Binary Options Day Trading in South Korea 2020

First, let’s see how everything works. Simply put, binary options are derivatives that can be traded on any instrument or market. They appeal because they are simple. You know exactly how much you can win or lose before you trade. No complicated math and calculators required. This is why they are also known as ‘all or nothing’ deals.

Whether you’re anticipating a news release, quarterly review, or global trend, you can benefit from accurately determining whether prices will rise or fall at some point in the future.

There are many derivatives to choose from. You can trade binary options against the value of commodities such as aluminum and crude oil. You can choose stocks like Amazon and Facebook. There are exchange rate options including all major and minor pairs. Cryptocurrencies such as Bitcoin, Ethereum and Litecoin are also on the menu.

A brief history

If you want to start trading binary options full time, a detailed understanding of their origins will be helpful. Binary or ‘digital’ options have been around for decades. But originally, it was a large institution and incredibly rich. However, in 2008, the US Securities and Exchange Commission opened the floodgates by allowing binary options to be traded through exchanges.

The internet and technology have made these ‘digital’ options accessible worldwide. With a low barrier to entry for savvy day traders and easy-to-understand prepositions, the demand for these digital trades will only increase.

Option types

There are many different option types to choose from. The most used types are listed in a brief glossary below.

• Up/Down (High/Low) – The simplest and most widely used binary option. Will the price be higher or lower than the current price when the expiration time comes?
• Input/Output (Range or Boundary) – ‘High’ and ‘Low’ pictures are set. Then determine whether the price completes inside or outside this boundary.
• Touch / No Touch – A level above or below the current price is set. Then enter your position on whether the price will ‘touch’ these levels between the trading hours and expiry. Payments are made as soon as a touch occurs.
• Ladder – similar to up/down trading. However, instead of using the current price, the ladder has predetermined levels staggered up and down. These usually require significant price fluctuations. The flip side of this is that returns often exceed 100%. Although it’s worth noting, both sides of the deal aren’t always possible.

expiration time

Another important component of binary options is the expiry time. This is the point at which the trade ends and determines whether you win or lose. This time can range from 30 seconds to 1 minute (Turbo) to a full day (Daily) and even a year.

However, intraday traders will be more interested in trading 5- and 30-minute binary options. If you choose a binary with a 1 minute expiry time, you can do a lot of trades in one day.

 

 

Is Binary Options Trading Legal?

Despite its somewhat negative reputation, the reality is that binary options are legit. Most companies are run fairly. Opinions were divided because there are people who practice scams.

Binary markets have been withdrawn from the retail market due to regulations in certain regions. For example in the EU. However, professional traders can still use it. Although binaries are legal in places like India and Australia, traders should use a reputable broker and read the section below on avoiding scams.

Scams and scams

Binary reputation has suffered from dishonest marketing and cybercrimes. Too many unregulated brokers promise quick cash while scamming you. Regulators are working on this issue and this issue will be mitigated soon.

Binaries themselves are perfectly legal, but avoid promises of ‘instant money’, endorsements from call brokers and celebrities, and claims that you can start trading binary options for free.

So it’s not a good or bad question. It simply warns you of danger and knows what to look for. If you are not sure about a broker, ask questions in our live trading room to make sure you are properly tuned.

Trading Binary Options vs. CFDs

Although similar in some ways, there are several important differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. When an asset’s price moves significantly, the value of the trade can grow very large or very quickly.

Binary options work a bit differently. As long as you continue to invest without owning the asset in question, your profit/loss ratio is fixed. With a call option, even if the price spikes, it stays the same percentage as the rise by a few pips.

Likewise, if the price drops to zero, you only lose what you entered. So to define the difference, with binary options you have a fixed risk.

Just like binary options vs forex trading, I would say the profit potential is limited.

Why should I trade binary options?

To trade binary options, you need to understand both the benefits and the downsides. You need to make sure that binary options suit your trading style, risk tolerance and capital requirements.

