Binaryex.com Free Binary Options eBook

8/11/2019 Binaryex.com Free Binary Options eBook

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Banc De BinaryThe Ultimate Guide to Binary Trading


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Table of contents

Foreword ............................................................................................................. 6

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

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

Introduction to Banc De Binary

Were the global leader in binary options trading .................................. 12 We dont think of it as a history, we think of it as a legacy .................... 13

A breadth of truly global assets ............................................................... 14

Client service thats 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

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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

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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

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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

............................................................................................ 64 CPA payment plan (monthly) .................................................................. 65

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....

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6

Dear Valued Trader,

Welcome to the exciting world of binary

options trading, one of the fastest

Foreword

In this e-book, well provide you

with the basic information you

need to start trading. The basics can

be learned within a few minutes.

However, there are numerousadvanced strategies that traders

and investors can utilize in order

to increase the probability of high

returns on their investments. In

addition, well cover the different

types of binary options trading

available on the market, and

trading with Banc De Binary.

Established in 2009, following the

decade, Banc De Binary has grown

exponentially to become a world

leading binary options broker. We

offer an exceptional trading platform

where investors can trade binaryoptions in a low-risk, informed, and

safe environment.

Our trading platform is designed to

be easy to use, while still powerful

enough to offer unique money

management features, such as

fast and convenient access to theForex, stock, and commodities

markets, advanced research tools,

and account maintenance, all

in one consolidated web-based

environment. No software to install,

just login and take action.

We are proud to describe ourbrokers as the best in the industry.

Our stringent recruitment process

ensures they are of the highest

calibre. We provide them with the

best technologies and analytical tools

available to ensure their split second

decisions are as accurate as possible.

In addition, your money is in yourhands. You choose the options and

are always in control. Our expert

team of brokers is simply here to

advise and assist whenever you need them.

Foreword


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Your money is in your an s.You c oose t e optionsan are a waysin contro .

For more information, please contact us [email protected]

or call us directly at1-(800)-656-6163

Wishing you every trading success.

Sincerely,The Banc De Binary Team

Banc de Binary

7


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Letter from th

Id like to take this opportunity

to share my enthusiasm and

excitement for the innovative, state-

of-the-art investment, trading and

banking enterprise that is Banc De

Binary.

Over the past few years, it has

become apparent that the old ways

of doing business in this increasingly

no longer viable. For the hundreds

of banks, brokerages, investment

concerns that foolishly cling to the

obsolete models of conducting

their business, the result has been

chaos, devaluation of assets and

equity, and in many cases, oblivion.

Unfortunately, this trend persists to

this day as we continue to see bank

failures, defaults and depreciating

value of many of the biggest names

in banking over the past 50 years.

For those that refuse to see or

do not comprehend the changes

in global economics, business,

investment and trading, the future

holds little promise. For the rest of

us who maintain a constant focus

on advancements in technology,

communications and new product

development, the future is bright,

inspiring and awesome in its

potential.

committed to developing and

delivering cutting edge products,

services and security in a world that

demands constant innovation and

attention to the needs of the modern

investor and trader.

As such, you will notice that the

performance, products, trading

platforms, customer service and

educational tools at Banc De Binary

are evolving on an almost daily

basis, with continuous upgrades

and enhancements to our online

global operations. With that in mind,

please know that each and every

Banc De Binary customer is our most

important customer and that we are

here to serve you 24/7, with regard

to any and all of your banking and

trading needs.

Oren Laurent

Dear Valued Customer,Welcome to our global online banking community.


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Banc de Binary

CEO

The future is bright,inspiring and awesomein its potential..


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In the past couple of years, binary

options have carved out a niche that

focuses on straightforwardness,

known risks, and a de-emphasis

on volatility. Many of the other

asset classes in todays markets are

quite different. They involve a large

amount of painfully complex factors,

which increase the margins of error

and the likelihood of costly mistakes.

Todays markets are quite different

The digital age has revolutionized

them, allowing for an explosion in

asset types, contracts, and strategies.

While this can be seen as a positive

in that it provides opportunities for

wealth creation, more frequently,

it has set the average trader at a

disadvantage. Large institutions with

many resources at their disposal

(namely, specialized personnel and

computing power) have an advantage

over the competition. They quickly

capitalize upon traditional asset

trading opportunities far before the

best retail investors are even aware

of them.

In combination with rising volatility

and a staggering increase in the

number of investment vehicles

available in recent years, it is easy

to see why many retail investors

todays market. In fact, many view

the idea of speculative trading as far

too risky and riddled with hidden

complexities. In a sense, theyve

been unduly pushed out of the

market.

Binary options enable invin the toughest market c

Binary options


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stors to competenditions.

