In binary options trading, a signal refers to a trading signal that is generated with the help of some proprietary software. Thus, a binary options signal helps traders to trade more efficiently.
Experts in this industry claim that these signals are capable of generating trading accuracy of 72% or a little higher. Anything greater than 70% is considered to be excellent. Why so? This is because the market is extremely volatile and there are countless factors that drive the behavior of the market at a given point in time. Of these numerous factors, there are some that cannot be measured or analyzed using numerical analysis based on mathematics and/or statistics. Because these factors cannot be analyzed and predicted, binary signals cannot be 100% accurate and hence, anything greater than 70% is excellent.
Continue reading “What Are Binary Options Signals?” »
In 2008, binary options trading took the world by storm. Today, options trading has become one of the most popular forms of online trading. For a novice trader, entering the world of binary trading might be daunting but the best binary options signals might help you in the right direction.
So what exactly are these signals and how can they assist you? Signals in binary options trading are various tools that traders use from time to time in order to enhance their trading activities. That is, a trading signal is defined as an alert or signal that is sent out to trader about trades and market conditions that are potentially profitable. These alerts are sent to a trader via email or SMS ahead of the actual time when trading should be executed.
Whether you are new to the world of binary options trading or a professional trader, binary options signals must be used with caution. It is recommended to first master the basic skills of options trading and not to simply depend on the options signals provided. The reason for this is that the options trading signals are not 100% accurate. Binary trading requires a mix of informed decisions based on market trends as well as one’s own intuition, logic and power of speculation. There needs to be a perfect balance in order to ensure that risk is minimized. Binary options signals are specific in terms of their offerings and can actually save a lot of time.
Once you learn what binary trading signals are, you can apply this knowledge in profitable binary signals trading.
In essence, there are two prerequisites in distilling reliable binary options signals. The first one is diligent tracking of the stock market, followed by an intelligent analysis of the tracking. With the increasing computing power, more and more of these responsibilities have been delegated to powerful computers.
Simply put, binary trading signals are technical indicators that provide the necessary clues on the anticipated movement of the underlying stocks. These serve as a guide for traders to forecast if the stock value is heading up or crashing down (direction), what would be a fair threshold level (strike value at either way), and for how long a period that price is going to stay in range (time duration for that asset to stay inside a profitable range – or simply before expiry date). In summary, traders need to have the right insights to make a guided decision so that it can address all these three factors – direction, magnitude and time. This is indeed a huge task for our brain, with its limited processing prowess and flailing memory, so increasingly we see that top binary signal providers have opted for powerful computers to generate these critical market nuggets.