How to Trade Binary Options | Beginners Learning Tutorial


This guide will teach you everything you need to know about trading binary options.

We will introduce you to the basics, show you how binary options trading works, explain the best binary options trading methods and answer all questions regarding how to trade binary options.

how to trade binary options

What are Binary Options?

A binary option is a financial product known as the “All-Or-Nothing” option. The outcome is based on two options: You can win a high return or lose your investment amount. It is a simple “higher or lower” option called “binary.”

The unique thing about binary options is that you have only two options: “Higher” or “Lower” (explained for dummies).

Key facts

  • A binary option only has a win-or-lose result.
  • Traders can earn a high return depending on the broker’s payout rates on their platform.
  • A binary option expires after a fixed expiry time and shows the result immediately afterwards.
  • The risk is limited due to the whole investment amount.
  • Binary Options are regulated in the US but are traded mainly offshore in other countries.

As a trader, you only have two options and two possible outcomes.

Traders will predict whether their asset’s price will increase or decrease, and they will either lose their investment or get a high, fixed payout between 75% and 95% of their initial investment.

Binary options are very flexible as a financial instrument – you can use different periods to trade almost every asset. The periods typically start from 5 seconds and go up to at least one hour. So you only have two possible ways to place a trade:

  • Call / Higher/ Up: Your forecast is a higher future price (rising market)
  • Put / Lower/ Down: Your forecast is a lower future price (falling market)

With just two options and two outcomes, binary options trading is attractive for most individuals looking to earn money online. Our guide below provides more detailed information about trading binary options. Proper knowledge is the key to sustainable success, and you must also be aware of the risks of trading binary options.

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Step-by-Step Guide: How to Trade Binary Options

The following section will show you how to trade in detail. Feel free to bookmark this page to refer to as material for when you want to get started with binary options trading.

Follow these eight simple steps:

  1. Find a trustworthy broker
  2. Register your binary trading account
  3. Deposit money or use the demo account
  4. Choose the asset to trade
  5. Make a forecast: Is the price up or down?
  6. Choose the expiration time.
  7. Choose the investment amount.
  8. Start the trade and wait till it expires

Let’s go into detail for every single step.

1. Find a trustworthy binary options broker

Let’s answer which broker is the best to trade with. Not every online or forex broker offers binary options trading, so you have to look for a broker offering this financial instrument. Plus, there are a lot of binary options brokers that can be found on the internet that may not be regulated or trustworthy to use.

In the table below, you can see three of our most recommended binary options brokers. These brokers fulfil many different requirements we’ve set when testing all brokers. They are safe, give a high return to you as a trader, and operate worldwide. With every broker, you can open a free binary demo account to get started risk-free.

If you want to look for a broker yourself, ensure that their license and regulatory authority regulating the broker are stated on the broker’s website. We recommend that new traders check out reviews about the platforms online to gauge how suitable the broker is for their needs.

Broker:
Review:
Advantages:
The offer:
Yield: 97%+
12345
5.0/5
  • Welcomes international clients
  • Offers high payouts: 90% – 97%+
  • Professional-grade trading platform
  • Swift deposit process
  • Enables Social Trading
  • Provides free bonus incentives

$ 5

   Visit broker

(Risk warning: Trading is risky)

Yield: 95%+
12345
5.0/5
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95%
  • Fast withdrawals
  • Signals

$10

   Visit broker

(Risk warning: Trading is risky)

Yield: Up to 100%
12345
5/5
  • $10 minimum deposit
  • Free demo account
  • High return up to 100% (in case of a correct prediction)
  • The platform is easy to use
  • 24/7 support

$10

   Visit broker

(Risk warning: Trading is risky)

Broker:
5.0/5
12345
Yield: 97%+
Advantages:
  • Welcomes international clients
  • Offers high payouts: 90% – 97%+
  • Professional-grade trading platform
  • Swift deposit process
  • Enables Social Trading
  • Provides free bonus incentives
The offer:

$ 5

Visit broker

(Risk warning: Trading is risky)

Broker:
5.0/5
12345
Yield: 95%+
Advantages:
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95%
  • Fast withdrawals
  • Signals
The offer:

$10

Visit broker

(Risk warning: Trading is risky)

Broker:
5/5
12345
Yield: Up to 100%
Advantages:
  • $10 minimum deposit
  • Free demo account
  • High return up to 100% (in case of a correct prediction)
  • The platform is easy to use
  • 24/7 support
The offer:

$10

Visit broker

(Risk warning: Trading is risky)

2. Register your trading account

After selecting your binary broker, register for your trading account. You will need a secure email and a password. You can also sign up via accounts on other applications such as Facebook or Google.

