Binary Options South Africa
Since binary options emerged in 2008., the exotic asset has led to the evolution of a whole industry, with many participants including news websites and brokerage firms and South Africa has not been left behind. In fact, South Africa is now home to a sizeable segment of binary options traders. Perhaps, of all, the most important reason for the increasing popularity of binary options South Africa is the ease of their trading: you just need to correctly predict whether the underlying assets of an option will go up or down within the expiration date for you to win a payout!
Binary options have been considered rather controversial in many countries. However, most of those controversies have been dispelled by the regulatory authorities of those other countries whereby their trading is permitted. For example, the trading of this exotic asset class is completely legal in South Africa. Furthermore, binary trading in Nigeria is legal, the same as in many other countries.
A variety of binary options brokers offer numerous trading instruments and services for investors in South Africa. If you are looking for detailed information on binary options South Africa brokers and how to trade underlying assets on the financial markets, this is a website with the best binary options South Africa trading information.
Binary Traders in South Africa
Before you join the rapidly growing community of binary traders in South Africa, make sure you also understand the risks involved. First, like in every other type of financial trading, is the market risk, the tendency of financial markets to go in unexpected directions. No amount of thorough analyses can tell exactly where any financial market is headed. Specifically, for binary options, there is also the disadvantage of limited upside potential. That is, all your gains are capped.
E-wallets is a popular way to deposit by traders in South Africa. The most commonly used are Webmoney, Skrill and Neteller.
Furtherly, binary options are not very liquid. That is, their contracts cannot be exercised at will. You always have to wait until their expiration dates before you can take either your profit or loss. Additionally, when you trade a binary option on a particular asset, you are not actually trading the asset.
Perhaps, the most important risk for binary traders in South Africa is the sparse regulation of binary options brokers.
The good news is that all those risks can be adequately managed. The first step do so is to choose the right broker, a broker that will help you limit the risks through protection rate and other loss-limiting features. With those features, you can ensure that you will never lose the whole of your investment on any trade you take. And to protect yourself, ensure to always limit your exposure and trade only with amounts you can afford to lose.
For example, as an aspiring binary trader in South Africa, you should ensure that the broker you will be using is registered with the Financial Sector Conduct Authority – FSCA (formerly Financial Services Board – FSB). This is the most notable thing to confirm in order to prevent any negative experience down the line. In fact, a binary options broker being appropriately overseen by the country’s foremost financial services regulatory authority is the most important litmus test it must pass.
Iq option traders in South Africa
With a right broker, you can actually start trading binary options without risk, for an example, by opening an iq option demo account. Not only will you start off risk-free, but IQ option will fund your demo account with a virtual trading balance of $10,000 to trade digital options and binary options. One of the most frequently asked questions in the binary options South Africa trading community is, is iq option scam or legit? We can strongly confirm this broker is not a scam, on the contrary, Iq option can be regarded as a forerunner of the industry in all aspects – perpetual upgrading of their trading software, complete transparency of the company operating the broker, swift, efficient support services and simple withdrawals.
In our Binary Options South Africa broker reviews, investors can choose an appealing trading platform, browse through and start their journey in the binary options industry as informed as possible. With the use of multiple binary features, available on this site, we believe that our South African investors may enjoy in binary options trading experience.
We try to provide the best useful information that can help binary traders in South Africa to deposit with a particular broker and start their binary options trading journey on the best profitable way. Binary.com minimum deposit along with Deriv.com has the lowest deposit requirement in South Africa. You can get started for only $5 if you deposit with an E-wallet or $10 if you deposit with any other deposit method.
As a potential South African binary options trader, you should know what exactly binary options trading entails, the strategies and tactics needed to successfully trade them, the advantages and risks associated with engaging in them, and how you can maximise your skills to reap bountifully from them. To help you in achieving all these, we offer a list of binary options brokers and their comprehensive reviews.
Hence, via our website, you can get to know each of the binary options brokers, their different offerings in terms of general brokerage and online trading requirements such as the regulatory status, catalogue of offered assets, the payout percentage, the bonus culture, the supported trading platforms, and the customer support service. Also, you should check the conditions under which you will be trading with the broker such as risk management features and analysis tools.
Binary Trading South Africa
Binary trading South Africa is not without its challenges. For example, there is the challenge of a broker that offers useful services. So, you have to evaluate available options based on a number of factors that can have a huge influence on your chances of trading success. For example, you have if know that the broker offers the best of trading platforms. Does it compensate its clients on their lost trades, an arrangement known as “protection rate”? How about its customer support service?
