Hello Binary.com traders
Greetings Healthy, Profit & Success always for you :-)
Thank you for visiting the blog from trading.simple.4.life@gmail.com. This blog is a place for information to share knowledge, exchange ideas & share experiences, with the hope that we can all learn together & reap positive benefits before plunging into online investment in the future, especially online binary trading. So to achieve that goal, I really hope that all the masters and elders can sincerely share their experiences & knowledge about online trading-winning strategies, be it conventional trading using the Metatrader Platform and the like, or trading with the Binary system using WebApplication like Binary.com.
In this post, I will explain a little about the differences between conventional online trading which usually uses the Metatrader platform or the like with online trading binary systems that use Binary.com WebApplication. but next I will discuss more about online trading using Binary.com. because in my opinion this Binary.com broker has more complete features than other binary system brokers.
Let's get straight to the point:
WHAT IS BINARY ONLINE INVESTMENT?
Investment can simply be interpreted as a way of managing a certain amount of money either by way of deposits, insurance, buying property or other forms of business at the present time with the aim of getting value for profits in the future.
Online Binary Trading is one way of trading (transacting) by utilizing the Internet network or the Virtual World where the calculation of the profit or loss value has been determined at the beginning (fix odds)
Thus it can be concluded simply that the understanding of Binary Online Trading Investment is one way of managing a certain amount of money or transacting by utilizing online media (internet network) at present, to get a fixed profit return (fix odds) at a certain period in the future. which will come.
The characteristics of binary type transactions are as follows:
1. The profit and loss value of each transaction has been determined at the beginning.
2. Not subject to spreads.
3. No leverage.
4. Does not depend on the size of the difference in pips
5. Has a certain period of time
Let's discuss the characteristics of transactions with binary types:
1. Fixed Profit (Fix Odds)
What is meant by fixed profit is the percentage of profit to be received from each capital transacted which has been determined at the beginning. At Binary.com Brokers, these fix odds are usually set at 10% to 1000% for each transaction value.
Example:
From a $1000 Balance you trade only $10 with a pre-set profit of 85%. So if your transaction is profitable? you are entitled to a payout of $ 18.5 where the capital is $ 10 plus a profit of 85% ($ 10 + $ 8.5 = $ 18.5) but if your transaction Loss? Your loss is only equal to the value you traded at the beginning, which is $10.
2. There is no difference in bid-ask (Spread)
For those of you who have played forex/stocks with conventional trading, you must be familiar with the term spread. So for those of you who like to hunt for small spreads, this is good news for you, because binary trading is not subject to spreads or instant execution. This means that the price you want will be executed right away.
Example on a conventional Broker using spreads:
You place an order to BUY the USD/JPY pairs at a price of 110,001 with a spread set by the broker of 3 pips + commission of 5 pips. then the BUY Order you get is actually priced at 110,0009. it means that when you have opened 1 transaction price, you have minus -8 pips. if we assume 1 pips = $1, then you experience a floating loss of minus -$8.
Example on a binary broker without spreads:
You place a BUY order for USD/JPY pairs priced at 110,001 for $10 with a pre-set payout of 85%, so the BUY order you get is still 110,001 even if the price changes a lot? the price you earn will follow the changing price, there is no reduction in spreads or commissions and the value of your transaction remains $10.
3. No leverage.
Because binary trading does not use leverage. Then the percentage of your profit value is calculated from the size of the capital you invest. for more details about this leverage, you can search on google.
4. Does not depend on the difference in the number of pips.
This is an advantage of binary trading. You will still be recognized as worthy of profit, even if the difference from your purchase price is only 1 pips.
Example on conventional trading:
You have a Balance/Capital of $1000 ( + IDR 12 Million assuming an exchange rate of $1 = IDR 12,000)
You expect Profit $85 (Rp1,020,000 assuming exchange rate $1 = Rp12,000)
Illustration:
You have to pay attention to leverage, spreads & commissions.