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

3. Deposit money or use the demo account

You have two choices: use the demo account for a spin and trade with virtual funds, or use the live account and trade with actual money.

It’s generally a good idea to start with the demo account, given that binary options trading comes with its fair share of risks. It can lead to inexperienced traders losing their investments quickly. The good news is that switching between your real and demo accounts is easy, letting you move seamlessly from practice to live trading whenever you’re ready.

What’s a demo account? They are retail investor accounts that have (mainly) all the functions of a live account, but they have only virtual money, which you can add for free at any time.

4. Choose the underlying asset

Binary options trading allows you to explore various markets away from the hustle and bustle. You can trade in fast-moving Forex markets, stocks, essential items like gold and oil, new cryptocurrencies, or overall stock indices. No matter what asset you choose, binary options offer a simple way to trade.

Consider starting with a demo account, especially if you’re new. It’s a smart way to learn the ropes, experiment with different strategies, and get a natural feel for the market dynamics without putting your money on the line. It’s like a sandbox for your trading ideas, where you can build your confidence and expertise at your own pace.

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

5. Make a forecast by analysing – will its price go up or down?

Once you’ve selected your preferred market or underlying asset, such as the forex market, the critical decision you face is predicting whether the asset’s price will rise or fall. Making this prediction requires you to keenly observe market trends and employ various indicators to analyse the question thoroughly.

Having the right trading strategy to gain maximum profit is very important. New traders can look up simple trading strategies that are commonly used and tweak them accordingly. A broker’s platform usually provides traders with tools and features to help them analyse analyses.

Alternatively, traders can use technical analysis to generate trading ideas and develop strategies. They can also use the broker’s different education tools to understand how trading strategies are formed and used.

Not all strategies can be successful, as every asset responds differently to market events. Traders must record their trades and see how they fare for the asset they’ve chosen over time.

Each binary option contract has a set expiration time, marking the end of the trade. This expiration time is crucial when predicting whether the market price will climb or drop. You can choose the duration of your trade, from as short as 5 seconds to several hours, depending on what best suits your strategy.

Once you’ve decided on the direction – up or down – and the expiry time, you’re one step away from placing the trade. To remind you of the two options you have:

  • Call (Higher): The price goes up in your expiration time
  • Put (Lower): The price goes down in your expiration time

7. Choose the investment amount

The last step before placing your trade is setting the investment amount. Some brokers limit this to a specific amount, which depends on your account level.

Brokers often have specific rules about how much you can invest, which can vary by your account type. For example, beginner accounts may have lower investment limits to help new traders manage risks effectively. In contrast, Pro or VIP accounts could allow for higher stakes that are suitable for more experienced traders.

Market conditions also play a significant role in deciding your investment. Economic events or market news can affect asset volatility, prompting you to adjust your investment. In turbulent times, a smaller investment might mitigate risk, whereas, in more stable conditions, a more significant investment could be more profitable if the market seems predictable.

Account Types (Quotex):

Beginner Account: This account type is perfect for new traders who are just starting and prefer to invest smaller amounts. It offers essential trading tools and access to primary market insights, making it easier for newcomers to learn and grow without a significant initial investment.

Pro Account: The Pro account is suitable for traders ready to increase their investment, requiring a deposit of up to $1000. This account provides enhanced features over the beginner level, including advanced analytics tools and additional trading options, which can help more experienced traders maximise their strategies.

VIP Account: Designed for professional traders, the VIP account at Quotex requires a minimum deposit of $5000. It offers comprehensive features and benefits, including personalised advice, exclusive market insights, and priority support. This account is tailored for severe investors who seek to leverage all possible advantages in the trading world.

Be careful: Your investment is the amount of money you can lose per trade. If your prediction is wrong, your entire investment amount will be gone.

8. Start the trade and wait till it expires

Once you’ve set the investment amount, click Up / Call or Down / Put to place the trade. Some brokers want you to verify the trade, so you have to do another click. Now, it’s time to wait until your trade expires. Some brokers allow traders to close trades before the expiration time is up – this will enable you to reduce the impact of a wrong decision by closing the trade early when it hits a specific price.

