How to select the Binary Options Brokers in Botswana?

In order to help the Binary Options traders from Botswana in making the best choice, we present the list of recommended Binary Options brokers. These brokers offer a Free Demo account with educational videos which can help and guide you in learning binary options. After obtaining knowledge and enough practice, you can switch to a real trading account. These Binary Options Brokers comply with strict regulatory guidelines and are shortlisted based on certain parameters and characteristics such as:

• Customer Service
• Compliance with the Regulators
• Safety and security of payment processing
• Number of tradable assets and payout percentage

Is Binary Options trading legal in Botswana?

The question always being asked by the traders is “Is Binary Options legal in Botswana?” and the answer is “Yes, it is legal to trade Binary Options in Botswana.” However, you should fulfill your tax liabilities and seek help from a tax expert to have a better knowledge of your tax liabilities. Finally, to trade binary options legally in Botswana, you must go for a regulated binary broker and maintain a log of your trade activities.

What is Binary Options trading?

Binary Options are one of the easiest and most innovative financial trading products made accessible to traders. These are the type of option that gives a fixed deadline for expiration with a fixed payout. It got two outcomes for any trade, either your prediction is correct or incorrect. You will get up to 91%* return on your investment if your forecast on price movement is accurate and lose 100% of the investment amount if it is wrong. In Binary Options trading, you know the value of profit or loss in advance. Therefore, you can handle the risk rewards ratio properly. However, in Forex trading, Loss or Profit are not known in advance. Consequently, it needs an advanced understanding and risk management. 

How to trade Binary Options?  An Example –

1. Select the asset to trade. (EURUSD, GBPUSD, etc. )
2. Predict price direction. (Price will go up or down as compared to present price)
3. Choose the investment amount. (Select an amount to trade with, example – $5 or $10)
4. Trade (by clicking CALL – if you assume the price will go up or PUT -if you believe the price will go down).

An Example of Binary options trading:

 Suppose EUR/USD is trading at 1.12053, and you predict the currency pair will be lower in the next 5 minutes. You want to invest $25.

• Look for EUR/USD in the broker’s asset list. Select 5 minutes expiry. Enter $25 as your investment amount. Click the PUT (SELL) button; it is done – you have set the trade. The return on this trade is 90%.
• You’ve now predicted that the currency pair EUR/USD will be lower than the current level of 1.12053 in 5 minutes.
• After 5 minutes, EUR/USD is trading at 1.12012, lower than the price 5 minutes earlier, when you began the trade. Your trade gets closed by the broker automatically after expiry of 5 minutes.
• Since your prediction was correct and EUR/USD is trading lower, your trade gets closed for a profit (known as in the money). The profit for a $25 investment with a return of 90% is $22.5 ($25 x 90% = $22.5) which is credited to your broker account immediately.
• If your investment amount had have been $100, you would have made a profit of $90 on just this single trade.
• Another expiry times are ranging from 30 seconds to up to 5 minutes in Turbo Trading option.
• And expiry of every 5,10,15 minutes, 1 hour and one day, end of the day also available with many binary options brokers.

How complicated is Binary options trading?

Binary trading is not complicated to understand. It is fast, easy to understand, and profitable, at the same time it carries a high level of risk and you may lose the invested amount completely. You would have lost $25 in just 5 minutes in the above-shown example trade if you were wrong in your prediction. If EUR/USD had closed above the strike price 1.12052, you would have lost the trade and your invested amount of $25.

Therefore, in trading Binary Options, you must manage the risk to be a successful trader and gain profit.

Should I trade Binary Options in Botswana?

It depends on your financial goal and expectations. As you have come to know by now, Binary Options may look easy to trade and manage, but it has a high risk of losing capital. Hence, nobody should invest more than he can afford to lose while trading Binary Options. The traders should always withdraw their initial investment and should continue to trade with the profit money.

Becoming a successful Binary Options trader requires Discipline, Risk management skills, Money management skills, and market analysis skills. If you can learn these skills, you can become a great Binary Options Trader in Botswana. If you find Binary Options trading in Botswana complicated, then you may try Forex and CFD trading in Botswana, because some traders find risk management in Forex trading easier.