- Errore:

Lets dig a bit deeper to find out what really is going on with these binary options trading…. What are binary options?

Binary options are financial options where you get paid a fixed amount for being right or nothing at all if you are wrong. In the cash or nothing binary option, you get paid a fixed amount of money if the option expires in the money, if not, you get nothing. This should automatically ring alarm bells if you are keen on trading binary options because if something like binary options trading is unregulated, what can that mean?

Though binary options sometimes trade on regulated exchanges, they are generally unregulated , trading on the internet, and prone to fraud. Securities and Exchange Commission SEC and Commodity Futures Trading Commission CFTC have issued a joint warning to American investors regarding unregulated binary options. With such binary option brokers, there is no real brokerage; the customer is betting against the broker, who is acting as a bucket shop.

Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations. With a binary option you simply choose whether an asset will be higher or lower than the current price or strike price at some future time or date. With this simplicity come some drawbacks though.

Here are some of the disadvantages of trading these financial products. One thing the really sucks in binary options trading …and I mean BIG TIME SUCK is this: They have become popular over the past few years with new ones appearing all the time: The sites appeal to the same type of people who play poker online. But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing.

These are gambling sites, pure and simple. Until that happens, they seem to be doing great business. You can buy these options, which are also known as all-or-nothing options, digital options, or Fixed Return Options FROs , on stocks, commodities, indexes, foreign exchange, and other derivatives.

In fact, you can place a bet which is what it really amounts to on just about anything that is publicly traded, depending on which Web site you use some offer a wider range of choices than others. Some sites provide free guides to binary option trading to get you started. REWARD is Not In Your Favor When Your Trade Binary Options. In binary options trading, this is non-existent. You risk a lot to make less! You see, trading binary options is really simple…you decide if EURUSD is going up or down in the next hour, minutes etc and if you are right you make money.

This means you got to really have a high percentage of wins to be in positive territory.

Because you are risking more to earn less! Menu Simple Forex Trading Strategies Price Action Trading Course Price Action Trading Strategies FX Trading Signals. Prev Article Next Article. Recent Posts Free Forex Trading Signals Published Weekly. Trading Confluence Input From A Blog Reader.

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