Financial markets are platforms where interested participants get to buy and sell financial assets such as stocks, bonds, foreign exchange, and commodities for profit purposes. As such, to participate in this market, you essentially have to buy and sell these assets. But this can be prohibitive to retail investors. For one the entry requirement across board is usually high. As such, participation largely belongs large financial institutions and multinational corporations. The individuals who get to participate are high net-worth personalities.
However, with more advances in technology, there are now many options as to how to go about profiting from the financial markets; these methods break these barriers enabling everyone – especially retail investors – equal access to the markets.
Binary options is a form of derivative trading that allows you to speculate on the future movements of the prices of financial assets. When trading binary options, you are speculating on what you believe will be the direction or movement of a financial asset after a pre-set period of time has elapsed.
We should note that binary options is not a separate financial market instrument or asset in itself; it is actually a way to get to trade the markets investors – equal access to the markets.
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As such, with binary options brokers, you can bet on the price movements of assets including stocks, cryptocurrencies, commodities, currencies, bonds, ETFs, indices, amongst others. For instance, it means you can bet on the price movements of Amazon, Apple, Facebook, Alphabet (Google), Netflix, Alibaba and more. You can trade binary options on Bitcoin, Ethereum, Litecoin and other crypto coins made available by your trading platform. Similarly, you can speculate on movements made by crude oil, gold, silver, amongst other commodities.
Almost any asset that is tradeable in the financial markets and as a global price can be traded with binary options.
When trading binary options in Nigeria, you are not really interested in the underlying assets nor are you purchasing them to own; you are only interested in the directions their prices will most likely move after a fixed period of time. If after careful analysis, you believe that the price will go up after say five minutes, you enter a BUY (or CALL) trade; on the other hand, if your analysis tells you your price will go downwards, then you go for a SELL or PUT trade; all these are done online using any internet-enabled device. If your “prediction” or “bet” turns out right, you get paid a fixed percentage of the amount you put up; otherwise, you lose that same amount.
Trading the financial markets is increasingly becoming one of the most popular ways to make money on the internet in Nigeria. However, you can trade the markets through different methods, one of which is binary options trading.
Binary trading in Nigeria is a method of trading that involves speculating on the future movements of the prices of financial assets. In practice, with binary trading, you can place bets on what you believe will be the direction or movement of a financial asset after a specific period of time. Instruments that you can speculate on their movements include liquid assets such as stocks, cryptocurrencies, commodities and currencies. Others include bonds, ETFs, indices, amongst others.
When trading binary options in Nigeria, you are not really interested in the underlying assets nor are you purchasing them to own; you are only interested in the directions their prices will most likely move after a fixed period of time. If after careful analysis, you believe that the price will go up after say five minutes, you enter a BUY (or CALL) trade; on the other hand, if your analysis tells you your price will go downwards, then you go for a SELL or PUT trade; all these are done online using any internet-enabled device.
If your prediction or bet turns out right, you get paid a fixed percentage of the amount you put up. Otherwise, you lose that same amount. Binary options trading in Nigeria can be very profitable, as you can earn as much as between 75% to 90% of whatever you put up as risk capital per trade. In the same vein, however, binary options in Nigeria is highly risky, and you can lose substantial sums of your capital. To avoid this, you have to approach trading binary options as a skill and to master every skill, you need to be taught and be able to dedicate considerable amounts of time and effort to learning and practice.
It is recommended that every binary trading decision be based on careful analysis – such analysis should take into account the news and happenings that are moving the prices of underlying assets as they can be a pointer to the future directions of the market. In trading lingo, this is known as fundamental analysis. Your analysis should also involve checking the charts and indicators for tradable patterns; this is called technical analysis. Nevertheless, to be able to trade binary options, you need to be signed up with a binary options broker.
Binary options are financial instruments that allow a trader to speculate on the direction of prices of assets in the financial markets. Here, you will decide whether you expect the market to go up or move down, and then you place a bet corresponding with that decision. If you believe the market will move up after a fixed time period, you go for a ‘BUY’ trade; but if you believe the market will go the other way, you choose a ‘SELL’. If your prediction is correct, you are paid a fixed percentage of the capital you risked, say between 75% to 90%, or even more. If however, your prediction turns out incorrect, you lose a specified portion of your capital.
There are significant risks attached with binary options trading in Nigeria, and a good number of binary options traders do lose some or all of their trading capital. To however becoming a consistently profitable binary options trader in Nigeria is quite simple, although not easy. You have to adhere to some rules including quality risk management, developing and sticking to a trading strategy as well as getting quality trading education before venturing to trade the markets.
There are several benefits to trading binary options, some of which are outlined below.
Nigerian binary options online can be traded using minimal amounts of money. This means that you can risk as much or as little as you can afford to. Furthermore, you are empowered to properly develop a binary options risk management system. The way binary options works is that you are well aware of how much you stand to gain as well as the amount you may lose when entering a binary options trade. Such risk management capability can really not be found with other forms of trading the financial markets.
