Binary Options Algeria
Living in the world of today has numerous opportunities and advantages but there are pitfalls too.
Both the former, and latter concerns data which is available to all of us.
On one hand, it has never been easier to get hold of information on any given subject due to Internet. On the other hand, the sheer amount of information is not just overwhelming but very often riddled with numerous inaccuracies or simply partial info.
For that reason, the intent behind this article is to offer Algerian binary options traders (both potential and actual) useful information on the subject of binary options trading.
What we shall give in this article will be a blend of general information on history of binary options as well as the very definition of binary options trading will be supplemented by more detailed information about trading options, available trading tools and features as well as different trading accounts, available assets and strategies used in binary options trading.
Legal issue as well as tax shall also be discussed as will some general instructions useful to novice binary options traders.
Brief History of Binary Options
The world of financial market hasn’t been the same since and popularity of binary options trading keeps on growing.
An attractive combination of affordability, simplicity and flexibility is responsible for the overwhelming global appeal of binary options trading.
Once traders grasp the core of binary options trading it can become a fun and profitable way to supplement their budget.
Binary Options Trading
Firmly defined by the name, trading binary options comes down to two elementary moves – down or up. Meaning, within the set time the price of the chosen underlying asset can either fall or rise.
Unlike the case with Forex trading, when it comes to binary options ownership of trading assets is not an option for traders. Rather, what happens is that binary options traders make a prediction about either rise (Call option) or fall (Put option) of the asset value in specified length of time.
Simplicity, as mentioned in the previous section, is one of the main attractions of binary options trading however, it is hardly the only reason for such planetary popularity.
Knowing beforehand how much they can make for each trade should they make an accurate prediction is another appealing feature of binary options trading.
Lastly, having the payout which is usually ranging between 75-91% with the vast majority of binary options brokers is certainly a boon which ties in neatly with the rest of the attractive package which binary options trading present.
Of course, there is more to binary options trading than simple guess work and hoping for the profitable outcome, however making an educated guess when it comes to a price of the certain underlying asset is the core of trading binary options.
Looking back, there is a pattern when it comes to financial trading and that pattern is comprised of individuals who possess abundant monetary means, wide-spread connections in the financial world and, lastly, in-depth education and knowledge of financial markets. The arrival of binary options trading made a fundamental change in which it became possible for the ordinary Joe to become a successful and active participant as a trader on the financial market.
Yet, all the above stated does not, in any way, cut out the need to learn more about binary options trading. To the contrary, gathering information can only improve trading performance and, in the long run, result in better profit making.
What is the key issue we are addressing in this section is the fact that the need to spend endless hours in the classroom and huge amounts of money in acquiring the knowledge necessary to participate in trading is significantly reduced.
All information is available online, traders just need to find reliable sources (such as broker review sites) which will provide them with accurate information.
Available Assets for Algerian Traders
Should interested Algerian traders browse some of numerous binary options broker sites, they will notice that available assets usually fall within four distinct categories: currencies, indices, commodities and stocks. Those, naturally, include numerous underlying assets which, depending on the broker, can number more than 200.
Prior to choosing the assets traders wish to trade with, we strongly recommend that they study the asset index which is available on broker platforms.
The added benefit of trading with binary options is the fact that traders are not limited by their locations and are, therefore, free to trade with assets of their choice.
However, one very important fact must be kept in mind at all times in order to avoid problems – local time of the asset. In practice, that means that if an Algerian trader wants to trade with a Japanese yen then it becomes crucial to be aware of Japan Standard Time as opposed to Central European Time used in Algeria.
Most Popular Assets
Below, traders can find brief explanation about assets available for trading with binary options and what might be the best underlying asset to start with.
Corn, sugar, coffee, silver, gold, oil – these were the goods of the trading world of old and they are still very much active today.
Because of their (usually) stable nature, great surprises are not something that mark commodities. Typically, the price of commodities rises or falls due to political situations, weather conditions, demographics or etc. Commodities are, basically, the easiest assets with which to trade in binary options.
