In order to understand the nature of the binary options, beginners are gladly told that this is a financial bet. Thus, when dealing with binary options, it is only decisive whether the price of a underlying is moving etoro scam 2017 in a direction that has been predicted. Simply put: betting on whether a course is rising or falling.
If the trader is located correctly, he receives a pre-determined profit in addition to his bet. In the case of a profit, it is then said that the option is “in money”. “From the money”, the option is, however, if the trader with his decision was not correct. The entire bet is thus lost.
Too much brokers point out the high profit chances and the simplicity of the financial instrument. The risks, dangers and disadvantages, on the other hand, are less common. The total loss of the entire IQ Option scam 2017 money used can not be ruled out. This article is mainly intended for beginners and is intended to explain the out link advantages and disadvantages.
Advantages and Disadvantages of Options Trading
One of the most serious advantages is the fact that trading with binary options is relatively simple and it is not absolutely necessary to know all the complicated subject terms in the stock exchange world. Nevertheless, beginners should never go blindly and completely ignorant into the trade, because otherwise the action with a high probability is rather the gamble. High losses are then pre-programmed. That is why it is important that beginners at least deal with the basics, the analysis techniques and the different trading strategies.
In addition, it is highly recommended that beginners first try a demo account. As a rule, brokers offer such a free demo account. Copy Trading platform 2017
Another advantage is that action with binary options is already possible with low capital. For example, most brokers do not have to pay high sums of money, and trades are already possible with small amounts. The disadvantage, however, is that a total loss can occur. Some brokers offer loss protection. As a rule, 10 to 15 percent of the loss will then be reimbursed. However, this should not hide the fact that 85 to 90 percent of the capital invested is still lost.
- A broker anyoption scam 2017 offers a profit of 75 per cent and a loss protection of 10 per cent. Now an investor will close 25 trades of 100 euros. 13 positions, so he earned a total of 2,275 euros. 12 positions have been lost so that the trader only receives the loss insurance in the amount of 10 euros Social Trading platform 2017 each (total of 120 euros). Although the trader was more correct than wrong, he still lost 105 euros. Only then, if he had won 14 trades, he could make a profit of 60 euros.
This example clearly shows that traders have to be right in at least 60 percent of all cases in order to make a profit. What is so easy to hear, in practice, is quite different. The fact is that course developments can never be predicted one hundred percent. In order to be truly successful, traders must always be well 24option scam 2017 informed and have a certain sense of the markets.
Binary options can be traded with very short run times, sometimes even with 30 or 60 seconds. Although this makes the trade exciting, the chances and risks are also increasing enormously. If you choose short-term maturities, you can invest a lot of money – but you can also earn multiple profits and suffer multiple losses. plus500 scam 2017 For this reason, beginners should begin with medium to long-term options. Only when the relevant know-how and sufficient information on exchange trading and the trading strategies have been adopted can short-term options be used.
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In principle, beginners must never forget that the profit chances are high, but the risks are not