Banc de Binary
Deposits and Withdrawals
Banc De Binary aims to make the process of depositing and withdrawing
money as simple as possible so that clients can start trading quickly and
access accumulated profits at their convenience.

To offer the best possible service to clients, the following deposit and
withdrawal methods are offered:

                            Bank Wire Transfer (international and domestic)
                            via a client’s bank account. This allows secure
                            transactions from $1,000 with no maximum limit,
                            which are completed within five working days.
                            Bank charges may apply.

                            Credit/Debit Card, for amounts between $500
                            and $25,000 ($50-1,500 for third party credit
                            card via MoneyBookers). This method deposits
                            funds instantly but can take up to ten days for
                            withdrawals. There are also credit card fees on
                            such withdrawals.

                            MoneyBookers eWallet allows amounts
                            between $50 and $1,000 (although unlimited
                            for MoneyBookers VIP accounts). Deposits and
                            withdrawals occur within minutes.


The range of options may be extended from time
to time so please view Banc De Binary’s website
(www.bbinary.com) for the latest details.


                                                                           70
Deposits and Withdrawals with Banc De Binary
s with Banc De Binary




  71
                   Banc de Binary
Types of Accounts
There are many different types of binary options traders, from those new to
this market to seasoned professionals. Accordingly, Banc De Binary offers
a range of accounts that have different features according to each trader’s
individual requirements:



Our Practice Account is available to new investors who
want to experience trading binary options without risking
any actual money. It has a notional $50,000 limit, is valid
for seven days after opening and has the same conditions
as the Micro Account except that no money is involved
when making trades. It’s the perfect way to find out how
binary options trading works.




              The Micro Account allows investors to trade over seventy assets
              (stocks, indices, commodities and foreign exchange) using Banc
              De Binary’s professional trading platform, with full 24/7 support
              through LiveChat. There’s a minimum $500 deposit. No trading
              bonuses are offered with this account.




The Classic Account offers access to the full range of binary
options types (digital, touch and range) and to all asset types.
The minimum deposit is $1,500 and investors can view news
and world-class market research, real-time trading ideas
through LiveChat as well as TrendStation, Banc De Binary’s
innovative trading education program.

                                                                         72
Types of Accounts
Our Premium (Personal Broker) Account provides
                      everything available through the Classic Account plus
                      extended streaming news and research.
                      Clients also benefit from the services of a personal
                      options broker who will issue trading signals and deal
                      with account enquiries. A Premium Account Executive
                      Team is available 24 hours a day, five days a week for
                      trading by telephone, Skype and LiveChat. The account
                      is eligible for the MoneyBookers VIP Program and a
                      minimum $5,000 deposit is required.




The Platinum (VIP) Account is Banc De Binary’s
top of the range account and requires a minimum
deposit of $50,000. Clients receive options at
competitive prices based on their trading volume,
access to an independent personal Trading
Advisory Team and a wide range of high-level
publications. Client service is accessible 24 hours
a day, five days a week via a local telephone
number routing directly to the dealing room.
Further, a personal broker and OptionTrend
analyst will monitor the client’s account on a bi-
daily basis and the account is also eligible for the
MoneyBookers VIP Program.



Investors can begin trading with any level of account
and upgrade it later to suit their needs.