Typically, the province of professional traders because of their high winning rate, stocks do demand that traders know more information in order to make binary options trading with stocks profitable. Thankfully, there are plenty of information available online so for those Algerian traders who find assets such as stocks appealing for trade, investing a little bit of time should not present a huge issue.
Google, Audi, Coca Cola, Microsoft, Toyota and Apple are some of the worldwide known stocks. Our suggestion to Algerian traders interested in stock is to learn more about these companies (or other companies which hold their interest) since that can help them to not just make a profitable trade but also help with the most basic of questions – which stocks to choose.
Not open to sudden alternations, which can make any changes in the prices a bit more difficult to predict is the fact that Algerian traders interested in indices have to keep in mind.
Nasdaq, FTSE 100, S&P 500, Dow Jones are all popular choices when it comes to indices and are available for trading with most of trustworthy brokers.
To date most popular assets in binary options trading, currency pairs are the choice for a lot of traders. Most times binary options traders opt to trade with currency pairs which are seen as strong: USD/EUR, GBP/USD, EUR/GBP etc.
Majority of reliable binary options brokers offer a healthy variety of currency pairs on their trading platforms.
The basic principal is to invest funds on a specific currency pair and then predict which currency within the pair shall either fall or rise. Making a correct prediction means that the trade was successful.
Possible Trading Options for Algerian Traders
Prior to venturing into binary options trading what Algerian traders need to explore are trading options open to them with binary options.
Depending on the broker, certain variations are possible, but options presented below (or most of options presented below) can be found on binary option trading platforms.
- 60 Seconds
- Range Options
- One Touch
- No Touch
- Pair Options
- Boundary Options
- Long Term
Choosing a trade option is not something interested Algerian traders should rush. Rather, take a little bit of time to ponder over the options that a broker of your choice has and then learn how they function before the actual trade takes place. Not every binary options trading style is the same, hence trading options available to traders will not suit each individual trader.
For traders who are new to binary options the simplest way to initiate themselves is to, perhaps, go for the most basic of trading options – High/Low.
The reason why High/Low options might be the best solution for a new trader is due to its utter simplicity: there are only two options available and trader needs to decide whether the price of the chosen asset will go down or climb upwards.
60 Seconds, as the name points out, is an option which lasts only 60 seconds and the trading principle is the same since traders has to opt for the price either going up or down. The advantage of 60 Seconds option is that traders can, in a very short span, execute numerous traders instead of waiting for a longer period of time in order to determine whether their trade was successful or not.
The principle of Boundary Option is based on two target prices, one placed on the lower side of the present market value and the other on the upper side of the present market value. A profit for the trader will be made if each market price is triggered.
One Touch is an option more suitable for those traders who have gained more experience in trading binary options since this trading option rests on a rather clear-cut prediction. Translated: a trader has to have a very specific value of an asset in mind in order to make a successful trade.
A rather similar option to One Touch, No Touch is based on the fact that the underlying asset selected by the trader can’t reach a determined value in the specified trading time.
Another straightforward option, Range Option, is based on the price range that underlying asset will trade within the selected expiry time. If the price does not move outside of the selected range the trade was profitable.
Getting to know different trading options is the key for Algerian traders since the stepping stone is the same – the value of the underlying asset picked for trading either goes down or up. What different trading options offer are simply shades, since different traders require different approaches to trading. 60 Seconds might work brilliantly for some traders but will not suit others. What traders have to discover is what works best for them.
Finding a trading option or, better yet, options can mean a difference between making a profit and being a happy trader or losing funds.
Trading Strategies in Binary Options Trading
It should hardly come as a surprise that apart from various trading options traders who wish to trade binary options also get to pick various trading strategies as well.
In this article we shall discuss some strategies traders might opt for. However, it is impossible to claim that there are strategies which always work without a fail. In fact, making such bombastic claims would be both untrue and misleading.