We take the example for a mini account only, because it adjusts the capital above 10 million.
Assume 1 pips = $1 = Rp12,000
Leverage 100 : 1
Spreads 3 pips.
Commission 5 pips.
Pairs used USD/JPY.
For example, you BUY the USD/JPY pairs at a price of 110,001. Then your BEP value will be reached if the price moves up to touch 110.009 (buying price 110.001 - spread 3 - commission 5) remember! this is just a return on investment. If your profit target is $85. Then you have to hold the BUY transaction moving up continuously until it touches the price of 110,094 (buy price 110,001 + spread 3pips + commission 5pips + profit target 85pips) So it takes 94 pips to get a profit of $85 / IDR 1,020,000. But if the price actually moves down 85pips below 110,001? you can be sure you experience a floating loss of $XXX, - (buying price 110.001 - spread 3 pips - commission 5pips)
So the size of the profit obtained from conventional trading is very dependent on the size of the number of pips from the difference in the close price minus the open price.
(+) the advantage of conventional trading is that our transactions can be held until the price returns to positive in the sense that the price returns to the position we expect to make a profit. Of course, if our equity or margin/capital is strong enough to withstand prices that move in the opposite direction than expected.
Example on Binary Trading:
In the binary system, leverage and the size of the difference in pips do not affect the percentage of profit that will be obtained. Because the profit from each value we trade has been set at the beginning (fix odds). The size of this profit percentage only depends on the instrument and type of contract* used. Especially at the Binary.com broker the percentage of profit that can be generated ranges from 10% to 1000% of our transaction value even though the price only moves a difference of 1 pips.
Illustration:
Using an example like the capital above, which is $ 1000 (+ Rp12 million)
With a profit target of $85 (Rp1,020,000)
The instrument used is USD/JPY forex pairs on Rise/Fall Contract Types (up/down contracts)
*Note: Actually there are many instruments offered at binary.com ranging from Forex, Indices, OTC Stocks, Commodities, Volatility Indexes and many others with Up/Down, Touch No Touch, In/Out, Asians & Digits contract types. but here we will not discuss them one by one? Please visit the official website at www.binary.com or you can click here
Ok, continue the example!
In this Rise/Fall contract we only need to choose Price Up or Price Drop from our purchase price for a certain period (the period offered is between 5 Ticks to 365 Days)
For example, I predict the USD/JPY pair will move above 110,001 in the next few minutes. Then I will select RISE/UP/CALL/UP. I put up a capital of $ 100, with a predetermined profit of 85% then I choose a period of 5 minutes. meaning that I will receive a profit of 85% ($85/Rp1,020,000) of my $100 capital earlier, if up to 5 minutes the price is still above 110,001.
After waiting for 5 minutes??? VIIIOOLLA.!!! the price is still above 110,001 to be precise at 110,002. Yup! Only 1 pip difference from 110,001 to 110,002 but I am entitled to a profit of $85 (Rp1,020,000)
(+) And this is the advantage of binary trading. With the same capital as the example above which is $100 and the same profit target of $85, I only need a difference of 1pips and only wait for 5 minutes to make a profit of $85 (Rp1,020,000). AWESOME AWESOME..!!!
(-) But the drawback of this binary trading is the opposite of conventional trading. That is, transactions that are open in binary trading cannot be held when the price is still opposite from what we expected if the period has expired or been exceeded, then the capital we input is considered forfeited (LOSS).
But we can minimize this shortcoming by strengthening our analysis or implementing certain strategies. I will try to discuss this strategy in the next post. please fill in the comment field below..
5. Have a certain period of time.
For point 5, I actually mentioned it in the example in point 4 above. That is binary trading always sets the period from 5 Ticks to 365 days/1 year.
Maybe that's all I can share in this post. I really hope that there are masters and gentlemen who want to share about winning strategies for trading binary.
Please click here or click the banner in this blog to directly register at binary.com
Thank you
Greetings
trading.simple.4.life@gmail.com
