Automated binary options trading is a special type of trading that is becoming extremely popular among financial traders. Automated binary options trading is a unique financial trading with an advanced binary robots that let traders to start trading immediately after they complete their registration process. Just Click Here to find out how you make make money from today.
Automated Binary Options Trading
Binary options are simply based on a yes or no proposition. In other words, binary options provide a simple way to trade markets with capped risk and capped profit based on a yes or no assumption. Will an underlying asset rise above a certain price in the future? Binary options traders place their trades based on whether they think the answer is yes or no, making it one of the easiest and simplest financial assets to trade. The simplicity of binary option trading has resulted in broad appeal amongst newcomers to the financial markets.
Let’s take a quick look at an example on binary options trading below:
Will the price of gold be above $1,000 at 2:00 p.m. today?
If your instinct tells you it will be, you then buy the binary option. If however, you think gold will be below $1,000 at 2:00 p.m., you sell this binary option.
The price of a binary option is between $0 and $100, and there is a bid and ask price just like other financial markets.
The above binary option may be currently trading at $45.50 (bid) and $48.50 (offer) at 2 p.m. If you buy the binary option then you will pay $48.50, if you decide to sell then you will sell at $45.50.
Let’s now assume you decide to buy at $48.50. If at 2:00 p.m. the price of gold is now above $1,000, your binary option expires and it becomes $100. You just made a profit of $100 – $45.50 = $54.50.
However, if the price of gold is below $1,000 at 2:00 p.m., the option expires at $0. Hence, you lose the $48.50 invested.
The bid and offer go up and down until the binary option expires. Just like any other financial markets, you can close your position at any given time before expiry time in order to quickly lock in profit or reduce loss.
What is an automated binary option trading?
Automated binary options trading is a special type of trading that is becoming extremely popular among financial traders. Automated binary options trading or simply auto trading is providing an experience different from any other form of financial trading. Thanks to advanced binary robots, traders can start trading immediately after they complete their registration process.
Types of auto trading software
Automated binary option software is called a robot, and there are two types of auto trading robots, depending on how trading signals are generated. Trading signals can best be described as tips on how and when to trade with a certain asset in a certain moment.
The first group of auto trading robots includes robots that automatically place trades based on trading signals provided by market specialists. Robots that use human generated trading signals claim that their experts have experience in financial markets, and can carefully predict market movements.
The second group comprises of robots that are based on advanced automated trading algorithms. Algorithms are always scanning the market looking for profitable and low-risk trading opportunities, taking all factors into consideration. With this type of auto trading robots, human error is drastically reduced.
Technically, it is quite difficult to say which type of auto trading robots is the best because we have different types of traders with different kind of mindset: those who prefer human touch in trading and those who prefer computer inputs. However, traders must bear in mind that automatic trading does not eliminate the trading risk completely therefore learning about binary option trading and financial markets in general is very important.
After a trading signal is generated, the auto trading binary robot uses a special program that automatically places the trade according to the user settings or preferences. Trader than only has to wait for the result. There are robots that place trades even when the trader is offline, but it is better to use only software that requires a trader to be online, as such approach is best for better money management, and helps avoid unexpected losses.
How to choose a good binary robot?
Auto trading is a trend in the binary industry, and more traders are opting for this type of trading every day. Of course, when the market for a certain product is getting big, many fraudsters take advantage by selling scam or fake trading software. For this particular reason, many traders are skeptical, and selecting a good auto trading software is now a big task.
Trading with robots that are free make realistic promises, support regulated and reputable brokers, and also have an excellent customer support could be the answer. Robots that require the trader to be online and also optimize their account settings are also considered a better choice. It may seem stressful trying to meet all these conditions, but this is the best way to find a good binary option trading robot that will bring optimal trading experience.
Why are binary brokers important for auto trading?
Many traders believe that it is enough to have a reputable binary broker or a good auto trading robot to make a decent profit. However, the truth is quite the opposite. Profit is only made when both the broker and the robot the trader chooses are reliable. If you choose a bad broker, not even the best robot can become profitable. Also, traders must take their time to learn about binary options trading and practice very well, as they are risky investments that can potentially lead to significant losses when approached the wrong way.
Choosing a reputable broker that supports auto trading with a profitable auto trading robot is a great way to trade binary options and become a successful auto trader.
Auto trading all over the world
Binary options trading is a now a global trend in financial markets all over the world, and auto trading is another trend that follows. Financial traders from all over the world are using binary robots to trade binary options, but there are still many experienced traders who are not sure if this type of trading is legal or regulated.