As is the case with various options, Algerians considering venturing into binary options trading should learn more about strategies on offer and then find what works best for them and their specific trading style.
Trend Strategy in Binary Options
This strategy is focused on vigilant observation of a trend line of the chosen underlying asset. Basically, one has to monitor if the trend line is going up or falling down. Careful monitoring of the trend line aids in making predictions for a trading asset in question and thus, further helps in making a decision whether the value of the asset will climb or decline.
Pinocchio Strategy in Binary Options
This strategy is based on drastic situations when it comes to asset values. Meaning, the value either skyrocketing on plunging. If traders believe that a price of a certain underlying asset will go through the roof the best thing to do would be to place a CALL option (Up) or, in the opposite situation, to place a PUT option (Down).
Reversal Strategy in Binary Options
Mostly used by those traders who have more experience in trading as well as market trends, this strategy calls for traders to place CALL and PUT options at the same time. For those underlying assets which are inclined toward sudden changes this might be a good strategy.
Algerian traders looking to trade binary options should look for a broker which offers a broad selection of expiry times.
Despite the fact that a long list of expiry times might seem a bit intimidating at first, what traders actually get is a choice which can be used to their benefit.
Most brokers offer 3 distinct lengths:
15sec, 30sec, 60sec, 2min, 5min, 15min and 30min are commonly offered for short expiry times whereas medium expiry times range from 1h, 10h, 24h+ and End of the Day with the long expiry times going from End of the Week, End of the Month, 30 Days, 150 Days to the End of the Year.
All three options have advantages and disadvantages that traders should be aware of.
With short expiry times traders have the opportunity to execute multiple traders in a relatively short time span. But, short-term traders are less easy to predict, that is to say it is harder to judge what will happen with the price.
Long-term trades are, objectively, less risky and can generate a better profit over time but the waiting period too is longer.
At any rate, interested Algerian traders should inspect this aspect of binary trading too and get all the pertinent info before they start the trading process.
Another thing which warrants careful consideration is choosing an account type.
Typically, brokers offer different trading accounts on their trading platforms. Again, this is done with different traders in mind since various account types will suit various traders’ needs.
In most cases, the amount of deposit is usually what determines what sort of account traders get. To get a better understanding, some broekrs offer expensive accounts, and others offer trading for only $10 minimum deposit!
Each account has a specific set of features on offer. Algerian traders interested in trading binary options should also study account types on offer with a broker of their choice and carefully pick the one that will suit them best.
What traders can expect is a choice between 3 up to 7 different account types, depending on the broker they wish to trade with.
Prudent thing to do before settling for a certain account type is also talking to customer support and ask specific detail about the account traders are interested in in order to avoid any misunderstandings or dissatisfaction later on.
As an online based trading venture, binary options are open to various changes and upgrades.
With that in mind it can hardly be a surprise that brokers came up with innovative ways of trading which make trading for their registered traders more efficient.
Two tools have been present on the binary trading platforms for a while now and can be put to good use by both new and seasoned traders.
Mobile Application for Binary Trading
It is said that prevention is the best cure, and with that in mind it becomes easy to understand why majority of binary options brokers offer a mobile trading application on their platforms.
The world of 21st century is one which has little or no tolerance for wasted opportunities or wasted time so putting available technology to good use and killing two birds with one stone makes perfect sense. In majority of cases, downloading and using the mobile app is free for registered traders (but, this should be verified with a broker traders have chosen).
Further on, most brokers, bearing in mind two predominant global mobile devices, have a mobile app for both Android and iOS mobile devices.
Some mobile apps are, more or less, identical to standard trading platforms while some other differ due to the much smaller screen, but this too varies from one broker to the next.
The advantage of using mobile apps for binary trading is the fact that traders are not limited to sitting behind the computer screen in order to do trading, but rather are free to do take advantage of every binary trading opportunity that comes their way regardless of their location.
While not strictly speaking a trading tool but rather a feature, demo account can be put to great use by both new and experienced traders.
