Table Of Contents

Table of Contents

About Mr Binary Option......................................................................................................3

Introduction to Binary Options...........................................................................................4
What Are Binary Options?........................................................................................................5
What Are Binary Signals?.........................................................................................................6
Candlestick Charts...................................................................................................................7

Capital Management............................................................................................................8
Choosing A Broker..............................................................................................................9
Trading Autonomously......................................................................................................10
Trading with binary signals..............................................................................................12
Types of Binary Option......................................................................................................13
High / Low.............................................................................................................................. 13
One Touch / No Touch............................................................................................................ 14
60 Second Options................................................................................................................. 15
Long Term Options................................................................................................................. 16
Boundary / Range.................................................................................................................. 17
Ladder Trades........................................................................................................................ 18

Binary Options Trading Strategies For Success............................................................19

Trading Trend Lines................................................................................................................ 19
Trading the breakout............................................................................................................... 22
Trading Retracements............................................................................................................ 24
The Straddle Strategy............................................................................................................. 26
The Double Up....................................................................................................................... 28
The Gap Strategy................................................................................................................... 30

Summary.............................................................................................................................32

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About Mr Binary Option

Hello! Welcome to the Binary Options Made Simple eBook by Mr Binary

Option. I am thrilled that you took the time to download and read this book.
Many new traders will dive straight into the deep end with brokers, signals
and robots without enough knowledge and come away with a negative
experience. The true key to success with Binary Options is making the right
choices - whether that is your choice of broker, automated trading robot, or a
call / put.

I run the website mrbinaryoption.com which is, as you might have already
guessed, all about Binary Options! We review the latest and greatest brokers,

binary options robots and more. As always, reviews are thorough and
unbiased. Only the best brokers and systems gain our coveted seal of
approval, so always check the site before opening an account!

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 This book and its contents are Copyright 2017 mrbinaryoption.com All Rights Reserved

Trading binary options can carry risk. View our risk information on the website

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Introduction to Binary Options

If you have a basic knowledge of Binary Options, then you may want to skip
to the next chapter!

New to the world of Binary Options? It can be daunting, but do not worry as it
really is a lot simpler than you might first think. In this chapter, we will cover
the basics of Binary Options, how they work and the various terms and
systems we will be using later.

It is important that you know the following information fully before you start
trading. Knowledge is power and power is the key success to making healthy
profits! The experienced traders who enjoy their six-figure incomes all started
off as inexperienced newcomers to the market. You will learn and develop
your skills as you progress, but make sure you get a head start with some of
the essential information we are discussing in this chapter.

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What Are Binary Options?

Lets start right at the basics - what is a binary option exactly? Put simply, a
binary option is a type of trade where you have two choices. The term binary
comes from the fact the trade has just two choices - Call or Put.

If you think the asset price will increase, you buy a Call option. Similarly, if you
think the asset price will decrease you buy a Put option. Assets can be
stocks, currencies, commodities and indices.

All options have an expiry time, so if your prediction was correct at the expiry
time you win the trade. Expiry times can vary from anything from 60 seconds
to several weeks. Most brokers will provide you with plenty of choice.

Lets look at an example.

The price of gold (the asset) is currently $500. You place a Call option with an
expiry time of 5 minutes at a price of $100 with a payout of 90%

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After 5 minutes, the price of gold is now $510. You correctly predicted that the
price of gold would increase. The broker gives you $190 - netting you a $90
profit ($100 buy in returned + 90%).

Its that simple!

What Are Binary Signals?

Moving on from the basics of trading, we will now take a look at Binary
Signals. What are they? Well, simply they are akin to a tipoff as to where the
market is headed next.

Usually Binary Signals are created by experienced traders in the industry and
you receive them by way of an alert - sms, email, etc. You can then act based
on these signals to increase your chance of a successful trade.

Often these signals occur by way of mirror trading - following trades of a top
trader in the field. Signals can however also be generated by sophisticated
software algorithms.