We recommend that traders track their trade outcomes and record their decisions for each trade. According to financial experts, traders who consistently monitor their performance are more likely to improve their decision-making and achieve better results.

If you are right and the market price moves in the right direction below or up your strike price, you will get a payout between 75% and 95% of your investment. The yield depends on which broker and underlying asset you select.

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Example of Loss on Binary Options Trading:

In binary options trading, a loss occurs when a trader’s prediction about the market direction is incorrect at the time of the option’s expiration. For example, if a trader predicts that the price of gold will rise and places a “call” option, but the price falls by the expiration time, the trader will incur a loss. The loss is typically the amount invested in the trade, as binary options offer a fixed risk-reward structure.

Let’s say you’ve decided to go with a call option, betting that your chosen asset will climb above a strike price of $75 by the time the option expires. You’re feeling confident and predict the price might even hit $100.

However, as the expiration time rolls around, the price is only $50, nowhere near your anticipated $100 mark. Unfortunately, this means your prediction didn’t pan out, and as a result, you end up losing the money you put into the trade.

Example of Profit from Binary Options Trading:

On the flip side, if your instincts are spot-on and the asset’s price surges to $100, surpassing your strike price of $75, you’re in for some good news as the option expires. This scenario means you’ve made a successful prediction, and you stand to profit from the binary option’s yield.

For instance, if you initially invested $1,000 and the option comes with an 80% yield, you could see your investment grow to $1,800 through your broker. Quite the win, wouldn’t you say?

Master Binary Options Trading with Our Comprehensive Course at Binaryoptions.com

Elevate your trading skills with our specialised Binary Options Course on Binaryoptions.com.

Designed for traders eager to deepen their knowledge, this course bridges the gap between fundamental understanding and advanced strategies. For more details and to embark on a comprehensive learning journey, visit our main homepage or dive into the course here.

Our expertly designed course reinforces the fundamentals you’ve just learned. It introduces you to deeper insights and techniques that can significantly improve your trading process and increase your success when trading binary options.

Definitions of Basic Terms Used in Binary Options Trading

When starting the trade in binary options, you will encounter many terms that you might be unfamiliar with but are important to make a successful trade. Here are the fundamental terminologies that every trader must know. 

Basic terms used in binary options trading:

  • Underlying Asset: This is the asset on which you base your binary options trades, such as stocks, commodities, or currencies.
  • Expiry Time: The specific time at which a binary options trade closes. At this point, the outcome of the trade is determined.
  • Strike Price is the predetermined price level at which you enter a binary options trade. To profit, the market price must move above (for a call option) or below (for a put option) this price by the trade’s expiry.
  • Fixed Profit Amount: This is the potential return you can earn from a successful trade. The profit is predetermined and known before entering the trade.
  • Call Option: This is a binary option in which you predict that the underlying asset’s price will rise above the strike price by expiry.
  • Put Option: This is a binary option in which you predict that the underlying asset’s price will fall below the strike price by expiry.
  • Broker: An intermediary that facilitates trading in financial markets. Brokers execute client trades and charge a fee or commission for their services.
  • In-The-Money (ITM): A term used when your binary options trade is booming. It indicates that your prediction was correct, and you will receive the predetermined profit.
  • Out-of-the-money (OTM): A term used to describe an unsuccessful binary options trade in which the outcome did not align with your prediction, resulting in a loss of your investment.

The underlying asset of a binary option

The underlying market can be stocks, commodities, cryptocurrencies, forex, or ETFs. It is depending on the broker which assets are offered. The trade buys or sells an options contract on these underlying assets. It is no real investment in the asset like purchasing gold from a retailer. You trade the options contracts.

Expiry time of an option

The binary option permanently closes on a fixed expiration time. Depending on your chosen broker and the available expiration dates, you can trade for 30 seconds, 60 seconds, or even one month. If the expiration date is reached, the underlying asset price has to be above or below your price target.

Price target/strike price

The price target is your primary entry point or strike price. If you start to buy or sell a binary option, the strike price is the current market price. So, it is essential to have good timing.

You can lose your entire investment if you miss your price target by 0.1 points. But if you are right, you can win a high return.

Fixed amount of profit

A binary option has a fixed profit amount that the broker fixes. The fixed payout can be 60%, 70%, or even 90% of your investment amount. But remember, you can lose your entire investment if you make the wrong trading decisions.

