The whole truth about binary options trading. The whole truth about binary options and what it really is

The whole truth about binary options trading.  The whole truth about binary options and what it really is
The whole truth about binary options trading. The whole truth about binary options and what it really is

How true is this - what can you earn on binary options? Rumors, as they say, the earth is full. Resources offering such trading require certain financial investments, and the very idea of ​​\u200b\u200bwork seems quite simple. At the same time, many doubt: is the whole truth about binary options open to the Internet user? It seems that this is too easy way to make money. No special strategies and techniques - two keys and a decent jackpot at stake. Income or Divorce? The truth about binary options, according to some experts, is that this is one of the promising methods of making money, while others convince that you should not get involved with such a structure.

Information as a guarantee of security

There are quite a lot of resources on the Internet devoted to binary options. Is it true that their owners earn by this method? You can’t be absolutely sure of this, but in general, many reviews look trustworthy. There are also stories of those who invested in this method of generating income and ended up losing. Such negative responses are predictable - there will always be losers when working on the currency exchange. Just the lack of conviction that this is a scam - binary options trading would have caused more suspicion. Or is it true that you can get money here if you know how?

Many people confuse binary options and stock market options. The second option is reliable, you can safely work through it, although success will only come to someone who is really ready to think about a strategy. Scam or Truth - Binary Options Trading? Many experts offer to believe that this is a dishonest proposal, and give a fairly well-reasoned justification for their position. Let's try to take a closer look at the data they operate on. This will help the layman, who is interested in easy money, not to be fooled by dishonest reviews about the "whole truth" about binary options.

Offer for beginners

Most often, reviews about how you can make money on binary options, and whether this is true, are of interest to those who are just starting to work in the stock market. It is not easy for beginners to get into the course of events, especially since the exchange is overflowing with participants providing various work tools. Reading the reviews: truth or divorce binary options, you literally get lost - your eyes run wide, it is not clear who to believe, what to invest in, everyone is trying to pull the blanket over to their side. This is not surprising, because big money is involved in such a business. It is they who stimulate many to the question of whether binary options are true or fiction, to give answers that assure that this is an honest method of earning. For the most part, these individuals make a profit for each member brought into the system, so attracting new ones is a good real business.

A binary option, as some trustworthy experts assure, is a technique for pumping money out of ordinary people who have just come to the Forex market. This works in the case when a person who is poorly familiar with the financial world enters the business. Of course, having lost a certain amount, a person himself will already figure out what the truth and lies about binary options are, but at the same time a negative attitude towards working on the exchange as a whole will be formed. Experts recommend not to combine Forex and binary options into one whole - if you can earn money on the first one, knowing how to work with the tools, in the second case there are no options.

It's like looking in a mirror!

Scam or true binary options? This fact can already tell a lot: there is a legal tool for receiving money in the foreign exchange market, very similar to the options that have been so actively advertised lately. This is usually provided by large, reliable providers of intermediary services on the exchange. True or scam binary options offered by reliable counterparties? As many assure, you can trust large firms - they really present a profitable work tool. But small companies specializing in binary options and only usually represent dubious offices.

The legal option for binary options trading is the Chicago Stock Exchange dedicated to this instrument. This is an international level platform, well known among professionals. But most of those who are trying to prove that it is they who offer the whole truth about binary options and real earnings through them do not give access to the stock exchange in Chicago at all, but simply use the inexperience of newcomers to the stock market. Original options are hedging tools that promise really decent profits.

And what does it say?

No reliable company will impersonate another to attract a client. If the site tells the potential user the whole truth about binary options, but does not contain any references, mentions of the real Chicago market, it is probably a fake. Is it possible to expect that if you trust finances to a fake counterparty, you will make a profit? It is unlikely that anyone would invest their money in such a structure, clearly understanding that the company is hiding behind a false name. This alone suggests that it is a scam.

How it works?

The whole truth has long been written about the mechanism of the sites with binary options on the World Wide Web. Such a project lures a newbie and invites to register, often operating on the fact that you need to create an account today, otherwise it will become paid tomorrow. But today, right now, a new member will be able to get access to a free trial version of the product, training materials, an expanded database and the latest news. However, almost immediately after creating an account, they will offer to replenish the internal account for a certain amount.

