Binary options are a financial instrument that allows you to receive income from predicting the rate of a financial asset. That is, in other words, you open a deal either for an increase or a decrease in the market value of an asset for a certain period of time. Call button - forecast that the rate will rise. The Put button is for what will go down.
Unlike classic Forex trading using the Metatrader trading terminal, binary options trading is carried out through the Web terminal. It is tempting that there is no spread, and the risk of losing the entire deposit, because the transaction is opened for a fixed amount, and accordingly assumes a fixed income: from 50 to 85% of the transaction amount, depending on the type of financial asset. The euro / dollar pair, for example, gives 81-85% profit. If the forecast turns out to be incorrect, you usually lose the entire amount of the transaction. However, some brokers offer to choose the level of responsibility, that is: to reduce potential losses, thereby lowering the level of potential profits.
In a word, in binary options everything is simpler at first glance, and it is really simpler, but not to earn, but to lose your funds. If in classic trading, a lot depends on the skills and abilities of a trader, then companies offering binary options trading lead clients to what they need to trade based only on their forecasts and news, which are naturally very effective and reliable, and allow you to earn up to 50 -60% per month from the deposit.
In fact, what happens after a gullible client opens a deposit with one of these brokerage companies?
1. Deposit less than 500 usd - What are you? This is not serious! Do you want to make decent money? You need to start with at least 1000 usd! Our analysts will help you multiply your deposit! We have been on the market for 7 years! We have free training! Blah blah blah!
2. The first deals according to our news and forecasts, and everything is in the red? - It's okay. This happens. Tomorrow we are waiting for the release of stunning news on the euro, which will allow you to earn up to 40% of the deposit in a few hours !!
3. We promised you 3 risk-free trades from our analysts! Yes, they, unfortunately, all turned out to be unprofitable, but we, as promised, compensated you for the loss to the bonus account. What? Not warned about the bonus? What funds on the bonus account, in order to withdraw, you need to work 1 to 40? That is, in order to withdraw $ 100, you need to make 4,000 trades? Sorry, but the Company's account is not rubber, we do not distribute money just like that.
4. Your personal analyst, whom you were promised, does not get in touch and does not respond to your messages? He has a lot of work to do. Expect. He gave you 4 trades and they all turned out to be unprofitable? This is the market. What can you do.. You already have almost no funds in your account? No problem! Tomorrow we are waiting for the most important news on the pound, and we plan to earn 30% on this! top up your account and earn.
5. Do you want to withdraw your funds? The site says, withdrawal within 2 working days after processing the order? Has your order been processed for a week? Please wait, there was a technical glitch.
As soon as you want to withdraw funds, the retention service immediately wakes up (people whose task is not to allow you to withdraw your funds, and to force, under any pretext, to increase your deposit by adding it), and they start calling and writing you, telling you anything, just would you not withdraw your funds.
So, to summarize, why do I think classic Forex trading is better than binary options trading?
1. Real trading that can be controlled at every stage.
2. Ability to apply knowledge and experience, which obviously gives results.
3. More tools that protect the account from losses (stop orders, advisors).
4. Availability of leverage.
5. Less likely to run into the "kitchen" in view of specific differences in the implementation of the auction.
6. The presence of a regulator, liquidity providers. (Almost no Binary Options Company will give you a clear answer to these questions, with the exception of a few)
For any more or less experienced trader in the Forex market, binary options are nothing more than a toy. Roulette in the Casino. Because all applied knowledge is practically impossible to apply here. Especially if your broker is a kitchen. that is, it does not display transactions on the interbank market. And most of them do just that. How to distinguish a kitchen from a real broker, in my next article.