What demo account offers to traders is a safe zone in which traders can practice binary options trading but without the fear of losing funds. In most cases, demo accounts are actually a replica or an almost-replica of the real trading account with the only difference being that the funds are virtual. In this way traders can practice their hand at binary options trading but in a fear-free and stress-free environment.
Obviously, the appeal of demo account for novice traders is rather obvious, but the benefit of demo account for experienced traders lies in using the demo to test different strategies and trading options not used thus far.
The benefit, in both cases, is gaining more experience and knowledge in binary options trading which can, ultimately, lead to more profitable trades.
Those traders who are interested in putting demo account to good use should either contact customer support or, if they have it, their account manager.
However, potential Algerian traders interested in demo account should also keep in mind that not all brokers offer this trading feature.
What can be of great help if that is the case with the broker of their choice, is utilizing educational materials.
Binary Options Educational Materials
In order to further help their traders, binary options brokers usually offer a wide range of educational materials on their trading platforms.
Educational materials typically offer trading lesions (varying from basic to advanced), video tutorials, e-books, economic calendars and presentations.
First and foremost, trading materials are designed and made available to ease new traders into binary options trading and thus make the start less stressful and more transparent.
Valuable information contained within the educational materials can tell traders about minimizing risk, chart signals, volatility of the market and how to master emotions while trading which can, sometimes, be the greatest issue traders face.
Every broker has a specific set of educational materials available like 24option or IQ Option so, the best course of action would be to study the materials available with the broker of traders’ choice since not all materials are free and some (if not all) depend on the type of account the traders has.
Bonuses with Binary Options Trading
Careful observation of binary options brokers will show that they all offer certain bonuses and promotions.
However, what most traders do is fail in getting more information about bonuses. Each bonus, if accepted, carries a specific set of conditions which must be met and fulfilled before the volume of the bonus accepted can be cashed out.
This is where it becomes extremely important for trader to read terms and conditions section. Banc de Binary, a well-known and respected broker, has an entire section devoted just to bonuses and explanation pertaining to them. But, every broker has a different bonus policy so we cannot offer a more detailed explanation here.
Whatever the case, before accepting bonuses traders have to make sure they have all the necessary information so as to avoid any misunderstandings.
Payment Methods and Procedures Available to Algerian Traders
What Algerian traders get with every binary options broker, is a variety of paying methods for making deposits and withdrawals.
Those usually include wire transfer but also credit/debit cards such as Maestro, Visa and MasterCard. E-wallets have also become rather popular of late so many brokers offer them as a payment method too so traders can typically choose between CashU, Skrill or PayPal.
Skrill is the payment method which is usually on offer with most brokers but is also available as a payment option in Algeria. Other payment options available in Algeria include SagePay, MyGate, Ingenico and WafaCash.
Some binary options brokers are open to alterative payment methods but in that case traders have to contact either the broker or customer support to get more details.
Another important aspect needs to be kept in mind when discussing deposits and withdrawals, and that is the KYC or Know Your Customer policy. That means that traders must submit certain documentation to the broker.
With some brokers that has to be done before making a deposit, but with all brokers traders have to submit proscribed documents prior to making a withdrawal. Documents which are usually needed (but please verify this with a broker of your choice) are: a copy of a credit/debit card used for making the deposit, proof of address and a copy of photo ID.
Another thing to keep in mind is the transfer of funds when it comes to withdrawals. This is a process since the broker first need to process the traders’ withdrawal request (from several hours to 2 days) with the additional 3-7 working days for the funds to reach traders’ account (but this too varies from one broker to the next).
Auto Trading Binary Options (Binary Options Robots)
Auto trading is becoming more and more popular and the reason behind it is, funnily enough, twofold or binary.
On the one hand, people feel reluctant to venture into financial trading where they are forced to make decisions and place trades on their own despite all the additional help and information available to them. On the other hand, auto-trading or binary options robots remove the human factor from trading and make their predictions solely based on highly logical and objective trading algorithms. When those two factors are brought together it easy to explain the popularity of binary options robots.