To successfully trade in the financial markets, it is not enough to have a profitable trading strategy in your arsenal. It is important to understand what this financial instrument is in general. This article is of particular importance from a psychological point of view. Since the sooner you understand what real binary options are, the more you will save not only your nerves, but also your own money.

Many brokers and advertising Internet portals are silent about this. They do not deny the true essence of binary trading, but they do not particularly advertise it for beginners. As the saying goes, the less you know, the better you sleep. Well, if beginners knew the whole truth, then it would probably push them away from trading. And this is not at all in the hands of brokers who also want to earn no less than yours.

Over 90% of all newcomers who enter this business have no idea where they are. This is how brokers originally intended. But we are not the majority. Well, it's time to reveal many secrets and mysteries of modern binary trading.

Now there are only two types of binary options:

  • those that are traded on real exchanges,
  • and bookmakers, which are the vast majority.

For the most part, we are dealing with the second group. The biggest misconception of almost all beginners is that they think that these are real auctions. In fact, this is not a trade at all.. Yes, you register with a broker, click the "Buy" or "Sell" button. But in reality, you don’t buy or sell anything, you don’t enter real exchanges and you don’t make real transactions. You are simply betting on whether the price will go up or down.

This is exactly what is your key to success - understanding the difference between a regular bet and an exchange transaction. Perhaps this is the reason why Russian legislation cannot regulate this financial instrument from a legislative point of view, since it cannot yet recognize it as such. On the one hand, binary options are directly related to the currency and stock markets. But on the other - you have no influence on trading volumes and market dynamics like real stock speculators.

Good or bad - you decide. After all, many people make great money on bets at bookmakers. Only in binary trading you have the opportunity to really predict future price dynamics using technical, fundamental analysis and other tools that are used in real exchange trading.

Real binary options can only be found on the stock exchange

So, real options exist only on the stock exchange. Let's discuss where to find them and whether it is worth complicating your already difficult life.

In 90% of cases, such trading is not available to traders from Russia and the CIS countries due to various financial and legal aspects. The largest binary exchanges are located in the United States, where traders from the Russian Federation are not allowed access.

Therefore, when intrusive managers and phone sticks from brokers start telling you something about “real trading” and “investing in the stock market”, do not believe a single word they say! They are specially trained to hang such noodles on the ears of naive beginners.

CBOE

If you have at least a little experience trading binary options, then most likely the name of the Chicago Options Exchange is familiar to you. CBOE stands for Chicago Board Options Exchange. This is where the real binary options spin!

Its work experience is 170, the exchange rightfully bears the title of the oldest American options exchange.

Here you can buy contracts for only two assets:

  • US stock index S&P 500,
  • volatility index VIX (CBOE Volatility Index).

And then you think, how can one of the most leading exchanges offer the opportunity to trade only two assets? There are not those hundreds of currency pairs and stocks that are available in modern "kitchens".

It is worth noting that in America, bookmakers are under the strictest ban. Therefore, if Americans have a desire to trade options, then they go to such exchanges as CBOE.

At the same time, only the Call option can be bought here. Sales are carried out in a slightly different way.

What are the distinguishing features of such exchange trading? Here, real transactions are made between sellers and buyers. There is no fixed income of 80%, it all depends on how profitable the transaction will be in accordance with the purchase and sale prices.

The minimum deposit is far from $10. There is no minimum deposit as such, but in order to start working, the transfer must be at least $ 1,000, or even $ 10,000.

The road here is closed to Russian traders. And as you yourself have already noticed, the Chicago Board Options Exchange is not particularly advertised on our network. There are reasons for that.

NADEX

On the CBOE exchange, in addition to option trading, there are also many other contracts. There are also real binary options on another exchange, which is focused exclusively on this type of trading, unlike the first one. This is NADEX.

This is already a much more popular option exchange, but it is also not available to traders from the Russian Federation and the CIS countries.

NADEX also comes from the American continent, but recently it has begun to actively explore the European market. So we hope that soon it will reach Russian traders.

Modern Russian traders are increasingly wondering where they can trade not betting options, but real ones. After playing standard bets and gaining experience, they move to another, more serious level. And this is highly commendable!

Cantor Exchange

This is a relatively young exchange, which also specializes only in real binary options. She appeared in 2015 and so far is not as popular as the two previous giants.

