London Living Costs Compared to Major World Cities

canstockphoto15303917We all know that to live, or indeed be a tourist, in London is far from a cheap exercise. We’ve all winced when a restaurant bill arrives or a bar tab is rung up. However, how does this compare to other world cities? Is London the most expensive city or do world centres take that title?  

This was a question that ‎digital lender 247Moneybox posed themselves and after conducting their own research including using crowdsourced data from Numbeo, it seems that London is not quite the hardest on your pocket.

Having turned the results into an infographic which you can see below, it does confirm the generally held notion that London is an expensive place to call home, however it’s certainly not the most expensive with New York taking that title in the products and services sampled by the firm.

Indeed, given the strain on our pockets these days, it is probably only a crumb of comfort to know that there are more expensive cities out there. That being said there are also a lot more where the cost of living is less. No wonder Vancouver comes out on top in surveys of great cities to live in where the cost of a 1 bed apartment in a central location is £762 less than the London equivalent! That’s a lot of extra Canadian beers and trips to the cinema!


Don’t Get Caught by a Binary Brokers Scam

canstockphoto9933347While there are great benefits that can be achieved for investors who use binary options trading, there are also a number of scams that are currently in play within the world of binary options. Some of these come from unscrupulous brokerage firms that avoid mentioning the risks associated with binary options, fail to disclose their trading practices and fees, or make it intensely difficult to access your funds after trades are made.


Here are some of the ways that you can watch out for binary options scams as you participate in the binary options market:


  • Independently Research Your Firms: Because binary options can be purchased through a number of countries, it can sometimes be easier for scam firms to slip through the cracks of regulations. Always do your own research into a company before you decide to employ their strategies or services.
  • Watch for Firms that Downplay Risk Factors: While a number of firms promise the moon, the reality is that there will never be 100% perfect returns with any brokerage firm. It is true that there are riskier and less risky investments within the world of binary options, so look for companies that are more transparent about their strategies and techniques.
  • Always Read the Fine Print: A lot of details can be hidden in the terms that you accept when you sign up to use a firm. It is easy to just skim through these and click on an option to accept the terms, but it is vital to take the time to truly understand what you are signing. Financially, all of the details that you need about a company are often in the conditions presented at the start of services, including payouts and bonus. Watch out for companies whose withdrawals require high limits or are not delivered for long periods of time in particular.
  • Security Protections: In an age where digital information can be used in a multitude of ways, it is important to verify that any financial firm is prepared to protect your privacy and your investments. You can also do a search for any past reported breaches in security or user information sold.
  • Check References: It is fairly simple to obtain reviews from other investors as to the quality of a given brokerage firm. Look for positive reviews from a number of platforms, never relying on the results listed only on a single platform, to get the best overall picture of the kinds of service that you are likely to receive from a provider.

Binary Options Signals

success-1093889_640What do we mean speaking about binary options signals? They can be defined as the recommendations of the experts, made as easy-to-understand rules which can be implemented by traders. The reasons for traders to listen to these recommendations and to follow them may differ. They may suffer from the lack of trading skills or may have not enough time for thorough and effective financial analysis. We are glad to give you more information on signals in binary options and the main signal providers.

Not all the signal providers are equally worth recommendations. We have chosen the most reliable ones and bring them to your notice. You may check them out. We have paid our attention to the services which are free and provide auto delivery.  And these are the services where we could verify the received results.

Signals as a Way to Enlarge Gains

The main binary option problem of an average investor is to identify trading opportunities and to derive profit from them. The solution can be provided by the fundamental and technical analyses, the methods which can be of great use for any trader. Technical analysis can be understood as a method of analyzing the market activities aiming to predict further price movements. Fundamental analysis can be regarded as a method which involves the examining the long-term qualitative and quantitative factors of growth.

But it’s not all as easy as it sounds, and it is necessary to be highly experienced to use these methods in a proper way. Signals may be helpful if a trader has not enough time for thorough information examining and evaluation. Financial specialists predict potential development scenarios and make advice on what way to choose. In general this advice deals with the option expiry time, strike price, or the direction of trading. The chance of success in trading increases because these tips were given by specialists. And very often this chance is higher than if the traders did it themselves.