 73
                                                         Banc de Binary
Binary optionsebook

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Binary optionsebook

  • 1. Banc De Binary The Ultimate Guide to Binary Trading
  • 2. Table of contents Foreword ............................................................................................................. 6 Letter from the CEO .......................................................................................... 8 Binary options 2011 ........................................................................................ 10 Introduction to Banc De Binary We’re the global leader in binary options trading .................................. 12 We don’t think of it as a history, we think of it as a legacy .................... 13 A breadth of truly global assets ............................................................... 14 Client service that’s second to none ........................................................ 15 Banc De Binary is on your side ................................................................ 15 Introduction to binary options ..................................................................... 16 Binary options basics The asset ................................................................................................... 18 The contract .............................................................................................. 18 The prediction .......................................................................................... 19 Amount staked ......................................................................................... 19 Who trades binary options? Professional organizations ...................................................................... 21 Individual traders ..................................................................................... 21
  • 3. Benefits of trading binary options All conditions trading ............................................................................... 22 High return ............................................................................................... 23 Calculated risk .......................................................................................... 23 Tax exempt ............................................................................................... 23 Wide availability ....................................................................................... 24 Any time, anywhere trading .................................................................... 24 Simplicity .................................................................................................. 25 Small investment friendly ........................................................................ 25 How to trade binary options ......................................................................... 26 Making a trade ......................................................................................... 27 Type of binary options ............................................................................. 28 Digital binary options .............................................................................. 28 One touch options ................................................................................... 29 Analyzing binary options Introduction to technical analysis ........................................................... 30 Trend following ........................................................................................ 31 Momentum ............................................................................................... 31 Mean reversion ........................................................................................ 32 Pattern recognition .................................................................................. 33 Support and Resistance ........................................................................... 33
  • 4. Introduction to fundamental analysis Fundamental analysis considerations ..................................................... 34 Company Information .............................................................................. 35 Industry News ........................................................................................... 36 Natural Events .......................................................................................... 36 Fear Factor ................................................................................................ 37 Market Conditions .................................................................................... 37 Economic Performance ............................................................................ 38 Economic Indicators ................................................................................. 39 Binary options trading strategies Reversal ..................................................................................................... 40 Trend Reversal .......................................................................................... 41 Straddle ..................................................................................................... 42 Knock-on effect ......................................................................................... 43 Risk management Analyze and research ............................................................................... 44 Learn from your mistakes ........................................................................ 45 Follow trends ............................................................................................ 45 Risk and reward ........................................................................................ 46 Familiarity ................................................................................................. 46 Limiting your trades ................................................................................. 47 Choosing a binary options broker Trading platform ....................................................................................... 48 Ease of use ................................................................................................ 49 Keeping it safe .......................................................................................... 49 Service and support ................................................................................. 50
  • 5. Frequently asked questions ......................................................................... 52 Taking a trading bonus — pros and cons ....................................................56 Banc De Binary – types of trading bonus Deposit matches ...................................................................................... 58 Sign-up bonus .......................................................................................... 58 Banc De Binary – rebate bonus ............................................................... 59 Refer a friend ........................................................................................... 59 Personal broker program Program features ..................................................................................... 60 VIP Platinum program and platform ........................................................... 62 Affiliate program ............................................................................................ 64 CPA payment plan (monthly) .................................................................. 65 Revenue share plan ................................................................................. 65 Super internal affiliate tiered revenue share plan ................................. 65 Banc De Binary platform rates ..................................................................... 66 Platform security ............................................................................................ 68 Deposits and withdrawals with Banc De Binary ........................................ 70 Types of accounts ........................................................................................... 72
  • 6. Dear Valued Trader, Welcome to the exciting world of binary options trading, one of the fastest growing sectors of the finance industry. In this e-book, we’ll provide you Our trading platform is designed to with the basic information you be easy to use, while still powerful need to start trading. The basics can enough to offer unique money be learned within a few minutes. management features, such as However, there are numerous fast and convenient access to the advanced strategies that traders Forex, stock, and commodities and investors can utilize in order markets, advanced research tools, to increase the probability of high and account maintenance, all returns on their investments. In in one consolidated web-based addition, we’ll cover the different environment. No software to install, types of binary options trading just login and take action. available on the market, and introduce you to the benefits of We are proud to describe our trading with Banc De Binary. brokers as the best in the industry. Established in 2009, following the Our stringent recruitment process major financial crisis of the last ensures they are of the highest decade, Banc De Binary has grown calibre. We provide them with the exponentially to become a world best technologies and analytical tools leading binary options broker. We available to ensure their split second offer an exceptional trading platform decisions are as accurate as possible. where investors can trade binary In addition, your money is in your options in a low-risk, informed, and hands. You choose the options and safe environment. are always in control. Our expert team of brokers is simply here to advise and assist whenever you need them. Foreword 6 Foreword
  • 7. Your money is in your hands. You choose the options and are always in control. For more information, please contact us at support@bbinary.com or call us directly at 1-(800)-656-6163 Wishing you every trading success. Sincerely, The Banc De Binary Team 7 Banc de Binary
  • 8. Letter from the Dear Valued Customer, Welcome to our global online banking community. I’d like to take this opportunity us who maintain a constant focus to share my enthusiasm and on advancements in technology, excitement for the innovative, state- communications and new product of-the-art investment, trading and development, the future is bright, banking enterprise that is Banc De inspiring and awesome in its Binary. potential. Over the past few years, it has At Banc De Binary, we are firmly become apparent that the old ways committed to developing and of doing business in this increasingly delivering cutting edge products, interconnected financial world are services and security in a world that no longer viable. For the hundreds demands constant innovation and of banks, brokerages, investment attention to the needs of the modern houses and other financial investor and trader. concerns that foolishly cling to the obsolete models of conducting As such, you will notice that the their business, the result has been performance, products, trading chaos, devaluation of assets and platforms, customer service and equity, and in many cases, oblivion. educational tools at Banc De Binary Unfortunately, this trend persists to are evolving on an almost daily this day as we continue to see bank basis, with continuous upgrades failures, defaults and depreciating and enhancements to our online value of many of the biggest names global operations. With that in mind, in banking over the past 50 years. please know that each and every Banc De Binary customer is our most For those that refuse to see or important customer and that we are do not comprehend the changes here to serve you 24/7, with regard in global economics, business, to any and all of your banking and investment and trading, the future trading needs. 8 holds little promise. For the rest of Oren Laurent