There are ways of acting on these signals automatically without any

intervention. To accomplish this we use a binary options robot - we will
discuss this later on in the book!

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 Candlestick Charts

First off, lets check out the most

common type of chart used by the
brokers - the candlestick chart. The
graph is made up of candlesticks
which are used to describe price
movements.

They are like a combination of a line-chart and a bar-chart. Each bar

represents all four important pieces of information for the period of time they
represent - the open, the close, the high and the low. Being densely packed
with information, they tend to represent trading patterns over short periods of
time.

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Check out the image below, the top and bottom shadows represent the high

and lows, whilst the body shows the difference between the open and close of
the time period. The colour represents whether the opening price was higher
or lower than the closing price (also known as bullish or bearish).

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Capital Management

Another key to success when trading is to have a good money management

strategy. If you are winning lots of trades, it is easy to think you should put
even more money into your following trades. However, you always need to
consider that regardless of your strategy you will never win 100% of trades -
not even a binary option robot can do this for you!

For example, if you are achieving a roughly 80% success rate on your trades,
then 20 out of 100 trades will lose. You can still walk away with a profit here,
but what if you hit those 20 losses in a row? Consecutive losses are the
primary reason why many traders will fall at the first hurdle - this is why it is
important to keep to a money management strategy!

If you open an account and deposit $1000, it is easy to think that $100 trades
give you plenty of room for the occasional loss - but it doesnt! If you lose
multiple trades in a row then your capital soon shrinks. When that happens
traders often reduce their trade amounts, but then their returns are too small
to make up the deficit and it is a vicious circle.

So how do you prevent this from happing? Simple, invest a fixed percentage
of your capital, not a fixed amount, per trade. The percentage you choose
should depend on how risky your strategy is, but a good place to start is
around 4-5%.

Using this method will ensure that you are able to survive losing streaks and
yet recover from them quickly. Remember, if you do not manage your capital
then even the best binary options strategy will not help you achieve success!

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Choosing A Broker

Ok, so we have discussed strategies and money / capital management at

length and no doubt you are eager to put these into play! How do you go
about trading binary options? You use a broker.

A broker provides your trading platform and handles your withdrawals, so it is

imperative you choose a well known broker which is regulated and approved.
There are, unfortunately, plenty of scam brokers out there so always be
vigilant. At Mr Binary Option we aim to review as many brokers as possible to
sniff out the scams. Always choose a broker that has our seal of approval!

We have listed our top three verified brokers below

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Trading Autonomously

So you want to get into binary options for the profit, but dont want the hassle
of sitting at the computer all day and trading by hand? Luckily for you there
are binary option robots!

A robot is a software program that will execute trades for you. They analyse
the market and assets by employing sophisticated software algorithms to
make predictions. They are extremely accurate and can react much faster
than humans. Additionally, most robots will learn over time meaning their
success rate increases. All you need to do is set the robot going, sit back and
watch your profits grow.

To summarise, the benefits of an automated trading robot are:

1. Adhering to a strategy - Robots have clearly defined strategies and rules

which they must abide by before placing a trade. Unlike manual options,
this prevents human emotions coming into play. It is all to easy to get
annoyed that you lost a trade then place an uninformed large trade which
you also lose.
2. Diversify - Most robots will make use of multiple broker accounts at the
same time. This spreads the risk as well as allowing the use of varying
parallel strategies.
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3. Consistency - As noted before, robots are entirely consistent. They stick to
their rules and are not influenced by external factors.
4. Maximum profits - With all this in mind, this gives you the best way to
maximise your profits whilst also running the systems on autopilot.
So what is the catch I hear you asking. Well, as with brokers, there are
unfortunately some scam systems out there designed to just take your money.
This is why it is crucial you use an approved and verified system.

Our website has reviews of all the top systems in this sector so please check
them out before signing up. All reviews are independent and we verify the
claims made by the creators. We are always up to date with the latest brokers
and robots in the binary options industry, so you can be confident the
information we write is accurate. Here are a few of our recommendations to
get you started.