How Is It Possible to Take Profit of Signals?

The customers can get the signals in different ways.

The trades are to be placed instantaneously, if the signal is formed as a software instruction. In this case you need just to click the button.

You need to copy textual signals into the trading system.

“Auto-trading” service implies that the binary signal is delivered directly to the trading system. It may be rather interesting and helpful for you to know that auto trading software for binary options allows you to avoid placing trades. Everything will be done by the programme. Usually you even needn’t special trading interface.

Earlier the signal service were needed to be paid for. Today the things have changed, and it is a usual practice that such services are free of charge. You should remember about binary options signals expiration within definite time. The ways of signal delivery may differ, they may be delivered via various means of communication.

What Is the Way to Form Binary Signals?

Fundamental and technical analyses viewed above may be used as a base for the signal creating. Diverse trend line strategies and different indicators are also used in trading.

If a trader is good at the market analysis, he/she may try to manage it himself/herself. But even in this case they may take advantage of signals. Signals may be of great help for those who are rather sophisticated in trading, because signals may help to cover more opportunities.

Types of Binary Signals

The types of binary options signals are rather variable. Providers may base them on about any type of the underlying assets. The system takes into account the variety of assets available to the trader, and it is a commonly used classification based on the interests of traders. Also traders can classify the signals according to the types of deals he/she feels most comfortable with. And the signals may be also classified due to the source they come from, or if they are free or paid.

What Is the Difference between Push and Act Signals?

“Push” signals and “act” signals are the main types of binary option signals. “Push” signals mean that traders receive a notification via means of communication, which in the most cases is to be acted upon immediately. “Act” signals mean that a trader should wait for the asset price to progress to the point noted in the message and then follow the instructions.

In fact both variants of signals may have their advantages as well as disadvantages. “Push” signals seem more favorable, though they have time of expiry. The “act-type” signals’ advantage allows to deal without unnecessary haste, but sometimes necessity to wait becomes a trouble.

Signal Providers

To find a proper service provider is half the battle. Pay attention to the most reputed ones. With their help you will be able to increase the winning probability by 65% according to the statistics. In some cases auto trading software solutions can demonstrate good results, but specialists with financial experience are better anyway.


The Small and Unknown Mistakes That Are Adversely Affecting Your Credit

canstockphoto14045744Millions of people have bad credit scores. Every year, hundreds of thousands are turned down when they apply for loans, credit cards or even mobile phone contracts because something on their record is acting as a red flag for the banks and other mainstream lenders. Those black marks could include things as serious as county court judgements (CCJs) or something relatively minor like a couple of late repayments on a credit card.

Having a good credit score undoubtedly makes life easier, giving you access to a large number of mortgages, personal loans and credit cards. Having a blemish-free record will also allow you to get the best interest rates when applying for loans and also mean that the banks and other lenders are willing to loan you larger amounts.

Those who have show financial responsibility throughout their lives are more likely to have excellent credit scores than those who have not. In order to ensure that you have a good score, you should pay all of your bills on time every time, not go overdrawn at the bank without first getting approved for an overdraft, not falling behind on your mortgage payments and ensuring that all of your utility bill payments are kept up to date.

But there are a number of smaller and relatively little known mistakes that many people make and are unaware that these can actually count against you when being assessed for credit:


You may have moved recently and not had a chance to get your name on the electoral roll. But not doing so won’t just mean that you won’t be able to vote: it will also make it much more difficult for you to access credit. One of the first things that lenders do is look to see if a new applicant is on the electoral roll. If somebody isn’t, then this might suggest that this person has had money problems in the past and is trying to hide from their debts by keeping their address hidden. People who tend to move a lot – like contractors and members of the armed forces etc. – are also shunned by some lenders.

Always make sure that you are registered to vote at your new address.

Never using credit

If you couldn’t afford to put aside the money for a few months to pay for an item, then you can’t afford it. This is an old saying but remains a truism: nobody should simply use credit as a way to live beyond their means. For many people – older generations in particular – this means that they never use credit cards, loans or other forms of borrowing. They prefer to save for items and never go overdrawn at the bank.