Advantage and distinctive features of stock options

Such trading is fundamentally different from the one we are dealing with. If you dreamed of becoming the same trader as in the movie "The Wolf of Wall Street", then you are here!

  1. No fixed income, you will not be able to know your profit in advance.
  2. If there are no sellers in the market who agree to sell this or that option, then you will not be able to make a purchase.

Let's say you want to work in stock trading. What do we have to do? Open an account, as in the brokers we are used to?

You simply cannot do this. This is a real exchange, with numerous monitors and flickering employees. You will open an account with an American broker, which will provide you with access to SOE or NADEX. There is no way for a private individual to get there.

It is not enough just to open an account and make a deposit. You will need to speak fluent English, a large deposit, which is many zeros more than $10. Here you are guaranteed to pay taxes, unlike primitive betting brokers.

The most interesting thing is that not all professional traders who trade on real Forex and have a special education and extensive experience will be able to trade on such exchanges. It's really very difficult.

Due to the fact that such real binary options are inaccessible to the majority of the population, in 2008, at the same CBOE, it was decided to significantly simplify them. And so they appeared betting binary options, a kind of imitation of real exchanges. They immediately gained popularity, because they do not need large investments, special financial education. If opening an account on the same OWN is a huge problem, then Binomo or it is done in one minute.

Betting Brokers

Almost all companies that are now advertised on the Internet, as well as presented in reviews on our website, are not real binary options that are traded on the exchanges described above. This is a kind of bookmaker.

And don't let this word scare you, it's not as bad as it might seem at first glance. This type of trading also has a lot of advantages. Only now, many companies stubbornly keep silent about the main essence of their business, assuring customers that they are dealing with real trading. But let it be on their conscience. For us, the most important thing is to know the truth and benefit from it.

The essence of the work of a modern broker is simple. He builds a platform or borrows one from developers like SpotOption. Then he introduces a hundred trading assets and starts broadcasting real stock quotes on them, allowing you to bet on growth or fall.

Agree, this is a brilliant idea - to disguise betting as trading thanks to such financial rates!

Where do brokers get quotes from? But here it all depends on his conscience and the degree of reliability. Fraudsters can invent them themselves. But serious organizations cooperate only with those suppliers who give quotes to real exchanges. For example Thomson Reuters.

Therefore, becoming a broker is not so difficult:

  1. buy a ready-made platform,
  2. conclude an agreement with the supplier of quotations,
  3. start accepting bets.

Earlier, we have already said what brokers earn on. Their profit directly depends on the number of customers. Therefore, in order to increase them, you will still have to obtain all the licenses so that customers are not afraid to deposit their money. But this is if you plan to work in a big way. For many fraudulent organizations, a small clientele is enough to deceive a couple of hundred thousand customers and save up for their villa abroad.

Do you really need real binary options and is it worth complicating your life with stock trading

To answer this question, let's briefly go over the features of exchange and over-the-counter trading.

Stock trading:

  • a limited number of real exchanges,
  • available only in English,
  • the number of trading assets is strictly limited, they can be counted on the fingers,
  • no fixed percentage of return,
  • exchanges are officially regulated on a state basis,
  • transactions are made between real market participants (sellers and buyers),
  • complex process of opening an account, which will require a large number of documents,
  • the trading account is funded by bank transfer to a US account.

OTC (bookmaker) trading:

  • a huge number of companies
  • a large selection of payment systems,
  • up to two hundred available trading assets,
  • the transaction is concluded directly with the broker, and not between market participants,
  • to open an account and subsequent verification, you only need a scan of your passport,
  • a fixed percentage of profitability, which is known even before the conclusion of the transaction.

It would seem that over-the-counter trading has only advantages. But the indignation on the part of traders is just for the reason that you are essentially working against the company itself. And since it is beneficial for her that clients lose, this is where a great distrust of all trading comes from.

Thus, the main task of a modern trader is to find a worthy company that will not deceive. Well, the secondary is not to get into a conflict of interest. If you actively win money from a broker, then he will begin to put a spoke in your wheel.

Many pros do the smart thing at all - they trade with different brokers according to the same strategy. Winning little by little from several companies, they will not attract attention at all and make easy money in the financial markets.