  • 9. e CEO “The future is bright, inspiring and awesome in its potential..” 9 Banc de Binary
  • 10. Binary options enable inve in the toughest market co In the past couple of years, binary many resources at their disposal options have carved out a niche that (namely, specialized personnel and focuses on straightforwardness, computing power) have an advantage known risks, and a de-emphasis over the competition. They quickly on volatility. Many of the other capitalize upon traditional asset asset classes in today’s markets are trading opportunities far before the quite different. They involve a large best retail investors are even aware amount of painfully complex factors, of them. which increase the margins of error and the likelihood of costly mistakes. In combination with rising volatility and a staggering increase in the Today’s markets are quite different number of investment vehicles from financial markets of the past. available in recent years, it is easy The digital age has revolutionized to see why many retail investors them, allowing for an explosion in find themselves overwhelmed by asset types, contracts, and strategies. today’s market. In fact, many view While this can be seen as a positive the idea of speculative trading as far in that it provides opportunities for too risky and riddled with hidden wealth creation, more frequently, complexities. In a sense, they’ve it has set the average trader at a been unduly pushed out of the disadvantage. Large institutions with market. 10 Binary options
  • 11. estors to compete onditions. These circumstances are precisely However, with binary options, the why binary options are such an set price and “all or nothing” nature exciting development. Brokers of outcome brings risk out of vague choose well-researched and territory and into the figurative light. understood underlying assets, giving retail investors information access With exact risk known, binary options that rivals the professionals. Perhaps traders are able to make wiser most importantly, risk calculation on decisions about money and account binary options is understandable. management. Not coincidentally, With more traditional assets, every these are the areas where traditional single price movement affects asset traders often stumble and potential gains and losses. When lose. By eliminating these added additional complications such as entanglements, binary options give leverage are factored in, it’s easy for traders the ability to focus solely a prospective trader to lose track of on making correct predictions and their exposure in a given investment. consequently, making money. 11 Banc de Binary
  • 12. Introduction to Banc De B We’re the global leader in binary options trading In 2008, the SEC approved the banking and finance to a wide range listing of binary options. This ruling of customers, including corporations, led Banc De Binary to successfully hedge funds, individual investors, predict a period of growth in binary banks and governments, in a simple options trading. yet secure online environment. Our vision was to be the pioneers of a new kind of bank, one focused on Banc De Binary provides its clients providing high quality binary options with a unique value package: state- trading services and solutions to of-the-art technology; extensive both the experienced trading knowledge and unparalleled service professional and those new to this levels from our highly skilled team; market. alongside a modern and accessible range of financial services and The Banc De Binary Pro Platform products. utilizes the latest technology to offer 12 Introduction to Banc De Binary
  • 13. Binary We don’t think of it as a history, we think of it as a legacy With a legacy of over 100 combined consumers, corporations and years in the foreign exchange institutions alike with a broad range markets, Banc De Binary is a leading of financial products and services, global financial services company. including private banking, corporate We service more than 20,000 and investment banking, securities customer accounts and operate brokerage and wealth management. in over 80 countries, providing Our goal is to bring fair and equitable pricing and order-handling practices to all our clients. Banc de Binary
  • 14. A breadth of truly global assets Banc De Binary’s trading platform offers further opportunities as their offers more than 90 assets, which performance is linked to other constitutes the widest set of tradable underlying factors unique to those assets currently available from any countries. For example, if strength provider. With trading activity in over is perceived in certain commodity 80 countries, we can offer emerging prices, it would be helpful to have a market and other less liquid wide set of currencies on offer, from currencies. This widens the range of Australian and Canadian dollars to tradable currencies, commodities, the South African rand, Mexican stocks and indices that you can peso, and several other currency choose from. Further, with a VIP pairs. account we can add any asset within two business days. Banc De Binary’s Pro Platform offers liquidity in several Asia-Pacific, Major benefits of trading in the Middle Eastern, Eastern European binary options market include the and Latin American currencies. For diversification and opportunities more information on the full breadth created by reduced correlation of currencies on offer, access the with other asset classes. Trading live chat option on Banc De Binary’s in emerging market currencies, website (www.bbinary.com) and commodities, stocks, and indices speak to a broker. 14 Introduction to Banc De Binary
  • 15. Client service that’s second to none Banc De Binary offers 24/7 service via dedicated specialists who are trained to look after our clients’ trading and administrative needs. Our investors have repeatedly identified client service as a truly differentiating key feature from our competition. We believe high-quality, personalized service is central to our offering and we always welcome suggestions to further improve our levels of service. Banc De Binary is on your side Banc De Binary has deployed best practices developed over decades of asset trading into its Pro Platform. 15 Banc de Binary
  • 16. Introduction to Binary Opt Binary options are high return, short-term investments Based on exotic options, which are All markets - currencies, stocks, only traded on private markets, commodities, and market indices - binary options are traded over the can be underlying assets for binary counter and are available 24 hours a options. The degree to which the day, 7 days a week. option closes in or out-of-the-money does not matter as it does with a A binary option, also known as a traditional option. digital option or an all-or-nothing, is a trading instrument with a fixed return that is determined at the outset of the trade. A trader will receive a predetermined payout if the binary option expires in-the- money. He will lose a predetermined amount of his original stake if the option expires out-of-the-money. The beauty of trading binary options is the inherent simplicity. If a prediction is correct, the trader receives a refund of the stake plus a return on investment that is typically 71-88%. If the trader is wrong, Banc De Binary will return a small percentage of the original stake. 16 Introduction to Binary Options
  • 17. tions Unlike traditional options, binary utilize many more underlying assets, options do not have set prices: the and have much more flexibility trader decides upon the amount of in their timing, strike prices, and money he wants to risk and invests contract options. Since 2009, they that amount when he buys the have become very popular among option. Furthermore, the shorter traders as a way to control risk in duration of these contracts makes options trading, in turn allowing binary options more suitable for for more dynamic strategies to be short-term trading than their developed. traditional counterparts. Finally, constantly evolving In the past few years, online technology better facilitates digital binary option trading has grown trading and allows investors to make exponentially. Digital trades can more lucrative trades. The beauty of trading binary options is the inherent simplicity. 17 Banc de Binary
  • 18. Binary Options Basics One of the key benefits of binary options is simplicity. Binary options trading is relatively easy once the parameters of the trade are understood. Each binary option is based on four distinct components: The asset 1 Each binary options trade is based on an asset selected by the trader. These are known as underlying assets, since the trader doesn’t buy the assets and therefore never actually owns them. All binary options brokers offer their own range of assets to traders, such as stocks, commodities, currency pairs and market indices. Some brokers may offer only a limited range, which will restrict trading opportunities. Although a trader may opt to specialize in an asset or a group of assets with which he is familiar, the ability to trade a wide range of assets offers increased opportunities to profit. 18 Binary Options Basics
  • 19. The contract/time of expiration 2 Each binary option trade is a contract and each contract has a set expiration time. Although many types of traditional trading require an investment for several months or years before a reasonable return is achieved, in the case of binary options, trades can expire in a matter of weeks, days, hours or minutes. Using Banc De Binary’s trading platform, an option can be purchased up to five minutes before it expires. It is important that the trader always knows just how much time is left before the option expires so that he can improve his chances of making an accurate prediction. The forecast or prediction 3 The job of a binary options trader is to determine in which direction the price of an asset will move before or at the time of expiration. For the simplest binary options trades, the forecast will be based on whether the price at expiry will be higher or lower. The trader will purchase a Call option if he believes the price will close higher or a Put option if he believes the price will fall. A correct prediction will result in a return of 71-88% on investment – nearly double the original stake. The amount that is at stake 4 Each binary options trade is for a fixed amount that the trader specifies at the outset of the trade. This puts the trader’s money firmly in his hands at all times giving him the control to minimize losses and maximize returns. 19 Banc de Binary
