How to Start Trading Binary Options
This simple step-by-step guide will help you start trading binary options if you're still a beginner. Follow the instructions on this page and read our tips carefully, so that you can save your time, money, and nerves.
Calculate Your Deposit and Investment Amount
How much are you going to invest? Enter your initial deposit amount, and we will calculate your investment based on the risk management rules.
Expert's Tip
Calculate Your Deposit and Investment Amount
Select the currency of your deposit, specify the deposit amount, set your risk percentage, and you will get your investment amount.
If you've figured out how much you want to deposit, but do not know what will be your investment amount per trade, follow these steps:
- Specify your deposit currency
- Enter your deposit amount
- Select your risk appetite
- Click the Calculate button
In case you know how much you will invest per trade, but cannot figure out the deposit amount you're comfortable with, follows these steps:
- Specify your deposit currency
- Select your risk appetite
- Modify the deposit amount until you find your desirable investment amount
- Click the Calculate button
Your risk appetite percentage means how much you risk per trade in relation to your deposit. As per the golden money management rule, you should not risk more than 2% of your account balance per trade. We recommend you sticking to this rule at all times.
Open an Account with a Reliable Broker
Sign up and open a trading account with one of our recommended brokers. We've selected these brokers based on your initial deposit amount and your investment per trade.
Expert's Tip
Choose a Broker to Open an Account with
These brokers have minimum deposit and investment amount that are in line with your financial needs.
Choose a Recommended* Broker to Open an Account
FAQs
Make Your Initial Deposit and Open a Demo Account
Fund your trading account and contact your broker to request a demo account. This will help you learn how the platform works.
Expert's Tip
Please Note:
FAQs
Most brokers will offer you welcome bonuses on your first deposit, ranging from 25% to 100%. This is actually free money, but you won't be able to withdraw it before you complete the bonus terms and conditions you should check out carefully. Some bonus terms involve trading amounts 40 times bigger than the bonus amount.
Thus, if you deposit $1,000 and get a 100% bonus, you've got $2,000 to trade, and the bonus terms are 40x. To withdraw your bonus money and your profits, you'll then need to make trades with the total amount of $1,000*40=$40,000. Seems to much? Let's see. Suppose you stick to the 2% rule. With a $2,000 account balance, your investment per trade is $40. So, to reach the required volume, you'll need to make $40,000/$40=1,000 trades. Even if you're a very active trader, you'll be hardly making more than 5 or 6 traders a day. Thus, you will need at least 165 trading days to work off your bonus.
Now you see what it means to accept a bonus. It is up to you whether or not you are okay with trading for a few months without being able to withdraw your earnings. If you are serious about learning how to trade, do take the bonus, as it will significantly boost your initial trading capital.
Start Trading Using a Simple Strategy
MA+MACD is a simple and yet powerful strategy. Learn how it works and start trading with confidence. (Don't forget the risk management rules, though!)
4.1 How to Trade with the MA+MACD Strategy
Select the asset you want to trade.
Switch to 1 minute time frame.
4.2 Setting up the Moving Average (MA) and MACD
Add the following technical indicators:
Here is how your chart will look like when you apply the indicators:
4.3 How to Get Trading Signals Based on the MA+MACD Strategy
CALL Signal
- The MA's cross bottom up
- The MACD lines cross bottom-up.
Once you've got these signals, wait for the current candle to close and buy a CALL option.
PUT Signal
- The MA's cross from top to bottom
- The MACD lines cross from top to bottom
Once you've got these signals, wait for the current candle to close and buy a PUT option.
4.4 Assets, Option Types, and Expiry Times for MA+MACD
This strategy works well with volatile instruments, such as Forex currency pairs. Trade regular binary options with 10 or 15-minute expiry times. Make sure to download useful trading tools, such as the risk management rules and a PDF with your strategy and your trading plan.
Your Trading Plan
10 Simple Rules for Successful Trading
- Explore the trading platform. Make a few trades on a demo account and remember what you do when you're trading.
- Start trading with a strategy on a demo account and make 10 to15 trades with the investment you've got in your trading plan.
- Don't stick to demo trading too much. Once you switch to a live account, it'll feel totally different.
- Make at least 50 trades using your strategy, following the trading signals strictly. Turn on your mind and turn off your emotions.
- Always control your risk appetite. The best risk per trade ratio is 2%. Don't risk too much; otherwise, you may blow up your account.
- If you've got a losing streak, re-calculate the size of your investment amount accordingly to keep it 2% of the remaining account balance. Use the risk management table for reference.
- Keep your trader's diary. Put down your thoughts on why you have entered a trade. Analyze your actions and results.
- Do not switch from one strategy to another too quickly. Master your skills with a single strategy, this will be more effective.
- If you're still having a losing streak, stop trading for a while and try to understand what you are doing wrong. Do not try to win all your losses back in one go!
- Do not look for 'magical' trading systems. They just don't exist. Do not use robots, leave this to professionals.