Trading binary options on an index such as the Dow Jones is comparable to exchange traded funds or ETFs which have also become very popular and widely used over the course of the last decade, where the investor is taking a position or speculation on whether the stock index, such as the Dow Jones, as a whole will rise of fall without investing or speculating on the underlying companies that make up the index.By contrast to the simplicity of trading online binary options, exchange based options contracts, bought and sold between investors over a centralized options exchange under the purview of the CFTC, may be sold anytime prior to expiry, their value is constantly changing so that constant attention by the investor is necessary to decide an appropriate time to sell the option contract. Furthermore, exchange traded binary options such as ETFs will require a broker which will of course result in brokerage fees and commissions, cutting in to the investors overall profit margins, particularly if you are making numerous trades for smaller stakes. With MarketsWorld online binary options trading you just predict whether the underlying assets value will be up or down at the trades expiry.Due to their simplicity, trading online binary options has made financial market speculation more accessible and because there are no brokers or middlemen involved you dont get charged fees or commissions on your trades. Experienced and beginner traders alike now enjoy the rewards and advantages of licensed and regulated binary options trading. MarketsWorld , proudly licensed in Great Britain since day one, also pays out at the highest rates of return in the online binary options trading industry up to 100 revenue per ITM trade so that our customers earn more profit Traders with MarketsWorld can speculate on the movements of the financial markets with total safety and reliability for the fairness of the real time price quotes, fair returns on their successful ITM trades, and the safety and security of their deposits and earnings. To read more about the specific benefits of trading with MarketsWorld please also visit this page: Why Trade Binary OptionsCopyright 2011-2015, MarketsWorld . All rights reserved. MarketsTheWorld Limited , Grosvenor House, 66-67 Athol Street, Douglas, Isle of Man, IM1 1JE, Great Britain. Licensed and regulated by the the Isle of Man GSC. Current license issued 6 April 2011.Understanding and managing risk is one of the main principles of trading successfully. Generally, traders should not risk more than 1 of their equity into a trade. The trades that they do enter should ideally give a reward that is at least 50 or more of their risked capital. Of course, the higher the rewards are the better the chances of success. For example at 1:3 risk reward would mean that you can risk losing one out of three trades and still keep a profit.Most traders tend to risk the entire equity into one single binary option trade which can be disastrous. This is nothing but greed at play which often comes alongside emotions. If a trader can be disciplined enough to risk their equity in small amounts, the risks can be better managed.If you have deposited an initial amount of 500, then make sure to not risk more than 25 per option. This simple strategy therefore gives you a chance to make 20 trades. Now if you have a good strategy with a 1:2 risk reward (or 1:3) it gives you enough room to take at least 10 losing trades and yet still be able to retain your equity.In the article Type of binary options, we covered the different types of binary options trading. ( Different type of binary options) Understanding how each of those type of options work is important. Also the fact each of the type of options offer different returns if the options expire in-the-money, it is essential for a trader to have a firm understanding of which type of binary options to trade under the changing market conditions. For example, a short term binary option expiry works best during or ahead of news releases, if a trader is very sure that the news will be bullish. Likewise, a long term trader could opt for a weekly expiry contract for a High/Low option if they believe that a trend for an instrument is changing.One of the advantages a forex trader has over a binary options trader is that they can keep a trade open for as long as it takes for price to reach its objective. This is not the case with an options trader because each of the binary options comes with a specific expiry time. It is important to choose the expiry time because for a binary options trader, it is essential that the options contract must expire in the money by the time the binary option expires. ( read more about Expire Time)The importance of using the right option expiry time cannot be stressed more. For example, your analysis might be right however if you select an expiry time that is too far away or too close it could result in a losing options trade.Tie your analysis to the options:Regardless of the strategy or analysis that you employ, always make sure to think in terms of the expiry time. This can be done by using the right time frame. For example a 15 minute chart analysis is ideal for an option expiry from 15 up to 30 minutes and in some cases even a 60 minute expiring contract depending on the prevailing market conditions. Quite often though, traders tend to lose track of the time frame and end up choosing the wrong option expiry time.Combining the above factors, a trader will be able to make more profitable trades in binary options as long as they stick to the discipline and do not let emotions such as greed or fear take over in their trading. Binary options, although simple as they are in fact behave the same way as any financial markets such as forex or equity. The only difference being that the options come with an expiry time. Understanding how the markets are behaving within the perspective of the type of option being traded and the expiry time can help a trader to risk their investment on more profitable trades.Binary options trading sounds too legit to be anything but above board.