Other people will only use a single credit card and just for regular purchases that they would otherwise use a debit card for. These people always repay their entire balance each month so that they avoid all interest charges.

Both of these sets of people sound like they would be the perfect borrowers and would be actively courted by the lenders. But, perhaps perversely, behaving this prudently can actually harm a person’s chances of obtaining credit. Lenders, as well as assessing somebody’s credit score, also like to know that they will make some profit from taking somebody on as a borrower. If you never use credit or repay all your borrowing every month, then no lender will ever make a profit from you. You will, in effect, be seen as too cautious to be offered credit.

Applying for credit too often

There are hundreds of credit cards and thousands of loan products available and most of them can be applied for online with decisions in seconds. The rise of the web has made applying for borrowing incredibly easy and quick. That makes the temptation to apply for a new card every time you see an offer almost overwhelming. While it may seem sound financial management to constantly shop around for loans and cards to get the best deal, this can actually damage your credit score.

Each time that you apply for credit, a credit search will be run on you and this will be registered against your credit record with the three main credit reference agencies. Lenders don’t like to see a lot of credit searches on a person’s record, particularly when those are in a short space of time. It suggests somebody who is having trouble managing when, in many cases, this is the opposite of reality.

Having too much credit available

We’ve already looked at how not using credit only having a single card can reduce your chances of getting approved for a loan or card. But having a bunch of credit cards and never using them can also have an adverse effect on your credit score.

Lenders don’t like people who take out cards but then don’t use them. These people will not make much in the way of interest for lenders and do are viewed as too responsible. They will, in effect, end up costing the lenders money rather than making them more. So if you have some credit cards which you never use, it is a good idea to close some of them and just keep one or two in case something unexpected crops up. Closed accounts will be shown as settled on your credit record, and increase the likelihood that you will get accepted for more credit in the future.

Being linked to a debtor

You may run your finances perfectly but if your partner, son or daughter or anybody who lives in the same house or is linked to you financially in some way behaves irresponsibly with money, then this might mean you are declined when applying for credit. Find out who you are linked to financially by applying for your credit record and then writing to the agencies to correct any mistakes.

Article provided by Mike James, an independent content writer working together with technology-led finance broker Solution Loans, who were consulted over the information in this post.

Binary Options Trading Basics

canstockphoto19654068The binary options trading, which took a firm position in the American market since 2008, has rapidly turned into a prosperous financial instrument. The line of demarcation between binary and conventional trading options lies through the idea that the former do not demand any assets’ ownership. The central idea of using binary options is foreseeing the future movement of a product in the market rather than making an actual investment.

From the naming of the options, it follows that they presuppose selecting from two available variants. Basically, binary options trading represents two extremities with no in-between alternatives. The procedure of the binary investing starts with foreseeing the movement of an asset in terms of pricing. After the returning sum is outlined, the investor has to define the amount of money, which is risked, as well as the timeline of the performed operation. All factors considered, the trading act may start.

Therefore, one of the primary advantages of binary options trading is that it offers the most complete marketing awareness, which concerns a full access to information about the outcomes of trading, as well as the timeframes and the monetary estimation of the performed act.

Leading binary trading is extremely comfortable in terms of the largeness of the traded assets and place-based benefits. Specifically, the assortment of the production embraces financial currencies, indices, marketing stocks, etc.

Moreover, the sustaining any trading operation is not aligned with a specific geographical area, according to which the products of international companies may be traded from one locality and through the assistance of one broker. The system of broking options is easy in use since it operates a single web basement for all trading opportunities, which ensures conducting multilevel marketing operations.