  • 20. Who Trades Binary Option Trader types For many years, binary options were the first exchange to publically treated as simple over-the-counter offer binary options, and the CBOE instruments. As a result, an actual followed suit in June of the same liquid market didn’t exist, and there year. Both of these market-traded was no regulation whatsoever in binary options are highly limited place. Binary options were only when compared to the types of one small part of a larger complex binary options available to online contract. Specialist brokers were traders. engaged to trade on the clients’ behalf. Naturally, these brokers The greater availability of binary charged a commission fee for the options and the increasing number service. of organizations that support them have led to an exponential growth in This all changed in early 2008, when the number of people trading these the SEC approved a rule change options. This number continues to allowing binary options to be traded grow on a daily basis. on major markets. In May 2008, the American Stock Exchange became There are two trader types: 20 Who Trades Binary Options?
  • 21. ns? Professional organizations Some of the organizations that operate as binary options traders include options traders who have diversified their portfolio. They are attracted to the potential for high volume trades giving the opportunity to achieve significant returns in a relatively short timeframe. Additional benefits include the availability of extensive assets to trade and risks that are controlled, eliminating much of the uncertainty associated with traditional options trading. Individual traders At the other end of the scale, individual investors trade binary options due to the provision of comprehensive trading platforms and the availability of high levels of support, information, and accessible advice. Day traders in particular are attracted to the flexibility of binary options trading. Internet-based trading platforms create a true 24/7 trading environment and traders can access their accounts securely any time anywhere, using any suitable device with Internet access. 21 Banc de Binary
  • 22. Benefits of Trading Binary Binary options offer an extensive situation is solely either gain or loss. range of benefits to all traders, Therefore, to finish in-the-money, all whether they are new to the market a trader really needs to predict is in or experienced professionals. which direction the asset will move before the time of expiration. The simplicity of binary options trading is perhaps the most Additional benefits associated with appealing factor compared with trading binary options include: their traditional counterparts. Every All conditions trading In traditional options trading, Trading foreign exchange enables investors usually only make money a trader to finish in the money by when markets and prices are rising. forecasting a fall or rise in the value However, a binary options trader of one currency against another. can make money in any market With the constant changes to conditions, because predicting a fall rates and the number of available is as profitable as predicting a rise. In combinations, this gives almost fact, volatile markets offer increased limitless opportunities to achieve a opportunities to profit due to the return. large swings that can occur in each direction. The key is to be alert to All markets follow trends and a changes in market conditions, follow trader can profit on an up trend by the signs and then profit through buying Call options as well as buying correct forecasting. Put options when a downward trend is underway. To reiterate, it’s simply a matter of forecasting in which direction a market will move. 22 Benefits of Trading Binary Options
  • 23. y Options High return Traditional investments usually A typical option will expire in a necessitate a long-term outlook, with matter of hours or even less and assets often held for months or even will often yield 71-88% if predicted years before a significant return on correctly. With a series of successful an investment is achieved. Binary trades, a trader can quickly options, on the other hand, are accumulate substantial profits. short-term, high-return trades. Calculated risk Although an incorrect prediction trading to continue until a return to can result in the loss of a proportion profit is achieved. This contrasts with of the original stake, the trader can other forms of trading where large determine at the outset what this amounts of money are at risk and will be. Therefore overall exposure it is easy to lose control over how can be relatively small, allowing much is at stake. Tax exempt Binary options brokers do not vehicles. Some countries, such withhold taxes from payouts. as the USA, treat the profits from Furthermore, the UK tax authorities binary options trading as short-term treat any gains from binary options capital gains. However, traders may as tax exempt. This is a clear benefit offset gains with any losses for tax to all UK-based traders when purposes. compared with other investment 23 Banc de Binary
  • 24. Wide availability Binary options are now an accepted countries. This constitutes the widest means of trading and are widely set of tradable assets currently quoted on markets, with a number available from any provider. of brokers providing extensive yet Trading in emerging markets and easy-to-use trading platforms that less liquid currencies offers further any subscriber can access. opportunities to profit as their Banc De Binary’s Pro Platform is performance is linked to other able to offer more than 90 assets underlying factors unique to those with trading activity in over 80 countries. Any time, anywhere trading Trading platforms generally provide platforms are web-based, traders access to a variety of global markets can access their accounts and make covering stocks, commodities, and trades using any device with Internet foreign exchange. This allows 24/7 access. This combination gives trading with at least one market traders the ability to trade however generally open at most times. they want, whenever they want and Additionally, since most trading from wherever they are. 24 Benefits of Trading Binary Options
  • 25. Simplicity Whereas some types of investment If the outcome is correct, the trader and trading can be complicated, will receive a payout in the region binary options trading provides a of 71-88%. Further, binary options straightforward process that involves do not require more than one pip in a number of simple steps. Traders order to be in-the-money. simply choose the asset they want Forex trading and other forms of to trade, predict the direction of the online trading require three pips just price movement by the stated time to commence trading. and indicate the amount of the stake. Small investment friendly Unlike traditional investments, Furthermore, careful diversification which require a significant amount can help build a buffer against of capital upfront, binary options potential losses. traders can invest as little or as much As stated earlier, your money is in as they wish. No significant deposits your hands at all times. are required in order to start trading. 25 Banc de Binary
  • 26. How to Trade Binary Options In order to trade binary options, a Several account types may be broker is required. Not the specialist available with different minimum broker of old who would trade on deposit requirements. The features an individual’s behalf and charge and benefits of each account should commission fees, but a modern be examined carefully in order binary options broker, providing to choose the right fit. It is often a trading platform. This gives the possible to start small and then investor complete freedom to trade upgrade to another account at a later at his convenience. stage. Once the trader has registered Having identified a suitable platform, his details online and completed his the trader must open an account. deposit, he’s ready to begin trading binary options. 26 How to Trade Binary Options
  • 27. Making a trade Making a successful trade involves a number of simple steps: Choose the asset Most trading platforms will have a or currency pair. For each asset, range of available assets. A trader the current price will be displayed, will generally select an asset type along with the expiration time of the with which he is familiar, whether it option and the percentage payout is a stock, market index, commodity for a correct prediction. Predict the Price Movement The trader will select a Call option which are explained later in this if he thinks the price will rise by chapter. All he needs to do is enter the time the option expires or a the amount to be traded and Put option if he expects the price confirm the trade. to fall. Alternatively, he may trade variations, known as touch options, Wait for the option to expire If the prediction is correct at the It is important to remember that time of expiry, the trader will unlike Banc De Binary, some receive a return that’s equal to his platforms are really all-or-nothing. In initial stake plus the stated payout. those cases, the whole of the original If he’s wrong, he’ll receive a small stake will be lost. percentage of his original stake. 27 Banc de Binary
  • 28. Type of Binary Options Digital binary options These are the simplest and most of his stake in return; if he had common trades and are sometimes purchased a Put option he would known as all-or-nothing options. As profit and receive a return of $175 described above, the trader is simply (his original stake of $100 plus a 75% predicting whether the price will rise payout). or fall by the stated expiration time. As explained previously, the An example follows: incremental price movement Google’s shares have a current price itself does not matter as it does of $535.50. The trader decides to buy in traditional options trading. an option that expires in two hours The trader must correctly predict and pays a 75% return on success. whether the price will be higher or He stakes $100 on his prediction and, lower at the expiry of the contract at the end of the two-hour period, – the price may move in either the price stands lower at $534.10. direction by as little as one pip. If he had purchased a Call option, he would lose and receive a percentage 28 How to Trade Binary Options
  • 29. One touch options A one touch option is a binary option For example: that pays off if the underlying asset The current commodity price is reaches a specific level by a specific $80.50 and the trader sets a limit of time.  In this case, the trader is not $81.00. If he purchases a one touch just choosing whether a price will option, he will be in-the-money if rise or fall by a stated time, he is the price touches that level before deciding whether it will touch a set the option expires. When it does hit barrier at any time during the period the limit, the option closes and the of the trade. Due to the additional trader receives his payout; it doesn’t specificity involved, this type of matter what happens to the price trading can attract returns as high as after that. If the price does not reach 500%. the stated level before the expiration of the contract, the trader will lose and forfeit his stake. 29 Banc de Binary