Advantages

Trading with binary options has many attractive advantages. The biggest advantages are:

• • Simplicity – Betting is simple because it only determines one factor, the direction. Prices can go up or down. Also, you don’t have to worry about when the transaction will end, the expiry time takes care of that. Other markets may require a system to limit losses, such as a stop loss.
  • Fixed Risks – When trading stocks, gold and crude oil, there are many factors, from slippage and margins to news events and price retakes. Binaries allow you to minimize risk with far fewer parameters.
  • Trading Control – Knowing what you are going to make or lose before entering a trade gives you better control right from the start. For example, trading stocks, and you are not guaranteed that your trades will make the starting price.
  • Profit Potential – Compared to other trades, the returns on binaries are very attractive. Some brokerages promise payouts of up to 90% on a single trade. Binaries are worth a look if you want simple trading with great profit potential.
  • Choice – Not restricted to a specific market such as cryptocurrency or stocks, binary options give traders the opportunity to trade commodities in virtually any market so they can start trading currencies, indices and bonds if they so choose.

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• Accessibility – In the game of binary options, always the best trading hours anywhere in the world. So you can log in at night or on weekends to join a group of avid traders who are trying to make a profit every day. Real-time charts are available for all markets, so you can invest 24 hours a day if you have the time.

risks

There are many reasons to go about trading binary options, but there are still a few downsides that need to be highlighted.

• Reduced Trade Probability – While you can benefit from trades that offer returns in excess of 80%, this often happens when the expiry date is some distance from the trade date. Reduce payout odds if binary trades have a very high chance of success.
• Limited trading tools – While most brokers offer advanced charting and analysis features, trading tools for binary traders are often lacking. Fortunately, there are other online sources for these graphs and tools, and brokers are working to quickly increase their offerings.
• Price of Losing – Your odds are slanted in favor of losing the trade. Roughly for every 70% profit, the corresponding loss on the same trade results in an 85% loss. This means you need a win percentage of at least 55% to break even.
• Risk Management – Unlike other markets, brokers often set up exchanges with the minimum required account for traders to enter the market. This means capital losses can easily occur. Although stockbrokers allow you to open an account with $250, micro slots trades, most binary brokers do not allow $50 trades. So even if you have $250 in your account, you could sink it into the red with just 5 trades that don’t go your way.

How does binary options trading work?

Binary options trading for beginners is simple. Follow the steps outlined below.

Step 1 – Find a Broker

This is one of your most important decisions. You need a broker that can meet all your needs and improve your trading performance. But with so many options out there, how do you know what to look for?

expense

If you do high-frequency binary trading on a daily basis, your fees and costs will rise quickly. To maximize your returns, look for a broker with a competitive and transparent fee structure. Different asset classes pay different amounts.

Deposits

One thing worth investigating is the rules regarding the minimum deposit. Some brokers offer binary options trading with no minimum deposit, but in most cases a deposit of around $50, around $100 is expected. Brokers that offer minimum deposits are ideal if cash is tight. If you are looking for low deposits, we recommend trading binaries with JC and GCI.

By Asset

Some brokers specialize in specific assets. If you are using crude oil, I recommend finding a broker that is oriented towards those binaries. You benefit from relevant news feeds and the most careful selection of options. For example, trading binary stocks at 212 is ideal for those interested in stocks.

regulation

When scams happen, it is important to ensure that the broker is properly regulated by the relevant financial institutions (e.g. FCA, CySec, CFTC). Trading with 247 Binary Options, IQ Option and Binary.com are all safe bets.

Platform

The binary options platform is your gateway to the market and consumes a lot of time in your day. With so many online trading platforms out there now, they are easy to use and provide all the charts, patterns and tools you need to make smart and accurate trading decisions. For example, are you going to trade binary options alongside candlesticks or more obscure charts?

Keystone and Nadex offer powerful binary options trading platforms just like MT4. Do a thorough trading platform comparison and review before purchasing.

Trusted

Any issue can consume your time, and as a day trader, taking your time can cost you some serious cash. So make sure your broker offers reliable support. Some brokers offer 24/7 customer support by phone, live chat, and in many languages. Binary options trading with Etrade and 24 Option is a smart move if you want top-quality support.

