Can You Really Make Money Trading Forex Binary Options?

Binary options have become a popular way of trading financial assets online because of their simplicity and high returns. Nonetheless, various researches still show that only less than 30% of retail traders achieve profitability trading this market. For this reason, most investors often question whether it is possible to really make money trading binary options. The short answer is yes, but the long answer is that it requires hard work, commitment and dedication to consistently churn out profits from the binary options market.

Risk/Reward Ratio

Most critics of the legitimacy of binary options trading usually cite the risk/reward ratio that traders are exposed to when trading binaries. Usually traders can receive returns of up to 90% on trades they place in the market, which means that if a trader places a $100 trade he gains $91 if the trade is successful; if he is wrong, he will lose $100. His risk is essentially greater than his potential reward and this is the reason most critics dismiss binary options as a derivative of gambling.

However, what the critics fail to acknowledge is the ease of trading binary options as well as the potential to return profits within a quick turnaround time. In binary options, traders will book definite profits if the asset price closes higher or lower (even fractionally) than the strike price. In other market such as forex, the amount of profits will depend on how far away the asset price moves from the strike price, which implies that traders need to perform more thorough and in depth analysis than in binary options.
In binary options, traders have the opportunity of returning profits quicker than in other markets; this gives traders the chance to make money within a quick turnaround time. Making huge returns within such a short time is not possible in other markets.

How to Make Money with Binary Options

Choose the Right Asset to Trade

The first decision a trader has to make before placing a trade in the market is selecting an asset. This is not an easy task because the binary options market allows traders to speculate on prices of over 150 financial assets that include stocks, forex pairs, commodities and indices. It is important that traders select assets that have sufficient liquidity and volatility because money in binary options is made from price movement.

News Trading Strategy

Incorporating a news trading strategy as part of their trading plan can help traders minimize their trading risks and boost their profitability. This is because economic data is one of the major catalysts for price movement in financial markets. Due to the wide range of tradable assets in binary options, there is usually at least one high impact economic data release daily that will significantly impact price movement in the markets.

A trader who tracks economic data releases will have the opportunity to profit by anticipating such movements. Tracking economic data can also help traders reduce their trading risks as traders can avoid trading assets that are likely to be impacted by scheduled economic data release if they are unsure of the effect such data will have on the prices of the underlying assets.

Diversify your Trades

It is important to sign up with a broker that will allow you to trade different types of binary options contracts. There are various ways traders can trade the price movement of their favorite assets. Diversifying your trades will help boost your profitability in the market. For instance, traders can trade contracts such as short term options, long term options, Call/Put options, while other trade contracts available in the industry includes, Pairs, No Touch options, One Touch options, Ladder options and weekend options. In contracts such as weekend options, traders can make returns of up to 500% on a single transaction.

Protect Your Capital

Managing risk is the proven way of achieving consistent success in the financial markets. While amateur traders usually focus on making money, professional traders mostly focus on risk management.
The rule of thumb is that no more than 5% of the capital is put in a single trade. There are many trading opportunities in the market and no trade is better than the other.

Trading strategy

Having a sound binary option trading strategy is by far the most important factor: you might have the best assortment of binaries, the best and most complete source of information for news and economic data release and the best but if you don’t have a proven and statistically winning trading strategy you will not have a lot of satisfaction in binary option trading.


To conclude, it is possible to make consistent profits trading financial assets in the binary options market but traders need to work hard and to strictly follow a sound trading plan that will reduce their trading risks while enhancing their potential profitability in the market.

5 Comments on "Can You Really Make Money Trading Forex Binary Options?"

  1. Nice article, I am one of those believing in binary options.

  2. Trading is a good thing. I lost a lot before I got to were I am today. if you need assistance on how to trade and recover the money you have lost email me get new amazing strategy?
    If you are having problems withdrawing your fund from your Forex/binary trade broker even when you were given a bonus,just contact me, i have worked with a binary broker for 7years, i have helped a lot of people and i wont stop until i have helped as many as possible, here is my email address if you have a bonus that was given to and you wish to withdraw it

  3. the one reason why you are not yet making profits is that you ignore the messages in these comments. I posted about Mr. michael some years back and I just got a message telling me that my comment last year just made her life better. contact Mr michaeroland727 @gmail . com

  4. Hi, ……. Binary option trading offer!! Are you a beginner? Have you lost before? Do you want to make tremendous profits just like i did? Do you want to get all your lost funds back from your broker who thinks that you cant get it back? After losing so much i had to change my strategies thanks to Mr michael roland a mentor and a father of binary and Forex trading who helped me to get back all my lost funds and also helped me with a good strategy and software am using right now thanks for your help michael may God bless you and your family for your help…you can also feel free to contact him for his help and support if your going through any pain and difficulty in binary and Forex trade via michaelroland727 @gmail . com

  5. One wouldn’t really think much of this, all I really wanted to do was invest and be part of it but the way I was misled by this brokers was terrible, to easily take money from all in the name of investment and when I wanted to make withdrawals every single attempt was fruitless with constant hassle to invest more I really can’t say more than I have already said. I would really consider myself to be one of the very few lucky ones as I was able to have my funds recovered from this scam Binary option brokers, although it was through unethical means as far I am concerned but what can I care after how my hard-earned funds where taken from me, these guys are the best in less than 7days all my funds including bonuses had been recovered, If your broker lost your funds trading Binary options wealthrecoverynow dot co are more than able to get your funds back without any traces. Best of luck people.

Leave a comment

Your email address will not be published.