As a result, we identified the need to educate prospects to binary trading South Africa on all information related to the binary options industry. We have been rising to fill this knowledge gap. Welcome to our portal where you can get up-to-date reviews of binary options brokers, read the latest financial news, and learn any binary options trading strategy and tactic of your choice so that you can get quality trading services in the end!
Binary option trading can have many advantages for South African traders. On our site, you can check the list of binary brokers and their reviews in accordance with the information in them, regarding trading platform, payment methods and available binary options features. Transparency and facility of binary options trading are among the most important elements in the trading process. For this reason, it is crucial to provide you the accurate and up to date information on all things relevant to the binary options industry.
However, in spite of their increasing popularity, there is a widening information gap for binary traders in South Africa. For example, many individuals aspiring to be their traders are simply clueless about how to start. They do not know the right broker to choose and those parameters on which their choice should be based such as safety and security, required deposit minimum, supported deposit and withdrawal methods, the quality of the trading platform, and other similar features.
Those interested in binary trading South Africa can find on our site a variety of useful topics and list of reliable binary options brokers reviewed by us. Besides useful trading data and information, South African traders can check our best binary robots section and know more on what is binary auto trading and how efficient can it be in the trading process.
Most especially, remember that you are going to have special financial relationships with your broker. It will hold your funds. It will execute your trades. If its trading platform is subpar, it can really ruin all your chances of achieving profitability trading options. This is where our reliable reviews can work. They will help you in choosing the best that will work to help you achieve your trading goals, instead of against them.
Understanding Options Trading South Africa
One might think that Options trading is just short for binary options trading. Far from it.
Options Trading can be defined as trading options, or contracts that allow, but at the same time do not oblige you to buy or sell an underlying instrument or an asset, at a predefined price over a certain period of time. Most commonly the underlying instrument is a security, Exchange Traded Fund (ETF) or index. Options Trading South Africa is done on the South African options market, which then trades contracts based on securities.
Even though a contract gives you a right on a certain underlying instrument, you do not gain ownership over it, unlike trading shares for an example.
There are two different kinds of options:
- call options, which gives you a right to buy into a certain underlying instrument at a specified price within a certain timeframe;
- put options, which gives you a right to sell a certain underlying instrument at a specified price within a certain timeframe.
With Call Options, you are aiming to make a profit on the underlying instrument’s price going up at some point in time, whereas with Put Options your goal is to sell the underlying instrument you already hold, at a predefined strike price, expecting its price to go down.
The fee you pay in Options Trading South Africa is called a premium, and the contract buy or sell price is referred to as a strike price.
You can draw a similarity line to binary options trading, in the sense that you trade based on the expectancy or a prediction that a certain underlying instrument will drop or grow in its value.
Trading a call option is betting that a price of the underlying asset will go up in a predefined timeframe and contrary, trading a put option means expecting the price of the undelaying instrument will go down, again, in a predefined point in time.
The timeframes play an important role in Options Trading South Africa. Most commonly, you would go after the Call Option, in line with your expectancy that the future value of the underlying asset will rise. Timewise, the Call Options are usually Long, and the Put Options are usually Short. Time of the option is also important in respect to the options value and the premium you will pay – the more time there is until the options expiry, the higher the premium will get.
Another key metric of the option value is whether it is in the money, or out of the money at the time you are buying the contract. In very simple words -an option that is in the money, can be sold off immediately for a profit, hence the extra fees may apply.
From the volatility aspect, Options Trading South Africa can be considered as a bit more resilient to market fluctuations than Binary Options Trading. Very often and not entirely argumented, the Options Trading is considered as more reliable, given the underlying instruments used for the trading.
When it comes to risk, the same levels of risk are involved in both binary options and options trading South Africa. The risk lies in the market volatility and the choice of brokers on the markets itself.
Same as in every trading, education is of the utmost importance – getting to know the underlying instruments, the options trading strategies, the broker, the terms and contract conditions, the premiums and a lot more before taking the plunge into the options trading South Africa.
We at Binary Options South Africa believe the content of this will help shine the light to many binary trading relevant topics, in particular those we consider to be every trader’s “first-aid-kit” when starting off. Feel free to use the benefits of our research!