Trading App

More and more people are using mobile devices and tablets to enhance their trading experience. However, software for binary options trading is very versatile. Therefore, it is a good idea to check whether your broker offers cross-platform features. Also check out charting tools that work on iOS or Android devices. For example, Binary Options Trading with IQ Option offers fantastic trading apps.

Extras

Many brokers will close the deal with useful add-ons. Some may offer free trading plans, courses, and classes. So, check first if they offer free courses online to improve your trading performance. Some brokers offer free binary trading trials so you can try them out before buying.

You can also take advantage of trading bonuses, tips, reviews of the best strategies and trading signals and a free practice demo account. Some brokers allow binary options trading using Paypal. But don’t be put off by the binary options trading no deposit bonus. Possible fraud.

Demo Account

For beginners, it is a wise idea to first understand the demo account. Funding with mock money allows you to try numerous assets and options. It is the perfect place to make mistakes and learn before making them. Also, most free binary options demo accounts do not require a deposit, so you can start practicing while saving your initial capital.

There is no universal best broker, it really depends on individual needs. Some brokers offer minimum trades of just a few pounds, while others require hundreds or thousands. Solution – Do your homework first.

For detailed guidance on choosing the right one, see our broker page.

Step 2 – Choose Instrument/Market

You can trade binaries almost anywhere, including stocks, forex, indices, and commodities. You can bet on everything from natural gas prices to Google stock prices. Get a good understanding of assets that offer promising returns.

Step 3 – Decide on the Expiry Time

As a short term trader, you are probably more interested in 30 second, 1 minute and end of day times. You need to balance binary options trading volume and price movement. More trades mean greater profit potential, but fewer and more accurate trades are recommended. Also, find time that complements your trading style.

Step 4 – Decide on size

Size matters in the binary options game. The bigger the investment, the bigger the possible profit. On the other hand, remember that the entirety of your investment is ready. You need to have an effective money management system so you can trade enough while trading enough capital.

Step 5 – choose an option

You can choose from several options described above. Think carefully about how confident you are in your resolve. Consider the factors that will jeopardize your investment and choose the option with the highest chance of success. Don’t automatically choose ladder trading because you want big profits. Consider a relatively safe betting option.

Once you’ve made your decision, check and confirm the transaction. You can then sit back and wait for your payout.

 

 

Strategy

Binary trading strategies vary from trade to trade. What works with ladder options in forex may prove useless with range options in gold. However, there are two reasons to strategize.

First, the strategy prevents emotions from interfering with your trading decisions. Fear, greed and ambition can all lead to errors. Strategies allow you to focus on math and data.

Second, strategies allow you to repeat profitable trading decisions. Once you know how and why binary options work, you can replicate them to create consistent profits.

Building a strategy

There are two important factors in binary options trading methods that generate signals and determine trading volumes. The second is essentially money management. So how do you decide between these two steps?

Step 1 – Creating a signal

Signals tell you which way the price is going so you can predict ahead of time. The two main ways to generate signals are through technical analysis and news.

Charts, Patterns and Indicators

If you can identify patterns on the chart, you can predict future price movements. They are based on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candle sticks and line charts. Armed with charts and patterns, successful traders will build strategies around their findings.

You can then write indicators into your strategy to tell you when to make binary options and which binary options to use. These technical tools can be very useful, so make sure your broker offers you the ability to do a thorough market analysis.

One of the great things about binary trading is that you can use any number of common indicators, patterns, and tools that can help you predict future binary options movements. So you can start trading with:

• Support and resistance levels
• Price action
• Stochastic Oscillator
• MACD indicator
• Trends
• Baby Peep
• Mirror
• Options close to expiration

See the Charts and Patterns page for detailed instructions.

News

You can trade binary options without technical indicators and take advantage of the news. The beauty of this news is that it is relatively simple to understand and use. You should look for company announcements such as financial report announcements. Or, look for more global news that could affect the overall market, such as the shift away from fossil fuels. Small announcements can cause prices to skyrocket or plummet.

