Binary or Digital Options have the unique property to have only one of two values. For example, “yes” and “no”, “black” and “white” or “profit” and “loss”. We offer Binary Options on many underlying assets. An asset is at the base of your option. It can be an index, a commodity, a currency or a stock. You can read that in another lesson.
“Did you know that a car insurance is somehow a kind of Binary Option? In case of an accident the insurance company will pay your bill, otherwise it won’t. The financial market is very similar, you will generate a profit for proper judgment, otherwise you won’t.”
In our “60 Seconds“ section you will find Binary Options with terms as short as possible, which contrast with those listed in our long term section. Basically they work the same way as our plain vanilla Binary Option, except for expiring at a short rate. It’s a significant advantage, since you are not forced to wait for certain intervals, but rather trade them any time you want.
“No matter what time intervals you prefer to trade, always stick to your strategy. The shorter the interval the faster you know your trading result. This means you have to process new input quickly. But always remember: Power lies in peace!”
Long Term Binary Options are similar to our plain vanilla Binary Options. They only differ in the time to expiration. It ranges from one week to over a year in the future. We give you the possibility to diversify your investments based on different time horizons. You should consider that long term investments may be advantageous to you, but on the other hand you will not be able to react quickly to any significant market events. Your money will be tied unless you sell off current long term positions.
“Did you know that in the last 87 years from the beginning to the end of the year the Dow Jones Index rose 59 and fell 28 times? Your trades should always be based on observations.”
Everyone that is actively trading on the financial market is going to experience a few moods sooner or later. Some of them are positive; however, there are also negative ones. Here you will learn, what you have to prepare for and, especially, how you deal with them. A difficulty level between 1 (easy) and 5 (difficult) is assigned to each feeling, which qualifies as a guideline when coping them.
The term money management means to strategically take care of your money. It’s about adapting your investments according to your predefined goals. The meaning of these two expressions will be explained now.
The easiest way to explain what the term money management is all about is by using an example. You can distinguish between good and poor money management. Poor money management would be spending your entire salary on yoghurt. It would spoil before you could eat it besides having a very one-sided diet. On the other hand good money management would be deliberately buying food according to a nutrition plan. This way your groceries would be matched to quantity and diversity. You will not lose any more money due to spoiled food.
“Traders who have created a budget will always have an advantage over other traders.They have discipline, a goal in mind and can deal much better with setbacks.”
Due to their history different countries and regions have developed different currencies. You have certainly had that experience on your vacations, you might still keep the change in your drawer.
“Did you know that the daily trading volume (i.e., the amount of money) in currencies is about € 4.8 trillion? Imagine, you are spending the annual revenue from Japan, every day! Incredible!”
The term commodities refers to natural resources that are derived from nature. These are mostly used as raw material for other products. For example a Rolex watch is made out of gold and platinum. Gasoline for your car is made from oil.
“Did you know that approximately 155,000 tons of gold were produced in total since the beginning of mankind? That’s no more than a cube with a length of 20m, except that this cube would be worth about € 271 billion!”
An index (plural indices) always represents a particular market. A few common variants are stock or sector indices. The most famous stock index (only listed companies) is the American Dow Jones, which is considered to be stable. It stands for the US economic development.
“Did you know that the Dow Jones index is calculated since 05.26.1896? Half of the 30 companies contained have been represented there for 20 years. The oldest company (General Electric) since 1907, that what I call stability.”
A stock price reflects the value of an investment in a company. This is determined by dividing the total value of the company by the total number of shares issued. The fluctuation in the market is mainly determined by supply and demand. Corporate data will have significant influence on it.
“Did you know that Apple and Google were the two most valuable brands in the world in 2014? Just think how many times a day you are searching for something on Google, or see an iPhone.”
The term “economic calendar“ describes a list of all news published throughout a trading day. The main advantage of the economic calendar is that this news is published at certain times. You have the chance to react accordingly.
That’s how it works
The news in the economic calendar is published line-by-line. The different symbols which are about to be explained are sorted by their relevance.
Technical- or more precisely chart analysis tries to predict future price developments as well as buy and sell signals by using historical data. As a trader you use a graph of the underlying asset and try to determine whether the price is going up or down according to the chart. What at first may sound a little bit strange is that this analysis tool is used in practice almost exclusively in short-term investment decisions. There is one specific reason why technical analysis is so popular, it is a simple tool that actually works in practice, although this aspect has been questioned for years.
A recurring picture inside a chart is called a pattern. Over time these so-called patterns repeat themselves over and over again. As a trader you can take advantage of these patterns by detecting specific buying and selling signals. The patterns presented here are intended to point out future trends that will may assist you with your investment decisions.