Binary options are on everyone’s lips. And everyone’s opinions about binary trading are different. For some, this is a way to make money, and for others it is a scam, a way to lure money from gullible simpletons. What is it? We read the opinion of experts in our article.
What are binary options?
In order to understand what binary options are, you must, first of all, clearly remember that binary options are not traded on exchanges. Binary options are not investments or trades, but simply a bet on the price level.
Binary options traders do not buy or sell anything. The general point is to bet on a
price increase (Call)
or to lower it (Put).
At first glance, it may seem that binary options trading is a lottery, but it’s not that simple.
First of all, a binary option is a type of exchange contract that is supposed to help a trader make a profit depending on the change in the price of an asset. That is, either from growth or from falling. A binary option has a fixed price and a clearly stated duration of the contract.
To make a profit, the intermediary needs to make a bet on raising the price (Call) or lowering it (Put). Of course, the price of an asset cannot change from simple luck, but depends solely on economic factors.
Binary options trading systems and strategies
The main advantage of binary options is their compatibility with many strategies that are used in Forex trading. If you have extensive experience in Forex, then it will not be difficult for you to understand binary options trading.
Largely for this reason, there are not many indicators for binary options. More often they are the same as on Forex. As well as terminals for trading binary options, they are very often used from Forex. The most famous, of which MetaTrader 4.
The main strategies for trading binary options are the following:
- Martingale. It is also called Double up. Its essence is to double your investment. It is generally accepted that this is the best option for those who like to take risks.
- Roll-over. Each binary option has an end time for the contract. It can be 60 seconds. 30min. 1h or 1 week. This strategy allows you to transfer your money to the positions of the next expiration time. When you carry over to the next time, your investment increases by 30%. And then either you increase your positions by 30% or lose the same amount.
- Put+Call, Call=Put. This strategy is recommended so that you reduce the size of the investment and, accordingly, the potential losses when the price goes in the wrong direction as you need. The exact opposite of Martingale.
Read: Best Binary Options Strategies
Does it sound like a scam? And why would it be necessary to develop all strategies, or even borrow them, in order to deceive? Moreover, not only traders, but also investment companies make money on binary options. Would they do it if it was a scam? Unlikely.
So how to properly work with binary options in order to make a constant profit? What to do in order not to fall into the ranks of those who stupidly drain their deposit, and then write that binary options are a scam.
How to trade and earn?
The main thing in binary options trading is to correctly evaluate the asset and its profitability in a certain period of time. The trader knows in advance the amount of possible earnings or losses, which is one of the key advantages of binary options against the background of other types of trading.
A successful sale of a binary option can bring the trader from 65% of the original value of the asset.
But the profit threshold can reach up to 91%.
Beginners in binary options trading need to develop good discipline. Sometimes the lack of self-control leads to the fact that the trader loses his money. To make good money, you should very competently and carefully manage your deposit and not start with high risks. Do not allow your amount to burn out completely or at least half.
Interesting article: How to make money on binary options – step-by-step instructions and options trading strategies
To do this, you need to calculate your bets in such a way that you can lose several times in a row and keep the main money at the same time. The more time you spend learning and analyzing the market, the better your chances of making money. You should also learn how to make a high-quality market forecast and find reliable brokers.
Why do many people think that this is a scam?
Opinions that binary options are a scam are most often related to the fact that among binary options brokers, a very part may turn out to be scammers. However, scammers are everywhere. If you find a reliable broker, then the opportunity to earn money will be quite real.
There are many scammers in the binary options market, both brokers and fraudulent projects that lure money.
In order not to fall into their clutches, read
complaints about brokers
and
a review of scammers
Also, a fairly common misconception is the myth that when trading binary options, you can immediately lose everything and get into debt. But it’s up to you whether you’re trading with funds you can afford, or whether you’re borrowing money or trading for the latter.
Testimonials – true and false
But what about the reviews? How true are they? Let’s put it this way: some of them are written to order either for a specific broker or for a specific system. Some of it is left by those losers who thought that binary options were about clicking a button and getting a million. And only the rest is left by real traders who work and earn.
Which of them are left by whom?
One can only guess. Therefore, we recommend that you do not rely on reviews, but carefully study the industry, the broker with whom you are going to trade, strategies, and choose exactly what you like.
After all, the main advantage of binary options is that you can never lose more than you put on deposit. So, it all depends on you.
TRADE ONLY WITH HONEST BINARY OPTIONS BROKERS
Tagged with: Binary Options Reviews