There are only two outcomes: You lose or win. The fixed payout also depends on the underlying market you trade and the expiry time. Sometimes, three binary option trade outcomes exist: You lose, win, or get the money back when the market strictly hits the strike price.

Call the option and put the option

Binary options are a simple trading product with limited risk. There are only two ways to trade them: call options and put options. A call option means you say a binary options market will rise above a specific price in a limited expiry time. A put option means you say a market will fall below a particular price in a limited expiry time.

Is Binary Options Trading Safe?

The safety of trading binary options largely depends on the broker you choose. Opting for a reliable, regulated broker like Nadex (North American Derivatives Exchange) can enhance the security of your trades. Our comprehensive reviews of various brokers, both regulated and unregulated, shed light on their strengths and weaknesses to aid your decision.

It’s safer to trade with a regulated broker than an unregulated one!


Is binary options trading safe? The safety of trading binary options largely depends on the broker you choose. Opting for a reliable, regulated broker like Nadex (North American Derivatives Exchange) can enhance the security of your trades. Our comprehensive reviews of various brokers, both regulated and unregulated, shed light on their strengths and weaknesses to aid your decision.

Through extensive research, we’ve found that regulated brokers are generally more trustworthy and less likely to engage in unfair practices. While many unregulated brokers also operate reputably, there’s an inherent risk due to the lack of oversight.

Binary options trading is relatively safe if you select a regulated broker and conduct your due diligence before investing. Our insights aim to guide you, but it’s crucial to verify the information and understand the risks involved in binary options trading.

There are a handful of safe and well-known regulators. If your chosen broker is regulated by one of these companies and institutions, it’s a good sign:

Be aware also if trustworthy institutions such as the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), or especially the Securities and Exchange Commission (SEC) express concerns.

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Conditions of Binary Options Trading:

You can trade any of the broker’s underlying assets. The process is always the same whether you choose stocks, commodities, forex, or crypto. Most brokers we’ve tested allow you to trade more than 100 assets.

The expiration time differs from broker to broker, but most offer expiration times of 5 seconds. The upper limit is usually one hour or three hours.

So the two main conditions are:

  • Trade any underlying market you wish: stocks, forex, commodities, cryptocurrencies, and many more
  • Choose between short-term and long-term time horizons (expiration times)

How high is the maximum yield (return on investment)?

Not every broker offers the exact maximum yield (return on investment) for a specific asset. For example, broker A may offer a 90% payout for Bitcoin, and broker B might offer 85% for the same cryptocurrency. The better choice here would be broker A.

Short-term trades have the highest payouts, while long-term payouts have lower payouts. The average yield for standard accounts is between 70% and 95%.

However, if you opt for a VIP account, you could benefit from higher returns. Most brokers provide various account types based on the amount you deposit. For instance, at IQ Option, depositing $3,000 qualifies you for VIP account status. This incentivises them to deposit more money into their accounts to trade with.

iq option vip account support
Screenshot of an IQ Option VIP Account
➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Trade Types Available in Binary Options Trading

When the binary options were first introduced in the market, they had only one trade type. These were ‘High and Low’ / ‘Call and Put’ or ‘Up and Down.’ 

Many other trade types were proposed with the growth in traders’ numbers and popularity. Here are some of the most used binary trade types. 

1. One-Touch or No-Touch

You must make three critical decisions for a one-touch or no-touch binary options trade. First, select the asset you want to invest in. Second, determine your price target. Third, choose when your trade will expire.

Setting your price target involves strategic thinking: the further your price target is (farther from the current price), the higher the potential payout. Conversely, a target that’s closer and easier to achieve will offer a smaller return.

Touch or no touch Binary Options

You will get a profit if your asset reaches the set target point even once before the expiration time. Before making a trade, two things are to be looked for

  • The reach of the price target

Set the price target diligently. It could be in any direction and, with careful analysis, judge the price flow. While setting, pay attention to the trade cost and payout value.

  • The expiration time

All it takes is one touch to give you profit, even if the market goes in a different direction afterwards. Many platforms offer expiration time up to days, so set the time you think is enough to reach the triggered point. 

2. High or low

High or low Binary Options

Here, examining whether your chosen asset will exceed the strike price on expiration would be best.

If you believe it will increase in price, select “Rise/Up”; if not, select “Fall/Down”. The time of the trade’s termination can vary. This trade type is primary yet has its risks. Therefore, before placing any trade, examine the price movements thoroughly.

