Binary Tutorial

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It’s easy to start trading binary options. You can follow these simple seven steps and start trading binary options within a matter of minutes, or feel free to contact our customer support.

1. Create Your Binary Option Trading Account

Complex arrangements between exchanges and brokerages are no longer necessary for trading binary options. Instead, you can start trading binary options in as little as five minutes by simply registering for an account and entering your basic information into B4Binary’s secure trading system. You can start trading with a real account or use the demo account to get your feet wet.
Create My Account Now (button)

2. Choose Your Market and Underlying Asset

Once you’ve registered for your account, pick a market to trade in. B4Binary enables traders to buy options on several markets including stocks, commodities, currency pairs and indices. It is best to choose assets in markets that you are familiar with. For example, if you are a Forex trader, you can trade binary options on currency pairs from around the world. Or if you’re more familiar with commodities, you can trade oil and gas on the commodities market.

3. Choose Your Time of Expiration

After you’ve chosen your underlying asset, you must determine how long you would like your option to last. The time of expiration for binary options can be as long as one month or as short as five minutes. Typically binary option contracts are no shorter than one hour, however B4Binary allows traders to buy options up to five minutes before the time of expiration.

4. Conduct Your Final Analysis

Once you’ve determined the basic parameters of your trade (the asset and the time of expiration), you will need to predict, or forecast, the direction that the price of the underlying asset will move by the time of expiration. Traders typically conduct technical and fundamental analysis before predicting the direction that the asset will move. If you want to learn how to conduct a basic analysis before making your first trade, you can read about how to conduct basic technical and fundamental analysis in our B4Binary E-Book.

5. Buy Your Option

Next you will need to choose which option you’re going to trade on. There are three different types of binary options to choose from, above / below, range and touch. All options have fixed returns between 75 – 81% if traders are in-the-money.
Digital
If you buy an above / below option, you will need to predict if the price of the underlying asset will increase (above) or decrease (below) by the time of expiration. If you believe that the price of the asset will increase select Call, if you believe it will decrease select Put.
Touch
Instead of simply increasing or decreasing, as with above / below options, in touch options the price of the underlying asset must touch a predetermined strike price before the time of expiration. There are also variations to touch options like double-touch and no-touch options trading.
Range
When trading range options, you must determine if the price of the underlying asset will stay in or go out of a predetermined range before the time of expiration.

6. Set an Amount

Now that you’ve set up your trade, all you need to do is determine how much money to invest. You can start trading binary options with as little as $10 or as much as $5,000 on any one option. However, the most successful binary option traders purchase multiple options which they trade simultaneously. Once you’ve registered, you can easily make a deposit into your secure trading account using several convenient payment methods.

7. Wait for the Option to Expire and Collect Your Return

Now all you have to do is wait for the option to expire. You can keep track of how your option are performing in their online accounts under “My Trades”. If your trade ends up in-the-money you will receive a return of 75% – 81% on top of your initial investment.

Download PDF

It’s easy to start trading binary options. You can follow these simple seven steps and start trading binary options within a matter of minutes, or feel free to contact our customer support.

1. Create Your Binary Option Trading Account

Complex arrangements between exchanges and brokerages are no longer necessary for trading binary options. Instead, you can start trading binary options in as little as five minutes by simply registering for an account and entering your basic information into B4Binary’s secure trading system. You can start trading with a real account or use the demo account to get your feet wet.
Create My Account Now (button)

2. Choose Your Market and Underlying Asset

Once you’ve registered for your account, pick a market to trade in. B4Binary enables traders to buy options on several markets including stocks, commodities, currency pairs and indices. It is best to choose assets in markets that you are familiar with. For example, if you are a Forex trader, you can trade binary options on currency pairs from around the world. Or if you’re more familiar with commodities, you can trade oil and gas on the commodities market.

3. Choose Your Time of Expiration

After you’ve chosen your underlying asset, you must determine how long you would like your option to last. The time of expiration for binary options can be as long as one month or as short as five minutes. Typically binary option contracts are no shorter than one hour, however B4Binary allows traders to buy options up to five minutes before the time of expiration.

4. Conduct Your Final Analysis

Once you’ve determined the basic parameters of your trade (the asset and the time of expiration), you will need to predict, or forecast, the direction that the price of the underlying asset will move by the time of expiration. Traders typically conduct technical and fundamental analysis before predicting the direction that the asset will move. If you want to learn how to conduct a basic analysis before making your first trade, you can read about how to conduct basic technical and fundamental analysis in our B4Binary E-Book.

5. Buy Your Option

Next you will need to choose which option you’re going to trade on. There are three different types of binary options to choose from, above / below, range and touch. All options have fixed returns between 75 – 81% if traders are in-the-money.
Digital
If you buy an above / below option, you will need to predict if the price of the underlying asset will increase (above) or decrease (below) by the time of expiration. If you believe that the price of the asset will increase select Call, if you believe it will decrease select Put.
Touch
Instead of simply increasing or decreasing, as with above / below options, in touch options the price of the underlying asset must touch a predetermined strike price before the time of expiration. There are also variations to touch options like double-touch and no-touch options trading.
Range
When trading range options, you must determine if the price of the underlying asset will stay in or go out of a predetermined range before the time of expiration.

6. Set an Amount

Now that you’ve set up your trade, all you need to do is determine how much money to invest. You can start trading binary options with as little as $10 or as much as $5,000 on any one option. However, the most successful binary option traders purchase multiple options which they trade simultaneously. Once you’ve registered, you can easily make a deposit into your secure trading account using several convenient payment methods.

7. Wait for the Option to Expire and Collect Your Return

Now all you have to do is wait for the option to expire. You can keep track of how your option are performing in their online accounts under “My Trades”. If your trade ends up in-the-money you will receive a return of 75% – 81% on top of your initial investment.

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