Financial Trading with Binary Options

Published:6 May 2016 Updated:4 January 2024

Today you can find a lot of information online about trading and specifically about such a tool as binary options. But, often, these are promotional materials aimed at building a customer base brokerage firms. If you approach the description of the algorithm of binary options, the ways of making profit with their help and the direct activity of brokerage companies working in this direction with an open mind, the picture is not so rosy, although with good prospects. You can not say out loud that binary options are a fraudulent tool, which contributes to the loss of your funds. No! Binary options are a reality of financial trading and many have made a fortune with them. However, when choosing this trading instrument it is worth to understand a few main points, which we will describe further on.


Binary options – it’s easy!

One cannot agree with this statement at all! Trading Binary Options as a kind of financial trading, as, however, any other instrument of making profit is a complex multi-day and constant work. It is impossible to start earning huge sums of money immediately after registration with a broker. Only experience, knowledge and understanding of all processes can lead you to success. Of course, the very principle of making profit on binary options does not cause any difficulties – a simple bet on the fall or rise in the price of an asset. But the beginning trader forgets that it is impossible to guess constantly the direction of the market movement and, as a result, the losses completely deprive him of the trading funds. But if you are a purposeful person and you are determined to succeed, then it is worth to say that there is a lot of educational information on this problem, which can turn any trader into a professional. Basically, such materials can be found on broker web-sites and provide the minimum of knowledge. Only some representatives of this market offer education based on clearly developed programs. An example is an educational section on a brokerage company’s site Binomo (site migration), where the client will get the whole basic set of knowledge through different approaches – from classic ones to videos describing all the dynamic processes of binary options trading and interactive tutorials. Even having received minimal theoretical skills, the trader can already, on average, increase his trading result by 30-40% to the positive side.


Profits on binary options depend on luck!

This is the reasoning of people who have never been involved in financial trading with binary options. Undoubtedly, there is a certain gambling element in trading at the exchange, but everything here is subject to the market laws and regularities, which cannot be observed in, say, a roulette game. To improve the effectiveness of forecasts and, accordingly, to improve the trading results, there are many approaches, the so-called trading strategies – is a system of rules, based on the work of automatic analysis tools (indicators) or on simple patterns of market movements (technical analysis), allowing to get the preponderance of profitable positions over unprofitable ones. For example, the same broker Binomo on his website offers a selection of strategies with quite high efficiency and which show high results when applied. Applying the trading systems, the trader no longer depends on ephemeral notions of luck, and carries out his activities on the basis of clear scientifically based approaches. Thus, a trader can get a preponderance of statistics in the profitable direction with the result of at least 65% contracts with profit, which already gives an opportunity to increase his trading capital permanently. On this basis, financial trading with binary options can undoubtedly bring quite stable results.


Brokers only cheat!

Discussing the activity of brokerage companies, of course, it should be noted that in this market scammers are quite common! Any activity connected with finances attracts this category. But if you choose your partner in binary options trading responsibly and with understanding, you can get full insurance against fraudsters. Often brokers who want to earn honestly together with you are trying to be as transparent as possible, have all necessary licenses, offer good cooperation conditions and, what is the most important, they do not spare money for extending their services and comfort of traders when trading with binary options. Let us focus on the following point. If your broker in the agreement specifies the withdrawal period of 5-7 days, then it is better to leave such a company at once, otherwise you will never receive the earned money. An honest broker usually withdraws funds in the shortest terms (up to 24 hours) and does not impose any additional conditions. If you take some time to study thoroughly the partnership agreement, you will protect yourself from trouble in the future. But in general broker companies try to act in accordance with the law requirements and, sometimes, completely exclude in their work any approaches, which can lead to fraud.


High trade risks

Any instrument of trading at the exchange is, first of all, risks of loss of funds. But considering this index of binary options trading, it is worth to say that it is quite manageable. There are many ways to optimize the risks and reduce them. A simple example. If in trading you use the contract sizes commensurate with the amount on your account, the risk of loss of funds will be minimal. Binomo broker set the minimum value of contracts at $1. If you trade such volumes of contracts, say, with an account size of $100, the risks will be only 1%, and the profit from the investment will range from 65 to 87% (depending on the trading asset). Therefore, the level of risks in binary trading is a very debatable question. Everything depends only on the trader: his aggressiveness, activity, skills and applied strategy.

As a conclusion I would like to say that binary options – it is, of course, one of the most real ways to generate income. But at the same time it can hardly be called easy and accessible to everyone. The laboriousness of financial trading with binary options is comparable to scientific activity because it requires permanent analytical analysis. However, the results are also quite high. By strictly following all the rules, principles and recommendations, a trader can get a multiple growth of their investments in a relatively short time.

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  • Binary options are just for those who are more than 40 years old to understand how binary options work, and moreover, how to make money on it will be very difficult.

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    • Papa Popov 21 May 2016 at 18:43

      If the situation makes it necessary, they will figure it out. For me, for example, it was all new to me too, and on the first day I couldn’t understand how everything worked here at all. There was no mentor, I had no previous experience in trading either, so I had to figure everything out on my own.

    • Kiril Ivanov 22 May 2016 at 08:24

      They can sort it out, or on the contrary, they can go back to their usual way of life and do nothing but complain about how bad life is now, etc.

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