3. Range trades

It is also known as boundary trade. In this trade type, you choose an asset and trade within the range of two triggered points. If the price stays between the boundary until expiry, you will win and lose if it passes the range. 

For instance, if an asset’s strike price is $50, and you believe it will go up to $60, you trade in the range of $50 to $60. If the price of your asset remained between this boundary during the entire trade, you would get your profit. You will lose the whole investment if it surpasses $60 or falls below $50. 

4. Short-term trading

Many brokers use short-term or 60-second trading, and given its popularity, many traders are inclined towards it. 

It works like the high/low trade with an expiration time of 60 seconds. Some brokers in short-term trading also offer a trade termination time of up to minutes. 

60-seconds-trading

5. Long-term trading

Unlike short-term trading, this type allows you to set the time limit to days, weeks, or sometimes even months. 

Most beginners prefer this type as the trade goes fast in the short term, and you must always be active and consistent. In the long term, you get more time to develop skills and study the charts. 

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

6. Pairs 

As the name suggests, this trade type is performed in pairs. At the trade expiry, you have to choose which asset will perform better than the other. Correct judgment will earn you profit, and your wrong decision will cost you

The pairing of currencies and stocks is trendy. For instance, in the EUR/USD, you believe the USD will go higher than the EUR and place your bet. After the expiry, the USD outperformed the EUR, and you won because your prediction was correct. In the opposite case, where the EUR goes above, you will lose. 

Even if the pairing goes down equally, you will win if your asset has a higher value than the other.  

7. Ladder

The trade is divided into smaller portions spread over different intervals in this type. You will receive a partial bonus each time the strike price touches the triggered point. 

Your trade is divided into different strike prices with varying expiration times. When you reach the first interval, you will receive some profit. 

For example- you are ladder trading the currency pair of USD/EUR, which you believe will go high. At noon, the value of your asset is $60. You chose three strike rates and three different expiration times. 

  • The first strike is set for $60.85, with a 40% payout and expires at 112:20 pm
  • The second strike is $70 and has a 55% payout. It expires at 112:40 pm
  • 3rd strike is set for $70.45 with a 70% payout; the expiration time is 001:00 pm

USD/EUR must reach $60.85 or above to win this bet at 112:20 pm. If it happens, you will get the 40% payout, and subsequently, for every rung you climb, you will receive the mentioned profit. 

Remember that the payout value will change according to the interval difference. If the gap in the strike prices is small, you will get less payout because it involves less risk, and for a large gap, the profit will increase.

Risks of Binary Options Trading Explained:

No doubt – Binary Options are a risky financial instrument.

However, the benefits often surpass the risks.

A common concern for newcomers is the possibility of losing their entire investment in a single trade. While it’s true that the amount you invest in a trade can be lost entirely, it’s also important to note that you cannot lose more than what you’ve invested. This contrasts with several other financial products where it’s possible to incur losses exceeding your initial investment.

One of the standout perks of binary options trading is the potential for high returns, regardless of market volatility. As long as the price of your selected asset moves above or below your strike price, you’re in the win zone.

This simplicity and the opportunity for quick profits are precisely why many traders, ourselves included, are drawn to this type of trading. It’s straightforward, and you can see significant gains relatively quickly.

Only invest money which you can afford to lose!

Should you use a binary options demo account?

Many of you ask us if it is necessary to trade first via a demo account. Our unambiguous answer is yes, it’s essential. A demo account lets you learn how the market moves and how your chosen broker works. Almost all reliable brokers offer demo accounts with virtual money that you can top up with just one click.

Switch to the demo account for Binary Options
Switch to your demo account with one click.

Learn about your binary options trading platform before you invest your real money. You can also try new strategies or form your trading strategy through a demo account.

  1. First: demo account.
  2. Second: Strategy.
  3. Third: Real account.
Best binary broker:
(Risk warning: Trading is risky)

Quotex - Trade with high profits

123455.0/5

Quotex - Trade with high profits

  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95%
  • Fast withdrawals
  • Signals
(Risk warning: Trading is risky)

How to open your first live account

You must fulfil different criteria once ready to open your first real account. On most trading platforms, you can trade without verifying your broker account. But in our opinion, you should ascertain before getting started to have unlimited access to all functions and deposit and withdrawal methods.

Verify your trading account for Binary Options trading
Verify your email and identity for full account access

You need your accurate personal data (full name, birthday, address, mail, phone number) and some personal documents for verification. You must upload a copy of your passport or some form of identification to authenticate your identity. The platform requires this to register an account and to verify your identity

The verification process only takes 1-2 working days in most cases.