These circumstances are precisely

why binary options are such an

exciting development. Brokers

choose well-researched and

understood underlying assets, giving

retail investors information access

that rivals the professionals. Perhaps

most importantly, risk calculation on

binary options is understandable.

With more traditional assets, every

single price movement affects

potential gains and losses. When

additional complications such as

leverage are factored in, its easy for

a prospective trader to lose track of

their exposure in a given investment.

However, with binary options, the

set price and all or nothing nature

of outcome brings risk out of vague

With exact risk known, binary options

traders are able to make wiser

decisions about money and account

management. Not coincidentally,

these are the areas where traditional

asset traders often stumble and

lose. By eliminating these added

entanglements, binary options give

traders the ability to focus solely

on making correct predictions and

consequently, making money.

Banc de Binary


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In 2008, the SEC approved the

listing of binary options. This ruling

led Banc De Binary to successfully

predict a period of growth in binary

options trading.

Our vision was to be the pioneers of

a new kind of bank, one focused on

providing high quality binary options

trading services and solutions to

both the experienced trading

professional and those new to this

market.

The Banc De Binary Pro Platform

utilizes the latest technology to offer

of customers, including corporations,

hedge funds, individual investors,

banks and governments, in a simple

yet secure online environment.

Banc De Binary provides its clients

with a unique value package: state-

of-the-art technology; extensive

knowledge and unparalleled service

levels from our highly skilled team;

alongside a modern and accessible

products.

Were the global leaderin binary options trading


Introduction to Banc De B


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Our goal is to bring fair and equitablepricing and order-handling practicesto all our clients.

We dont think of it as a history,we think of it as a legacy

With a legacy of over 100 combined

years in the foreign exchange

markets, Banc De Binary is a leading

We service more than 20,000customer accounts and operate

in over 80 countries, providing

consumers, corporations and

institutions alike with a broad range

including private banking, corporate

and investment banking, securitiesbrokerage and wealth management.

inary

Banc de Binary


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A breadth of truly global assets

Banc De Binarys trading platform

offers more than 90 assets, which

constitutes the widest set of tradable

assets currently available from anyprovider. With trading activity in over

80 countries, we can offer emerging

market and other less liquid

currencies. This widens the range of

tradable currencies, commodities,

stocks and indices that you can

choose from. Further, with a VIP

account we can add any asset within

two business days.

binary options market include the

created by reduced correlation

with other asset classes. Trading

in emerging market currencies,

commodities, stocks, and indices

offers further opportunities as their

performance is linked to other

underlying factors unique to those

countries. For example, if strengthis perceived in certain commodity

prices, it would be helpful to have a

wide set of currencies on offer, from

Australian and Canadian dollars to

the South African rand, Mexican

peso, and several other currency

pairs.

Banc De Binarys Pro Platform offers

Middle Eastern, Eastern European

and Latin American currencies. For

more information on the full breadth

of currencies on offer, access the

live chat option on Banc De Binarys

website (www.bbinary.com) and

speak to a broker.



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Banc De Binary offers 24/7 service via dedicated specialists who are trained

to look after our clients trading and administrative needs.

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.

Client service thats second to none

Banc De Binary is on your side

Banc De Binary has deployed best

practices developed over decades of

asset trading into its Pro Platform.

Banc de Binary


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Based on exotic options, which are

only traded on private markets,

binary options are traded over the

counter and are available 24 hours a

day, 7 days a week.

A binary option, also known as a

digital option or an all-or-nothing,

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.

All markets - currencies, stocks,

commodities, and market indices -

can be underlying assets for binary

options. The degree to which the

option closes in or out-of-the-money

does not matter as it does with atraditional option.

Binary options are high return,short-term investments

Introduction to Binary Op

Introduction to Binary Options


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Banc de Binary

The beauty of trading binaryoptions is the inherent simplicity.

Unlike traditional options, binary

options do not have set prices: the

trader decides upon the amount of

money he wants to risk and invests

that amount when he buys the

option. Furthermore, the shorterduration of these contracts makes

binary options more suitable for

short-term trading than their

traditional counterparts.

In the past few years, online

binary option trading has grown

exponentially. Digital trades can

utilize many more underlying assets,

in their timing, strike prices, and

contract options. Since 2009, they

have become very popular among

traders as a way to control risk inoptions trading, in turn allowing

for more dynamic strategies to be

developed.

Finally, constantly evolving

technology better facilitates digital

trading and allows investors to make

more lucrative trades.

tions


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Binary Options Basics

1Each binary options trade is based on an asset

selected by the trader.

These are known as underlying assets, since

the trader doesnt buy the assets and therefore

never actually owns them.