  • 30. Analyzing Binary Options To improve the chances of accumulating consistent profits from binary options trading, there are two types of analysis that traders can employ: technical analysis and fundamental analysis. Fundamental analysis looks at how outside influences can affect asset prices; technical analysis focuses on how a price has moved in the past and how that can determine future movements. Both types of analysis are essential tools for traders. Introduction to technical analysis Technical analysis is the study established trends, and other of asset prices in the attempt to elements are clearly visible in any determine the future direction of a chart. Most price charts plot price market. Traders who use technical movements over time or by volume analysis tend to believe that the of trades. Charts are often formatted majority of available information is via a trend line so that price direction already incorporated in the value of can be easily read. Bar charts or an asset. Consequently, prices will candlestick charts are also used to always move in a consistent manner display the high, low, open and close and identifying the ways assets have prices for each period. moved in the past will give a guide to the way they will move in the future. Technical analysis can be particularly helpful in assisting an investor with Much time and effort for technical entering, exiting, and managing analysis is taken up with studying the risk of positions. A number of charts. Practitioners believe that the analytical tools are available as factors that influence prices, such as described below. the effects of supply and demand, 30 Analyzing Binary Options
  • 31. Trend following Trend following analyzes historical averages. If the moving average data in order to establish whether a for the shorter period crosses sustained movement in a particular significantly above or below that for direction is occurring. This normally the longer period, then an upward or involves looking at different periods, downward trend has developed. such as 2-day and 7-day moving Momentum Tracking momentum is sometimes If the short-term averages are larger, known as Moving Average momentum is increasing, while Convergence Divergence (MACD) larger long-term averages suggest and determines whether an asset’s a decreasing momentum. Slowing momentum is rising or falling. It is momentum indicates the rate of used to track the daily changes in change will decrease and may short-term and long-term averages. eventually reverse. 31 Banc de Binary
  • 32. Mean reversion Mean reversion involves identifying A second group of technical an asset’s mean and then indicators that are used to measure determining if the asset price is mean reversion are Relative Strength settling back to that point. It is rather and Stochastic indicators. Both of like testing a rubber band to see how these technical indicators measure far it will stretch before it snaps back. how fast a market has moved in the short term, relative to movements Analysts employ technical indicators over a longer period. Stochastic such as Bollinger Bands to measure indicators, in particular, are based on mean reversion. Bollinger Bands the principal that in an up trending employ various statistical factors, market, stocks tend to close near such as supply management, in their highs and in a downward order to generate a set of bands to market stocks tend to close near contain the price action. Bollinger their lows. These indicators create bands allow any trader to instantly an index that is used by traders to view price on a chart relative to its determine if a market is overbought volatility mean over a period of time. or oversold. Volatility is the rate at which the price of a currency pair moves up In general, technical indicators and down in the market. When high are successful because of their volatility can be seen, the upper and popularity among traders, which is lower Bollinger bands widen and based on the reasoning that “volume when the price fluctuations decrease, generates movement”. The logic the bands contract. The price usually follows that the more investors who bounces off the range whenever it are trading in a certain direction, touches the upper or lower band. the more that direction is set to continue. 32 Analyzing Binary Options
  • 33. By utilizing these indicators, Fundamental analysis looks at how a trader is essentially trading in the outside influences can affect asset same direction as many others. prices; technical analysis focuses on This insight can be useful when how a price has moved in the past trading short term.To improve the and how that can determine future chances of accumulating consistent movements. Both types of analysis profits from binary options trading, are essential tools for traders. there are two types of analysis that traders can employ: technical analysis and fundamental analysis. Pattern recognition In this type of analysis, the trader is move.  An example of this type of looking at specific patterns within pattern is a head and shoulders the price action. This will help him pattern in which two shoulders and a determine whether any recognizable head can clearly be seen. In general, patterns reveal a predisposition the market will fall after forming the for him to forecast a specific price second shoulder. Support and Resistance Support and resistance are among the price from rising further. These the most widely known and widely levels act like a ceiling and appear to used Forex trading concepts and force price back down when it tries strategies. These are the levels in to break above the level. the markets, which price has not It is essential to bear in mind that been able to break outside of. support and resistance levels Support levels are the areas which are not exact numbers, but offer price cannot seem to break below. traders a clear indication based If a break does happen, it is only on past performance that when temporary and the price soon price reaches either a support or returns above the level. Resistance resistance level it is likely to bounce levels are the areas, which prevent back. 33 Banc de Binary
  • 34. Introduction to Fundamen Fundamental analysis is based on the A trader would need to study all principle that assets are generally levels of data, depending on the priced incorrectly and that markets asset he is trading, from company are constantly attempting to correct level through to industry and them. These corrections are based markets, on to country wide and on outside events affecting asset global level. Many events are inter- price and therefore traders will need related and can affect the price of to continually check news items, different assets and even different company announcements and asset classes. various publications. Each type of analysis will help a This type of analysis can be trader become more successful in his subjective, because the investor forecasts. However, it is important to is forming a view based on the note that a combination of technical occurrence of certain outside events. and fundamental analysis offers the greatest chance of success. Fundamental analysis considerations Fundamental analysis assumes that As such, both theories potentially the market is rational and that a turn a blind eye to important security’s price will eventually reflect external data. A stock that the true value of the investment. announces big unanticipated news By contrast, technical analysis is unlikely to continue to complete assumes that the marketplace a price pattern, or to move directly will repeat past trends and that a towards its underlying real value. security’s price will eventually move Some of these factors and variables in the same way other investment include: prices have moved. 34 Analyzing Binary Options
  • 35. ntal Analysis Company information When using a company’s share price • Book value as total assets less as the basis for a binary options total liabilities trade, full information about the • Price to book (P/B) compares the company is absolutely essential. share price to the company’s asset Read news items and press releases value and take account of analysts’ views. • Price to sales (P/S) to show the Use a company’s published accounts share price in relation to annual in order to calculate certain figures sales and ratios to assess the company’s worth and performance, including: • Dividend yield as a percentage of the company’s share price • Earnings per share (EPS) that provides a measure of the value of • Return on equity (ROE) to each share determine the effectiveness of using the money invested. • Price to earnings (P/E) to determine if a share is under- or Be aware that any news or over-valued information about a company may have far-reaching effects. For • Projected earnings growth (PEG) example, the announcement of to compare the share price to a new product may increase the annual growth company’s share price while at the same time forcing down the value of its rivals. 35 Banc de Binary
  • 36. Industry news No one company exists in isolation. reflected in the company share price. The performance of an industry It is advisable to watch for industries will affect the value of all those that are on the upswing and to trade companies that comprise it. A companies that are part of them successful company’s share price accordingly. For example, one would may be dragged down by an generally expect the price of shares industry that is in general decline. in renewable energy companies to Conversely, a struggling company be increasing as the market develops may experience an uplift if the wider and products become more widely industry begins to improve. Although available. a company may perform better or worse than its industry, it will always be associated with it and this will be Natural events The price of commodities will, of price of the company that supplies course, be influenced by natural the commodity may increase. disasters and weather events. As Conversely, a company that uses such, all assets are affected by supply a lot of the commodity will suffer and demand. For example, a drought a fall in profits and its share price or severe storm that ruins crops on may drop. A country that is a major a wide scale will force the price to producer will benefit through exports rise. Similarly, a hurricane that shuts and its currency may rise. down an oil field can cause the price to rise due to supply problems. Some of the effects of natural events are fairly easy to predict, but they can have far-reaching consequences. If the price of a commodity rises due to a shortage of supply, the share 36