How much money do you need to trade binary options?

The answer to this question depends on how much you are willing to invest. Always adhere to your risk and money management. Many brokers require a minimum deposit amount and have a minimum trade amount per trade. For example, Quotex or IQ Option allow you to start trading with just $10 and minimum trade among of $1 per trade.

5 USD minimum deposit amount on binary trading
The minimum deposit amount

It’s possible to earn a lot of money with the right trading strategy. So, investing all your money is unnecessary when getting started. Start slow and deposit more if your plan turns out to be tremendous.

How much risk per trade?

“how much” refers to several factors in binary options trading. It denotes risks, effort, time, and money. It is always safe to risk no more than 1% of your funds per trade. You can protect your capital by reducing your trading risks. You will lose a small part of your capital even if you lose many trades through mistakes.

First, you need to set up the percentage of your trading capital that you will be willing to put your money on the line on one binary options trade. The ideal percentage must be 1% or 2% of your trading capital. You can go up to 5%, but it is not always safe.

The kind of binary options deal with it. This 5% risk will give you a more significant position size for standard binary options trades. You can then calculate the number of contracts you can take. You need to calculate contracts to remain within the limit of your risk.

  • A high risk of up to 10% of the trading account can result in a fast account blow-up.
  • Always trade with limited risk, like 1% of the trading account per trade
  • A limited risk will remove your emotions while trading
➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Deposit and Withdrawal Methods:

You may already have wondered which payment methods are available when trading Binary Options. In the past, many brokers only offered some particular payment and withdrawal methods. Nowadays, the market is user-friendly, and brokerage firms offer many different payment methods.

Facts about the deposit

  • Many platforms offer a minimum deposit of $10
  • Minimum trade amount: $1
  • High amounts can be traded as well
  • The minimum deposit for a Binary trade depends on the broker
Payment method for depositing on Binary Options platforms
A few possible payment methods

Deposit and withdrawal are easy. Most brokers do not charge fees for depositing or withdrawing funds, and many offer up to 20 payment methods. You can capitalise on trading accounts within seconds. Withdrawals last a little bit longer, up to 24 hours.

Some of the primary payment methods Binary Options brokers offer:

  • Bankwire
  • Credit Cards (Master/VISA)
  • Cryptocurrencies (Bitcoin, Ethereum, Ripple, and more)
  • E-Wallets (Skrill, Neteller, FasaPay, ePayments, Yandex, and more)

Are there bonuses for deposits?

Almost all binary options brokers offer a free bonus to attract new customers when you first top up your account. Some brokers even offer a bonus every time you deposit money. The bonus can vary from 10% to 20%, 30% to 50%, or even 100%.

In other words, Some brokers double your amount of money.

Deposit-Bonus-of-Olymp-Trade
Olymp Trade offers a deposit bonus of up to 50%

Be aware that the bonus isn’t completely free. In most cases, you must reach an inevitable turnover with the bonus before withdrawing your funds. For example, you need to make a turnover of 30x the bonus you got. So, if you’re not good with the conditions, turn it off.

Get a free deposit bonus of 50% at Quotex with our promotion code “bobroker50

You can only use this bonus code by signing up via our website.

➨ The best broker: Sign up for your free Quotex bonus!

(Risk warning: Trading involves risks)

How Much Money Can You Earn By Trading Binary Options?

It’s up to you how much money you will earn by trading binary options. A good education, risk management, and a professional strategy are the keys to your successful career as a trader. Also, your money management has to be good.

At first glance, it seems easy to make money with binary options. However, you’ll soon find that the markets can be complex, especially for beginners. Success in trading typically doesn’t happen overnight.

Making money on profitable trade on Binary Options
Some profitable trades in a row

It’s expected that it will take some time to see progress, and your winning rate of trades will increase. The more trading decisions you make, the better you will get.

Let us give you more insights into four topics directly linked to your success as a binary options trader.

Education

It’s the most important rule for beginners: Educate yourself before getting started. Use the educational sections most binary options brokers offer. Use websites like ours and YouTube videos, and read books to learn about trading and the financial markets. Use technical analysis tools to boost your trading skills. And, of course, trade via the practice trading account to learn the mechanisms of the markets and assets.