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Trading with binary signals

Perhaps you don't want to place your trust in a totally automated system, but
you do not want to stare are charts all day waiting to kickstart your trading
strategy. Well, the good news is that there is a happy medium in the form of
binary signals.

Binary signals are created by experienced traders and are similar to tip offs.
Basically the traders are monitoring market assets and working out which
asset you should place a trade on and which way you should go. Sometimes
binary signals can be generated by sophisticated software algorithms- these
are usually tied in to a binary robot for automated trading.

When using a binary signal service, the signals come through to you by way
of alerts, either sms, email, etc. After you receiving the signal, place the trade
and watch the outcome!

Some signals are set up in a way that they will mirror trades made by the top
traders. This is great as it increases the trust in the validity of the signal as the
trader wants to profit from it too.

Various brokers have these systems in place, so have a look around their
website before opening an account.

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Types of Binary Option

In the world of Binary Options, there are a few different types of options. This
not only gives you a choice, but it also allows you to mix up your strategy for
the best returns.

Each type of option has its own advantages, and disadvantages, so it is good
practice to become acquainted with them. Even if you are looking at using an
automated system, it is a good idea to at least skim through the following
chapter so you can get a broad understanding of what is happening with your
investments!

High / Low

This is where it all began, also called Up / Down and Call / Put. It was the first
type of binary option to be offered by brokers when the market emerged and
is, undoubtedly, still the most popular today.

A High / Low option can be summarized as follows:

Will the asset price be higher or lower than the current price at the expiry time?

Simply, if you think the asset will be trading at a higher price after the expiry
time, you choose High (or Up / Call). Similarly, if you think the asset will be
trading at a lower price you choose Low (or Down / Put).

Most good brokers will give you a choice of expiry times. In general, these
range from 5 to 15 minutes.

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When the expiry time is up, if your predication is correct then you win! There
is usually a fixed payout percentage for these types of options, typicall in the
region of 80-90%. For example, if you place a $100 option and predict
correctly and the payout is 85%, the broker will give you $185. Now you can
clearly see why Binary Options is a popular money making tool!

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One Touch / No Touch

A Touch option works slightly differently to the standard High / Low option, but
it is really easy to understand. You are still looking at a certain asset price, but
the qualifying conditions are a bit different.

Will the asset price reach the trigger price by the expiry time?

The payout depends on the trigger price (or trigger point) this can be
anywhere on the trading chart. In general, the further away the trigger point,
the higher the payout as the chances of it hitting the trigger decrease as you
move further away from the current trend.

The difference to High / Low options is that a One Touch option just needs to
touch the trigger point once before the expiry time. The associated payouts
for One Touch binary options tend to be a lot higher, especially if you are
moving further away from the current price. Returns can reach up to 300%
with some brokers!

No Touch options are a variant on One Touch options and work in the
opposite way. You set the trigger point and are predicting that the price will fail
to reach that point. The payout works inversely to One Touch trades in that
the closer the trigger is to the current price the higher the payout percentage.

Touch trading is a great way to accumulate profits faster, but it also carries
more risk so it is important to stick to a money management strategy when
working with these.

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60 Second Options

These types of trades, also called turbo trades, have become extremely
popular with traders in recent years. Practically every broker offers some form
of turbo trade now! They work much the same as standard High / Low trades,
but the expiry time is just 60 seconds. This is great for seeing instant results.

Look for trends in a small time frame, such as the past few minutes. These
trends will be short-term and may not be following the trend lines which
outline long term trends. You can profit here by spotting these small variations
and using a turbo option to quickly place a trade.

There are an abundance of opportunities when working with turbo options

and you can be more flexible with your strategy. If you are looking to make as
much profit as you can in the shortest amount of time, then turbo options is
exactly what you are looking for. It is important to note that not all brokers
offer turbo options, so check out our top picks below.