  • 37. Fear factor Markets are often driven by often they establish an upward or sentiment, with prices quickly downward trend that continues rising and falling. Often, there’s no for some time. A successful binary real logical reason for the changes options trader will follow the news in and they can be driven by fear. It’s order to identify events that are likely difficult to predict how markets to panic or calm the markets. will move in these situations, but Market conditions Bull markets are established when be affected by prevailing market prices are rising, and the reverse, conditions. bear markets, when prices are falling. These markets can become Markets can also become range established for long periods, often bound, with prices moving within a years, and help you determine narrow band even when the longer- the general direction of price term trend indicated a particular movements. This is useful when direction. They may also become trading an index but also provides volatile, with prices varying wildly. guidance for individual company Studying events that influence the shares. Whether a company is market will give a guide to overall successful or unsuccessful, it will movements. 37 Banc de Binary
  • 38. Economic performance In the short-term, it is acceptable Budget deficits and falling currencies for a country to run a large budget obviously affect the prices that deficit. However, if the deficit countries pay for the commodities continues for a number of years, it they import. This can have an impact can become a problem. Countries on other parts of the economy, with often devalue their currencies share prices particularly affected to make exporting easier and to for those companies that import or limit imports, thereby reducing or export extensively. eradicating the deficit. When the currency floats freely, the value often goes down against other currencies that have stronger economies. The Euro zone itself poses a difficult challenge, because there are many countries with different performance levels but only one currency. Countries themselves often use interest rates as an economic weapon. A rising interest rate makes a currency more attractive and generally causes its value to increase in relation to other currencies. However, different countries can change their rates in the same or opposite directions at the same time, so it’s the difference between the rates that sets the currency pair values. Prices often move in the expectation of an interest rate change. 38
  • 39. Economic indicators Various economic indicators are published that either analyze economic performance or predict future performance. These indicators have different timings in relation to the way the economy changes: • leading economic indicators are important in predicting price movements, because they change before the economy as a whole does. Stock market returns are one such indicator, because the markets, for example, generally rise before a recession ends • lagged economic indicators follow on after the economy changes direction, such as the unemployment rate, which usually improves two or three quarters after the economy re- enters growth • coincident economic indicators, such as GDP, tend to move in line with the overall economy 39 Banc de Binary
  • 40. Binary Options Trading Str Reversal Asset prices often follow a trend When a reversal is indicated, a for a set period moving only in trader might buy an option that is in one direction. When the trends of the opposite direction to previous price and volume move in the same movements. He might, for example, direction, it is an indication of a purchase a Call option if the price healthy underlying market direction. has been falling and is now expected However, when price trend is rising to rise, or a Put option if the price is but the trend in volume is falling, it due to fall after an increase. warns of a potential price trend reversal.  40 Binary Options Trading Strategies
  • 41. rategies Trend Reversal A trend reversal may be indicated trader who has been finishing in by a diamond pattern on a price the money with Put options should chart and, although it may be not as therefore change to Call options in common as other reversal patterns, order to take advantage of the trend it can be a useful indicator. This type reversal. of pattern comes in two forms — the diamond top and the diamond This strategy is based on the concept bottom — with both types having the that if an asset suddenly moves in shape of a diamond lying on its side. one direction, it is unlikely to remain at that peak but will move back A diamond top forms at an up towards its original position, if not trend’s peak, occurring when the rise all the way. So, an investor should ends and the price remains flat for buy an option, Call or Put depending a while. This can result in a series of on whether the price has risen or waves that become taller and then fallen suddenly, on the assumption revert to a lower level. At this point, that it will soon return and stabilize. you should expect the price to break Of course, no one knows when out to the downside. This is a signal an asset has reached its peak. So to change the direction of your close monitoring of the asset and trades. researching why it peaked is vital to A diamond bottom is the reverse deduce the likelihood and timing of effect, with the same reverse pattern its return. but at the bottom of a downward trend. As the waves begin to flatten out, a change of direction is indicated and a breakout to the upside is due. Any binary options 41 Banc de Binary
  • 42. Straddle The Straddle is a more complicated the asset and then when the market strategy, because it involves buying drops, place a Call in the opposite both a Call and Put option on the direction as it returns back up. This same asset. The investor straddles means the trader always has at least the asset at a low point as well as one trade expiring in the money and a high point, and therefore the he will either take a minimal loss or area in between the two options gain a huge reward for landing both can be twice as successful. This is a trades for a large sum. The Call and particularly useful strategy to protect Put options do not have to be bought oneself in volatile markets. at the same time. Rather an initial option can be bought with a longer If the price at expiry is somewhere expiry and the second purchased between the two levels, the trader once the asset’s direction is more finishes in-the-money on both and established. maximizes profit. In a worse case Note that the straddle in binary scenario, at least one prediction will option trading is different from be correct and the trader minimizes vanilla options since the purchase losses. price and exercise rights differ between the two. Although the setup itself can be difficult, the straddle is one of the best strategies in binary options trading. The trader is looking to place a Put as high as possible on 42 Binary Options Trading Strategies
  • 43. Knock-on effect This is perhaps the most logical In this case, a trader would buy of all strategies, and is based on a Call option on the company the concept that a move on one and Put options on all of its main option will have a knock-on effect rivals. The key is to understand the on another. For example, the price interrelationships between assets of a stock may affect the price and to correctly anticipate price of the index in which it is traded movements. or if a country heavily relies on a particular asset, then a change The trader receives his payout; it in that commodity’s price may does not matter what happens to affect the country’s exchange the price after that. If the price does rate. For example, a company not reach the stated level before the might announce a major new expiration of the contract, the trader product launch or a development will lose and forfeit his stake. breakthrough that causes its share price to rise but also drives down the value of the company’s competitors. 43 Banc de Binary
  • 44. Risk Management One of the most important considerations for any trader is how to manage risk. Although binary options offer low risk compared to other types of trading, the possibility of loss is always given. While there is no strategy that can fully avoid risk, there are numerous methods an investor can utilize to minimize his financial exposure when he enters the market. Analyze and research Following a hunch will generally Making successful trades is often end in failure and a trader should about getting in quickly; watching never simply guess when he makes a the news and announcements will trade. The primary way to minimize ensure a trader stays ahead of risk is to undertake thorough asset the market and understands how analysis. Technical analysis will events are likely to affect prices. The establish price patterns that indicate information a trader utilizes should future movements; fundamental always be current. A trader must act analysis will identify events that will quickly to predict price movements cause price changes. before it’s too late. 44 Risk Management
  • 45. Learn from your mistakes It is important to remember that trading mistakes occur from time-to-time and it is beneficial to accept each mistake as a lesson and to try to learn from the experience. Traders should build up a history of both successful strategies and those that have not worked, so that he can avoid repeating the same mistakes in the future. Gradually, over time, the investor will build up his success rate overall. Follow trends Trying to beat the market does not usually work. Investors should generally watch for trends and try to follow them by purchasing mainly Call options in a bull market and Put options in a bear market. Traders should also remain alert to how the market is moving so that he can alter his tactics as soon as a reversal looks likely. 45 Banc de Binary
  • 46. Risk and reward Trading is a balance between risk and reward. A greater appetite for risk offers higher returns, along with the reduced probability of success. A safer bet will increase the chance of a profit but will, in turn, pay less and take longer to accumulate significant profits. The best strategy is usually to go for a mix of trades. A trader should only opt for a riskier trade if he has a firm reason to believe he is correct in his assumptions. He should opt for the safer option if he is not totally sure. Needless to say, if a trader entertains real doubts about a trade, he should avoid it altogether. Familiarity Risk can be minimized by trading will be far too restrictive, and will assets with which an investor is limit the opportunities for trading already familiar. For example, a success. Trading different assets trader who also works in the oil in various markets will spread the business should aim to trade oil risk, so the best advice is always on the commodities market or the to gain familiarity in new areas by shares of major oil companies. performing sufficient research and However, trading a single asset analysis as outlined above. 46 Risk Management