The ability for the Nigerian binary options traders to trade small amounts at a time makes it a greatly affordable way to trade online. Many binary options brokers allow you to make small minimum trades from as little as $10 (or even less), which means you can trade as little or as much as you want.
Expiry periods for binary options trades are much shorter compared to other channels to trading the financial markets. Binary options expiry periods can range from as short as 1 or 5 minutes up to a week; with most other methods of trading, you don’t have such fixed expiry periods. Even where they are fixed, they are usually long. It is commonplace to see expiry periods of as high as 2 months.
This ability to quickly trade binary options in markets for a short period coupled with the potentially high binary options return rates of between 75% and 90% means that with a few quick successful trades you can make substantial profits.
Binary trading Nigeria gives you the ability to trade several financial markets cut across different geographies. This helps you beat the limitations of timezones, as you can trade one market when the other is closed. With this, you can easily tailor binary options trading to your lifestyle.
Nigerian binary options brokers have taken the initiative to make the process of trading binary options as simple as possible. All you really have to do is upon conducting your research, select the market you want to trade, the amount you wish to risk for the trade and the direction in which you think the price of the asset will move.
You then go on to choose the binary options expiry time and wait. With this simple binary options process, you can be on your way to making substantial profits if your trade turns out correct.
Before you think of signing up or undergoing any binary options registration process with any broker, you must be assured of the credibility of the broker and the quality of its brokerage platform. The binary options platform you choose to register with must possess some cogent features; otherwise, you should not go for it. This is because there are as many Nigerian binary options platforms out there as there are brokers. However, not all of them are worth getting registered with. If you go for the wrong binary options platform in Nigeria, you might be setting yourself up for real binary options losses.
Before you start binary options trading, you have to get signed up with a broker in Nigeria. After this, you will be assigned a binary options trading account, with your personal account details. It is on this account that you get into which you will deposit and start to make trades. The steps you have to take to sign up vary considerably across brokers. With some binary options brokers in Nigeria, you can download their mobile applications from your app store and get to sign up from there. For some other Nigerian binary option brokers, you have to sign up elsewhere, and then login on the app. Nevertheless, there are some pretty common methods across many binary options brokers, and they are outlined below.
Either through the broker website or via their mobile apps, you can access a registration form with which you can get to sign up.
In Nigeria, the registration process is quite a simple one, and will only require your email, address and a password. After entering this, you click the green button with the inscription – Create Account. Although you can carry on with most services on the trading platform, to be able to do complex things like make deposits, you have to verify your email by clicking the link in the mail sent to your inbox. Other information that should be requested such as your full names, location, phone number, amongst others, are provided after sign up. For some other binary options brokers, the registration form is much longer, requesting that you enter all the above information upfront.
Usually, you also find the option to sign up using your social media accounts – the common ones are Google+, Facebook and sometimes Twitter. If your email is signed up into your device, there is also usually that option. Upon signing up, you will have to access your account some other time, thus needing you to login.
The methods of logging into your binary options trading account differ from broker to broker, but there are some common methods that are in use. This follows the same Registration Form method you find above. It typically only requests you to enter the email and password you had used to sign up. Alternatively, if you had made use of social media accounts when signing up to the platform, you can as well make use of that option.
Nigerian binary options represent a very profitable way for you to profit from the movements in global financial assets and instruments. In fact, it is one of the most profitable.
At the same time, it is very difficult. There have been quite a number of persons who have achieved that feat all over the world, and also in Nigeria. But it takes long periods of efforts, commitment and diligence. We can go on to list binary options millionaire success stories in Nigeria. However, we believe that their stories are not as important as the principles and mindsets that created such binary options success stories. Listed below are some of those beliefs, mindsets and principles that most binary options millionaires both in Nigeria and across the globe imbibed:
Never Depend on Luck
We have to state it; there are a number of persons who have had streaks of profits from the market, even if they were not knowledgeable enough. Some of these persons record good binary options profits for a while, but more often this doesn’t last. You can witness profits for a considerable amount of time after which everything goes bust.
To stay profitable in the market for a very long time, and to put yourself on the path to becoming a binary options millionaire in Nigeria, you have to subject yourself to proper trading education.
Binary Options trading is no talent; it is a transferable skill; and to get better at a binary options trading skill, you have to dedicate quality time, attention and practice.
Reasonable Expectations from the Market
One surprising mindset of millionaire binary options traders is that they don’t go into the market looking for big breaks. Of course, you can make serious money from binary options in Nigeria, in fact running into millions from binary options trading. However, you shouldn’t expect to make all that money at once. Having high expectations from binary options trading will lead you to overtrade, thereby exposing you to major risks. Successful Nigerian binary options traders go into binary trading with realistic and reasonably achievable goals, and once they clinch them, they leave the market.