All binary options brokers offer their own range of assetsto 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

Binary options trading is relatively easy once theparameters of the trade are understood.

Each binary option is based on four distinct components:

The asset

Binary Options Basics


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Who Trades Binary Optio

For many years, binary options were

treated as simple over-the-counter

instruments. As a result, an actual

liquid market didnt exist, and there

was no regulation whatsoever in

place. Binary options were only

one small part of a larger complex

contract. Specialist brokers were

engaged to trade on the clients

behalf. Naturally, these brokers

charged a commission fee for the

service.

This all changed in early 2008, when

the SEC approved a rule change

allowing binary options to be traded

on major markets. In May 2008, the

American Stock Exchange became

offer binary options, and the CBOE

followed suit in June of the same

year. Both of these market-traded

binary options are highly limited

when compared to the types of

binary options available to online

traders.

The greater availability of binary

options and the increasing number

of organizations that support them

have led to an exponential growth in

the number of people trading these

options. This number continues to

grow on a daily basis.

There are two trader types:

Trader types

Who Trades Binary Options?


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Banc de Binary

s?

Some of the organizations that operate as binary

options traders include options traders who have

the potential for high volume trades giving the

include the availability of extensive assets to trade

and risks that are controlled, eliminating much

of the uncertainty associated with traditional

options trading.

Professional organizations

Individual tradersAt 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

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.


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Binary options offer an extensive

whether they are new to the marketor experienced professionals.

The simplicity of binary options

trading is perhaps the most

appealing factor compared with

their traditional counterparts. Every

situation is solely either gain or loss.

a trader really needs to predict is inwhich direction the asset will move

before the time of expiration.

trading binary options include:

All conditions trading

In traditional options trading,

investors usually only make money

when markets and prices are rising.

However, a binary options tradercan make money in any market

conditions, because predicting a fall

fact, volatile markets offer increased

large swings that can occur in each

direction. The key is to be alert to

changes in market conditions, follow

correct forecasting.

Trading foreign exchange enables

forecasting a fall or rise in the value

of one currency against another.

With the constant changes to

rates and the number of available

combinations, this gives almost

limitless opportunities to achieve a

return.

All markets follow trends and a

buying Call options as well as buying

Put options when a downward trend

is underway. To reiterate, its simply

a matter of forecasting in which

direction a market will move.


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Banc de Binary

High returnTraditional investments usually

necessitate a long-term outlook, with

assets often held for months or even

an investment is achieved. Binary

options, on the other hand, are

short-term, high-return trades.

A typical option will expire in a

matter of hours or even less and

will often yield 71-88% if predicted

correctly. With a series of successful

trades, a trader can quickly

Calculated risk

Although an incorrect prediction

can result in the loss of a proportion

of the original stake, the trader can

determine at the outset what thiswill be. Therefore overall exposure

can be relatively small, allowing

trading to continue until a return to

other forms of trading where large

amounts of money are at risk andit is easy to lose control over how

much is at stake.

Tax exempt

Binary options brokers do not

withhold taxes from payouts.Furthermore, the UK tax authorities

treat any gains from binary options

to all UK-based traders when

compared with other investment

vehicles. Some countries, such

binary options trading as short-term

capital gains. However, traders may

offset gains with any losses for tax

purposes.


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Wide availability

Binary options are now an accepted

means of trading and are widely

quoted on markets, with a number

of brokers providing extensive yet

easy-to-use trading platforms that

any subscriber can access.

Banc De Binarys Pro Platform is

able to offer more than 90 assets

with trading activity in over 80

countries. This constitutes the widest

set of tradable assets currently

available from any provider.

Trading in emerging markets and

less liquid currencies offers further

performance is linked to other

underlying factors unique to those

countries.

Any time, anywhere trading

Trading platforms generally provide

access to a variety of global markets

covering stocks, commodities, and

foreign exchange. This allows 24/7

trading with at least one market

generally open at most times.

Additionally, since most trading

platforms are web-based, traders

can access their accounts and make

trades using any device with Internet

access. This combination gives

traders the ability to trade however

they want, whenever they want and

from wherever they are.


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Banc de Binary

Simplicity

Whereas some types of investment

and trading can be complicated,

binary options trading provides a

straightforward process that involves

a number of simple steps. Traders

simply choose the asset they want

to trade, predict the direction of the

price movement by the stated time

and indicate the amount of the stake.

If the outcome is correct, the trader

will receive a payout in the region

of 71-88%. Further, binary options

do not require more than one pip in

order to be in-the-money.

Forex trading and other forms of

online trading require three pips just

to commence trading.