Now we understand that modern trading is not real binary options.

Yes, we make regular bets. But is it bad? After all, we do not conclude them at random, and we also analyze the market using technical and fundamental analysis, as in real market participants on stock exchanges.

Beginners still have no choice. They do not have the capital that is required to start exchange trading. Therefore, you can earn this capital from betting brokers, and then, if the desire is so strong, you can go to a real exchange and work seriously.

Conclusion

In Russia, real binary options are not yet available. At least the fact that over the past five years has begun to develop over-the-counter trading, which opened up the world of finance for millions of people, is encouraging. Previously, you and I could not even imagine that we would persistently comprehend technical analysis. Well, who is not satisfied with this type of trading, that is, the alternative is Forex.

The whole truth about binary options or how to save your money? Doubtful scheme of binary options + mechanics of trading on the market.

Every year, the percentage of electronic currency in the financial markets is growing. There are new opportunities in trading, one of the relatively new ones is binary options.

The first time I heard the expression " the whole truth about binary options” on the Internet, you can stumble upon 2 opposing camps: some are ardent fans, others hold a negative point of view on this issue.

Often it all depends on how you work with the resource:

    People who are members of the system itself (the same brokers and office workers) will not tell you about losses.

    The field of binary options is whimsical: information analysis, tracking price fluctuations as a result of political and economic events - such statements by a broker are in the order of things.

    Investors who have suffered losses are the camp of ardent opponents of trading in the digital options market.

    The reasons for the reviews are not substantiated, most often you can hear such phrases: “Everything is a scam! Binary options - casino! etc.

    When starting to work with a market based on price spikes, each trader should be prepared for such outcomes.

Emotions should not affect the evaluation of options trading. In this case, there are both fraudulent schemes and completely honest offices that keep their mark and do not deceive their customers.

The whole truth about binary options - a way to earn money or a scam?

Every business has loopholes. And if there is an opportunity, then there will be people who want to use it. We must not forget that in our world nothing is given for free.

There are many ways to extract money from an investor when it comes to binary options.

Having decided to start activities in the options market, you are faced with the problems of choosing a brokerage house. It is not worth relying only on positive reviews on the Internet.

There are nuances to which you should pay attention. We will talk about them further.

Nuance number 1. Dangers when choosing a broker

The first and important step on which your future work in the digital options market will depend.

You can go the simple way: type in the phrase “Top 10 binary options brokerage houses” in a search engine and follow the first link. However, this option will not give a 100% guarantee that you will not fall into the hands of scammers.

When choosing a company with which you will cooperate, you should pay attention to the following points:


After analyzing the office in this way, you can understand how a conscientious service provider in the field of binary options is.

Important: it is advisable to have a live dialogue with a company representative or find out the nuances you are interested in by phone before starting work with a brokerage office.

Nuance number 2. Artificial overestimation of the rating of offices

The Internet allows you to instantly raise a brokerage office to its peak or trample it into the mud. Reviews are one of the most powerful options trading tools.

When choosing which product to buy in an online store, each user relies on the experience already gained + explores the market on the issue, reads what they write about the product of interest to him.

You can find useful information, but you need to be able to distinguish an artfully created deception from a real answer.

Many offices simply order reviews of options on copywriter sites: they work for a penny - they copy the same thing, pasting it on different resources. As a result, we get the picture shown above.

Another option is to inflate income figures. “Earn up to 90% of your investment in options the next day” is one example of such advertising ploys.

Inexperienced traders often buy into such tricks and end up losing everything.

Nuance number 3. Withdrawal of funds in a dubious way

An investor should always have several options for withdrawing money earned from options.
Licensed bona fide offices provide such an opportunity - bank transfer, electronic wallet and more.

Visa MasterCard

Today, support for VISA or MASTER CARD is almost a prerequisite for brokerage houses.

A resource that allows you to deposit / withdraw money in only one way should already alert your attention.

The mechanics of trading in the binary options market

The principle of trading in the digital options market is very similar to. Selling / buying shares and constant cash flow make it possible to both make a profit and lose everything.

Each brokerage site is a place that cannot be characterized unambiguously.

So let's define the points, what is binary options trading?

Point 1. Marketplace or casino?

Indeed, an analogy can be drawn.