If you may be aware you can trade binary options before catching the rest of the market. To do that, we have to coordinate the various news outlets. You can browse online and turn on the TV or radio in the background. The most useful news sources in terms of trading information are:

• Yahoo Finance
• CNBC
• Business Insider
• Bloomberg
• Financial Times

Step 2 – Amount you must trade

If you’re just starting out, it’s best to keep things simple. Trade the same amount on each trade until you know your feet are reasonable. Here are 3 binary options trading strategies for beginners and experienced traders alike.

Martingale Strategy

Binary options using martingale trading strategies aim to recover losses as quickly as possible. This requires you to trade more money in post-loss trades. So, set the amount you trade each time as $250. However, if I lose $250, I will bet $500 on my next trade. If your trade wins, you’re already back in the black, not tied to the breakeven point.

The problem with this strategy is that you can lose huge amounts of capital in a short period of time if you keep losing money. Therefore, only use this strategy if you have a relatively accurate way to make your trading decisions. If you’re still at the trial and error stage, consider a different approach.

Percentage Strategy

Rate-based systems are widely used by both binary options traders and other traders. The idea is to specify what percentage you are willing to risk. Between 1-2% is common. So, if you have $10,000 in your account and your risk value is 2%, you can trade $200 in a single trade.

With a larger risk tolerance and consistent results, that risk margin could be increased to 5%. The beauty of this system is that you shouldn’t lose more than you can afford. So, if you are new to binary options, this is the way to go.

Straddle Strategy

This example is best utilized during periods of high volatility and right before important news releases. This technique can be utilized by traders of all experience levels. Provides the ability to avoid selecting call and put options, instead allowing both to be placed on a given instrument.

You aim to leverage puts when the value of an instrument has risen, but you think it will fall soon. Once the downtrend begins, place call options with the expectation that they will bounce back quickly. You can also do it in the opposite direction. Bring down the price of your assets and increase their value.

This greatly increases the odds that at least one trading option will produce a profitable outcome. If you are in a volatile market, this simple system can greatly increase your profits. This works well as a binary options trading 60 second strategy and also includes expiry times of up to one day.

Bots and Algorithmic Trading

Once you’ve come up with a strategy that generates consistent returns, it’s a good idea to apply it using an automated system. These robots usually rely on pre-programmable signals and algorithms.

The bot does all the leg work and trades options on your behalf. The advantage is that you can make far more trades than you could do manually, increasing your potential profit margin. You can also trade on a variety of assets and markets.

When it comes to automated trading and checking robot reviews, it’s worth looking into the services offered by brokers. Many people can create programs with relative ease. Unique entry points that rely on Bollinger Bands, RSI/MFI patterns and moving averages are available.

However, you cannot trade binary options on autopilot even when the system is up and running. Always be vigilant as technology crashes and unpredictable market shifts can cause problems.

Timing

Many binary options strategy PDFs do not fully consider the time variable. Certain strategies perform better with certain time options. You may want to specifically look for a 5 minute binary options strategy. Alternatively, trading 15-minute binary options may be a better fit for your needs. So whether you choose any of the strategies above, consider your time.

Summary Strategy

Trading binary options successfully depends on finding a strategy that complements your trading style. So, consider which instruments you want to trade. Then use an effective money management system and create indicative indicators using charts and patterns. Also take advantage of news announcements.

If you are trying out a new fence, gap, hedging or other binary strategy for the first time, try it in your trading practice account first. This allows you to resolve any issues before investing your own money.

For detailed instructions, see our strategy page.

Tips

Education

Binary Options Trading 101; Immerse yourself in educational materials. Benjamin Franklin argued: The best traders never stop learning. Markets change and markets must change with them.

To do so, utilize some of the resources outlined below.