Small investment friendly

Unlike traditional investments,

of capital upfront, binary options

traders can invest as little or as much

are required in order to start trading.

can help build a buffer against

potential losses.

As stated earlier, your money is in

your hands at all times.


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Banc de Binary

Making a trade

Making a successful trade involves a number of simple steps:

Choose the asset

Predict the Price Movement

Wait for the option to expire

Most trading platforms will have a

range of available assets. A trader

will generally select an asset type

with which he is familiar, whether it

is a stock, market index, commodity

or currency pair. For each asset,

the current price will be displayed,

along with the expiration time of the

option and the percentage payout

for a correct prediction.

The trader will select a Call option

if he thinks the price will rise by

the time the option expires or a

Put option if he expects the price

to fall. Alternatively, he may trade

variations, known as touch options,

which are explained later in this

chapter. All he needs to do is enter

the amount to be traded and

If the prediction is correct at the

time of expiry, the trader willreceive a return thats equal to his

initial stake plus the stated payout.

If hes wrong, hell receive a small

percentage of his original stake.

It is important to remember that

unlike Banc De Binary, someplatforms are really all-or-nothing. In

those cases, the whole of the original

stake will be lost.


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Type of Binary Options

Digital binary options

These are the simplest and most

common trades and are sometimes

known as all-or-nothing options. As

described above, the trader is simply

predicting whether the price will riseor fall by the stated expiration time.

An example follows:

Googles shares have a current price

of $535.50. The trader decides to buy

an option that expires in two hours

and pays a 75% return on success.

He stakes $100 on his prediction and,at the end of the two-hour period,

the price stands lower at $534.10.

If he had purchased a Call option, he

would lose and receive a percentage

of his stake in return; if he had

purchased a Put option he would

(his original stake of $100 plus a 75%

payout).

As explained previously, the

incremental price movement

itself does not matter as it does

in traditional options trading.

The trader must correctly predict

whether the price will be higher or

lower at the expiry of the contract the price may move in either

direction by as little as one pip.

How to Trade Binary Options


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Analyzing Binary Options

trading, there are two types of analysis that traders can employ: technicalanalysis and fundamental analysis. Fundamental analysis looks at how outside

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

of asset prices in the attempt to

determine the future direction of a

market. Traders who use technical

analysis tend to believe that the

majority of available information is

already incorporated in the value of

an asset. Consequently, prices willalways move in a consistent manner

and identifying the ways assets have

moved in the past will give a guide to

the way they will move in the future.

Much time and effort for technical

analysis is taken up with studying

charts. Practitioners believe that the

the effects of supply and demand,

established trends, and other

elements are clearly visible in any

chart. Most price charts plot price

movements over time or by volume

of trades. Charts are often formatted

via a trend line so that price direction

can be easily read. Bar charts or

candlestick charts are also used todisplay the high, low, open and close

prices for each period.

Technical analysis can be particularly

helpful in assisting an investor with

entering, exiting, and managing

the risk of positions. A number of

analytical tools are available asdescribed below.



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Banc de Binary

Trend followingTrend following analyzes historical

data in order to establish whether a

sustained movement in a particular

direction is occurring. This normally

involves looking at different periods,

such as 2-day and 7-day moving

averages. If the moving average

for the shorter period crosses

the longer period, then an upward or

downward trend has developed.

MomentumTracking momentum is sometimes

known as Moving Average

Convergence Divergence (MACD)

and determines whether an assets

momentum is rising or falling. It isused to track the daily changes in

short-term and long-term averages.

If the short-term averages are larger,

momentum is increasing, while

larger long-term averages suggest

a decreasing momentum. Slowing

momentum indicates the rate ofchange will decrease and may

eventually reverse.


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Mean reversionMean reversion involves identifying

an assets mean and then

determining if the asset price is

settling back to that point. It is rather

like testing a rubber band to see howfar it will stretch before it snaps back.

Analysts employ technical indicators

such as Bollinger Bands to measure

mean reversion. Bollinger Bands

employ various statistical factors,

such as supply management, in

order to generate a set of bands tocontain the price action. Bollinger

bands allow any trader to instantly

view price on a chart relative to its

volatility mean over a period of time.

Volatility is the rate at which the

price of a currency pair moves up

and down in the market. When high

volatility can be seen, the upper andlower Bollinger bands widen and

the bands contract. The price usually

bounces off the range whenever it

touches the upper or lower band.

A second group of technical

indicators that are used to measure

mean reversion are Relative Strength

and Stochastic indicators. Both of

these technical indicators measurehow fast a market has moved in the

short term, relative to movements

over a longer period. Stochastic

indicators, in particular, are based on

the principal that in an up trending

market, stocks tend to close near

their highs and in a downward

market stocks tend to close neartheir lows. These indicators create

an index that is used by traders to

determine if a market is overbought

or oversold.