Strategy

Once you know the theory about trading and binary options, you will see that actual trading differs significantly from the theory. Trading a binary option requires analysing fundamental analysis and a feeling for the markets and assets.

Follow the trend strategy
Example of the “Follow the trend” strategy

So, develop your trading strategy. Otherwise, you will blow up your account. Use the knowledge of our website as a base and create your plan for each Binary trade.

Here are some of the leading trading strategies that you can have a look at and use for your next Binary Options trade:

  • 60-second strategy
  • Candlestick pattern strategy
  • Next candle prediction strategy
  • MACD strategy
  • Fibonacci Retracement strategy

Indicators and tools:

Every platform offers a few indicators, technical tools, different chart types, such as the most common candlestick chart, and many more things to analyse. Some brokers even give you free and direct access to economic news. You can use that to stay up to date all the time and react to the news that impacts the assets you trade with.

Pocket Option indicators
Pocket Option offers a bunch of helpful indicators.


A quick note on indicators: They are crucial in binary options trading. It’s worth taking the time to understand key ones like MACD, RSI, etc. Dive into the linked article for a deeper insight into how to leverage these tools effectively.

Money Management

Many retail traders I know had to learn how natural money management works. That’s why we recommend getting familiar with it before you start trading.

Money-management-with-Binary-Options
The investment amount is 1% of the account balance

You should never use more than 0.5 to 3% of your account balance for each trade.

Signals

Have you ever heard of trading signals? Professional traders offer trading setups and signals that you can copy. If it is a reliable trader, you can trust them. But be careful: There are a lot of scams and unsuccessful signals.

Tax

You must pay capital gain taxes when you earn profits in the financial markets. The binary options tax rules differ from country to country, but you should look at them if you make financial transactions. We recommend visiting your local tax lawyer to check the taxation on Binary Options. From our experience, the tax rate can range from 0% to 30% or more on capital gains.

Best binary broker:
(Risk warning: Trading is risky)

Pocket Option - Trade with high profits

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Pocket Option - Trade with high profits

  • Welcomes international clients
  • Offers high payouts: 90% – 97%+
  • Professional-grade trading platform
  • Swift deposit process
  • Enables Social Trading
  • Provides free bonus incentives
(Risk warning: Trading is risky)

Conclusion and checklist: How to trade Binary Options with simple strategies

You have to be aware of scams in the binary options market. But the financial instrument itself isn’t a scam. It allows you to invest in short-term or long-term opportunities in the market. Therefore, you can select any asset you want, and the functionality of a Binary Option is easy to understand.

Trading binary options with Pocket option
Trading Binary Options is an excellent way to earn a lot of money

Our honest advice to you as professional traders: Choosing a good and reliable broker is essential. Don’t register with the first broker that comes to mind. Check reviews, the Securities and Exchange Commission (SEC), and make sure it’s not a scam!

Watch out for this short trading checklist for beginners:

  • Select a trustworthy broker
  • Register and verify your account
  • Use the demo account to get into it
  • Deposit money and switch to the real account
  • Choose an asset or market to trade
  • Analyse Analysert
  • Forecast the price movement (up or down)
  • Choose the expiry time (short-term = higher payout)
  • Set your investment amount
  • Place the call (higher) or put (lower)
  • Use a trading journal, especially if you’re a beginner

With this little checklist, we have shown you everything you need to know about trading binary options. We wish you the best of luck and happy trading!

➨ Sign up with the best binary broker Pocket Option now!

(Risk warning: Your capital can be at risk)

Frequently Asked Questions

Can you make money consistently with binary options?

Yes, it’s possible to earn money consistently with binary options trading. But be aware: 80% of traders lose their money. To belong to the other 20%, you need a working trading strategy and sensitive money management. Do not trade too many multiple contracts at one go or use too much capital for one trade.

What are the best brokers to learn binary options?

First, familiarise yourself with the financial instrument and your chosen broker via a demo account. Switch to a real account after you develop your strategy and feel comfortable with your decisions. Common online trading platforms are Quotex, IQ Option, and Pocket Option.

How do you master binary options?

Understanding how the market moves is essential. Therefore, you must develop a trading strategy, learn technical analysis, and use indicators to analyse the price chart. Use books, videos, our website, and many more educational tools to get into binary options trading. The learning process never ends.

Are binary options a good investment?

When you understand how binary options work and create a promising trading strategy, binary options are a good investment, just like better-known Forex trading. But be aware that it isn’t risk-free.