  • 47. Limiting your trades Making a succession of bad trades, will quickly exhaust available profit. When a trader hits a bad run, he can simply stop trading. If he does that, however, he won’t know when his bad run has come to an end. The best strategy, therefore, would be to keep trading but with reduced stakes. A good risk management strategy is often to limit each trade to a set percentage of existing capital. A ballpark figure would be to never risk more than 8.5% of existing profits on one trade. This means a trader would have to make eleven consecutive bad trades before he completely expended his capital. It also means that the amount at risk gets progressively less when a trader is losing but then starts to increase when he enters a winning streak so that, in turn, he also stands to make more profit. 47 Banc de Binary
  • 48. Choosing a Binary Options The growing popularity of binary which will seriously restrict an options trading has attracted a investor’s opportunities to trade and number of brokers to the market. make money. A trader should look All have key differentiating features. for those brokers who offer plenty Since a broker is a necessity in of assets across a range of global order to trade binary options, it markets. In practice, this means is important to choose one who there will usually be at least one provides the right level of service for open market most of the time and your needs. better opportunities and availability Some brokers may offer only a for trading assets of choice. limited range of tradable assets in a relatively small number of markets, Trading platform Following a hunch will generally Making successful trades is often end in failure and a trader should about getting in quickly; watching never simply guess when he makes a the news and announcements will trade. The primary way to minimize ensure a trader stays ahead of risk is to undertake thorough asset the market and understands how analysis. Technical analysis will events are likely to affect prices. The establish price patterns that indicate information a trader utilizes should future movements; fundamental always be current. A trader must act analysis will identify events that will quickly to predict price movements cause price changes. before it is too late. 48 Choosing a Binary Options Broker
  • 49. s Broker Ease of use Depositing money and withdrawing accumulated profits should be a simple, quick and inexpensive process. Traders should not be unnecessarily prevented from trading nor kept waiting for their money. In particular, look for a broker that offers multiple methods of depositing and withdrawing money, and where the process isn’t an over-complicated one. Keeping it safe Needless to say, security is with over 200,000 business crucial. The broker should offer a customers and more than 7,000 safe trading environment. There affiliates and business partners should be a privacy policy and working to make the Internet more adequate authentication to prevent secure. Any broker that has this level unauthorized access to accounts. It is of security will provide the safest vital that all data and transmissions possible trading platform. Check and are securely encrypted so that compare what each broker provides personal information is not divulged. and choose the one with the highest level of security. One of the most respected providers of online security and authentication solutions is the company Comodo, 49 Banc de Binary
  • 50. Service and support However experienced a trader Certain brokers, however, will becomes, he is likely to want a require a deposit even for a practice degree of support at some time. account. Superseding that, there Brokers offer different levels of should be a basic account with a low service that are designed to meet the deposit requirement right up to a top needs of different types of traders, of the range account that requires a depending on the type of account much higher deposit but provides a that is selected. There should always more personal and comprehensive be a help line, an email address and service. a live chat facility in case a trader requires urgent support. Look at In light of the vast array of accounts, the type and extent of information brokers and platforms available, it that is provided and how often it is is absolutely essential to choose the updated. Most importantly ensure broker that is a good fit for you. the information provided is accurate and of the highest quality. Some brokers offer different accounts directly aimed at different levels of trader from the novice to the experienced to the seasoned professional. It is sometimes possible to start with a practice account where investors can trade without risking any money (although, of course, without accumulating any profit either). 50 Choosing a Binary Options Broker
  • 51. 51 Banc de Binary
  • 52. Frequently Asked Questio What is a binary option? A binary option, also referred to as a digital option or an all-or-nothing, is an option in which payout is determined at the onset of the contract. The trader receives a fixed amount of return if the option expires in-the-money, irrespective of how much the price of the underlying asset has moved. The trader never actually owns the asset. It is the security upon which an options contract is based. What is an underlying asset? A commodity, index, stock, or Forex pair that can be traded as a binary option. What is a Call option? An option that provides the trader with a predetermined profit when the underlying asset is higher at the time of expiration than at the time it was purchased. What is a Put option? An option that provides the trader with a predetermined profit when the underlying asset price is lower than when was purchased. What is the investment amount? The amount of money invested in the option. 52 Frequently Asked Questions
  • 53. How do I invest? ons 1. Choose the asset that you want to invest in. 2. Choose a Call or Put option for the underlying asset. 3. Choose the expiry time for the trade. 4. Enter the amount of the investment. You may cancel the selection by clicking “X“ any time before the transaction is approved. 5. Click “Apply“ 6. Approve the trade What return will I get for a successful investment? A successful investment will result in a guaranteed return. If the prediction is correct, the trader receives a refund of the stake plus a return on investment that is typically 71-88%. What return will I get on any given binary option trade in the event that the option expires out-of-the-money? You will receive a small proportion of your original stake. The balance will be deducted from your investment account. What is the minimum amount to purchase a single option? 1 EUR/ 1 USD What is the maximum amount to purchase a single option? 3,000 EUR/USD I tried to invest an amount for a single option but received an error message telling me I exceeded the maximum investment amount. What should I do? The maximum investment amount you see depends on various factors. However, you can purchase multiple options, one following the other, to achieve a higher accumulated amount. 53 Banc de Binary
  • 54. What are the levels displayed in the trading boxes? A level is the quoted price for an option of an underlying asset. The level changes and is updated frequently according to different parameters that Banc De Binary proprietary algorithms take into account. The levels we present in the trading boxes are those at which Banc De Binary is willing to sell options and are Reuters real- time market levels. For more details about how expiry levels are determined, refer to the website (www.bbinary.com). What is the expiry rate? The expiry rate is the price of the underlying asset according to Reuters at the time of expiry of the option. This rate determines if the option has expired in-the-money or out- of-the-money. A different expiry rate is determined for each underlying asset. The calculation of the expiry rates is detailed on the Banc De Binary website (www.bbinary.com). What is the expiry time? The expiry time is the time and date when the trade ends. If your forecast is correct at this time, you will be “in-the-money”. What is the difference between purchasing options in Banc De Binary and buying Put and/or Call options in the stock market? The options available in Banc De Binary are binary options (refer to the first question for a detailed definition). They are different to standard (“vanilla”) option chains that are offered by stock exchanges. The latter typically have longer expiry dates, significantly fluctuating yields, and can be sold before expiry. Binary options have a fixed return and are offered for different expiry points from the end of an hour to the end of a month. 54 Frequently Asked Questions
  • 55. What happens if the expiry rate of a given underlying asset is identical to the rate at which the transaction was made? The option finishes at-the-money and the amount of the investment is returned to you. What is the time zone of the expiry time? The site’s trading hours and expiry times are shown in a GMT time zone. Are the profits taxable? As a Banc De Binary customer, you are responsible for your taxation liabilities, if any, at your place of residence. See our general terms for more details. Why can’t I invest? All our assets are available during market trading hours. On rare occasions, investments are not available for certain assets owing to technical reasons. Usually, these problems are resolved quickly and you may try again shortly. Other than this, you will not be able to invest if you have insufficient funds in your account. Where can I view the precise trading hours of each asset? A detailed list of all our available assets, their description, expiry times, symbol and trading hours is presented in the Platform Asset Index on the Banc De Binary website (www.bbinary.com). 55 Banc de Binary
  • 56. Taking a Trading Bonus Pros and Cons Some brokers will pay bonuses to As always, a trader should research traders, for example, on sign-up, and uncover the most enticing offers which will generally be a percentage for him. of the initial deposit. Trading bonuses offer great value and extra However, just because the money trading leverage, which will boost the is essentially “free”, it should not trader’s options to make a greater be used recklessly by undertaking number of trades and become trades that are essentially gambles. familiar with binary options trading By all means, traders should make more quickly. deposits in ways that will earn them Matching bonuses may be made the biggest benefits, but they should on subsequent deposits so that the not deposit more money than they trader has further additional funds can afford simply to get the bonus available. The amounts of these money. bonuses may vary depending on how the trader makes the deposit, indicating that there are preferred methods that the broker is trying to encourage. Bonuses are sometimes paid when significant financial events are due so that traders can take advantage of the opportunities they present. There are also rebate bonuses, where traders receive a percentage of the amount they’ve traded over a period. 56 Taking a Trading Bonus – Pros and Cons
  • 57. 57 Banc de Binary