In general, technical indicators

are successful because of their

popularity among traders, which isbased on the reasoning that volume

generates movement. The logic

follows that the more investors who

are trading in a certain direction,

the more that direction is set to

continue.



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Banc de Binary

Pattern recognition

In this type of analysis, the trader is

the price action. This will help him

determine whether any recognizable

patterns reveal a predisposition

move. An example of this type ofpattern is a head and shoulders

pattern in which two shoulders and a

head can clearly be seen. In general,

the market will fall after forming the

second shoulder.

Support and Resistance

Support and resistance are among

the most widely known and widely

used Forex trading concepts and

strategies. These are the levels in

the markets, which price has not

been able to break outside of.

Support levels are the areas which

price cannot seem to break below.If a break does happen, it is only

temporary and the price soon

returns above the level. Resistance

levels are the areas, which prevent

the price from rising further. These

levels act like a ceiling and appear to

force price back down when it tries

to break above the level.

It is essential to bear in mind that

support and resistance levels

are not exact numbers, but offer

traders a clear indication basedon past performance that when

price reaches either a support or

resistance level it is likely to bounce

back.

By utilizing these indicators,

a trader is essentially trading in the

same direction as many others.

This insight can be useful when

trading short term.To improve the

chances of accumulating consistent

there are two types of analysis

that traders can employ: technical

analysis and fundamental analysis.

Fundamental analysis looks at how

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.


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Introduction to Fundame

Fundamental analysis is based on the

principle that assets are generally

priced incorrectly and that marketsare constantly attempting to correct

them. These corrections are based

on outside events affecting asset

price and therefore traders will need

to continually check news items,

company announcements and

various publications.

This type of analysis can be

subjective, because the investor

is forming a view based on the

occurrence of certain outside events.

A trader would need to study all

levels of data, depending on the

asset he is trading, from companylevel through to industry and

markets, on to country wide and

global level. Many events are inter-

related and can affect the price of

different assets and even different

asset classes.

Each type of analysis will help atrader become more successful in his

forecasts. However, it is important to

note that a combination of technical

and fundamental analysis offers the

greatest chance of success.

Fundamentalanalysis considerations

Fundamental analysis assumes that

the market is rational and that a

the true value of the investment.

By contrast, technical analysis

assumes that the marketplace

will repeat past trends and that a

securitys price will eventually move

in the same way other investment

prices have moved.

As such, both theories potentially

turn a blind eye to important

external data. A stock that

announces big unanticipated news

is unlikely to continue to complete

a price pattern, or to move directly

towards its underlying real value.

Some of these factors and variables

include:



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Banc de Binary

tal Analysis

Company informationWhen using a companys share price

as the basis for a binary options

trade, full information about the

company is absolutely essential.

Read news items and press releases

and take account of analysts views.

Use a companys published accounts

and ratios to assess the companys

worth and performance, including:

Earnings per share (EPS) that

provides a measure of the value of

each share

Price to earnings (P/E) todetermine if a share is under- or

over-valued

Projected earnings growth (PEG)

to compare the share price to

annual growth

Book value as total assets less

total liabilities

Price to book (P/B) compares the

share price to the companys asset

value

Price to sales (P/S) to show the

share price in relation to annual

sales

Dividend yield as a percentage of

the companys share price

Return on equity (ROE) to

determine the effectiveness of

using the money invested.

Be aware that any news or

information about a company

may have far-reaching effects. For

example, the announcement of

a new product may increase the

companys share price while at the

same time forcing down the value of

its rivals.


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Industry news

No one company exists in isolation.

The performance of an industry

will affect the value of all those

companies that comprise it. Asuccessful companys share price

may be dragged down by an

industry that is in general decline.

Conversely, a struggling company

may experience an uplift if the wider

industry begins to improve. Although

a company may perform better or

worse than its industry, it will alwaysbe associated with it and this will be

It is advisable to watch for industries

that are on the upswing and to trade

companies that are part of themaccordingly. For example, one would

generally expect the price of shares

in renewable energy companies to

be increasing as the market develops

and products become more widely

available.

Natural events

The price of commodities will, of

disasters and weather events. Assuch, all assets are affected by supply

and demand. For example, a drought

or severe storm that ruins crops on

a wide scale will force the price to

rise. Similarly, a hurricane that shuts

to rise due to supply problems.

Some of the effects of natural eventsare 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

price of the company that supplies

the commodity may increase.

Conversely, a company that usesa lot of the commodity will suffer

may drop. A country that is a major

and its currency may rise.