Turbo options may not suit every trader, so give them a try with a demo
account before investing.

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Long Term Options

In contrast to 60 second options, Long Term options have expiry times which
span over days, weeks and even as long as months. You might instantly be
thinking Why would I want to invest in a long term option when I can
generate profit in just 60 seconds?.

This is a common question among new traders who want to see instant
profits. The truth is that maybe new traders who start straight with turbo
options will find they lose their capital quickly due to being inexperienced.
This is exactly the same on the stock market and is why many traders will
keep hold of their assets for several days.

Trading with turbo options can be a volatile experience as slight variations in

the asset price can be difficult to predict. With a long term option, you can
analyze the long term trends to find the direction in which you should place
your trade. This data tends to be far more reliable as it is gathered over a
longer period of time.

In the end, long term trading comes down to the trader as it is a style that may
only suit a few.

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Boundary / Range

This type of trade is essentially the same as placing a double No Touch trade.
What you are looking for is a range in which the price fluctuates the upper
and lower limits of this are determined by support and resistance.

There are basically two trigger points, an upper and a lower, and your trade
focuses on the price not exceeding either of those two points. The price must
stay within the range during the countdown to the expiry time. If it surpasses
either trigger, then you will lose the trade.

This is ideal if you are looking at an asset with a stable price, or even a flat
trading history, as you can still make a profit. Most binary options rely on price
movements, but a Boundary trade is working on the opposite.

Not all brokers provide these types of trades, so check out our
recommendations below:

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Ladder Trades

Ladder trades are one of the more complicated types of binary options on the
market today and perhaps one of the most recent.

Essentially, there is an interval time and a series of strike prices both of

which you can choose yourself. What you are looking for is that the asset
price will progress along the ladder and meet the strike prices at each
interval. Every time you hit the strike price at the time of the expiry, you
receive a partial payout. In the end, if you hit all stages of the ladder you will
have a payout which, in general, exceeds 100%.

It is essentially like setting up a series of small High / Low options in a series

with the advantage of being able to receive a partial payout even if you do not
hit all stages of the ladder.

This kind of option is great for an asset that may be fairly volatile as receiving
partial payouts means you do not lose all of your investment in one go.

This is fairly complicated to set up and would require some good background
experience with binary options. Definitely not for the new traders, but there is
some good profit to be had with the right ladder and choice of asset.

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Binary Options Trading Strategies For Success

In general, binary options are just short term trades so timing is crucial to
succeeding. Before you start trading manually, it is always wise to have a
strategy in mind so you have a clear focus and end goal. Placing the trade at
the correct time is essential, so check out the following strategies for ideas.

Trading Trend Lines

Trend Lines, are a very important tool when it comes to technical analysis.
These lines, connect a starting point, with another price point before
extending into the future.

At this point, the line becomes a prediction of what you believe the price will
do next. Depending on whether youre trading a bullish (demand) or bearish
market (excessive supply), these lines act as a support to the price or a
resistance.

An Uptrend Line (Bullish Market)

During a period of demand, a trend hill will flow upwards (a positive slope)
with the second low in the period occurring higher than the start point. This
means even though the price is rising, demand is keeping up with that price,
driving it higher still.

Once market prices continue above the trend line, the market is considered
solid and intact. In most markets, there will come a time when the trend line
stops supporting the price anymore. This is usually a good indication that
demand is slowing and the trend is about to change.

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A Downtrend Line (Bearish Market)

If an uptrend line is pointing towards a strong demand with plenty of buyers,

its downtrend cousin shows the exact opposite. Downtrend lines dont act as
a support to the price anymore, they define a resistance to the price going
higher.
Downtrend lines will always flow downwards (a negative slope) and in this
case the second low in the period will have a lower price than the start.

Just as with an uptrend line, downtrend lines can stop being a good predictor
once the price starts to break its resistance line. This often means that
demand is catching up with the falling price and a change is imminent.