Let's take, for example, UP/DOWN strategy- the trader predicts how the chart of changes in the asset will behave over the selected period of time. The same slot machine, it would seem: the probability of success is 50 to 50%, but ...

Pay attention to the time of the conclusion of the contract. Bets made within a period of 1 minute to 1 hour can be safely called a calculation of luck.

It is very difficult to predict the slightest changes in the options chart in such a short time period.

Focusing on long-term contracts, you may well rely on your analytical skills and predict scenarios.

Often they leave this market, there are more profitable ways to make money on analytics.

The percentage of the remaining "oldies" is very low, as a result of which the field of binary options is filled with inexperienced players, who pour out all the negativity after losing capital.

In addition to these types of players, there are also scalpers on the market.

A scalper is a binary options investor who makes a large number of small trades.

Digital Options is a good starting springboard for developing the potential of such traders. The ability to predict jumps at a minimum period of time makes them good stock market players.

But it must be taken into account that the commissions of scalpers are small (10-30%), and at the first loss, all bonuses from transactions, as well as the profit itself, will go down the drain.

Point 2. Template of earnings in the binary options market


Do not think that brokerage houses have different approaches to the process of attracting a client.

The competition among digital options platforms is fierce, with companies jumping over each other's heads to lure newcomers with high payouts and bonus programs.

But still, a trader who decides to engage in binary options on any such resource will deal with the same work pattern:

  • are asked to pass registration;
  • top up intrasystem wallet account;
  • almost immediately they throw you "under the tanks", offering to make deals;
  • by draining money on up / down strategies, you eventually lose most of the capital;
  • here the human factor begins to play a role: either leave and leave another negative review online, or continue to work on yourself to improve your level and become an experienced player in the binary options market.

The outcome is often the same - bankruptcy. The digital options system is designed in such a way as to make the trader rely on luck as much as possible.

Following on the lead of a brokerage firm, you will not notice how you will be left with nothing, so be careful!

5 brokerage tricks

“Log in and stay in” should be the slogan of digital options brokerage firms.
Tricks of a different plan encourage the investor to replenish the balance and try to go into the black.

The main tricks of brokerage houses:

    Test mode on a demo account.

    Everyone knows about it for sure. The move is aimed at accelerating the trader's transition to a real account.

    Money quickly ends, but you want to play further - excitement is a terrible thing.

    In order not to be dependent, but to practice, use the "old-fashioned" method: a pen, a piece of paper and go ahead - predict changes, choosing the time of the concluded transaction, which will be convenient for you.

    Multiple increase in profits, earning $20,000 in the first days of trading on the binary options market and other pathos statements are aimed at encouraging you to take action.

    UTC (quotes), namely trading on weekends.

    Take into account that these days quotes are issued not by a specialized office, but by a broker. The question “What is the best strategy for working with OTS?” meaningless in that case.

    On weekends, all paths will lead to one result - ruin.

    Bots.

    To connect the robot to the binary options platform, you need the permission of the broker. We draw conclusions to whom it will benefit.

    Most of the automated software interfaces are not made in the best way and cannot bring profits to the trader.

    Trust management.

    In reality, you get the usual fraudulent scheme - a pyramid scheme. Trading on the digital options market under a bunch of accounts is physically impossible (maximum 2-3).

    When replenishing your account, be aware that the broker pays a percentage of your investment, and keeps the rest.

    A professional trader earns $1,000 per day, he does not care about 10-20% commission from trading on your record.

    Therefore, you should not trust the work to other persons, even if they offer mountains of gold.

The list can go on for a very long time.

A trader without experience faces a lot of obstacles, only overcoming which he can develop into a professional player in the binary options market.

Conclusion on the truth of working with binary options


Putting everything together, we can make a confident conclusion: get rich quick in the field of financial manipulation is a myth.

The choice of a brokerage firm, the dangers of withdrawing money and a bunch of pitfalls in the digital options market do not represent this way of earning in the best light for us.

Exposing the main myths about binary options.

Which of them is true and which is false, see the video:

« The whole truth about binary options"Very sad, but do not put a bold cross! The low initial capital makes digital options a good springboard for climbing the same stock exchange.

To date, the popularity of binary options has a positive and negative side. Some argue about the emergence of an innovative and highly profitable instrument. Thanks to fixed rates of risks and profits, a unique opportunity has appeared for everyone who wants to gain financial independence.