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Banc de Binary

Fear factor

Markets are often driven by

sentiment, with prices quickly

rising and falling. Often, theres no

real logical reason for the changesand they can be driven by fear. Its

will move in these situations, but

often they establish an upward or

downward trend that continues

for some time. A successful binary

options trader will follow the news inorder to identify events that are likely

to panic or calm the markets.

Market conditions

Bull markets are established whenprices are rising, and the reverse,

bear markets, when prices are

falling. These markets can become

established for long periods, often

years, and help you determine

the general direction of price

movements. This is useful when

trading an index but also provides

guidance for individual company

shares. Whether a company is

successful or unsuccessful, it will

be affected by prevailing marketconditions.

Markets can also become range

bound, with prices moving within a

narrow band even when the longer-

term trend indicated a particular

direction. They may also become

volatile, with prices varying wildly.

market will give a guide to overall

movements.


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Economic performance

In the short-term, it is acceptable

for a country to run a large budget

continues for a number of years, it

can become a problem. Countries

often devalue their currencies

to make exporting easier and to

limit imports, thereby reducing or

goes down against other currencies

that have stronger economies. The

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 its the difference between

the rates that sets the currency

pair values. Prices often move in the

expectation of an interest rate change.

obviously affect the prices thatcountries pay for the commodities

they import. This can have an impact

on other parts of the economy, with

share prices particularly affected

for those companies that import or

export extensively.


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Binary Options Trading St

Asset prices often follow a trend

for a set period moving only in

one direction. When the trends of

price and volume move in the same

direction, it is an indication of a

healthy underlying market direction.

However, when price trend is rising

but the trend in volume is falling, itwarns of a potential price trend reversal.

When a reversal is indicated, a

trader might buy an option that is in

the opposite direction to previous

movements. He might, for example,

purchase a Call option if the price

has been falling and is now expected

to rise, or a Put option if the price is

due to fall after an increase.

Reversal

Binary Options Trading Strategies


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Banc de Binary

ategies

Trend ReversalA trend reversal may be indicated

by a diamond pattern on a price

chart and, although it may be not as

common as other reversal patterns,

it can be a useful indicator. This type

of pattern comes in two forms

the diamond top and the diamond

bottom with both types having theshape of a diamond lying on its side.

A diamond top forms at an up

trends peak, occurring when the rise

a while. This can result in a series of

waves that become taller and then

revert to a lower level. At this point,you should expect the price to break

out to the downside. This is a signal

to change the direction of your

trades.

A diamond bottom is the reverse

effect, with the same reverse pattern

but at the bottom of a downward

trend. As the waves begin to

is indicated and a breakout to the

upside is due. Any binary options

the money with Put options should

therefore change to Call options in

order to take advantage of the trend

reversal.

This strategy is based on the concept

that if an asset suddenly moves inone direction, it is unlikely to remain

at that peak but will move back

towards its original position, if not

all the way. So, an investor should

buy an option, Call or Put depending

on whether the price has risen or

fallen suddenly, on the assumption

that it will soon return and stabilize.Of course, no one knows when

an asset has reached its peak. So

close monitoring of the asset and

researching why it peaked is vital to

deduce the likelihood and timing of

its return.


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Banc de Binary

Knock-on effect

This is perhaps the most logicalof all strategies, and is based on

the concept that a move on one

option will have a knock-on effect

on another. For example, the price

of a stock may affect the price

of the index in which it is traded

or if a country heavily relies on

a particular asset, then a changein that commoditys price may

affect the countrys exchange

rate. For example, a company

might announce a major new

product launch or a development

breakthrough that causes its share

price to rise but also drives down the

value of the companys competitors.

In this case, a trader would buya Call option on the company

and Put options on all of its main

rivals. The key is to understand the

interrelationships between assets

and to correctly anticipate price

movements.

The trader receives his payout; itdoes not matter what happens to

the price after that. If the price does

not reach the stated level before the

expiration of the contract, the trader

will lose and forfeit his stake.


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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

Analyze and research

Following a hunch will generallyend in failure and a trader should

never simply guess when he makes a

trade. The primary way to minimize

risk is to undertake thorough asset

analysis. Technical analysis will

establish price patterns that indicate

future movements; fundamental

analysis will identify events that willcause price changes.

Making successful trades is oftenabout getting in quickly; watching

the news and announcements will

ensure a trader stays ahead of

the market and understands how

events are likely to affect prices. The

information a trader utilizes should

always be current. A trader must act

quickly to predict price movementsbefore its too late.

Risk Management


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Banc de Binary

Learn from your mistakes

It is important to remember that trading

mistakes occur from time-to-time and it is

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 Putoptions 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.


