Notice to EU traders:The European regulator ESMA made a prohibition of binary and digital options to retail traders from The European Economic Area starting from the 02.07.2018. In case you still want to trade binary options, you need to acquire the status of a professional trader on which this regulation does not apply. I recommend you have a look at the article – How to get the PRO status to continue trading Binary options
Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.
Where to next? (If you do not meet the requirements)
- FX Options – Attractive alternative to binary options?
- Read our in-depth guide for cryptocurrency beginners
- Read how to trade forex and other CFD instruments
Traders outside The European Economic Area are not anyhow affected by this new European rule and can trade binary options (if the binary broker operates in a given jurisdiction).
The negative image of binary options that has formed over the past 2-4 years cannot be considered a complete collapse of these financial instruments. Moreover, the events of 2009-2015, when practically everything was engaged in the BO trade (from elementary school students to senior citizens), cannot be associated with real options. After all, the losses of unprofessional “traders” arose either as a result of treating binary options as a kind of betting odds (despite warnings on almost all trading floors), or because of fraudulent scams. And the main confirmation that the trading instruments in question will return to the global financial market is the latest news on binary options.
The immediate prospects of binary options
One of the main confirmation that some analysts rushed to “bury” binary options is Alpari’s innovation. The trading platform, which has been an active participant in the global financial market for 20 years, has offered its customers (both current and potential) a new tool – fixed and digital contracts. Most likely, experienced traders were not even surprised that the “reanimated” binary options were hiding under the new name. At first, the administration of the resource did not even change the section where operations with binary options were carried out. Interestingly, this is an accident, the staff did not have time redo? Or, in this way, the administration showed that it was not going to hide anything, and the options would exist, regardless of “labels”, emotional accusations and unprofessional comments? But that no longer matters. More important are the following binary options news, which confirmed that the managers of a reputable brokerage company chose the right direction of development. Very soon, everyone learned that other trading platforms decided to revive the BO under a new brand.
From the position of an independent observer, we can say that it would be foolish to abandon a rather interesting area of online trading, only on the basis of the noise that the incompetent “conquerors” of the global financial market raised. But in this situation, the question arises, what innovations await traders who decide to invest their capital in BO / fixed and digital contracts? Most likely, it makes no sense to engage in guessing the tea leaves, until one of the world’s major financial market regulator ESMA does not ave to have the decision over the fate of the BO in Europe. Recall that in 2018, the organization represented completely banned options in the EU, in July 2019 this issue will again be raised.
But if you follow the news on binary options, many traders recommend the excellent English resource safetradebinaryoptions.com for these purposes, then you can independently predict the future fate of the trading instruments in question.
Binary options news as the basis for a successful trading strategy
The presented review will be incomplete if you do not pay attention to such an important issue as the relationship between economic news and binary options. Probably, even novice traders have heard that there is a strategy for trading on the news. In principle, nothing complicated. There is an economic calendar, a list of events and a list of options for how the market “reacts” to an event. Theoretically, everything is very simple. The task of the trader is to closely monitor the news and make appropriate forecasts in a timely manner. But, as usual, practice does not always “make friends” with theory.
What should a trader remember when choosing a trading strategy on the news.
- The participants in the global financial market possess the same information as the trader. Upcoming events can be taken into account in advance, which eliminates the possibility of planned changes.
- Belated reaction. It is not uncommon for the market to respond inappropriately to certain news, as a rule, there is a delayed reaction. It is better to take this factor into account and analyze the market reaction using statistical information.
- There are more important events than the news in question, which may have the opposite effect on the market.
- A trader should remember that in every sector of the economy there are certain features that often cause a non-standard market reaction.
Practice shows that it is impossible to transfer all knowledge through reviews, tutorials, analysis of strategies or economic news. Experience is a factor that depends entirely on the student. If a person really wants to become a good trader, then after studying the general terminology, and a few lessons with specific examples, he needs to move on to the practical part (do not forget about the existence of demo versions!). Combining the study of theory with practice, he will quickly understand those things that even the best specialist can not explain using his extensive vocabulary and rich professional experience.