Anyone who informs themselves about binary options on the Internet often encounters risk warnings very quickly . Among other things, risk of loss is very high and even all deposit can be lost . But how dangerous is trading in binary options , also very popular among beginners ? Should he be better avoided, or is this form of trading better than your reputation? We have weighed the pros and cons in detail together and want our readers in this article to be ‘objective’ about the ‘risks’, but also the ‘opportunities’ of trading with informed binary options.
Highly speculative binary options
Binary options are considered one of the most speculative forms of investment . This is because price developments are very difficult to predict and especially with short maturities there are always unpredictable fluctuations that can occur. Therefore, it is possible to do an accurate price analysis and make a statement about the most probable course , but here also the luck factor plays an important role. Therefore, it is advisable to invest only money in trading, the loss of money will not cause any major financial constraints for the trader. If in doubt, initially just should pay a small amount. Beginners can trade binary options on multiple providers without risking too much . Money needed for other purposes should never be used to trade in binary options. If there are not enough financial resources, trading should be avoided.
Bet with high profit or total loss
Binary Options is designed to help beginners in derivatives trading. While “classic” financial derivatives such as Forex or CFDs have many options for opening and closing positions and thus also multiple sources of error , binary options trading is deliberately kept simple . The duration of an option has been set at the beginning, so that the trader does not have to close it himself. The amount of price change exact also doesn’t matter for binary options . It just needs to predict whether the course will expire after the timeout is higher or lower than the start time If the trader is right with his tip, he wins, if he is wrong, he loses the bet. Therefore, binary options have similar structure to sports or other bets and are easy to understand even for beginners .
Having a few options allows beginners to focus on the essential parts of the analysis and not have to deal with too many factors. On the other hand, professional traders often turn to more complex forms of derivatives trading such as CFDs, because the larger number of options greatly reduces the luck factor compared to binary options feces .
Best binary options winning strategy
Safe profit strategies do not exist when trading binary options. There is always high risk of loss , because even experienced and professional traders have high spreads . They try to buffer them by acting with a sophisticated binary options risk management .
In order to be able to make profits in the long term with binary options , it is necessary to have a very good foundation knowledge . Traders need to know how to analyze prices to best estimate their course. However, even the best traders will always have periods when they can’t make a profit, but lose money in the trade . This is calculated and, if possible, should be compensatedby risk management .
Successful traders continue to educate themselves and recognize when paying to place trades. They increase their binary options odds by investing exclusively in trades with positive expectations.
In addition to transaction risk, there is also fraud risk
The risk of binary options is high anyway, but there is another danger added: not all brokers that offer binary options trading are reputable companies . As trading with binary options is becoming more and more popular in recent years and attracted by the simple structure of trading, many beginners are inexperienced , unfortunately, some scammers trying to make a profit with questionable offers at the expense of the customer . There are several possibilities. It can, for example, the Transaction Price bemanipulated in favor of the supplier . As a result, the trader loses more of his stake than usual and the broker, in this case acting as a market maker, i.e. the direct trading partner of the client, makes a profit. Another danger with suspicious brokers is that they do not pay off customer’s money reliably . As such brokers are usually located outside the European Union , the legal process is difficult and the chances of success in a lawsuit are low.
Therefore, clients of binary options brokers urgently need to ensure that the chosen provider is ‘serious’ and , if possible, has an EU license . In our many test reports.we also draw conclusions from the customer experiences of different brokers.
Possibility and limitations of price analysis
To be successful as a long-term trader, beginners should focus on technical analysis . Only with necessary knowledge can binary options give a win rate that is not based only on short term luck , but can be sustainable for a longer period of time . However, it must be said very clearly that even the best analysts cannot predict the course of the courses with certainty . There are too many factors at play here and just because of the short maturity of the binary options, the price within this short time period cannot be accurately calculated. Therefore, technical analysis is not about making a 100% safe decision, but the goal is simply predicting the most likely price level . Not all times are profitable to enter. Therefore, good traders carefully consider whether can predict probability of price development so well that it is worth placing a trade. In case of doubt, it’s better to stop investing , because high supply will give you better chance in a very short time .