Easy Guidelines for Online Stock Broking

canstockphoto12803990With the advent of the internet, stock trading has become much easier than before. With only a few clicks, you can now compare the stock rates, the broker rates and everything else related to this type of trading. However, if you are a beginner, then you need to understand the concept of online stock broking before you invest anything. There are certain basic skills that you have to understand and apply so that the chances of getting lesser returns are minimum. Buying and selling stocks may seem to be an easy thing for veterans, but things can become confusing if you are not used to the terms. So, as a beginner, you need to be well accustomed to all the terms that are used in this trade. But, first you must have an online brokerage before you start investing and collect your returns. This will be an easy step because of the numerous online brokering firms that are willing to help you. They have the latest software systems that are specially designed for these purposes.

Things to consider

Once you have opened your online brokerage account, you have to see what your options to make money are. Initially, the entire process may seem to be very complex, but as soon as you get used to the software tools that regulate this market, you will start becoming a pro. Knowing the tricks of the trade is essential for online stock trading. You can visit their site to know more about the current rates. In online stock broking, you have to work with brokers. The best way to search for online brokers is to visit the websites that are involved in this kind of trade. Before working with the broker, you can compare the rates so that you can work with a reliable one at an affordable price. Brokers who allow investors to practice virtue trading are the ones to trust and rely on. This will be very helpful in your early days as you will be able to use play money or virtual money. Practicing with virtual accounts is very important before you actually start investing for real. So, before starting, you should research with your virtual account and get used to all the terms and tools that are used in stock broking.

Defining the capital

This is the first step towards online stock marketing. Deciding how much money you want to start with is very important. There are people who want to go all guns blazing and spend everything they have. On the other hand, there are people who start small and end big. This helps them to get an idea about the market. If you are new to the trade, it will be better to go for the latter option. You should have some knowledge on the industry you choose. Once you spend a small amount of money and see the rate of return, you can start spending some more money. This is the ideal way to start for anyone so that you do not lose everything on one shot. Centralizing your finance and meeting the transactions one by one is the way to go for online stock broking.

Choosing online brokers carefully

This is another trick that you need to master before spending big. Take as much time as you want to decide which online broker you will work with. If you ask around, people will tell you not to be influenced by the attractive online advertisements. Ideally, you should be working with someone who will be able to simplify the online stock trading concept to you. As a beginner you would be highly excited when you get incentives and attractive packages. A brokerage that provides such offers should be chosen over the ones who offer fake deals.

Terms and conditions

Probably the easiest thing to do, it is absolutely compulsory to read all the terms and conditions carefully. Once you are sure about the brokerage agency, you can visit their site and go through all the terms and conditions before signing up. If you are not able to understand anything, you can ask the broker to explain in detail so that you do not have any confusion later.

5 Loans You Could Get if You Have a Bad Credit History

canstockphoto9959220When you get turned down for credit it can come as a major shock. If you’re already struggling with your repayments because of combined high interest rates and were banking on getting a new loan to reduce your monthly outgoings and stabilize things, it can feel like a disaster to be rejected.

But if you have got a bad credit history or a list of financial mistakes registered against you, getting credit from one of the traditional lenders is always going to be a struggle. The major banks and other financial institutions all have fairly strict criteria when it comes to lending money. And that means that most people with poor or simply impaired credit records are not going to be successful when applying to these institutions.

Thankfully, there are other options provided by a growing number of alternative lenders who specifically cater for people in this situation. While there are no guarantees that you’ll be successful when applying for one of these loans, there is a much higher likelihood of obtaining credit this way:

  1. Guarantor loans

Before the 1980’s and the rapid growth of credit scoring, it was fairly typical for a potential borrower to make an appointment to see their bank manager at the local branch. If they were new to borrowing or if they had not held an account at the bank for very long, the manager would often ask for some form of security before agreeing to issue a loan. That security would often be a third party – a guarantor – who would agree to making the loan repayments should the borrower get into difficulty or otherwise fail to keep up with the schedule.

Guarantor loans are a newer version of this age-old form of lending. They work because the lender uses the credit rating of a third party when making a decision on whether to issue a loan to an applicant. That third party becomes legally bound to the credit agreement and responsible for making repayments in the event that the borrower gets behind. The guarantor can be a friend, a family member or even somebody at work.