Keeping a Trading Journal
A binary trading journal serves as a binary options trader is a record of your day-to-day activities that relate to trading; you can refer to it as your trading diary. Most successful binary options traders in Nigeria keep a trading journal, and that’s for good reason. Your trading journal contains your trading plan and system, and tracks how well you follow that plan on a daily basis. It also documents your growth and progress over time in your trading. Whenever you incur losses, you record the factors that led to them, helping you to avoid the same in future.
On the other hand, if you record profits, you can easily pen down the strategies that helped you incur such, enabling you to repeat the profits consistently.
Develop a Binary Trading Plan and Stick to It
Although already discussed above, the importance of having a trading plan with binary options brokers cannot be over-emphasized. One non negotiable benefit you get from drafting a plan and disciplining yourself to abide by it, is that it helps you avoid avoidable mistakes, and as a result, record minimal losses. The human person is prone to a lot of errors, but a well-written trading plan can help you craft a checklist of criteria to be fulfilled before you enter a trade.
Focus on only a few Strategies
Many binary options traders fall into the trap of learning many working and latest strategies. Successful binary options traders in Nigeria and elsewhere only focus on a few strategies and see that they work, rather than hopping from one strategy to the next profitable one.
Just like everyone else in the market, Nigerian binary options millionaires also record losses; However, what separates them from the pack is that they do well to cut those losses and not get emotionally attached to them.
Similarly, they use proper binary options brokers risk management for all the trades they enter, and as such minimise those binary options losses.
This is quite a complex question. Generally, binary options trading functions just the same way as other methods of trading derivatives.
Beyond these, however, there are serious downsides to trading binary options. They are summarised below:
Relatively Poor Risk Management Capabilities
Ideally, it is always said that binary options is a better form of derivative trading because it allows you to know beforehand what you are earning and what you are set to lose. This allows for proper risk management.
However, comparatively, we can say this is not true, and that binary options does not allow for proper risk management. This is because there are no stop-loss orders. Stop Loss is a price point at which you will like to exit the market when on a losing trade. As such, if your trade is at a loss, the Stop Loss order takes you out of a trade.
This is available on most other markets and forms of trading – forex, stocks, even cryptocurrencies – but not yet in binary options. This can lead you to make a whole lot of losses.
No flexibility as to style of trading
The binary options style of trading is actually “binary”. There are only 2 forms of executing a trade – CALL (Buy) or PUT (Sell). There are no other options or flexibility that you have with other forms of trading like CFDs. Here you can set pending orders such as Sell/Buy Limit and Sell/Buy stop. This way, you can take advantage of potential profitable trades even before they form.
You must have heard that binary options is a very profitable way of trading the markets. That is true, and there is no doubting that fact.
But you start to question that assertion when you consider what you are giving up. For a successful binary options trade, you are paid an average of 85% return on investment capital. However, if the trade turns out to be a loss, you are losing 100% of the capital risked. In essence, you are giving up everything to gain only a fraction.
As such, if you enter a number of trades with the same risk capital and you win 50% and lose 50%, you invariably will end up with a net loss. This will deplete your account.
Scams and Lack of Regulation
This actually is responsible for the bad reputation that binary options trading has. Due to the fact that a lot of binary options brokers are unregulated, there is ample space for scams to be committed.
As we stated above, the binary options space is full of scams. However, these binary trading scams come in different forms. Below we identified the types of scams that are rampant in binary options, so as to enable you to identify them better.
Trading Education Scams
One of the most popular forms is that of binary options trading education. Here, these scammers promise to teach you how to trade; with claims that you will become an expert trader in no time, and that you will make exponential amounts of money (with minimal capital investment) with the strategies they will teach you.
Binary Trading Signal Scams
Binary trading signal scams exist in the form of phonies promising to send you daily winning signals to trade the markets. They tell you that with their signals you can make extraordinary amounts on a daily basis, in the region of 200% or more returns daily. They pose as expert binary options traders with several years put into the craft, claiming that they have discovered secret methods that can give you the maximum winning every day. You should never fall for this because it is quite difficult to do signals in binary options.
Binary Options Investment Scams
A growing method of scamming people under the guise of binary options trading are investment scams. Here, persons pose as binary trading professional and experienced binary options traders; they ask you to invest your money with the promise that they will help you make exponential returns. They are getting quite popular and more aggressive on social media of recent. Usually what comes out of this is that they take your money and you don’t get to hear from them anymore.
Binary Trading Broker Scams
This is by far the most popular form of scams you will find in the binary options industry. Fake binary options brokers entice you to open binary options trading accounts with them, with promises of benefits that cannot be found anywhere else such as risk-free trading and high payouts, amongst others. What happens is that they take your money and then that will be all. Alternatively, they
set up their brokerage platform in a way to make you incur losses consistently so that they can gain. To avoid this, thoroughly research any binary options broker you choose; and then getting
recommendations from persons who have used that broker in the past is important.
Trading Bots Scams
A trading bot is a software that enters and exits trades without you being physically involved. Many scammers pose to sell profitable bots, of which many or even most – simply don’t work.