On this page, we have listed the most frequently asked questions about binary options. If you are having trouble finding the answer to your question, please feel free to contact us by filling out the online enquiry form at the bottom of this page.
How old do I need to be to trade binary options?
Can I practice binary options trading with a demo account?
Some binary options brokers provide demo accounts. It is possible to practice binary options trading with a demo account before placing a trade with a real account. However, in order to use the demo account, some brokers may require you to fund your account. Please click the link below to find out more about demo account:
>>Start trading binary options with a demo account
Can I decline the bonus reward?
The bonus offered varies from one broker to another, such as, the amount of bonus that can be received for making a deposit into the account, the percentage of bonus, and ways to receive the bonus. On some platforms, bonuses are shown and deposited into your account automatically. Therefore, it is necessary to check each platform in advance and see if it is possible to decline the bonus reward.
The bonus reward is not necessarily a good thing. However, for those who place short-term trades, it is worth it to accept the bonus reward.
Do I need to provide documents to prove my identity in order to open an account?
Most binary options brokers do not require you to provide documents. However, to open an account on some platforms, you may be asked to provide documents to prove your identity. If documents are not required when you open an account, you may still have to submit them afterwards when you withdraw funds from your account. It is possible to open an account within 2-3 minutes if brokers do not ask you to provide documents.
Can I use automated binary options trading tools?
I do not have any prior experience in investing. Can I trade binary options?
In binary options, there are only two alternative options for a trader to choose from. Therefore, the trading rules are easy to understand. However, since novice traders lack the knowledge to manage the risks and trading skills, it would be better to start with a demo account to get familiarized with binary options trading.
Is there a strategy that ensures traders to win all the time?
In any financial investment, including binary options, there is no such thing as a strategy that ensures traders to win all the time.
However, it is possible to have a better chance to make a profit by applying analytical techniques, such as, fundamental analysis and technical analysis. Fundamental analysis is an analysis that a trader looks at economic indicators and financial statements of the investment target to analyze the corporate value, which is then compared with the actual stock price to evaluate the validity of the investment. Technical analysis is an analysis that a trader uses charts to identify market trends and patterns so as to predict future price movements.
To find out more about trading strategies, please take a look at the information provided on this website.
Do I need a computer to trade binary options?
As long as you can get internet access, you can trade binary options on computers, smartphones or tablets. Some brokers also provide apps for binary options trading and you can download and install these apps.
How much do I need to trade binary options?
Each broker has its own requirements for the minimum investment amount per trade. In binary options trading, you can place a trade with a small amount of money. However, please be cautious as you invest and remember not to risk more money than you can lose.
It is hard to say that everyone can make a profit. Even though the trading rules are simple, it is still possible to lose a large amount of money. Therefore, it would be better to trade binary options carefully.
What are the types of binary options trading rules?
The types of binary options provided by brokers are different from one another. In general, there are four types of binary options. For more information, please check out "Types of Binary Options Trading Rules". You may find that some brokers provide only certain types of binary options. You may also find that some types of binary options are peculiar to some brokers. Thus, it is recommended to use demo accounts to get familiar with the platforms in advance.
I cannot withdraw funds from my account.
Most complaints made by binary options traders are related to withdrawal of funds. There are a variety of reasons for this problem. One of the main reasons is that a trader has accepted bonuses. If some bonus requirements are not yet fulfilled, it is impossible to withdraw funds immediately.
There are other possible reasons, such as, missing or incomplete documentation, anti-money laundering, etc. It is recommended to contact the broker immediately when you encounter the problem.
Is it possible to make a profit by trading binary options?
It is certainly not easy to make a profit in binary options, even though a trader just chooses from two alternative options. You should be aware of the fact that investments are associated with risks. It is thus very important to be cautious while trading binary options. Although every time you trade with a small amount of money, it is still possible to lose a lot of money if you do not win in most of your trades. Therefore, please keep in mind of risk management as you trade.
Is binary options gambling?
The classification of binary options varies from one country to another. Some countries do not classify binary options as financial instruments, while others think that it is not gambling and classify binary options as financial instruments. As the trading rules of binary options are simple, a novice trader can make a profit by using strategies and place trades with small amounts of money. For those who do not understand well binary options, they may think that it is like gambling. In general, the most important thing is to keep in mind of the risks associated with the binary options trading.
What is rollover?
The term "rollover" refers to a feature which enables you to extend expiry time. If you think that you are going to lose by the time expires, you can use this feature to extend expiry time. You can carry out the rollover to hedge the risks and it is possible to make a profit. As some brokers do not provide this feature, please check each platform and choose the one that provides the rollover feature.
What is closing position?
Closing position is a feature that allows traders to close a position without waiting for the time to expire. This is referred by others as "option buyback" or "early closure". The feature varies from one broker to another. In general, it enables traders to close a position early if they think that they are going to lose. By using this feature, traders can cut losses. As some brokers do not provide this feature, please check each platform and choose the one that provides the "closing position" feature.
List of other FAQ
FAQ contribution form
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