How Do I Know When the Price Movement Will End?

This is the question all traders spend their days trying to figure out! These are
difficult things to predict, even for the most experienced of traders.

However, if you think about the market price as that of an individual asset.
The only real factor that affects the value of the asset is how many people
want to purchase it. This is known as supply and demand and is an
important part of business.

If many people want to buy an asset, demand will always be high. In trading,
this would be called a bullish (uptrend) market as many people want to buy
the same thing, pushing its price up.

Eventually, everyone who wanted to purchase the asset at its current price
has done so. Slowly but surely, new buyers will dry up and the price will have

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to fall so it may attract new demand. This is the point at which a bullish market
now starts to become a bearish one.

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Once the price enters a downward trend, the price will keep falling until it
becomes enticing to more and more people. At this point the price will begin
to be supported more and more, until finally demand catches up with supply.
At this point the bearish market will begin to turn around again.

Validation & Getting Your Lines Correct

It takes at least two or more points to create a trend line and with each extra
line youll add more validity to the trend. However, sometimes its hard just to
find two points to construct your trend line with.

Even experienced traders will accept that you cant always draw a trend line
on every graph. Sometimes the price point just doesnt match up properly and
this is perfectly fine. During these periods, its always better to wait until you
have different price points that are more favourable.

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Trading the breakout

Every trader should know how to trade the breakout. It is an essential strategy
that is profitable and a good way to enter binary options trading.

The first thing to know here is how support and resistance levels work.
Remember the candlestick charts from the last chapter? What you are looking
for is several candlesticks that show the low points for that asset - the low
points are identified if the price rebounded right after reaching them. Usually
we look for about 3 of the lowest points over a period of time. Now, imagine

you draw a line though those points, you can almost call it a floor as the asset
price does not seem to go below this value.- this is the support level.

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Resistance are effectively the same as a support level, but works as a ceiling
from which the asset price can fall from.

This gives you a trading range - this keeps the trading price within this range
until the price breaks out. It is important to spot these patterns when you are
trading binary options!

What is a breakout?

A breakout is when the price of the asset breaks out and closes either above
the resistance level or below the support level. Once a breakout occurs, there
will be a strong price movement due to a surge in trades.

So, to trade the breakout, you can either place a trade in anticipation of a
breakout occurring (when the price is reaching the support or resistance
level), or place a trade in reaction to the breakout (just as the support or
resistance levels are surpassed). It is down to personal preference which
option you choose here, but the latter is a safer option if you time it just right!

It is best to trial a strategy with a demo account first before investing

significant capital.

The following brokers have demo accounts available at no charge:

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Trading Retracements

This is the second strategy we are going to look at, but firstly we need a bit of
background. What exactly are retracements?

Retracements are short term price corrections during an overall larger upward
trend (bullish) or downward trend (bearish). Although the asset price may be
following a trend, it moves in a straight line. In a trend, the price is always
moving from a high to a low - the move against the main direction of the trend
is called the retracement.

Finding these retracements and trading based on them is great for utilising
short term trades. The key benefit to this method is being able to enter a trade
in the direction of the original trend at a better price.

So why do these occur? Lets take an example. A large number of traders

start to buy as they believe the market price is starting to increase. This in
turn pushes the market price higher and as more traders notice this, they start
buying as well. When the increase has gained traction, a portion of the
traders will close their positions resulting in a small sell off, halting the upward
trend and starting a pullback - the price decreases slightly . Once the price
has gone down, traders will resume their activity until the trend has run its full
course and reverses.

How do you use retracements to time your trade? First, find an asset that has
a strong, clearly defined, upward or downward trend. If you are looking at an
upward trend, enter the market right after a pullback (the temporary decrease
in asset price) has finished. If you are looking at a downward trend, enter the
market right after a rally (the temporary increase in asset price) has finished.

