What are Binary Options Signals and How to Use Them
Binary options trading signals are recommendations given by traders who have consistently shown to produce profitable results. Depending on the type of trading signal being used, signal subscribers have choice in deciding whether or not they want to make a specific trade recommended by their provider, so there's no obligation to mimic every single trade.
Binary options trading signals are the perfect way for beginners, who may not have the skills or experience necessary, to get acquainted with binary options while making a profit. Trading signals are also great for investors who lack the time to dedicate towards examining charts for hours everyday.
Every signal provider is slightly different, and so there are multiple ways to have the signals delivered and copied into a trading platform. No matter the type of signal, each trade idea comes with a strike price for the asset being traded, the direction that price is expected to follow, and a recommended expiry time.
Through binary options trading signals, beginners have a much higher chance of growing their account size.
How Are Binary Options Signals Formed?
The reasoning behind a specific signal being produced will differ. Signals are formed on the basis of technical and/or fundamental analysis. Algorithmic trading, along with other types of software signals, typically use a combination of indicators, trend lines, and support and resistance levels to produce trades.
In the end, the way a signal is formed is determined by the type of trading style used by the signal provider. Some signal providers read candlesticks and price action, while others use indicator-based strategies and others are masters at reading news flow and understand how economic changes will impact the markets.
Types of Binary Options Signals
Rather than strictly looking at its monthly price tag, the type of signal provider a trader uses should be based around their lifestyle, as well as their own preferred method of trading. Here's a quick look at the different types of binary options signals and how they're used.
Live Trading – Live trading rooms are run by traders who have years of experience in the financial markets. These signal types are live streams of the signal providers chart, so subscribers are able to see exactly what the investor sees. There's also usually a chat feature where subscribers can interact with the provider to get help or to bounce ideas off each other. These types of signals are excellent for beginners who want a real learning experience alongside their signals.
Email/SMS – Email signals are the most common type of trading signal because they're simple for both the provider and the subscriber. When the signal provider has a trade idea, he relays the information to the subscribers through email or SMS text message.
Automated Signals – Automated trading signals are commonly used by traders who work day jobs and don't have enough time to dedicate to full or part time trading. Automated signals can come in the form of robots, software, or a social trade copying service. Automated trading signals aren't known to be the most reliable in the long run, but they can be a fast way to earn good returns.
