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Binary betting explained

So, what is binary betting, why is it becoming so popular for financial betting, how long has it been available, and what are the advantages and disadvantage of binary bets. All this and more will be covered on this site, along with some of my binary betting strategies, and links to some of the binary spread betting companies who are now just beginning to adopt this unique and novel trading system.

Binary betting is a relatively new method for trading in the financial markets, and has really only been available across a broad spread of instruments in the last 2-3 years. It is gaining in popularity for reasons which I hope will become clear shortly. For those of you familiar with fixed odds betting, and also spread betting, binary betting provides a bridge between the two worlds. In a sense it is a composite of the two betting strategies, offering the advantages of the flexibility of one, combined with the defined risk profile of the other. If you would like to understand a little more about fixed odds trading, then please follow the above link, which explains this trading strategy in detail. If I were asked where I feel this trading methodology is in terms of risk, and what I would recommend to new traders, then I would suggest starting in fixed odds, then move to binary betting, and finally to spread betting – a three stage process.

Many new traders are attracted straight into spread betting, in much the same way as to the retail forex market, simply because it is easy to start with a small amount of capital. Sadly, many of these traders have little or no understanding of leverage or margin, and with little experience and insufficient trading capital, are soon wiped out. The key to becoming a successful trader, is to understand the importance of preservation of capital by using sound money, and risk management. Lose all your trading capital and you are out of the game. This is where binary betting comes into it’s own, as being based on fixed odds betting, the downside risk of any trade is always known before the position is opened. In other words, the risk is managed for you!¬† On the site you will fine several pages which explain the concepts of how financial binary betting works, along with some worked examples. In addition I have also added a variety of trading information and live feeds which I hope you will find useful which include live¬† currency charts, choosing an fx broker, an economic calendar for all the key fundamental news, as well as a live news feed for the latest information, and a video section which provides a regular range of video news update on financial market conditions throughout the day. In addition I have recently added live index charts, stock charts for many blue chip companies from around the world, and live commodity charts. Finally, you will also find a national holiday calendar for the year so that you can quickly see which markets are closed on any day throughout the world.

So let’s start by looking at some of the terms you will come across in binary betting, and start with binary bets and see how they are constructed and work in principle.