• Books and e-books – There are numerous books and e-books that can provide valuable information about day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The beauty of books is that you can learn at your own pace. The book that facilitated binary options trading is ‘Trading Binary For Dummies’ by Joe Duarte.
• Video tutorials and seminars – interesting and easy to follow. There are numerous online video tutorials to guide you through trading. Seminars can answer your questions and explain the basics of binary options trading, and some brokers offer weekly seminars to keep you updated on market developments.
• PDF and instruction guide – clearly explains the steps you can follow and apply. The best part is that you can find many online that are completely free and easy to download, whether you are using Android, Windows or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
• Forums and chat rooms – the perfect place to brainstorm ideas with binary options experts. You can learn in real time through recommendations while investing in binary options. You can also swap live chart screen grabs to get a feel for different binary methods and tactics.
• Newsletters and blogs – keep you up-to-date on upcoming developments that may affect the market. You may also hear about binary options competitions (yes, they do exist).
• Copy Trading – When a social trading network/platform is combined with a binary trading tool. You can follow experienced traders, analyze their strategies and then replicate their trades. Check copy trading review before signing up.

All of the above plays an important part in binary options trading education. Make the most of our free trading videos and examples as they will help give you an edge over the rest of the market.

Trading Journal

There are currently no binary options colleges. So, an explanation as to why that option didn’t work can be hard to find. Keeping a journal with all your binary options trading can solve that problem. A detailed history of each trade, date and price will help you hone your strategy and increase future profits.

Whether you keep your Excel documents or use custom software, it can help you avoid future risks. As an added bonus, filing your tax return at the end of the year can be much easier. Journals are one of the best-kept secrets in binary options, so use one now.

Psychology

Trading binary options successfully is not about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott said, ‘Comfortable is rarely profitable’. Under pressure, fear and greed can distract you from the numbers.

Losses are part of trading and you should stick with your strategy anyway. If you base it on exact math and careful technical analysis, you should keep your faith. As soon as you start acting inconsistently, your profits will diminish.

Regional differences

Regulation

As the popularity of binary options grows around the world, regulators are in rapid order. It means that where you trade and the markets you enter may be governed by different rules and restrictions.

United Kingdom

For example, trading binary options in the UK requires a license from the UK Gambling Commission. Choosing a broker regulated by the Financial Conduct Authority (FCA) ensures an extra level of protection. Some brokerages register with the FCA, but not the same as the regulations.

Brexit has brought complications to trading regulations. The MiFID II guidelines are set to be implemented across Europe enforcing rules on binaries, but the UK may now not implement the guidelines. This means that the UK is no longer under pressure from Europe to reclassify binaries as a financial instrument.

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Binary options trading for US citizens is limited by a selection of only two brokers. Nadex and CBOE are the only licensed options. Fortunately, they are a huge company offering competitive prices and a wide range of assets for binary trading.

Rest of the World

In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you are interested in brokers based in Cyprus and Israel, make sure they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Center (DIFC).

You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia and the Philippines. Each has its own regulatory body and different requirements.

So, if you want protection, you should do your research before signing up with a binary broker on the other side.

Taxes

Another important regional division is the tax form. Some countries, like the UK, consider binary options a form of gambling. There are notable benefits to this. HMRC does not impose taxes on profits made through binary options. However, future binaries fall under financial derivatives and may incur tax obligations.

If day trading binaries is your only form of income and you consider yourself a full-time trader, you may have to pay income tax. It’s still exempt, but it’s worth seeking clarification.

Tax regulation is vastly different outside the UK. For example, binary options in Japan and Germany have vastly different tax obligations. So, before you start trading, please seek our advice to determine if you are tax free. If not, do you pay income tax, capital gains tax, business tax, and/or other forms of tax?

Please see our Tax page for details.

Can you get rich by trading binary options?

You should use this page and other sources as a guide if you want to create an exciting and dynamic yet lively trading binary options. Can Trading Binary Options Make You Rich? You’ve done it right. it’s possible. The potential profitability of binary options is out of the question. This is evidenced by numerous millionaires. However, this requires an effective broker, an effective strategy, and investing in trading education utilizing the resources outlined above.

Further Reading

Frequently Asked Questions