Binary Options in

2016

An A-Z guide on everything you need to know to trade Binary Options safely.

Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Contents
1

Foreword

Binary Options?

The Gambling Myth

Binary Brokers

Business Model

Signal Services

Signs of a Scam

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What's Best for Me?

A 5 Minute Turbo Strategy

Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Foreword
The $3bn Binary Options (BO) industry, relative to other financial sector
niches, offers immense return potential, but unfortunately, also exposes our
weaknesses as emotional, carnal creatures driven by greed for quick money and
success. To generate money in BO, it takes a very careful and methodical
person; a person in charge of their emotional and mental faculties.
The fact is, 4-5% of binary traders make money in the long run. The lifetime-value per depositor for a binary broker is just above $1,000; meaning that
90% of clients just leave the industry financially burned, either owing to
conscious submission to their own greed or by being cheated outright by their
options broker. However, the few that do make money can earn
disproportionate amounts relative to other professions and through thorough
research and educating oneself in how to trade, one can be rewarded with a life
changing personal income opportunity.
Its 2016 and after 8 years of the binary industry having been round,
regulation has moved at snails pace and a big portion of BO brokers continue to
run amuck preying upon unsuspecting clients. The industry remains dominated
by affiliate marketers and the sheer volume of of client conversion tools created
and delivered under the guise of money making machines, auto-traders, signal
services and many more, has only increased. However, some signs of
clampdowns on unregulated and unethical brokerages has begun in Israel,
France and Belgium. This trend is likely to continue thereby cleaning up the
asset class over the coming half-decade.
Binary options is a beautiful and relatively simple asset class that can be
exploited for significant financial gains, if one takes the time to do their research.
We have already done this research and with that in mind, the goal of this ebook is to concisely deliver the findings of our research, so that you can navigate
BO profitably and truly attain financial freedom and autonomy.
Kind regards,
Team Blue Sky Binary
www.blueskybinary.com

Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Binary Options?
Binary Options are bets that a trader takes on the direction of where an
asset will head over a certain amount of time. For example, a trader has the
view that the price of Euro, relative to the Dollar (EUR/USD), will rise between
now and the sixty minutes. He/she may wish to bet $25.00 on this. If they are
right, even if only marginally by 1 micropip (the smallest movement possible in
the currency price), he she can expect a high 70-85% return on that bet. If they
are wrong, they lose the $25.00 invested. Hence the outcome is, indeed, binary.
There are more exotic types of binary options, such as pair-trades, no-touch
options, barrier options and a range of others; however these are the minority
and for the purposes of this book, we will focus on the mainstream and most
frequently traded category.
The trading of Binary Options is strictly not gambling as the outcome of
where price lands, either above or below your entry, is not random. By
researching the underlying asset, for example the EUR/USD, you can significantly
increase your odds of winning. Random outcomes, however, occur on a roulette
wheel where the black or red occurrence is truly random. Market prices follow
technical geometries and market fundamentals; all of which are a direct
functions of market and human psychology. The currency market is made up of
hundreds of thousands of traders who are either work for institutional trading
desks at investment banks, sovereign nations or corporations who buy and sell
currency for a range of transactional and hedging reasons. Currency movements
or for that matter, movements in stocks as well (on which binary options are
based as well), can be explained by news and technical factors.
Binary option trading, however, can be classified as betting as you never
really buy or sell any underlying asset; you merely bet on its movement.

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Binary Brokers
Binary Option brokerages offer binary options. Their trading platforms,
however, are white-labelled versions of generic trading platforms offered by
Binary Option technology firms called platform providers. Therefore, Binary
Option brokerages are not platform providers themselves. There are only a
handful of recognised platform providers such as Israel based Spot Option (c. 65%
market share) and other providers such as Marketspulse, London listed TechFinancials, Tradesmarter, Panda, Airsoft and others.
In rare instances, technology oriented Binary Option brokerages will not opt
for one of these aforementioned white-label platforms and instead create their
own trading platform. Examples include Binary.coms own API based platform or
Optie/365 Tradings Pipinvest platform. It is also worth noting that in the instance
of white-label technology providers, companies like Spot Option who provide the
trading platforms, also own a stake in the Binary Option brokerages. In essence
then, many Binary Option brokerages are brands of the the technology
platforms.
Blue Sky Binary has been an education, technology and signals provider in
Binary Options for years and in our experience, we have tested a wide range of
binary option brokerages. We partner only with the ones that meet our high
quality benchmark from the standpoint of regulation, client fund safety, ease of
withdrawals and platform transparency.
The following Binary Option brokerages, in our view, are safe long term
options; Binary.com, Optiontrade, Bull-Binary, 365 Trading, Optie and ETX Binary.
These brokerages are well regulated either by Cy-SEC, their local country
regulators in Europe, the MFSA or have their parent companies governed by the
FCA, UK. Some of these brokerages even offer EU-State-backed depositor
protection guarantees in the event of insolvency on the broker side. This is by no
means an exhaustive list.

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Business Model
There are two ways Binary Option brokers make money. They either match
your bet with an opposite bet or in the instance they cannot find another client
to take your offsetting position, they take on the balance sheet risk themselves
and when you lose, they make money. If you win, the broker directly loses
money. The larger the broker in terms of client base, the more easy it is for
them to match traders trades so that there is no conflict of interest; in other
words, one clients wins are paid for by the losses of another client who took the
opposing trade minus the brokers commission which is usually 20-30%. So far
there is no conflict of interest.
The conflict of interest arises, however, when unregulated brokers get their
staff (known as account managers) to coax the client to deposit more and and
for the client to relinquish control over their account and let the account
manager trade on their behalf. When this happens, investment advice or
trading actions undertaken by the broker on your behalf pose a grave conflict
of interest and are one of the primary reasons why clients lose money.