Besides, just like demo account, using binary options robots can serve as a great initiation into binary options trading for new traders since it gives them more time to find their ground and familiarize themselves with the process of trading.
The principle of binary options robots is that they utilize binary signals from renowned signal providers and put that info to good use at the right moment. The right moment in this case would be the moment when trader stands most chance to make profit.
Depending on the broker, some signals and robots are free while others are not. Traders’ job here is to do research, read various reviews, find reputable brokers and inspect if and what sort of auto trading they offer since there always exists a possibility that some of the robots are a scam.
Bottom line is, Algerian traders interesting in using binary robots should gather info beforehand, make an informed decision and then let the robots do trading for them. Opting for a Binary Options Robot auto-trading option is certainly a good way for Algerian traders to ease themselves into binary options trading process on the whole.
Different Types of Binary Options Brokers
There are several things that must be taken into consideration when discussing types of binary options brokers:
- Regulated vs non-regulated binary brokers
- Trading software used on the broker platform
- Accepting or not accepting US traders
Regulated Vs Non-Regulated Brokers
Generally speaking, a more prudent approach to binary trading would be to go for a regulated broker since those brokers have to respect and obey the rules and regulations which have been put in place by regulatory authorities.
Regulatory authorities which are well-known include Cyprus Securities and Exchange Commission – CySEC, Financial Service Board in South Africa – FSB, and Financial Market Authority in New Zealand – FMA.
Yet, to conclude that all those brokers who are not regulated are, automatically, either a scam or bad brokers would be hasty and uninformed. There are many unregulated brokers who have been present on the market for years and whose track record is impeccable. Therefore, as mentioned on numerous occasions in this article, Algerian traders interested in binary trading need to do their homework a.k.a research before they settle for a broker.
Binary options brokers also differ from one another by the kinds of software they use on their platforms.
At the moment, SpotOption is the leading software used on binary options trading platforms (more than 250 brands use this software) with leading brokers such as Banc de Binary using it on their trading platform.
Naturally, this is not the only trading software used and others include TechFinancials which is used by another mammoth on the market – 24option.
Panda TS software is used by another well-known broker Porter Finance.
Tradologic and TradeSmarter are also fairly known software used on trading platforms.
Other software (less prominent) used by binary options brokers on their trading platforms include: OSystems, HelloMarkets, Leverate, BynaryStation, TraderSoft and Lion Binary -Pro.
Occasionally, traders might encounter a phrase “proprietary platforms” when it comes to trading software descriptions. Such is the case with brokers like IQ Option and StockPair and what that means is they have designed their own, unique platforms which suit their vision to perfection and are completely independent.
Accepting US Traders vs Not-Accepting US Traders
Lastly, brokers can also be slotted into those who do or do not accept US traders and this is due to the fact that USA reinforces particular regulation in case of binary options trading. Because of his, US traders have a rather limited number of binary options brokers with whom they can trade.
The Question of Security
It is becoming increasingly difficult to find people who have not been scammed in one way or the other, which is why we are addressing the issue of security in our article.
Trading is, inevitably, connected with money and making funds safe is of utmost importance for both brokers and traders.
All trustworthy and reliable brokers will pay a lot of attention to the security of their platform and they will not spare cost in order to provide that for their traders.
Bearing in mind the sensitive nature of data being exchanged between traders and the broker platform, we urge Algerian traders to examine security info every trustworthy broker will have explained in detail on their platform.
Most commonly, information about security can be found in FAQ section, security section and terms & conditions.
As discussed in previous sections, brokers make use of different software on their trading platforms and SpotOption, TechFinancials and Panda TS are among best known and most commonly used.
In order to secure data, especially sensitive data such as credit card info and documents which have to be supplied to brokers like proof of address and photo ID, most brokers use SSL encryption system. The system functions in a way that it encrypts all data thus making sure that data transfer is secure. This system is mainly used in securing logins, credit card transactions and data transfer.
