Feb 27GMT Binary options are one of the most controversial trading instruments — for a reason: On the one hand, they are super easy to trade and therefore perfect for beginners.
Is it possible to make money with Binary Options?
But on the other hand, there are some binary options brokers out there that are simply a scam. Are binary options it is possible to make money on binary options Is binary options trading safe? And what is the best strategy for binary options?
You just need to make a decision if a certain market is above or below a certain price by a certain time. All you need to do is decide whether a certain market is closing above or below a certain price within the next hour!
As you can see, the possibilities are almost endless.
IF you trade with a reputable broker: YES. Will a market close above or below a certain level? I will show you a simple trading strategy for Binary Options in the next article. Most of these brokers are operating offshore in countries that have very few or no regulations.
As a trading vehicle, Binary Options are very safe since they are not leveraged. This means that you can not lose more money than you have in your account.
As you can see from the calculations above, the risk you take is limited to the premium paid on the option. You cannot lose more than your stake. Unlike in spot forex tradingwhere your losses can get bigger the further the trade goes against you which is why using stops are crucialthe risk in binary options trading is absolutely limited.
As you can see, trading Binary Options is safe. The best strategy for Binary Options is a strategy that makes it easy for you to pick the direction of the market.
After all, in order to make money with Binary Options, you need to know… Is the market more likely to go up or down? Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.
The Bottom Line Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That's why they're called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade.
You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment.
The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.