  1. Homeowner loans

If you own your own house either outright or with a mortgage, then you may be able to successfully apply for a homeowner loan. These come with lower rates of interest than unsecured loans and, very often, have much higher capital sums on offer. It all depends on how much equity you have in your property (the difference between a home’s value and the outstanding balance of the mortgage). When you successfully apply for a homeowner loan, the credit balance is secured against your house meaning that if you fall behind with repayments or default, the lender will be able to apply to a court to take possession of the home and sell it to cover the outstanding loan amount and any interest.

Homeowner loans are similar to mortgages with sums of up to £250,000 (sometimes more) available and very long repayment schedules which can stretch to 25 or even 30 years.

  1. Payday loans

While payday loans have had a bad press in recent years, new rules imposed by the Financial Conduct Authority mean that all lenders now have to adhere to strict limits on the amount of interest they can charge and the number of times they can allow a borrower to ‘roll over’ repayment of the loan to a subsequent month. The APRs advertised on payday loans can still appear to be very high but it’s worth remembering that these are short term loans and APRs are a representative annual rate. Most payday loans are just for a month or two meaning that you will only ever have to be a small fraction of the total amount that you borrowed. Payday loans are available for sums ranging from £100 up to £1,000 and are a safe option for those confident that they will be able to make the repayment comfortably on time. For example, somebody who borrows £200 at an APR of around 1,400%, will then will only repay £250 – meaning that the total interest will be 25%, not the APR advertised in the headline figure. 

  1. Sub prime personal loans

While the banks may not want to offer somebody with a poor credit rating an unsecured loan, there are plenty of other lenders who do exactly that. Unsecured personal loans are usually shorter term loans than secured ones and will come with shorter repayment schedules and smaller capital amounts. They also come with higher interest charges because the lender is taking a bigger risk when lending to people who have a record of financial mismanagement. The sums involved are smaller than with homeowner loans and are usually amounts between £1,000 and £10,000. A small group of lenders are able to offer large amounts – up to £25,000 – although people with seriously impaired credit may be unsuccessful when applying for one of these. Repayment schedules are usually anything between one and seven years although some lenders do have plans which stretch out to 10 years.

  1. Credit unions

Credit unions represent a small but growing part of the lending market in the UK. They are mutual organisations – meaning that they are owned by their members – similar to the ownership structure of the old building societies. Credit unions serve the communities that they are based in and offer savings accounts and loans to people who live or work in the area. The major downside to borrowing from a credit union is that most will ask new members to become savers before considering them for credit. This is because the money that they lend is based on the capital that they hold on deposit. While the amounts that credit unions used to offer was small, loans are now growing in value with many now offering larger sums – sometimes up to £10,000. The interest rates on offer are often lower than for sub prime loans.

Article provided by Mike James, an independent content writer working together with technology-led finance broker Solution Loans – a company with many years’ experience in advising clients of their most suitable type of credit.

Why Many PPI Claimants Want Estimates Of Their Claims’ Value Before Claiming

canstockphoto1478706There is a growing trend amongst UK payment protection insurance claims victims of wanting to know the value of their claim in advance as opposed to waiting until the claim has completed and receiving their check in the mail.

What is a PPI Claim?

The term “ppi claim” refers to when a potential ppi miss-selling victim endeavours to get a refund for the miss sold policy they paid insurance premiums on.

This can be done in 2 ways:

1. Use a ppi claims management company to help you, some of them offer free ppi calculator estimations to help the website visitors estimate the value of their claims. Once you engage the services of a claims management company the claim begins and if successful you will receive your refund & someone else does the work and the chasing up for you (you just have to provide information) (you will pay a fee on completion).

2. Claim yourself without the use of a claims company, slower, however it is free, with no fees payable to a company for their services.

Why Do People Now Want To Calculate Their Refund Before Claiming?

One reason is that there are costs associated with using companies, so some people want to calculate the value of their claim upfront along with any costs that may accompany that refund.

Another reason is the growing availability of these ppi calculation tools that can give people guidance on how much their claim could be worth (before it was a compliance minefield, now it is permissible and is perfectly fine as long as no false statements are included).