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The key now is to know when the market will pull back. To do this, we use
fibonacci retracements. To apply fibonacci retracement levels to the chart, you
need to first identify the swing high and swing low points of a trend. Swing
high means the highest point displayed on a chart which represent a given
time period. Swing low is the same, but for the lowest point.

Most decent brokers will provide a fibonacci tool and in essence what you do
is draw a line in the direction of the trend, joining the swing high and swing
low points. The horizontal lines that are drawn by the tool are the fibonannci
retracement levels which are automatically calculated by the tool. The most
popular levels are 38.2%, 50% and 61.8%.

Most traders that rely on technical analysis of the markets observe that most
retracements occur around the fibonacci levels - normally around the 50%
level. In an upward trend, the price will go down a certain percentage of
upward movement, whereas in a downward trend, the price will go up a
certain percentage of the downward movement.

If the price moves beyond the 50% level, as shown by the horizontal fibonacci
lines, this may be an indication that a retracement is about to happen and this
can provide you with the opportunity to set your next trade in the main trend
direction.

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The Straddle Strategy

In normal trading, the straddle is used to counter the effects of an assets price
moving both higher and lower. To do this, you a Call and Put option, both with
the same price and expiration date.

When is this Useful?

Generally, the straddle is used when a trader expects fluctuation in the price
of an asset, yet they dont quite know how this will occur. A great example of
this is when a company releases its financial report or quarterly figures.

Although market analysts might expect certain things to happen (good sales
figures, healthy balance sheet), nobody knows exactly what the details are
until theyre revealed.
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By adding both a call and put option, a trader can take advantage of whatever
fluctuations happen in the price. Of course, if the price stays steady, then the
trader wont earn money, yet they should be able to break even.

Unfortunately, with a binary option this doesnt work that well. With a standard
straddle, the percentage gain is often between 70% 90% and given the
nature of the straddle trade and probability, youll win about 50% of your
trades.

What this means, is that whilst youll earn 190%, you can divide that by 2,
meaning a win of about 95%.

95% is 5% less than you invested, youll lose money on your trades.

For the straddle to work in binary options, we need to tweak the straddle to
suit our needs.

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How to Employ the Straddle in Binary Options

To make the straddle work, we need to avoid the trap of earning 95%, and
push it over 100% so we can make consistent profits.

The easiest way to do this, is by purchasing a boundary option. This means

that you speculate your asset will fluctuate, yet stay within a pre-determined
range over the time of your trade. For example, we might believe that a
certain stock with trade between $7 and $9 over the next 3 months.

If we set our boundary strike prices at between $7 and $9 and prices close
between these values, your trade with generate a gain; however, if the price
begins to move out of this range then the trade will become out of the
money.

You dont have to set your boundaries within a certain range either. Using the
example above, we could set a boundary option to say that a price will trade
above $9, below $7 and not in-between. Once again, if the price finishes
outside of the $7 - $9 level, your trade will generate gains; however, if it closes
in-between those price ranges youll find yourself out of the money again.

Boundary trading is a technique in binary options thats been slowly gaining

popularity over the years. It allows you to employ a technique similar to the
straddle, yet allowing you to gain over 100% and get your trades in consistent
profit.

One word of warning though, the straddle and boundary trade is only useful in
times of price volatility. If youre looking at a steady asset price with low
volatility youre best to look at other trade options.

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The Double Up

The double up, is a great strategy when you place a trade thats looking very
good. Its a brilliant way to double your gains when your position within a
market is rock solid.

How the Double Up Works

Lets say that you place a trade on GBP vs EUR at 1.25130 and you predict
that the price will close at a higher level. After an hour, the price is gaining
traction and comes out at 1.25500.

At this point, youre feeling confident about this trade, its going to net you a
solid gain.

The double up, allows you to alter your trade and double the investment
youve made. This means that instead of your trade being a decent gain, it
could net you double the amount of the initial trade.

This is a useful tool for traders who unexpectedly find themselves in a trade
thats performing better than they had expected. Its also handy for those who
predicted a trade to become very profitable, yet wanted to hold back for
whatever reason.