It is actually rather easy to check if the broker offers this sort of security since it will have a green padlock, green bar and a HTTPS mark in the URL address.
However, the responsibility also lies with trader themselves since they too need to make sure they store their passwords in a safe place and make sure their phones/computers also have proper security installed which will halt any attempts of third-party misuse.
Algerian Local Legislature & Islamic Accounts
Technically speaking, binary options trading is legal though there might be some additional legal aspects for a particular country.
The best approach would be to venture into binary trading by opting to do so with a registered binary broker such as Banc de Binary, 24option or IQ Option.
However, plenty of binary options brokers also offer Islamic Accounts which are suitable for Muslim traders since those are custom made to correspond with Sharia law and thus is not in any way problematic for Muslim traders.
The basic principle of Islamic accounts is that they are interest free and are specifically tailored for Muslim clients which, in case of Algeria, where 99% of population is Muslim, serves as a perfect solution.
Algerian Tax Laws
If one bothers to take a look at the definition of the word “tax” it is surprisingly simple – “a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales.”
Or, to cut it down to an even more basic definition – one ought to pay a certain sum to the government when generating profit.
However, the story behind the taxes is usually long, tangled and very often blurry or downright unclear. Every county has its own tax policy as well as specific categories within that policy.
Safety approach in this case would be to either contact authorities or to look for professional help in order to avoid potentially unpleasant occurrences.
Another potential problem, and a further reason to contact a professional in the area of taxes, is that not all countries put binary options trading in the same category.
Add to this that binary options brokers operate online and are (more often than not) not situated in the traders’ country of origin and the story gets another twist since some international tax laws might be applicable.
In the end, the message which is evident throughout this article, get informed and stay informed, is perhaps the most important one.
Every business venture carries a certain risk and that is true for trading binary options as well; brokers who claim this is a fool-proof way of generating profit are not being honest.
Binary options brokers who run a truthful, reliable trading business will make this fact well-known to their traders. In most cases, the risk warning can be found on brokers’ homepage, at the very bottom, and it will clearly state the risk involved in binary options trading.
All Algerian traders (potential ones or registered) should read it and be aware of it.
“How To” for Beginner Algerian Traders
The selling point of binary options trading is the fact that potential traders needn’t be financial experts with a business diploma in order to try their hand at binary trading.
However, to take this as an excuse not to do any research prior to start binary trading would be like walking on thin ice, or trying to eat a hot potato – unnecessary and, in most cases, silly.
With Internet, now available just about every corner on earth, any excuses for not getting informed are swiftly eliminated. There is an endless amount of information available to those who wish to know about binary options trading. Naturally, not all information will be useful or informative, but going to reputable sites dealing with binary options broker reviews is a great start since those offer objective perspective.
Next step is to visit trading platforms of perspective brokers and inspecting their terms & conditions section, reading their risk warning, FAQ section and available education materials.
Competent customer support is another important factor and when potential traders are considering which broker to choose, putting their customer support to the test is a good idea. How quickly they respond, how informative/clear/ useful their response is as well as the hours they are available should all help traders to make up their mind about which broker to pick.
Furthermore, Algerian traders considering binary options trading should also look into trading options and expiry times offered by a particular broker as well as which features and tools can be used. The more choice one has the easier it is to find a solution which will work for a particular trader and accommodate specific trading styles. In turn, that gives traders a wider field to play on and, correspondingly, it might aid them in generating higher profit.
Demo account can be a great helping hand for those just starting to do binary options trading but not all brokers offer this as a part of their repertoire, so ask beforehand whether this feature is part of the package or not.
Security is another point that should be explored prior to trading. As mentioned in the section about security, reliable brokers will make sure they use tested software and a security system (such as SSL) that will make sure all data transfer is secure.
Gathering information might be time-consuming, however, in the long run it usually proves to be the determining factor between loosing funds and generating profit.