Binary options much easier to understand for beginners than other trading products such as Forex or CFD . In this form of trading, it is important to accurately predict whether the price of an Under will rise or fall within the specified time period . Unlike other financial products, price changes don’t matter . The trader must actually specify when placing his trade only if the value after time is higher or lower than the initial value . No complicated calculationHow high the price change must be, for the trade to be worth the cost, no additional ordering functionality like stop loss, trailing stop or take profit.order. Jump or Top . Very simple. There is no obligation to pay extra.
But why is it always warning against binary options ? We have gone about this on the ground and have different binary options dangers referred to in more detail.
Binary options are a form of betting
While other financial products, such as Forex, CFD, or even stocks, profit or loss corresponds to price changes, there is no different amount for binary options. Either you win or you lose. In both cases, the amount is not determined by the price , but is given by the broker and is fixed at the time of the transaction . The same is true for sports bets simple (or bets on other events). The bookmaker sets a quota and the bettor can bet on a team. If this team wins , then you win is also a participant predetermined amount . If the team loses, Mission will be lost . The same is true of binary options , except that it is not about teams, but about increasing or decreasing the price .
Due to its high similarity with betting, binary options are veryrisky as well. Again, many factors are unpredictable . If the bet is lost, all bets will disappear . Even these addictive should not apply to bets, which are underrated even in binary options.
Binary options are not the right investment for every trader
Binary options are fun and trading makes for most investors much more fun than investing in stocks or other, more predictable forms of investment, because binary options often have the maturity is very short , so it can sometimes be seen live , whether the trade wins or loses Although the element of entertainment shouldn’t play a major role in serious investment planning , one cannot negate binary options have certain allure . That makes them interesting for investors, but no less dangerous .
Since in the case of a direct loss of a trade, work is completely lost , with binary options it is not advisable to invest money, but in fact is still planned for other purposes . Only capital that a losing trader can easily overcome is suitable for trading. Clients who do not have such funds or lose will still be “overloaded” should not under any circumstances trade binary options because then there is a risk of losing so much that it can become a serious burden. This is exactly what the warning binary options on broker websites aims to do : “It threatens to lose the entire deposit.” Customers should know thisPlease note before deciding to trade binary options.
High profit – high loss
Binary options attract many traders not only because of its simple structure but also because of high returns . With only single trade , users can still win about 90% of their investment in several brokers and in just seconds . There is hardly any other investment with likely high return potential .
However, shouldn’t reduce odds for a single trade. Although the high returns above is indeed possible here , there is no reasonable trader to put his full capital into one trade . If this is lost, and the probability of it never low, even with very good analysis , all money is gone . A long term trading strategy involves many trades, some of which win and some lose . In the event of a lost trade, as a rule, all stakes for this trade will disappear. These Binary Options Losses, of course, offset the high profits of other trades, because what is important is not what happens in a single trade , but what happens at the end day, week or month . This could still be high profit , but it could also be high loss .
Famous ads promise high returns with little effort
Unfortunately, not all suppliers are honest and advertisements are known to advertise most products better than they really are. Therefore, when advertising for binary options attention is called . Here is often high profit nhấnemphasisthat with a lot of experience and luck also can indeed be, but potential loss , if any, only mentioned in the pass .
Many newbies have “lost money” because of such binary options, “not even aware of the “real” risk of this investment. Anyone who seriously thinks about binary options trading and has the free capital needed to exercise should not be blinded by such promises , but should practice about binary options trading , develop management good risk management and set loss limit , he did not exceed. Only with a realistic picture of binary options can trade success long term .
Consumer protection also considers binary options important
The Consumer Protection Agency has been warning binary options for several years . In their opinion, this is a too high a luck factor and doesn’t represent a serious investment . However here, it can be argued that there are traders who live on binary options , on the other hand, there are also professionals who live from playing poker. Here, similar to binary options, accurate analysis, random knowledge and very knowing of the game are needed, so high luck factor will not cause death. Therefore, traders should seriously warn binary options and only with these actions, if they are aware of the risks, fully processed trades and can save money on spending .
Only deal with reputable sellers!
An important note that unfortunately is still too few newcomers to consider: Look carefully, to which online broker you entrust your money! Not all brokers are reputable and just because they promise high returns, you shouldn’t act early . With binary options, there are so many opportunities to make good trades every day and every minute , so you won’t miss it if you don’t sign up now with promising bidders . Examine the alternative offer carefully, and check to see if it really is a serious company. Good brokers do not deny the pervasive dangers of this investment and have integrated a clear binary options warning on their website . Also experience of other agents may be helpful. In our broker reviews, we gathered a lot of information about different providers.
Scammers often sit abroad
A broker who intends to deceive his clients often chooses his seat in a way that is difficult to appeal and is only bound by very loose guidelines . Therefore, many look for fake suppliers , for example in Caribbean island states , because of this problem, although there are licenses conditions and controls but more looser than others in the EU . Even in the case of disputes the so-called “offshore brokers” usually have a good card, because their headquarters are overseas, they are very difficult to reach,so customers here often have very little opportunity . Although not all brokers in distant countries are automatically suspicious, there are also very good providers . However, for starters, choosing a EU regulated broker is much safer . Good brokers make no secret of where their headquarters and which agency is regulated . Therefore, pay attention to the licensing on the broker’s website .
Bonus promotions often promise a lot of money
Many clients forget the binary options warning they usually read when they hear a broker giving them extra money when they sign up . Of course we are all of us, if we have a generous bonus offer Discover and promotions that often seem several hundred euros per customer will be given away, who gets even in the temptation , quickly with this provider to register and deposit.
Most of the existing bonus promotions in the industry not really dubious . Traders make a deposit and then receive more money on their trading account. However, this is not a “gift”, because the reward binary option as such usually doesn’t come without conditions . Most of the bonuses have been many times done with the trade where, have many binary options traders lost money yes, so neither of the deposit , nor of the bonus something that left remaining. And that’s exactly what it is Danger, which often overlooked is: Even if the bonus is on the trading account, it may do not pay . In order to meet the discharge conditions , traders take on the high risk as they may lose their entire deposit . Hence the profit from the bonus at the end of the broker, because it is possible that the traders meet the conditions and pay the bonus , but many only pay for a bonus and never run out .
Allow loss from the start
Loss of binary options is for beginners and experts to trade. Since the price is very difficult to predict in the short term , there is a very high spread in trading and even a trader can place the majority of his trade with positive expectation not make profit every day . Therefore, traders must expect losses . In extreme cases, even a good trader can lose his/her entire balance . Hey you should consult when entering binary options trading make people aware . Plan for the amount you deposit with the broker nothing else. Maybe you do it with a good profit . You can then pay it off . Only from this moment can the money be rescheduled for other things , but then it is no longer available for trading . You may also lose your entire deposit . But then you have no financial difficulty , because the money is reserved for trading binary options.
Conclusion: For binary options, caution is recommended
As we have seen, binary options pose dangers. Therefore, they are not suitable for investors looking for safe investment opportunities . Really people who manage to trade professionally with binary options. But even these traders risk that high profits are possible , but they also involve many dangers . Binary options warning warns that reputable brokers must post on their website regulatedbylaw, stating that it is a very risky investment and that full deposit can be lost . That cannot be denied , even if there are some traders because binary options is a very variable form of trading . Therefore, only money should be invested, even if the total damage can be easily dealt with . You should also before any notice to a broker have terms and conditions read carefully. Here you can learn the rules that apply for this provider and what you must find out. When looking for a suitable supplier, our broker comparison helps .