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Familiarity

Risk can be minimized by trading

assets with which an investor is

already familiar. For example, a

trader who also works in the oilbusiness should aim to trade oil

on the commodities market or the

shares of major oil companies.

However, trading a single asset

will be far too restrictive, and will

limit the opportunities for trading

success. Trading different assets

in various markets will spread therisk, so the best advice is always

to gain familiarity in new areas by

analysis as outlined above.

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

in turn, pay less and take longer to

The best strategy is usually to go for

a mix of trades. A trader should only

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.

Risk Management


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Banc de Binary

Limiting your tradesMaking a succession of bad trades, will

trader hits a bad run, he can simply stop

trading. If he does that, however, he wont

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

to never risk more than 8.5% of existing

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,


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48

Choosing a Binary Option

The growing popularity of binary

options trading has attracted anumber of brokers to the market.

All have key differentiating features.

Since a broker is a necessity in

order to trade binary options, it

is important to choose one who

provides the right level of service for

your needs.

Some brokers may offer only alimited range of tradable assets in a

relatively small number of markets,

which will seriously restrict an

investors opportunities to trade andmake money. A trader should look

for those brokers who offer plenty

of assets across a range of global

markets. In practice, this means

there will usually be at least one

open market most of the time and

better opportunities and availability

for trading assets of choice.

Trading platformFollowing a hunch will generally

end in failure and a trader should

never simply guess when he makes a

trade. The primary way to minimize

risk is to undertake thorough asset

analysis. Technical analysis will

establish price patterns that indicate

future movements; fundamental

analysis will identify events that will

cause price changes.

Making successful trades is often

about getting in quickly; watching

the news and announcements will

ensure a trader stays ahead of

the market and understands how

events are likely to affect prices. The

information a trader utilizes should

always be current. A trader must act

quickly to predict price movements

before it is too late.

Choosing a Binary Options Broker


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Banc de Binary

Broker

Ease of useDepositing money and withdrawing

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 offersmultiple methods of depositing and

withdrawing money, and where the

process isnt an over-complicated one.

Keeping it safe

Needless to say, security iscrucial. The broker should offer a

safe trading environment. There

should be a privacy policy and

adequate authentication to prevent

unauthorized access to accounts. It is

vital that all data and transmissions

are securely encrypted so that

personal information is not divulged.

One of the most respected providers

of online security and authentication

solutions is the company Comodo,

with over 200,000 businesscustomers and more than 7,000

working to make the Internet more

secure. Any broker that has this level

of security will provide the safest

possible trading platform. Check and

compare what each broker provides

and choose the one with the highest

level of security.


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Service and support

However experienced a trader

becomes, he is likely to want adegree of support at some time.

Brokers offer different levels of

service that are designed to meet the

needs of different types of traders,

depending on the type of account

that is selected. There should always

be a help line, an email address and

a live chat facility in case a traderrequires urgent support. Look at

the type and extent of information

that is provided and how often it is

updated. Most importantly ensure

the information provided is accurate

and of the highest quality.

Some brokers offer differentaccounts 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

Certain brokers, however, will

require a deposit even for a practiceaccount. Superseding that, there

should be a basic account with a low

deposit requirement right up to a top

of the range account that requires a

much higher deposit but provides a

more personal and comprehensive

service.

In light of the vast array of accounts,

brokers and platforms available, it

is absolutely essential to choose the

Choosing a Binary Options Broker


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Banc de Binary


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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.

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 anoptions 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

expiration than at the time it was purchased.

What is a Put option?An option that provides the trader with a

price is lower than when was purchased.

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

Frequently Asked Questions


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Banc de Binary

ns

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 binaryoption trade in the event that the option expiresout-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 topurchase 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 Iexceeded 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.

How do I invest?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


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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 aredetermined, 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 optionsin Banc De Binary and buying Put and/or Calloptions in the stock market?The options available in Banc De Binary are binary options (refer

to standard (vanilla) option chains that are offered by stock

end of an hour to the end of a month.

Frequently Asked Questions


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Banc de BinaryBanc de B

Where can I view the precise tradinghours 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).

What happens if the expiry rate of a givenunderlying asset is identical to the rate atwhich the transaction was made?

investment is returned to you.

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

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 cant 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


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Banc De Binary -types of trading bonus

An account will be given added

value when a trader consistently

deposits funds. Banc De Binary

matches the traders real deposit by

a certain amount as per the following

example:

If Banc De Binary offers a 50%

deposit match of up to $50,000,

which means that if the trader were

to open a new trading account and

make an initial deposit of $1,200,

Banc De Binary would instantly fund

the account with an additional $600,

raising the account balance to $1,800.

