How to Get Started with Binary Options

When you are ready to start trading binary options, Nadex is ready for you. From learning about binary options to opening an account and making your first trade, we strive to keep the process simple and straightforward.

As simple and straightforward as we make it though, as a self-directed trader, in order to provide yourself the best possible chance at success, there are responsibilities that you have as well.

Have you done your research? Markets are constantly moving and shifting. It’s doubtful anyone has ever known everything about every market; however, you need to do your research to understand the basic principles of market movement and what drives any given market.

You need to understand that trading involves risk. Do you understand what your risk tolerance is? What percentage of your account should you risk on any given trade? What is your exit strategy for every trade? These are key concepts to understand in order to get off on the right foot when trading. One additional note on risk, whatever you decide to risk, should be risk capital. Some may even call this “disposable cash”. While you don’t want to dispose of your cash when trading, losses do occur. If you are trying to trade with money earmarked for your car payment or groceries, that is the surest way to lose money.



Make sure you know binary options trading is for you.


Think about the reasons you started trading. Maybe you thought it sounded fun, or exciting, or the rush of following volatile markets just grabbed you.

Chances are, those things are still what you live for when you trade.

Binary options allow you to simplify your trading to those elements while providing exposure to a way of trading that captures market volatility and offers multiple trading opportunities. With all of our unique contracts, you have total control over the risk you take on when you trade.

Trading today moves fast.

These aren’t the markets from years ago when orders were called in and you waited to check prices in the newspaper the next day.

You want opportunities to come fast and for results to come faster.

You want a robust marketplace that is filled with trading opportunities covering all the dynamic markets you love. Nadex binary options offer unique opportunities to take positions with exposure to volatility in both trending and relatively flat markets.

Nadex was built for traders that feel like they do better when they have more trading opportunities to select from. It’s why we want you to have so many choices when you trade.

Binary options are for traders that want the flexibility to convert an idea to a trading position quickly without trying to understand complicated products with confusing risk/reward ratios.

To learn more about how that works, check out the binary options course in our learning center.

We built our binary options to be straightforward and easy to follow for all types of active traders. New traders may enjoy the small contract size which provides access to the markets and the flexibility to trade at a level comfortable to them. Experienced traders may look to binary options to execute dynamic strategies and seize opportunity in all market conditions.



Things to consider when choosing a binary options provider.


The decisions you make about who to trade with are just as important as when you decide the price and direction of each trade. Here is a list of some considerations to make when choosing your binary options provider:

  1. How is the provider regulated and in what jurisdiction? Nadex, for example is regulated in the US by the CFTC
  2. How is your money being held and how easy is it to fund and withdraw?
  3. What is the cost of trading? This includes exchange fees for placing trades, account fees, deposits, data fees, etc.
  4. What markets are available to trade? Do they list a wide range of global markets?
  5. What types of platforms do they offer? Do you need to be stuck in front of a computer or do they allow the flexibility of trading from mobile apps?
  6. What hours are available to trade? Is trading open at a time that is convenient for you and offer flexibility to accommodate your schedule?



Practice binary options trading with a free demo account.


Open a binary options demo account and start practicing binary options trading with us in minutes. It’s quick, free and everything is accessible online.
After you register, we’ll give you unlimited access to practice binary options trading and explore our platform.

That way you can dig into every aspect of trading with us and learn more about the powerful environment we built for short term binary options traders.

Here’s how opening a demo account works:

  • Take a minute and register with your basic information.
  • Your demo account will be up right away. This lets you practice trading binary options in any of our markets in minutes.
  • Enjoy the same flexibility to trade from any device.

We want you to learn more about binary options trading and how everything works at Nadex, so we make it as easy as possible to open a demo account to trade binary options and access our resources.



Open a binary options trading account.


One of the best parts of trading binary options is how simple it is, and we want opening an account to feel the same way.
You can open an account quickly and get started right away trading binary options.

Let’s walk through the process to open an account to trade binary options with us:

  • Take a minute to complete the basic application and upload a few documents.
  • Fund your trading account with a minimum opening balance of $250 using a wire transfer or debit card.
  • Check out the platform and your ability to trade on stock indices, commodities, forex, and more from one secure place.
  • Enjoy your new flexibility to trade binary options across many global markets from any device with the same account.

We will take you through a quick and easy account set up process and then you will be ready to go on our trusted trading platform.



Pick a market and make your first trade.


Man trading on Nadex

After you register for an account, you will be ready to trade.

You will discover we offer a robust marketplace where you have many choices of markets, strike prices, and timeframes for trading. We work to do it in a way that makes it simple and easy to get started trading binary options.

When you are ready to make a trade, you’ll want to select a market. Take a look at the different timeframes and strikes, and find one that matches your opinion of what you expect to see happen.

When you choose a market, use our simplified order ticket to place your trade. All the information you need for your trade is there, including a clear look at your maximum risk and reward.

How you manage the market action and your trade is up to you.

Let’s summarize those four steps to placing your first trade:

  1. Choose your market and expiration
  2. Choose your strike
  3. Place your order
  4. Manage your trade until expiration or exit early



What to read next: