How trading binary option for beginners

1. What is Binary Option :
In finance, a binary option is a type of option where the payoff is either some fixed
amount of some asset or nothing at all. The two main types of binary options are the
cash­or­nothing binary option and the asset­or­nothing binary option. The
cash­or­nothing binary option pays some fixed amount of cash if the option expires
in­the­money while the asset­or­nothing pays the value of the underlying security.
Thus, the options are binary in nature because there are only two possible outcomes.
They are also called all­or­nothing options, digital options (more common in
forex/interest rate markets), and fixed return options (FROs) (on the American Stock
Exchange).Binary options are usually European­style options.
When buying a binary option the potential return it offers is certain and known before
the purchase is made. Binary options can be bought on virtually any financial product
and can be bought in both directions of trade either by buying a “Call”/“Up” option or
a “Put”/“Down” option. This means that an investor can go long or short on any
financial product simply by buying a binary option. Binary options are offered against
a fixed expiry time which may be e.g. 60 seconds and up to 30 minutes, an hour ahead
or to the close of the trading day. Binary options once bought cannot be resold before
the expiry time is reached.
For example, a purchase is made of a binary cash­or­nothing call option on XYZ
Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future
maturity date, the stock is trading at or above $100, $1000 is received. If its stock is
trading below $100, nothing is received.
In the popular Black­Scholes model, the value of a digital option can be expressed in
terms of the cumulative normal distribution function. Due to the difficulty in hedging
binary options that are ATM near expiry, they are much less traded than vanilla
options, but can be approximated with vertical spreads.
How to start trading binary option
Here are 3 steps to start trading binary option
1. Open account on broker binary option
>>> ​Register Anyoption​ <<<
>>> ​http://www.sahamoption.com​ <<<
2. Deposit
Fast and secure payment methods via credit card.
3. Trade
Select assets and trade.

2.
After open account and make deposit minimal $ 200 you can start trading.

3.
How trading binary option :
1. Choose an asset
You have the ability to invest in variety of assets including indices, commodities,
currency pairs and stocks.
2. Choose an expiry time
Do you prefer a short or long term investment ? you may decide whether you
investment will be end of the hour, day, week or month.

4.
3. Make your decicion
Check the price of the asset. Will your asset’s rise or fall
Select ​Call​ ​( Up​ ) if you think the price of your aset will be above the current level at
expirey time.
Select ​Put​ ( ​Down ​) if you think the price will be below the current level at the expiry
time.
4. Enter your Investment
The minimum investment amount is 25 in the currency that you are trading in.

5.
5. Monitor your investment using Profit Line and continue trading

6. How setting chart as professional trader
visit website ​http://freestockcharts.com
1. Select asset
2. Add indicator
3. Select Moving average Add to price.
Click Moving Average on chart and click edit.
Change period to 8
Average Type : Exponential
Make 3 indicator moving average with different period 6, 14, 26 and different color

7.
4. Add indicator MACD Histogram
Developed by Gerald Appel in the late seventies, the Moving Average
Convergence­Divergence (MACD) indicator is one of the simplest and most effective
momentum indicators available. The MACD turns two trend­following indicators,
moving averages, into a momentum oscillator by subtracting the longer moving
average from the shorter moving average. As a result, the MACD offers the best of
both worlds: trend following and momentum. The MACD fluctuates above and below
the zero line as the moving averages converge, cross and diverge. Traders can look for
signal line crossovers, centerline crossovers and divergences to generate signals.
Because the MACD is unbounded, it is not particularly useful for identifying
overbought and oversold levels.
Change plot color to green and negative value color red
Short 8, long 21 trigger 9
Average type exponential
5. Add ADX indicator
ADX is used to quantify trend strength. ADX calculations are based on a moving
average of price range expansion over a given period of time. The default setting is 14
bars, although other time periods can be used. ADX can be used on any trading
vehicle such as stocks, mutual funds, exchange­traded funds and futures.
ADX is plotted as a single line with values ranging from a low of zero to a high of
100. ADXis non­directional; it registers trend strength whether price is trending up or
down. The indicator is usually plotted in the same window as the two directional
movement indicator (DMI) lines, from which ADX is derived

8.
ADX is used to determine when price is trending strongly
> 20 strong
< 20 weak
Entry point
When the line 6 ME above 14 ME and 26 ME give us indicator that the price up
trend it’s time to buy Call.
When the line 6 ME below 14 ME and 26 ME give us indicator that the price down
trend it’s time to buy put.
Also watch the MACD indicator to confirm if the position above 0 mean the price up
trend
If the position below 0 mean the price down trend
To know the strength of trend watch ADX 1ndicator wait until the value above 20.

9.
Secrets win trading binary option
1.Only trading in high volatily market watch on Economic Calendar when The
indicator with 3 sign !!!
Visit
http://www.fxstreet.com/economic­calendar/
Wait until the news release buy Call when the actual result positif and buy Put when
actual result negatif monitor the movement price on Chart indicator.
Or if you late trade after the price pullback.
2. Trade on open market

10.
Setting indicator Bollinger Squeeze on ​http://www.freestockcharts.com/
Add indicator Bollinger Band and Keltner Channel
Bollinger Band :
Keltner Channel :

11.
MACD :
To win trading binary option wait untill big move price after the squeeze Bollinger
Band and Keltner channel
Entry point when Bollinger Band line go out site Keltner Channel line and confirm
with indicator MACD When position red buy PUT when position Green buy CALL

12.
Trade Now !
http://www.sahamoption.com