When trading with bonus leverage

a trader must be cautious. It is truly

appealing to trade with $20,000

when the initial deposit was only

$10,000, but there is a downside.

The trader may close higher

trades and make more moneyinitially (or in the long run), but the

possibility of losing money increases

exponentially. Options trading can be

are the keys to successful trading.

To help traders starting out with

binary options trading online, Banc

De Binary offers new customers a

as well as re-deposit bonuses.

The sign-up bonus gives new tradersan extra boost to their trading

balance so that they can open their

bonus money until they accrue more

experience in the binary options

the Banc De Binary platform.

After receiving the sign-up bonus,

traders are given several other

opportunities to boost their account

balance. Banc De Binary often offers

to take advantage of the market

volatility at those times.

Taking a Trading Bonus Pros and Cons

Deposit matches

Sign-up bonus


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Banc de Binary

Traders should check out Banc De

Binarys Refer a Friend program to

see how referrals can be turned into

Forex bonus money.

A rebate bonus is usually offered

on a monthly basis and it is Banc

De Binarys way of giving back

a percentage of the traders

investment that month. We also offer

special trading bonuses to traders

depositing with certain funding

methods, such as Moneybookers

and wire transfer. Banc De Binary

also has special agreements with

joining bonus in addition to the sign-

up bonus.

Banc De Binary rebate bonus

Refer a friend


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Personal Broker Program

The Personal Broker program makes use of Banc De Binarys 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

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 Binarys

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.

Personal Broker Program


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Banc de Binary

Personal brokers cannot access accounts

and do not trade on the clients behalf.

They simply provide trading signals that

are based on thorough research and so

offer the best chance of trading success.

The personal broker program requires aminimum 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.


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VIP Platinum Pro

The Platinum Program is Baaccount and requires a m

VIP Platinum Program and Platform

Access to individual competitive prices onoptions based on the investors trading volumes.

in order to provide the client with top bid.

Optional free access to Banc De Binarysindependent personal Trading Advisory Team.

A wide range of high level publications.


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If you are interested in joining

Telephone: 1(800) 656 6163

traders the opportunity to become

introducing brokers to Banc

de Binary. For every new client

introduction, we will reward the

referring trader with a percentage

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.

All commission rates are based on

Banc De Binarys net revenues, which

are calculated as gross revenue less

any processing fees, cancellations

and incentives given to customers

such as coupons and bonuses.


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Banc de Binary

Revenue share plan

CPA payment plan (monthly)

tiered revenue share plan

Number of Clients Rate per Client

0-50 $100

51-90 $15091-150 $200151-250 $300251+ Up to $1,000

Total Revenue Commission

$010,000 15%$10,00150,000 20%$50,001100,000 25%

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%


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Banc De Binary Platform

The rates provided on a brokers platform are

all-important. The source of these rates mustbe completely reliable: the clients money is

depending on it. At the end of the day, the rates

whether he will suffer a loss.

The rates that clients see on Banc De Binarys

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 worlds biggest and most relied

can be checked back with the rates published on

Reuters website. On request, we will gladly check

them against the rates of our dealing desk.


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Banc de Binary

ates

The outcome is that your account

is as secure as it possibly can beat all times.


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Platform SecurityBanc De Binary provides the highest security

These security measures include:

Non-disclosure of personal information tothird parties except where legally obliged todo so.

Online identity assurance ($250,000).

Account authentication procedures ensurethat only authorized users can withdraw.Banc De Binary provides the highest security

Adherence by all third party data-processingcompanies (i.e. when transferring funds) tothe same high level of security standards.

Application of the highest level ofencryption to all communications to prevent

unauthorized viewing of transactions.

Investment in the latest technology ensuresthat the latest safeguards are always in place.

Platform Security


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Banc de Binary


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Deposits and Withdrawal

Banc De Binary aims to make the process of depositing and withdrawingmoney as simple as possible so that clients can start trading quickly and

To offer the best possible service to clients, the following deposit and

withdrawal methods are offered:

Deposits and Withdrawals with Banc De Binary

Bank Wire Transfer (international and domestic)

via a clients bank account. This allows secure

transactions from $1,000 with no maximum limit,

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 Binarys website

(www.bbinary.com) for the latest details.


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Banc de Binary

with Banc De Binary


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Types of Accounts

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

binary options trading works.

The Micro Account allows investors to trade over seventy assets

(stocks, indices, commodities and foreign exchange) using Banc

De Binarys professional trading platform, with full 24/7 support

through LiveChat. Theres 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 Binarys

innovative trading education program.

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 traders

individual requirements:

Types of Accounts


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Documents

Binaryex.com Free Binary Options eBook