  • 58. Banc De Binary - types of trading bonus Deposit matches An account will be given added When trading with bonus leverage value when a trader consistently a trader must be cautious. It is truly deposits funds. Banc De Binary appealing to trade with $20,000 matches the trader’s real deposit by when the initial deposit was only a certain amount as per the following $10,000, but there is a downside. example: The trader may close higher If Banc De Binary offers a 50% trades and make more money deposit match of up to $50,000, initially (or in the long run), but the which means that if the trader were possibility of losing money increases to open a new trading account and exponentially. Options trading can be make an initial deposit of $1,200, risky; confidence and responsibility Banc De Binary would instantly fund are the keys to successful trading. the account with an additional $600, raising the account balance to $1,800. Sign-up bonus To help traders starting out with market and more confidence using binary options trading online, Banc the Banc De Binary platform. De Binary offers new customers a After receiving the sign-up bonus, trading bonus on their first deposit traders are given several other as well as re-deposit bonuses. opportunities to boost their account The sign-up bonus gives new traders balance. Banc De Binary often offers an extra boost to their trading a broker bonus before significant balance so that they can open their financial events to enable traders first positions with Banc De Binary’s to take advantage of the market bonus money until they accrue more volatility at those times. experience in the binary options 58 Taking a Trading Bonus – Pros and Cons
  • 59. Banc De Binary – rebate bonus A rebate bonus is usually offered and wire transfer. Banc De Binary on a monthly basis and it is Banc also has special agreements with De Binary’s way of giving back certain affiliates offering a free a percentage of the trader’s joining bonus in addition to the sign- investment that month. We also offer up bonus. special trading bonuses to traders depositing with certain funding methods, such as Moneybookers Refer a friend Traders should check out Banc De Binary’s Refer a Friend program to see how referrals can be turned into Forex bonus money. 59 Banc de Binary
  • 60. Personal Broker Program The Personal Broker program makes use of Banc De Binary’s extensive knowledge and experience and is aimed at institutional, high net worth and retail clients. Our main aim is to enable those clients to make the maximum profit from binary options trading with the minimum amount of effort. Features of the program The main function of the personal broker program is to provide trading signals so that clients are advised what to trade and when. This means that all analysis is undertaken by Banc De Binary’s experienced specialists, which in turn, saves the client time and effort. As a member of the program, clients receive trading signals at any time of the day or night as and when they arise, although these will generally be between 7 a.m. and 7 p.m. (GMT) when the US and European markets are open. These signals will advise a short or long position in a particular asset, indicating that the trader should consider a Put or Call option. 60 Personal Broker Program
  • 61. The personal broker program requires a minimum deposit of $5,000 US and control of the account remains with the client. Trading signals do not have to be followed and, if they are, the investor can decide on the amount of the trade. Money can be deposited and withdrawn in the normal way and clients can access and monitor the account 24/7. Personal brokers cannot access accounts and do not trade on the client’s behalf. They simply provide trading signals that are based on thorough research and so offer the best chance of trading success. 61 Banc de Binary
  • 62. VIP Platinum Prog The Platinum Program is Ban account and requires a min The account offers a ran Access to individual competitive prices on options based on the investor’s trading volumes. Options offered on a first base service in order to provide the client with top bid. Optional free access to Banc De Binary’s independent personal Trading Advisory Team. A wide range of high level publications. 62 VIP Platinum Program and Platform
  • 63. gram and Platform nc De Binary’s top of the range nimum deposit of $50,000. nge of benefits, such as: Preferred access to client service 24 hours a day, five days a week. A local telephone number that routes directly into the dealing room. A personal broker who will monitor the client’s account on a bi-daily basis along with an OptionTrend Analyst. Eligibility for the MoneyBookers VIP Program. 63 Banc de Binary
  • 64. Affiliate Program Our affiliate program offers All commission rates are based on traders the opportunity to become Banc De Binary’s net revenues, which introducing brokers to Banc are calculated as gross revenue less de Binary. For every new client any processing fees, cancellations introduction, we will reward the and incentives given to customers referring trader with a percentage such as coupons and bonuses. of the deposit. The more clients that a trader is able to convey to us, the higher the rewarded revenue will be. Only initial deposits count for remuneration as outlined below. If you are interested in joining Banc De Binary’s Affiliate Program, please contact an affiliate manager: Email: affiliates@bbinary.com Telephone: 1(800) 656 6163 Skype: affiliates.bbinary 64 Affiliate Program
  • 65. CPA payment plan (monthly) Number of Clients Rate per Client 0-50 $100 51-90 $150 91-150 $200 151-250 $300 251+ Up to $1,000 Revenue share plan Total Revenue Commission $0–10,000 15% $10,001–50,000 20% $50,001–100,000 25% Super internal affiliate tiered revenue share plan Tier Level Commission 1st Tier 2.5% 2nd Tier 2.0% 3rd Tier 1.5% 4th Tier 1.0% 5th Tier 0.6% 6th Tier 0.5% 7th Tier 0.4% 8th Tier 0.3% 9th Tier 0.2% 10th Tier 0.1% 65 Banc de Binary
  • 66. Banc De Binary Platform R The rates provided on a broker’s platform are all-important. The source of these rates must be completely reliable: the client’s money is depending on it. At the end of the day, the rates decide whether a trader will make a profit or whether he will suffer a loss. The rates that clients see on Banc De Binary’s platforms are real live streaming rates, which are displayed by us in real time. Our rates, charts, and market information are provided by Reuters, the world’s biggest and most relied upon financial and news institution. All our rates can be checked back with the rates published on Reuter’s website. On request, we will gladly check them against the rates of our dealing desk. 66
  • 67. Rates The outcome is that your account is as secure as it possibly can be at all times. 67 Banc de Binary
  • 68. Platform Security Banc De Binary provides the highest security standards in all our financial transactions. These security measures include: Non-disclosure of personal information to third parties except where legally obliged to do so. Online identity assurance ($250,000). Account authentication procedures ensure that only authorized users can withdraw. Banc De Binary provides the highest security standards in all our financial transactions. Adherence by all third party data-processing companies (i.e. when transferring funds) to the same high level of security standards. Application of the highest level of encryption to all communications to prevent unauthorized viewing of transactions. Investment in the latest technology ensures that the latest safeguards are always in place. 68 Platform Security
  • 69. 69 Banc de Binary
  • 70. Deposits and Withdrawals Banc De Binary aims to make the process of depositing and withdrawing money as simple as possible so that clients can start trading quickly and access accumulated profits at their convenience. To offer the best possible service to clients, the following deposit and withdrawal methods are offered: Bank Wire Transfer (international and domestic) via a client’s bank account. This allows secure transactions from $1,000 with no maximum limit, which are completed within five working days. Bank charges may apply. Credit/Debit Card, for amounts between $500 and $25,000 ($50-1,500 for third party credit card via MoneyBookers). This method deposits funds instantly but can take up to ten days for withdrawals. There are also credit card fees on such withdrawals. MoneyBookers eWallet allows amounts between $50 and $1,000 (although unlimited for MoneyBookers VIP accounts). Deposits and withdrawals occur within minutes. The range of options may be extended from time to time so please view Banc De Binary’s website (www.bbinary.com) for the latest details. 70 Deposits and Withdrawals with Banc De Binary
  • 71. s with Banc De Binary 71 Banc de Binary
  • 72. Types of Accounts There are many different types of binary options traders, from those new to this market to seasoned professionals. Accordingly, Banc De Binary offers a range of accounts that have different features according to each trader’s individual requirements: Our Practice Account is available to new investors who want to experience trading binary options without risking any actual money. It has a notional $50,000 limit, is valid for seven days after opening and has the same conditions as the Micro Account except that no money is involved when making trades. It’s the perfect way to find out how binary options trading works. The Micro Account allows investors to trade over seventy assets (stocks, indices, commodities and foreign exchange) using Banc De Binary’s professional trading platform, with full 24/7 support through LiveChat. There’s a minimum $500 deposit. No trading bonuses are offered with this account. The Classic Account offers access to the full range of binary options types (digital, touch and range) and to all asset types. The minimum deposit is $1,500 and investors can view news and world-class market research, real-time trading ideas through LiveChat as well as TrendStation, Banc De Binary’s innovative trading education program. 72 Types of Accounts
  • 73. Our Premium (Personal Broker) Account provides everything available through the Classic Account plus extended streaming news and research. Clients also benefit from the services of a personal options broker who will issue trading signals and deal with account enquiries. A Premium Account Executive Team is available 24 hours a day, five days a week for trading by telephone, Skype and LiveChat. The account is eligible for the MoneyBookers VIP Program and a minimum $5,000 deposit is required. The Platinum (VIP) Account is Banc De Binary’s top of the range account and requires a minimum deposit of $50,000. Clients receive options at competitive prices based on their trading volume, access to an independent personal Trading Advisory Team and a wide range of high-level publications. Client service is accessible 24 hours a day, five days a week via a local telephone number routing directly to the dealing room. Further, a personal broker and OptionTrend analyst will monitor the client’s account on a bi- daily basis and the account is also eligible for the MoneyBookers VIP Program. Investors can begin trading with any level of account and upgrade it later to suit their needs. 73 Banc de Binary