&
Trade Matching

Trading vs. House

4
Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Signal Services
A signal service provides trade recommendations for clients to follow on
their Binary Brokers. It gives precise instructions on which direction to bet on
and for what expiry. An auto-trader trades a clients account on his/her behalf
requiring no input from the client. In an increasingly busy world, a growing
amount of clients seek out such hands-free services.
1 out of 10 signal services or auto-traders will work in Binary Options. This
means that those new to the sector need to exercise great caution in
committing capital to services as statistically 90% will destroy value, not create.
Signal services and auto-traders that offer free-trials that do not require
deposits at Binary Option brokers and work with demo money accounts are
most likely the ones that are legitimate. Furthermore, legitimate signal services
will provide an updated historical and real-time record of signal outcomes
without altering losses with the view to bolster results. Examples of legitimate
signal services and auto-traders include Signal Hive (www.signalhive.com) and
Signal Push (www.signalpush.com). It is strongly advised to use demo money
when using any service and if moving to real money, to only trade with amounts
you can afford to lose.

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Spotting a Scam
As Binary Option brokers pay what is known as CPA (cost per acquisition),
a one-off payment of $200-500 per depositor that marketers sends to them,
there is a swathe of such products and services in both the Binary Options and
FX industry. If the product or service in question forces you to deposit at a
Binary Option broker in order to receive access, it is most likely not a real
service but instead an affiliate marketing funnel created by an affiliate
marketer or Binary Option broker with the view to lure depositors. However,
note that certain services will allow free-trials without the need to deposit and
these are, generally, legitimate services.
Another giveaway of a scam is if a high-production value video is created
that depicts people who were in financial trouble, but now are multimillionaires by using a miracle software which they wish to now give away to
you, for free. Promises of exuberant amounts of money in short periods of time,
along with falsified bank account statements, are often shown to get the
person watching the video, excited and ready to deposit. Sometimes the
videos are, however, smarter in that they denigrate other known scam services
claiming that this one is different and may even use obfuscation techniques
such as reference to extremely scientific terms with the view to give the
impression that some magical, scientific holy grail has been discovered.
The final giveaway is if the win rates or amounts promised are too good to
be true. In Binary Options you need around a 58-62% win rate or so called ITM
(in-the-money) in order to grow your capital over time. Win rates of 63-65% are
world-class and any thing touching 70% is rarely sustainable. Scam services
may promise win-rates of 70-90%, however, these are either falsified or
derived from a very small sample set of data and not representative of long
term results.

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

What's Best?
If you are serious about your long term career in Binary Options, put
away your real money or take out your lunch-money which should be no more
than $200-500 and start learning how the market functions. At first you need
to learn what the market is, how complex it can be and then how to navigate it.
There are technical and fundamental aspects to be learned. Blue Sky Binary is
a leading binary options education provider that has a 12-week course known
as BSB Trader University (www.blueskybinary.com/university). It takes newbies
to intermediate level clients and transforms them into semi to fully
professional traders in Binary Options. The process involves theoretical
learning of cutting-edge strategies, exams, one-on-one tutor lessons and live
trading. It covers both technical and macroeconomic fundamental aspects.
Last but not least, it provides you access to a trading tool known as the Binary
Dashboard, which finds trade opportunities for you. If you do not have time to
learn, you are dramatically reducing your long term potential in Binary
Options, however, you can try out our signal service, Signal Hive
(www.signalhive.com), which is a highly transparent signal service with both
robotic and human senior traders.
All our services offer zero-risk free trials and do not require broker
deposits. By all means we are not the only transparent education and signals
provider in Binary Options; a mere Google search may reveal competitors who
share our ethos of transparency and quality. Feel free to do your own research
and come to your own conclusions. But we hope this primer has helped
heighten your senses before you enter Binary Options.
As a thank you for taking the time to read this, we are giving you a Binary
Options trading strategy which should be practiced first on a demo account
and then when you experience stable win-rates, feel free to move to a live
account and practice good money management when you trade it.

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.

Turbo Strategy
A key facet of binary options is the concept of expiry. The Binary Option
trader determines when the bet will expire and only when it has expired, does
the trading platform determine whether or not the bet was a winner or loser.
Binary Option brokerages provide a wide gamut of expiries; right from a few
seconds to a few days and even months. This strategy will focus on expiries of
5 minutes and is outlined over 8 steps.

Get access to a free chart provider like www.freestockcharts.com or

www.netdania.com or www.oanda.com (FX Practice account).
Select either EUR/USD, AUD/USD, USD/JPY, AUD/JPY, GBP/JPY, EUR/JPY or
USD/CHF on your chart provider, zoom-in to the 5-minute chart time frame
and switch to Candlestick charts making sure to add Bollinger Bands (14,2
setting).
Finally add RSI (Relative Strength Index) and the Slow or Fast Stochastic
Indicator to your chart (both should have periods of 9 set).
Look for a flat Bollinger channel.

Once located, glance at the RSI level and ensure that the RSI reading is in
between 40 and 60.
Ensure that there is no news that is about to happen. Generally speaking,
there is little to no news between 16-22pm GMT making this time zone the
safest for this strategy.
Wait for the current 5-minute candle to close and if it closes up (green
colour) and creates a sharp spike up on the Stochastic indicator as well,
then take a PUT for 5 minutes, betting that the price over the next 5 minutes
will drop. If the candle you were observing closed down (red colour) and
created a sharp spike down on the Stochastic indicator, then you would
consider taking a CALL for 5 minutes. This is how the setup should look!

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Risk warning: Binary Options trading is high risk and can result in substantial losses. Nothing contained inside this e-book is investment advice.