An additional reason is just pure curiosity, people like to get excited about windfalls and the prospect of a big refund, this is human.

An advantage of knowing what a claims’ value could be is that it gives the claimant an idea of how much investigation could be required too, and whether it is worth them pursuing it alone in relation to how much money they could be refunded by the banks.

Aside From A Refund, Are There Other Fees Or Compensations Due?

Interest is paid on each insurance premium payment to the rate of statutory interest (which is 8% in the UK), this is given to the victim of miss-selling once their claim is completed (if successful), certain charges can also be repaid, it is worth discussing this with the company that you decide to put the claim through with.

It is advised that with the impending ppi claims deadline, any claims not started yet are put through as soon as humanly possible, even if this means using a claims’ firm to expedite the commencement of it.

Once spring 2018 comes it will likely be too late due to the recent enforcements by the financial regulators as the banks’ campaigning has granted them a deadline, however there is still more than enough time for people to input their claims until that comes into play.

There are a wealth of websites and lots of information to guide anyone making a claim, simple searches online can give all the information someone might need in order to get started.

P2P lending: 4 great benefits for personal loans

canstockphoto11348652The market for unsecured credit is barely recognizable from what it once was. The days of queuing up outside the bank to fill out piles of paperwork are very much a thing of the past, with online lenders having infiltrated the industry and effectively transformed the landscape. Yet while these have brought some much needed competition and convenience to the sector, not all of these online platforms offer the most scrupulous of interest rates, meaning you need to keep your wits about you if a helping hand is what you need.

One of the standout varieties of platforms to offer personal loans are peer-to-peer lenders, which conduct their business by matching the funds from ordinary people who opt to lend their savings – rather than putting it into the bank – directly with those in need of credit. Such a streamlined process eliminates all intermediaries, and P2P platforms do not use any lender capital for personal gain.

Instead, the platform acts purely as a mediator, and ensures the proper controls are in place so that this direct relationship between lender and borrower functions smoothly. For this, it commands a small admin fee, but there remain significant benefits for the customer. As a borrower, here are four which standout:


Aside from the efficiency of the business model, these companies operate entirely online, meaning overheads are kept to a minimum. As a result, creditworthy candidates can expect to get loans with APRs starting from 5-6%. In addition, any fees are clearly visible on their websites, and, in general, very reasonable.


It really is as straightforward as completing an online form to get a personalised loan quote; one that takes just a couple of minutes to complete. If you’re then happy with the provisional quote, completing the application is just as quick. You may have to submit some bank statements while credit checks are performed, but other than that, there is no effort required.


Assessing your application usually takes just a solitary working day, and, if approved, you can expect the funds to arrive in your account overnight. That’s it!


Other than good value, this may be the best reason of the lot to choose a peer-to-peer lender. You get to choose to borrow an amount anywhere between £1,000 and £25,000, and also the period over which you would like to pay it back (1-5 years). It means you can structure a repayment plan that suits you, and what’s more, some platforms like Lending Works even give you the opportunity to make early settlements down the line at no extra cost.

Certainly, for those in need of credit, these are not bad times to be taking out a personal loan. Bank of England rates remain entrenched at record lows, and as the loans sector becomes increasingly diverse, it is the consumer who continues to benefit. So with such a favourable set of options at your disposal, it makes sense to explore credit providers of all shapes and sizes in order to find the best deal you can. But if it works out that after doing your research you are drawn to peer-to-peer lenders, don’t feel sceptical. Feel vindicated.

Binary Options for Dummies

canstockphoto19654068This article isn’t going to teach you how to become an expert trader, but it will inform you about the basics of binary options trading and how to get started as a binary options trader. We will look at the important aspects that you need to know as well as a few very basic trading strategies, the navigation of a trading platform and we will also give an example of a straightforward trade. Let’s get started.

What is a Binary Option?