No sound risk management, it’s pure gambling
In order not to suffer a all-out loss in trading , professionals often use a rather conservative risk management . This means that even on promising transactions, they never spend more than a relatively small part of their entire balance . With each trade, the loss of the entire investment is threatened and this will not affect the total credit too much. Therefore, the maximum investment amount will always relate to available capital considering: The trader sets a certain percentage for himself, which must not be exceeded. The lower this percentage, the more risk binary option can be minimized to lose all trading capital if the good trading decisions are made.
Trading Professional Binary Options
Although the binary options risk is very high, there are still some professional traders specializing in making and living off this form of forex trading. While many experts due to the variety of choices often sooner or later for forex or CFDs changes , professional binary options appreciation is just the simple of investment form. However, good professionals also know that there is no 100 percent binary options profit strategy and accordingly careful with using their capital.
To be able to trade binary options professionally and in the long term , very good risk management is indispensable. In social trading , recently successful traders also have the opportunity to earn extra income by allowing other traders to copy and apply their investment strategies in real time .
With a demo account trading can be tested without risk
To get the first insight into trading binary options and try it for yourself, no need to take financial risk . Meanwhile, many brokers offer a free demo account . This can be quickly opened because it only needs a few details . Customers can then freely and without commitment with play money betting on trading securities.
Not only to learn brokers and markets, free demo accounts. They are also a good way for already active traders practice their own skills without risk and continue to expand them. New strategies are not tested with real money, but can freely be tried and refined until the user is sure can profitably use them even with real money .
A binary options margin is rare
Although the risks with binary options are very high, as the many warnings suggest, there is an obligation to contribute additionally, as often happens with brokers for other financial derivatives, but this is not customary for them . This is because binary options are bet financial using only the actual amount in the account. In contrast to leveraged products , a trader cannot lose more than his actual use on a trading account . This has the great advantage that binary options have a good riskleaf. In any case, traders should never deposit more money into their trading account than they can easily lose without financial restrictions . Anyone who can maintain a high degree of discipline here and consider the money paid into the trading account as a risky investment where the loss is intentionally madecan trade in binary options calmly. poop without fear of losing more money than you can afford.
Bonus must be animated with high deposit
Many online binary options brokers offer their clients a bonus on their first deposit, or maybe even on additional deposits. This is to inspire clients about their own offer and stand out from the competition, after all, merchants who come here are given extra credit . Many traders are tempted by such bonuses to deposit more money to their trading account, as they planned , because usually there are higher deposits also more money” is given. ” .
Of course, brokers don’t really have money to give away. As a rule, they no loss in bonus offers because the payment of bonus balance is subject to strict conditions . As a rule, clients have to convert bonus amounts multiple times into transactions before they can actually pay them out. The revenue conditions are designed byi brokers so that additional costs are recovered onlybroker profit on bonus asset conversion . Therefore, the bonus is not really a gift. A deposit with a broker should always be so high that the trader through it should have no financial problems , even if the all deposit will lose . Of course, if there is an additional bonus , it is welcome and can really increase your profit under these circumstances .
Results of our analysis: Risk can be controlled by appropriate methods
Binary options actually have a very speculative personality and luck plays an important role in trading. Therefore, this form of investment is not suitable for all traders and the total loss can happen at any time despite good risk management. Therefore, the money should only be used, not needed for other purposes and the loss of money can be planned from the beginning . Since there are no binary options brokers in most financial obligations the trader is at maximum risk of the amount that he or she has deposited into the trading account. This should be kept low. Losses for customers should not be a big deal .
Before you start trading with a broker, please inform yourself in detail about its terms and make sure that no additional funding . Despite good price analysis and professional risk management, trading in binary options is risky and can lead to lost all deposit .