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Phil Moore is a full time trader of the financial markets. He specializes in the use of binary options,a fast paced and controlled risk method of trading on short term movements in financial prices.
My company:
Binary Options Investor
My blog:
Binary Options Investor
  • What You Need To Look For In A Binary Options Trading Platform

    One of the critical factors to your success when trading with binary options is the platform that you use for your trading. The software provided by your broker is where you will conduct all aspects of your trading including pricing and executing your deals as well as managing the functions on your account. For this reason it is important that you take a close look at what is on offer before taking the plunge and opening up an account.

    Binary trading platforms are based on complicated software which you can gain access via your account details. They are normally web-based, allowing the trader to access their account from anywhere where they can connect to the Internet. The software is provided freely for clients with the exact specifications dependent upon the brokers offering.

    Before you select a binary options platform to trade with you might want to consider some of the key points below. These will help you to find the best and most suitable dealing platform for your binary options trading.

    Contract Profitability

    The most important things that traders will be concerned about when trading is the amount of profit that they stand to earn from a profitable contract. Binary options brokers make their profits by balancing the number of winning outcomes versus the number of losing outcomes on each contract. To protect themselves the return on each contract is weighted in the favour of the broker. For a losing position you are likely to take a full 100% loss but only receive a 70% return on your investment when you win.

    For this reason it is important that you factor in any rebates that are offered on contracts into your profit calculations. By doing this you will be able to work out what rate of return you need to make and the percentage of winning trades that you will need to make to ensure your strategy is profitable.

    Speed And Reliability

    The ability to quickly action your orders is a requirement that you will need to look out for when selecting a dealing system. With short term contracts, such as are used in binary options trading, the speed of execution is even more critical. It is vital that you orders are placed at the levels you anticipate. If it is not then you may face the situation where you contract ends 'out of the money' simply due to a delay in order execution.

    Furthermore you want to make sure that the platform is reliable. It should not suffer from too many 'down times' and be readily available when you want to trade.

    Ease Of Use

    It perhaps goes without saying that you will need to be able to navigate your system easily. Not only will an efficient and well laid out binary options trading platform be easy to use, it will also ensure that you don't make mistakes when trading. This can prove costly, especially when you are first starting out.

    The interface should be intuitive and allow you to readily identify potential positions that you want to trade, while also ensuring that sufficient checks and balances are in place to confirm your entries. Furthermore when it comes to depositing and withdrawing funds on the platform you will need to know that these requests are serviced quickly with the minimum of fuss.

    Before you make a final choice on the platform that you want to use it is worthwhile coming up with a list of binary options brokers and making a comparison between the platforms that each uses. This along with other factors such as their level of service and reputation within the industry can then be used to help you decided upon which is most likely to match your trading requirements.

    Dec 17 8:07 AM | Link | Comment!
  • Why It Is Important To Consider Risk Versus Reward When Trading Binary Options

    The first thing that you need to think about when trading is how you intend to identify opportunities to take in your account. There are a great many strategies out there which you can use. Most traders find that backing the market is the best way to trade and will follow some form of basic trend following strategy to trade. Of course you will also need to find the best asset to back and also identify the best time of the day to trade and time your entries.

    However more fundamentally you should have some idea of how your strategy will perform if you want to make a profit. This is where it pays to monitor both your trades and your results to have a clear picture of how the strategy will need to perform if you are to make money over the long term. To calculate how successful your strategy is you will need to firstly know what both your profit and loss levels are on each contract that you place. This will then allow you to work out the how many positions you will need to win to be able to move your account balance forward.

    Once you know what you stand to win and what you will lose for each trade you place, you can then work out what strike rate you will need to make a profit on your account. For example if you earn a 75% profit for each in-the-money contract and you lose 95% on each contract that ends for a loss then you can calculate what is known as the 'breakeven percentage calculation with the following formula - Loss/ (Loss + gain) x100. In this example you strike rate (the point that you reach breakeven) would be 55.8%. So in other words you would need to win over 56% of all the trades that are taken on your account in order to see a profit build in your account.

    When using this formula you will be better able to critically assess your performance and work out how to refine your strategy for top performance. You can try out this approach on a demo account and work out whether your strategy will deliver sufficient performance to warrant trading with it. It will also allow you to balance your trading risks as you will be in a better position to limit any losses on your account and gain the edge which is required for successful trading.

    You can read more tips for developing good binary options strategies by visiting the Binary Options Investor.

    Nov 26 10:40 AM | Link | Comment!
  • The Key Factors To Consider When Opening A Digital Binary Account

    Trading with binary options is without question one of the most easily understandable ways in which to speculate on price movements in the financial markets. Each trading contract only requires the trader to make a simple directional choice as to whether the expected price action will take the asset price either higher or lower. This makes it a simple medium for those who are new to investment to use and one with which they can control their risks. The only financial risk that you take when placing a contract is fixed from the outset and limited to the money that is invested on the contract. This makes it relatively easy to construct an effective money management plan for any strategies used.

    In fact the only difficult decision for a new trader is in knowing which broker to choose for their trading. There are a number of brokers on the market who deal in digital binary contracts and the new trader can often be confused as to the differences in the services that they provide. The truth is that there is often little difference between many of these brokerage companies. However it is important to be aware of the subtle differences so that you can find a company that will allow you to maximise your potential for trading success.

    Here is a list of some of the criteria that you should consider when you look to set yourself up with an account to trade with digital options.

    The Contract Returns

    This is the main thing that most traders will focus on and of course, it is vital that you get the best return for any trading positions that you take. Nearly all brokers payout over 70% for a successful in-the-money contract, although the exact amount that they offer can vary. The very top paying brokers often payout their traders over 90%. This is a significant difference and will certainly impact on the profitability of your trading over time. Therefore it is worth checking the rates that are offered, in particular on markets that you intend to trade, prior to opening an account.

    Contract Rebates

    In addition to looking at what you will receive for a successful in-the-money-contract you should also consider what you will be credited for any that finishes out-of-the-money. Not all brokers offer this facility, but those that do will credit you a set percentage of the initial contract investment, if even your prediction proves incorrect. This can see a refund of anywhere between 5-15% per contract. Many new traders in particular like this feature at it helps to provide a safety net to their trading when first starting out.

    Account Management

    To run your account you will need to observe the brokers rules for depositing and withdrawing from your account. Check the deposit methods that are offered and look to see if there are any stipulations as to how and when you can withdraw your funds. Most brokers allow only one free withdrawal per month with subsequent requests attracting a processing fee. Higher level account holders may get access to same day withdrawals. This is something worth considering if you expect to need easy access to your funds.

    Indicators And Resources

    If you don't have access to your own charting package and trading tools then it will be important to find a broker that provides them. Most binary options brokers will provide some basic resources for the new trader which may prove sufficient when first starting out. It is also like that you will receive daily and weekly market updates which you can make use of to keep up with the latest market developments. These can also be used to form the basis for your own analysis.

    Reputation

    Finally be sure to take a look at the reputation of the broker. Online reviews and discussion in forms can be used to find out how other traders have found them and what they like and dislike about their services. This can prove useful when it comes to making your decision. You may also find additional information about the binary options broker that can help you to make your final decision.

    Oct 22 1:02 PM | Link | 2 Comments
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