Others present facts and figures that clearly demonstrate how binary brokers evade profit payments. Additionally, trade in an exotic instrument with a deliberately negative mathematical expectation. It turns out that even with complete transparency of the work of brokers, the trader is doomed to lose capital.

What are the goals behind spreading the negative or positive truth about binary options?

The World Wide Web is filled with such videos, articles and magazine publications. The question involuntarily arises: is there a golden mean between conflicting opinions? The goal of today's educational program is to take a neutral side and provide objective answers. Understand that everyone can shout out various theses that are not supported by arguments and facts.

For example, take a look at the direction of dietetics and proper nutrition. Today, the topic is no less exciting than binary options. People are also trying to find out the truth and unravel the secrets of rejuvenation. Thousands of incomprehensible diets and axioms are put forward in this direction. One has only to start a post about the dangers of meat, and in general people are herbivores, as millions of people become vegetarians. Do you consider this behavior normal? We hope not!

Everyone needs explosive themes. They will cause scandal and excitement around this or that event. Binary options as a financial instrument in the spotlight is no exception to the rule. Now we have to collect reliable information bit by bit, conducting a preliminary analysis and giving an objective assessment of the situation.

    Remember that instructions, recommendations, arguments, and especially media information must be questioned. What is the benefit of spreading the negative truth about binary options? Thanks to this, online publications with the help of a pompous theme will attract new readers. If you read the blog of a trader who trades this derivative, chances are he will take a positive side.

Do you want to receive reliable information? Then we recommend putting yourself in the place of the author who published this or that article. This will allow you to track his intentions, to defend his point of view. We think lesson #1 has been learned! Less emotional, more common sense and prudence. Let's not argue - there is no smoke without fire! There are no ideal people, as well as financial instruments!

How is the truth about binary options in reality?

Binary options are presented as a financial instrument of instant profit. This fact is key for 90% of ordinary citizens. Real traders are well aware of all the hardships of speculative operations. Free cheese only happens in a mousetrap. Risks are hidden behind operational profit. If the speculator does not adhere to the rules of risk management, he is doomed to failure. Additionally, you need to properly manage your capital, prevent the onset of tilt and overtrading.

Do big stock and currency market players work with binary options? Naturally! How they use such a popular derivative will be discussed a little later. Now you need to figure out in detail how effective it is to invest in binary options. Almost every site that is not related to the financial markets is filled with ads for binary options brokers. Reviews and statistics also indicate increased interest. Even negative publications of the yellow press do not affect. Everyone wants to personally verify the declared result from brokerage houses.

Consider two sides of the coin. As a rule, any advertisement is a marketing ploy. The main goal is to attract a client by showing the end point of the result. There is no deception here. It is quite possible to gain financial independence, but you will have to face pitfalls. They will immediately sink to the bottom with a negligent attitude to trade.

Check out the statistics: up to 95% of traders do not earn or balance near zero. Unfortunately, not every person is given to pacify his emotionality. Psychological enemies lead to. It is very difficult to get out of a stalemate. As a rule, beginners do not analyze and constantly repeat past mistakes. As a result, nervous breakdowns and withdrawal from financial markets. What can you do, this is the reality of trading!

Against the background of these moments, beginners do not cease to worry about the question of how realistic it is to receive high fees by buying binary contracts? It is worth going to the World Wide Web, and immediately there are millions of users leading conversations on this topic. Some are talking about divorce. The latter demonstrate incredible profit margins. Still others throw stones towards the previous contingent of people. It is impossible to find an objective point of view. Each considers his own benefits, pulling the blanket over to his side.

What is the truth about binary options? Traders working on, observing iron discipline, really make money on binary options. Negative reviews are spread by people, guided by subjective guesses and surrounding gossip. This leads to doubts and a lot of additional questions:

  • Are statements about divorce in binary options true?
  • Where to look for the truth?
  • Could this really be a scam?

In general, the list is endless. The main thing is to catch the objections and start actively working on them. This is exactly what we are going to do in our article. The task is to open the two sides of the coin, guided by both qualities, you will understand whether you should plunge into the binary business or not.

What is the essence of earning binary trading?

