Binary options alert

Binary options are easier to understand for beginners than other trading products such as Forex or CFD. In trading, it is important to correctly predict whether the price of the Underlying will rise or fall within a specified period of time. Unlike other financial products, it doesn’t matter how much the price changes. The trader must determine when placing his trade only if the value after the time is higher or lower than the initial value. There is no complex calculation of how high the price changes, so the trade is worth it despite the cost, no additional order functions such as stop loss, trailing stop or take profit order. Hop or Top. That’s the easy one. There is no obligation to make additional payments.

But why does it always warn against binary options? We go about this issue on the ground and have different binary options dangers discussed further.

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Binary options are a form of betting

While other financial products, such as Forex, CFDs, or even equities, trading profits or losses are proportional to price changes, there are no different amounts 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 already fixed at the time of sending the trade. The same goes for simple sports betting (or betting on other events). Bookmakers set quotas before setting and bettors can bet on one team. If this team wins, then you also win the previously determined participants. If the team loses, the bet is lost. It’s the same with binary options, except that it’s not about the team, but about the rise or fall of the price

 

 

Due to their high similarity to betting, binary options also bear the same risk as this. Again, many factors cannot be accounted for. If the bet is lost, the entire bet is lost. Even addiction does not have to apply to betting, it is taken lightly even in binary options.

 

Binary options are not the right investment for every trader

Binary options are very interesting and trading makes most investors more pleasant than investing in stocks or other predictable forms of investment, because binary options usually have a very short maturity, so sometimes it can be seen immediately, whether the trade wins or loses. Although the entertainment factor does not play an important role in serious investment planning, one cannot deny the certain appeal of binary options. That makes them attractive to investors, but no less dangerous.

Since in the case of trading that is lost directly the complete job is lost, with binary options there is no money to be invested, which is actually still planned for other purposes. Only the capital that the trader loses can easily be settled suitable for trading. Customers who do not have any money or their losses will still be burdened should not under any circumstances trade in binary options because then there is a risk of losing so much that it can be a serious burden. This is the same with binary options that warns the intended broker website : “It threatens to lose the entire deposit.” Clients should be aware of this Caution before making a decision on binary options trading.

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High profit – high loss

Binary options attract many traders not only for their simple structure, but also for their high profits. With just one trade, users can still win about 90% of their investment in several brokers and in a flash. There is no other investment that has a high profit potential.

However, opportunities cannot be reduced to a single trade. Although the above high profits are indeed possible here, no reasonable trader puts all his capital in one trade. If this is lost, and the probability is never low, even with excellent analysis, all the money is lost. In a long-term trading strategy, many trades are completed, some winning and some losing. In the case of a lost trade, as a rule, the entire stock for this trade is lost. This binary option loss certainly meets the high profit requirements of other trades, because what matters is not what happens in one trade, but what comes out at the end of the day, week, or month. This may still be a high profit,

 

Indifferent advertising promises high profits with little effort

Unfortunately, not all sellers are honest and advertising is known to advertise better products than they actually are. Therefore, when an ad for binary options attention is called . Here often a high profit emphasizes that with a lot of expertise and luck also may actually be, but the potential loss, if any, is only mentioned in passing.

Many newcomers have lost money because of such binary options, without realizing the real risk of this investment. Anyone who seriously thinks about binary options trading and has the necessary free capital to do it should not be blinded by the promises, but should be realistic about trading in binary options, develop a good risk management and set a loss limit, he does not exceed. Only with a real picture of binary options can trading be successful in the long term.

 

Consumer protection also sees binary options as critical

Consumer protection authorities have been warning about binary options for several years. In their opinion, this is an excessively high luck factor and does not represent a serious investment. However, it can be said that there are traders who live in binary options, on the other hand there are also professionals who live from playing poker. Here, similar to binary options, accurate analysis, stochastic knowledge and an excellent understanding of the game are required, so a high luck factor will not be fatal. traders need warning binary options withTherefore, take it seriously and only with this action, if they know about the risks, have dealt with the trade enough and can save the money spent.

 

Trade only with reputable sellers!

An important note that unfortunately still too few newcomers consider: Look carefully , to which online broker you entrust your money! Not all brokers are reputable and just because they promise high profits, you don’t need to act early. With binary options, there are many opportunities for good trades every day and every minute, so you will not miss an opportunity if you do not immediately register with a promising cure. Look at the offer and check it to see if it is really a serious company. Good brokers do not deny the dangers in this investment and have binary options that can be seen integrated on their website. Also the experience of other traders can help. In our broker review,

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Fraudsters often sit abroad

A broker who intends to cheat his customers usually chooses his seat in a way that makes it difficult to appeal and is only bound by very loose guidelines. Therefore, many find rogue providers, for example in the Caribbean island countries, because of this issue despite license conditions and controls but more lax than among others in the EU. Even in the case of disputes the so-called “offshore brokers” usually have a good card, because by their headquarters abroad, they are difficult to reach so that customers here usually have little chance. Although not all brokers based in remote countries are automatically suspect, there are also excellent providers here. For beginners, however, it is safer to choose a broker with EU regulations. Good brokers make no secret of where their headquarters are located and where their powers are controlled. 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 often read when they hear a broker is giving them extra money when they sign up. Of course, we are happy when we find generous bonus offers and actions , where it seems that hundreds of euros are given to each customer , you will be tempted to quickly log into this provider and deposit.

 

 

Most of the bonus promotions that are currently in the industry are not really dubious. Traders make deposits and then receive additional money on their trading account. However, this is not a “gift”, as such binary options bonuses usually do not come unconditionally. Most of the bonuses have been repeatedly implemented with commercial is, where already many binary options traders lose money have, so that not from the deposit , and about the bonus something left permanent. And that is the real danger, which is often overlooked. Even if the bonus is in the trading account, it cannot be paid for a long time. In order to meet payment requirements, traders take a high risk where they can lose their entire deposit. Therefore, the profit from the bonus at the broker’s end,

 

Allow losses from the start

Binary options losses are for beginners and professionals to trade. Since prices are very difficult to predict for a short period of time, there is a very high variation in trading and even a trader who can place the majority of his trades with positive expectations does not make a profit every day. Therefore, traders must expect losses. In extreme cases, even a good trader can lose his entire balance. This should make you to start in binary options trading make people aware. Plan the money you deposit with the broker for nothing else. Maybe you do it with a good profit. You can pay for it. Only from this point binary options. The money can be rescheduled for other things, but it is no longer available for trading. You may also lose your entire deposit. But, you do not experience financial difficulties, because the money is only for trading

 

Conclusion: For binary options, caution is advised

As we have seen, binary options pose a danger. Therefore, they are not suitable for investors looking for safe investment opportunities. Although high returns are possible, they are also associated with many dangers. Binary options warn that reputable brokers have to post on their website with legal provisions, clearly stating that it is a very risky investment and the entire deposit can be lost. This is not to deny, although there are some successful professional traders to trade with binary options. But these traders are also at risk because binary options are a very volatile form of trading. Therefore, only money should be invested, even if the total loss can be easily overcome. You also need to read the terms and conditions carefully before any notification to the broker. Here you can find out the rules that apply to these providers and what you should look for. When looking for the right provider, our broker comparison helps.

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