Binary Betting - Getting Started
The last page - well done for getting this far and now I would just like to tidy up one or two general issues on binary betting. These are various points that you will need to consider when getting started, and please be aware of the risks involved, even though the downside risk is limited. Always start small and use the smallest bet size possible. If it is a few pence, or cents then fine. Start with the smallest per point amount and build up slowly. There is nothing wrong with making a small amount each day, and build up your confidence.
Binary Betting - Your Account & Trading Margin
Now, as you know binary betting does not require leverage as this is a variant of fixed odds betting. Your risk is always defined when you open the bet. However, when you do open a trade, if your risk on the trade is £50, then you must have at least this amount in your account should the bet lose. If you have insufficient in your account when you try to place a trade, then the bet will be rejected. So before you open a bet, make sure you have sufficient funds in your account to cover any losing bet. The betting company may call it margin, but we are dealing with cash only here - it simply means having enough cash in your account. If you are a novice trader I would suggest you start with the smallest amount possible in your account, or alternatively a virtual account if this is available. This will allow you to learn the basics with zero risk.
Binary Betting - Opening and Closing Trades
When you open a bet or trade, the amount of risk on the trade will be deducted from the available cash in your account and held as a deposit against the trade. When you wish to close a trade that is an open position ( ie before it expires) remember that you have to do the opposite of your opening position. Experienced traders will be used to this, but beginners may find this a little odd when they first start. Just remember, if you opened with a 'buy order', then you must close that position with a 'sell order' and visa versa. Also remember that when you close, you must close using the same amount per point otherwise you will be opening a further position. If you opened with a buy £1 per point bet, then you must close with a sell £1 per point bet, unless you are only partially closing a trade.
Binary Betting - Trade Types
Most of the trade types are relatively simple up down bets over various timescales. However as the market develops there are an increasing variety of trades being introduced, such as one touch, no touch, double touch and many more. I have covered these in detail on my fixed odds trading site, so please just follow the link if you would like further details. Some companies also offer more automated order types such as limit orders and stop loss orders, but these are rare at present.
Binary Betting - Volatility
Binary bets will move at different speeds depending on the range at which they are trading. Below 20, the binary will move relatively slowly, increasing in speed between 20 and 35. Between 35 and 65 you will see very fast movements and it is in this range that you will see the highest volatility. As the binary approaches 50, then a small move in the underlying market, will send it very quickly one way or the other, perhaps down to 35 or shooting up to 65. Between 65 and 80 the volatility and speed reduces until below 80 the binary will move at much the same speed as below 20.
If you are opening trades between 35 and 65 please be aware that things happen very fast. Many traders using binary betting only trade at the extremes, happy to take small profits consistently, whilst others are prepared to take more losses with the opportunity to take a big win once in a while. Whatever your preference I would urge you to have a trading plan before you start trading real money. I appreciate that this is a limited risk trading strategy, but I still believe you need to have a well defined strategy before you start.
Binary Betting - Regulation
Binary betting companies and fixed odds companies are not regulated by the FSA in the UK as fixed odds betting is classified as gambling and therefore falls under the Gambling Commission. Companies offering both spread betting and binary betting will be regulated by the FSA. A UK betting company can offer binary betting under its existing bookmakers licence.
OK, that's about it - thank you so much for getting this far, and I hope that this site has been useful in helping you learn all about binary betting . If you do have any thoughts or comments, or just need some more help or advice, please just drop me a line via the 'ask Anna' link in the navigation bar. I will always respond and am more than happy to help in any way, if I can. I would love to hear how you get on, particularly if you are new to binary betting - it takes a little while but it is worth the effort. If you are a novice trader, I would strongly suggest that you start with fixed odds trading to begin with, and then graduate to binary betting once you have built some experience and knowledge. Once again, many thanks for taking time to visit, and good luck with all your trading.