In some way, binary options act as an analogue to Forex and the stock market. We will not delve into what constitutes the success algorithm on these sites. We note only a few important differences. When you buy a binary contract, there are no external and internal economic factors at all. Together with big players and manipulations of brokers, they greatly influence the value of quotes.

Simply put, profitability depends entirely on the correct calculation of the risk-to-reward ratio. The better the range and the correct entry point, the higher the profitability. Price is the main efficiency factor in traditional stock investing, which cannot be said about binary trading. The return with fixed risks is predetermined. Please note that you know exactly, and do not assume what you are risking and what profitability these investments are justified.

In both the stock and foreign exchange markets, returns are a guess. Analyzing the chart, the trader thinks that, most likely, it will be possible to achieve the planned level of earnings. The speculator does not know for sure how in binary options. Regarding the risks, supposedly this is a fixed coefficient from the stop loss. However, who controls the orders limiting losses? The answer is absolutely correct - a trader. If the trading situation on the market develops according to a different scenario, emotions appear. Consequently, there is a fear of fixing a loss and greed from a missed opportunity.

What are the further actions of the investor in a state of pronounced tilt? Stop loss is removed completely or moves away from the entry point. The first and second options greatly increase the risks. Positive mathematical expectation and cause-and-effect relationships are immediately violated. Since the deposit is fully tied to the open position, the purchasing power is gradually fading away. At the end of the story, the trader fixes a deep minus, remaining to see off the departing ships. Here is a complete revelation about trading in the stock and foreign exchange markets.

Do you want to hear the truth about binary options?

    First, the onset of tilt does not threaten you. Fixed profit and loss rates fundamentally change the behavior of a trader. If you invest $10, then you get up to 90% of the income. With an incorrect forecast, losses will also not exceed the ten-dollar milestone. Additionally, you can use the condition for the return of part of the lost amount. As a rule, the broker reserves the right to give the client up to 20% of the loss.

    Secondly, many people mistakenly believe that they are buying underlying assets through binary options. No, the broker provides the right to bet on the growth or fall of a financial instrument. The main factor is not the quotes, but the expiration time. When the settlement period comes, the position must correspond to the current trend direction. In case of disagreement, the bet is considered unprofitable. Recall once again that price and quotes are a secondary tool in binary investing. The primary indicator is a correctly defined motion vector.

How do binary brokers earn?

In the truth about binary options, many will be interested in information about the earnings of brokers. More precisely, what does the company receive income from when commission fees are completely excluded? For example, the business of stock brokers is completely built on client fees for the services provided in bringing orders to the market. The scheme is clear and understandable. However, involuntarily, one gets the impression of the fraudulent intentions of binary companies. What is the interest in attracting customers, spending money on advertising and not taking a commission?

For clarity of the situation, we propose to consider in detail the activities of one of the largest brokers in the binary market -. The classic payment scheme is from 60% to 80% of the investment amount. In case of an erroneous determination of the movement vector of the underlying asset, the return is from 5% to 25%. It is worth noting that not every broker makes such returns. So take note of AnyOption if you want to master the binary business.

So, most people do not understand from what capital the remuneration of 71% is accrued. Additionally, it makes 15% returns without commission charges. Simply fantastic conditions! Such a unique selling proposition is hard to resist, isn't it?

All investors can be divided into two completely different categories. The first includes professionals who are ready to work and learn to achieve their goals. Amateurs are more likely to look for a quick way to earn money with minimal investment of valuable resources (money and time). Simply put, some are analysts, while others rely on a gift of fate.

Attention! Now, using an example, we will clearly demonstrate how binary brokers work. Let's say you are a professional trader. Before opening a position, analyze the chart, see the economic calendar. Your thoughts and actions are fully consistent with the prescribed rules of the algorithm. Thanks to this, almost all trading operations end successfully. You safely receive 71% of the income.

However, besides you, there are other players who accept creativity. As a rule, they are constantly accompanied by a streak of failures. Why? The answer is quite simple: no algorithm and hope for luck with a fluke. A losing bet brings the broker 85%, the remaining 15% is returned to the trader as compensation.

How is the redistribution going on? Of the remaining 85% of the negative trades of undisciplined players, 71% are credited to you. The remaining 14% as a commission remains with the broker. Completely transparent and fair. Given the daily turnover of transactions, a ridiculous 14% with large trading volumes shows an incredible cash injection.