The prefix ‘bi’ means two as in bicentenary and the word ‘binary’ is a computer term for a numeric system that only uses two numbers, 0 and 1. By adding the word ‘options’, we come up with ‘binary options’ which in effect means two choices, of which only one will prevail. Binary options trading involves forecasting the direction in which the price of selected market tradable assets will move, either higher or lower, in a specified period of time. The binary options contract between you and your broker is a very simple contract in which the potential profit as well as the potential risk are fixed at the time the contract is entered into or in binary options language, when the trade is struck or opened. Here again there are two possibilities, if your forecast is correct, you receive the predetermined payout and if it is incorrect, you forfeit your investment amount only.

The three elements that comprise a trade in binary options are the expiry time, the strike price and the return offered by the broker. A very basic example of the structure of a binary options trade would be if the oil price is at $55.04, the strike price, per barrel and you forecast that the price will be higher in exactly 5 minutes, the expiry time. Your binary options broker, such as Banc De Binary, has offered a return of 80% on a correct forecast and you invest £10. Five minutes later, at the expiry time of the trade, if the price of oil does increase to $55.05 per barrel, you will have made a winning trade. You then receive a payout of your original investment (£10) plus 80%, a total of £18. Had the oil price have dropped below $55.04, you would have lost your investment. Simple!

Binary Options Variations

While binary options trading always comes down to only two choices, there are a number of variations that have been introduced to provide traders with alternatives. Before looking at the different variations, you need to know the meaning of certain terms and at this point the important one is underlying asset. Every binary options trade involves the price movement of a market tradable asset, known as the underlying asset. This could be a stock, an index, a currency pair or a commodity and many brokers, such as Band De Binary, offer a wide choice of global assets to trade.

Binary Options – Trade Options

The most common and widely used trade option is the Call or Put binary option where a Call option is the name given to a forecast that the price of the underlying asset will go up, while a Put option indicates a forecast that the price will decline by the expiry time.

The Touch or No Touch variation has become increasingly popular among traders and requires more knowledge of the underlying asset than a standard Call or Put binary options trade. With this variation, you have to forecast if the asset price you are trading will touch a price target either higher or lower than the strike price during the life of the trade. The price only has to touch the forecast price before the expiry time in order for the trade to end ‘in the money’. Should the price exceed or drop below the strike price before the exit time having touched the forecast price, this has no effect as the trade is closed as soon as the target price is touched. The opposite is the situation with a No Touch trade where your forecast would be that the price won’t reach a certain price level. In this case, the instant the price touches the selected level, your trade closes as a losing trade or ‘out of the money’.

There are other more complicated and sophisticated trade variations that you will understand once you start gaining experience as a binary options trader. Most brokers offer a wide range of trading options so take the time to review these options before you sign up.

How to Trade

All binary options trades are done using the binary options broker trading platform. There are different brands of trading platforms, but navigating them and placing your trades is very similar on all platforms. We will go through a straightforward Call or Put trade on the trading platform such as that used by binary options broker Banc De Binary, an example of which is directly below.

Above the price chart graphic, as you can see, the underlying asset is gold and for a return of 72% on your investment, you have to forecast whether the gold price, which is at $1165.56 is going to go up, or down by 10:10, the expiry time. You enter the amount you wish to invest and then click on your selection, up (Call) or down (Put). You will also notice that the rate of return is clearly marked on the trade and for this trade it is 72%.

In the above, you can see that there is a graphic representation of the price movement of the asset. This can be adjusted to reflect different time frames and it can help the trader to determine the direction the price might take in the future. By using the historical trading patterns of underlying assets traders are able to extend the pattern into the future and thus predict the direction the price might move in going forward. The use of graphs and algorithms in calculating your forecasts is known as technical analysis which you will learn much more about as you progress as a binary options trader.

Gaining Experience

You now have the basic essentials to start trading binary options. The next move is to open an account with a reputable broker, such as Banc De Binary, who is regulated by a governmental regulating authority such as CySEC, the Cyprus Securities and Exchange Commission, which is recognized across all the European Union member countries. Once your account has been opened, you will have access to the education portal which offers a wealth of trading tools, information such as an eBook, training videos, trading signals and much more. This will enable you to start advancing into the more intricate niceties of binary options trading such as the different trading strategies and methods of analysis used to improve your forecasting skills.