Binary Options

Binary Options Trading Signals

Binary Options Trading Signals

Every day, traders strive to identify trading opportunities that can be exploited in the market.

For this reason, trading signals have become an integral part of binary options traders’ toolboxes. A binary options signal is a trade idea or alert containing all the relevant information regarding a particular trade. A typical trading signal will specify the asset, the type of trade (whether it is a Call or Put order), the strike price as well as the expiry time. A trader is only required to execute the alert of the potentially profitable trading opportunity and to wait for the outcome of the trade at expiry.

An Example of a Binary Options Trading Signal

A standard trading signal delivered to binary options traders will look as follows:


Direction: PUT

Price: AT or ABOVE 1.0190

Expiry: 2200hrs ET

A trader receiving the above signal is required to place a Put order on the USDJPY currency pair as long as price is at or above 1.0190 and wait for the outcome of the trade at the suggested expiry time of 2200hrs.

How are Binary Options Trading Signals Generated?

In binary options, trading signals are generated either mechanically or manually. Manually, the signals are generated by experienced professional traders who have a solid and proven track record of profitability in the financial markets. Mechanically, trading signals are generated by computer programs that scan, track and analyse price movement in the market based on coded algorithms.

What Are the Benefits of Trading Signals?

Contrary to popular perception, binary options signals can help all types of traders (whether novices or experienced traders) to enhance their trading activity in the market. Novice traders use trading signals to make money as they continue expanding their knowledge and skills in the binary options market. They can also use the signals to learn and understand how expert traders identify trading opportunities in the market. To the more experienced traders, binary options trading signals can help them broaden their scope of profitability in the market.

Using and Applying Binary Options Trading Signals

To use and apply binary options trading signals, traders are first required to sign up or register with one of the signal providers. Traders can then decide how they prefer executing their signals. There are 3 modes binary options traders can choose to execute trading signals: manually, automatically or semi-manually.

In manual trading mode, the provider will send the signals (either by email, SMS or chat) and the trader will, at his own discretion, execute the alerts. Another form of a manual signals program is the live trading. Providers who deliver live signals usually allow their subscribers the chance to join them in their online trading rooms and observe their actual trading desktop or charts. The advantage of manual signals is that traders get the chance to review the signals before deciding whether to execute them or not. However, in some cases, due to the fast nature of the binary options market, manual signals may become irrelevant by the time the trader implements them.

In automatic trading mode, the signal provider’s software application is linked to a trader’s brokerage account and the signals generated are mechanically executed in the market. The trader need not do anything. With this approach, traders can be sure they will not miss any tradable opportunities as long as the market is open. Nonetheless, automatic trading mode is usually only plausible in a couple of brokerage firms such as Banc De Binary which has an advanced platform (the BinaryMETA) that supports most robots APIs.

In semi-manual trading mode, the signal provider’s software application is still linked to a trader’s brokerage account. However, when a signal is generated, the trader is prompted to decide whether it should be executed or not. This method is very ideal for intermediate and experienced traders who have created a filter on what orders they should place in the market. This approach offers traders the chance to review a trade idea and also guarantees that an order will be immediately executed in the market, without any delay or lag, when the traders approves.

Choosing a Good Binary Options Trading Signals Service

There has been a tremendous growth of signal providers in the binary options industry. Before signing up with any provider, traders should perform due diligence and gather enough information regarding their profile and service. Traders should assess their previous performance as well as read reviews of both experts and fellow traders regarding the provider’s service. Usually, a good signal service will have a success rate of above 70%. This will mean that traders can expect to have more successful trades than losing ones. Nevertheless, when evaluating the success rate, it would be wise to acknowledge that in binary options, past performance is not indicative of future success.

It would be prudent to only deal with companies that are run by professional and expert traders. The reason for this is simple; good signals can only come from good traders. It has been known that some dishonest individuals who are basically marketers can pass off as traders and end up providing bad signals to traders. One of the best and reputable signal services in binary options is the Banc De Binary signals service that is run by experts who have extensive experience in the financial markets.

It is also important to sign up to a service that charges a reasonable subscription and offers a trial period that is free or highly subsidised. While a good signal service is priceless, it is always important not to pay over the odds because no one has the ‘holy grail’ strategy of trading the binary options market. A trial offer gives traders the chance to find out whether a particular service will help them realise their trading ambitions. In addition to offering a trial service, Banc De Binary traders can get a free demo account to try out their signals without risking real money.

Final Word

Binary options trading signals offer traders a simple and convenient way of boosting their profitability in the markets. These alerts direct traders to possible trading opportunities and it is an excellent way for a novice trader to familiarize themselves with the binary options market.

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