The Cost of Binary Options Signals

Binary options signals providers can charge a hefty amount. On the average, binary signals subscribers pay between $90 and $100 monthly for these signals. However, there are some providers who offer signals for free.

Composition of Binary Options Trading

Composition of Binary Options Trading

At the onset, there are 4 main components of digital options trading: the investment amount, the expiry date/time of the contract, the payout, and the purchase value of the asset. The investment amount is the money the binary trader pays his broker at the beginning of the contract. The expiration is the date and time the contract will end and will serve as the deciding factor if the price of the underlying asset has risen or fallen in comparison to the purchase value of the asset, which is the initial price of the asset at the start of the contract. Lastly, the payout is the amount of money the broker will pay the trader if he’s right. In some instances, some brokers pay option refund to the trader. It is a percentage of the investment amount returned to the trader if he makes the wrong decision. This percentage is usually pegged at 15%.

What is the Best Binary Options Trading Strategy?

Binary options trading are known as such because there are basically two outcomes only: in the money and out of the money. If it’s in the money, it means that the binary options trader correctly predicted the direction of the price of his chosen underlying asset at the expiration of the contract. Thus, he will receive the agreed payout. It’s out of the money if he’s wrong in his prediction. Thus, he loses his capital or investment. Oftentimes, binary options trading are also known as all-or-nothing options trading or digital options trading.

Transmission Of Binary Options Signals

• Through text message. Once a signal has been generated, the provider sends a SMS message to the subscribers to instruct them of a possible profitable binary options transaction. Since most traders trade binary options through their mobile phones, the SMS message can be a convenient way of receiving such signals.
• Through email. Instead of providing signals to mobile phones, many traders prefer receiving the binary options signals through their emails. These traders value their privacy so they don’t want to give their personal contact numbers to the signals provider.
• Through account-linked API programs. If binary options traders opt for this, the trading platform will automatically execute whatever signal is provided to it. However, this is still in its infancy stage and not every binary options trading platform can currently offer this alternative.

The Need for Binary Options Signal

Binary options trading are a relatively new type of investment. As such, it doesn’t have the same tools being offered by stock, commodities, and forex trading. Therefore, in order to help new and inexperienced binary options traders, more experienced traders provide signals by analyzing the underlying asset in order to predict the direction of its price.

How Binary Options Signals Work

Binary signals are often used in mirror trading. This means that a binary trader who is subscribed to a particular signals provider need not do anything. The software will execute the same binary options trade like that taken by the signals provider. This method will reduce the risks faced by new binary options trader because most signals providers are considered experts in the field. However, there are also signals which aren’t automated to allow subscribers to think first before the same trade is executed by the software.