When the Double Up Becomes Nasty

Of course, as with any trading strategy, there are pitfalls to be aware of. The
double up is only useful if you find yourself in a very strong market position. It
wont help you at all if youre already losing on a trade.

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Another issue is that not all binary option brokers offer the double up. In this
respect, its not a strategy as such but a nice feature that some brokers
employ. If you think its something that youll want to make use of then youll
need to discover a broker that offers it.

Another, rather obvious feature of the double up is that you cannot employ it
in the final few minutes of a trade. Generally, its something that takes place
halfway through a trade. This is to stop traders literally doubling up on every
trade they make that turns good.

Finally, and perhaps the most important thing to consider; never use the
double up on a trade you dont have a solid position on. If you double up and
win, youll gain double the money. If you double up and lose, then the inverse
is true.

But hold on! It gets even worse! Most brokers charge a fee for using the
double up feature. So, by losing a double up trade, youll lose double your
money plus a fee for using the service.

That sounds like a bad day at the office for anyone!

As with any broker feature or trading strategy, use the double up wisely and
only at the times appropriate for it. If you follow that golden rule the it can be a
great way to make bigger profits when you can.

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The Gap Strategy

This rather novel strategy, is great for newcomers to binary trading thats
easier to understand and easier to employ. Its often one of the first strategies
that new traders learn.

How it Works

Often, an assets price can jump dramatically, especially after a large news
event or sometimes in the run up to a pause in trading, say overnight or
during a weekend.

A great example of this is when a stock closes at say $8, before opening the
next day at $10. Thats a rather large gain of $2 overnight. This is also true of
stocks during volatile news periods, such as bad news for the company. A
recent example would be the news that a passenger was thrown violently off
a US Airlines plane, lowering the stock markedly for a short period.

As with all things supply and demand related, a large jump or indeed lowering
of a stock will leave a gap in trading. Purchasers will either stop buying at the
current value or indeed increase purchasing in the case of a lowered stock.
Generally, supply and demand dictates that the price will come back around
to its previous normal level.

How to Trade the Gap

Once a gap begins to open, whether that be news related or simply a gap in
trading, the trader can look at the chart and begin to predict which way the
price will move. Then, the trader will purchase an option for the asset price to
move in that direction, generating a gain.

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The first way to so this, is to purchase a 1 minute option in the opposite
direction that the price had previously been moving. As with many aspects of
trading, the timing of the trade is hugely important and is something most
traders learn over time.

Another way to trade a gap, is to use a touch option. This means that youre
predicting the price will touch a price point during the timeframe of your
trade. In the case of a gap price you expect to fall, youll make a prediction
that the price will begin to fall back in line, touching your chosen price before
rising again.

As you can imagine, gap trading happens very fast. The old saying that
todays newspapers are tomorrows waste holds very true with gap trading.
Any form of gap trade should have an expiration date of 1 day only as thats
how quickly a gap can appear, before being corrected by the market.

One to Try on a Demo Account

Trading gaps is something of an artform, part of the reason its beginner

friendly; however, its not something you should jump straight into. If you like
the idea of trading gaps, then try it out on a demo account first to get a feel for
how supply and demand pushes a gap price back into parity.

The following brokers have demo accounts available at no charge:

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Second Edition (June 2017) mrbinaryoption.com 47
Summary

Remember, before you start trading online, make sure you open an account
with a verified broker. Do not fall into a scam or you might as well throw
money down the drain.

If you are looking at automated robots, again be sure to always use only
verified systems.

We conduct constant research to expose these scams and make sure our
reads only get the best of the best.

Finally, please be aware that trading binary options is not risk free, but the
profit potential is huge if you use these techniques to minimise the risk.

This concludes our ebook - Thank you for reading and happy trading!

~ Mr Binary Option

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Second Edition (June 2017) mrbinaryoption.com 49