This is the truth of investing in binary options. For regular accumulation of profitability, you need to be able to analyze the chart of the underlying asset and create a trading algorithm. Remember, the percentage of losing trades is included in each strategy. It's like the overhead of your business. Naturally, they must be limited and not overstep the boundaries that violate the positive mathematical expectation.

Don't run a rat race for big profits! It is necessary to start with small rates, gradually increasing volumes as professionalism grows. Invest no more than 5% in a one-time purchase of a binary option. This limit must be adhered to until a positive working capital balance begins to appear.

If a trader is drowning in a series of negative trades and finds salvation in increased productivity, he is doomed to failure. Just do not check the described moment on your own experience. In 90% of cases, zero working capital will occur. Do not feed the brain with hope and unfulfillable illusions. Fortune is the main enemy of the financial market investor. Carefully study the underlying assets! All trading ideas must be backtested. Check the effectiveness of the system on a demo account. Fortunately, now almost every broker provides virtual accounts.

Remember the advice of professional binary investors! It is better to make from 1 to 3 profitable trades during the session than 15, of which 50% will be unprofitable. Mathematical expectation also works here. The laws of supply and demand have not yet been canceled. As Alexander Mikhailovich Gerchik says, "Big money - big discipline!"

From all of the above, you can deduce the truth about binary options. Once again, having stumbled upon a negative review on the World Wide Web, know that 90% of this is the work of a gambler. At first, full of confidence, he came from the roulette to try his luck on binary options. Naturally, against the background of chaotic trading, the deposit was lost. However, anger and wild discontent remained. Through the reviews, it was decided to take revenge on the broker by spreading unbelievable rumors.

The main positive feature of a professional is not at all his ability to make profitable bets. Emotion control and the quality of admitting your own mistakes! When pursued by a series of losing bets, first of all, such an investor looks for his flaws. In most cases, they are detected and destroyed. There is nothing scarier than the behavior of the average player, who repeats the previous actions every day in the hope of getting a different result. By the way, this is a reformulated definition of a madman. So draw the right conclusions, ladies and gentlemen binary traders!

The whole truth of binary options in the fraudulent schemes of brokers

What about the spread of rumors that supposedly brokers do not want to be content with a 15% difference between winning and losing trades. It is much more pleasant to receive a 100% rollback from a client's deposit, minimizing winnings and yield payments. In fact, the main goal of each broker is an in-depth expansion of the client base. If you start mass manipulations with deposits, traders will start withdrawing money.

Additionally, negative news will quickly spread across the World Wide Web. Who is interested in a one-time benefit at the maximum cost in the development of the platform and the launch of advertising campaigns? Maybe the company is reluctant to give the reward, but it fulfills the terms of the contract. Almost all brokers slightly change the parameters of quotes. This is not critical; for an investor, the winning factor is two values. First, the expiration time. Secondly, the correct definition of the movement vector of the underlying asset.

When quotes change, short-term investors suffer the most. As a rule, up to 90% of traders trade turbo options with an expiration period of 30 seconds to 2 minutes. Here, the local trend direction may not coincide with the purchased binary option. Unless, of course, the specialists of the company try. Despite the speed of transactions and a great chance to get instant profit, tick movements are unpredictable and dangerous, and additionally fall under the influence of the broker.

This is the truth about binary options! We strongly recommend working with 5 and 15 minute option contracts. Regardless of the duration of the trade, you significantly increase the positive mathematical expectation. It is easier to build a profitable strategy. There is no market noise. The trend on the described timeframes is stable. The influence of big players and algorithmic systems is minimized.

Are there real scam brokers?

The answer is obvious: the truth of binary options is that the presence of unscrupulous companies is inevitable. This applies to any type of activity, especially when it comes to financial markets and other business structures. There will always be groups that are determined to profit from other people's investments. That is why you need to responsibly approach the choice of a broker.

First of all, ask your manager to show the license of the relevant regulator. It's no secret that about 90% of companies are registered in Cyprus. Thus, control over their activities is carried out by CySEC. Let's tell you a little secret, and here the binary options brokers showed a little trick. What is it? Having passed the right for compliance with the European regulator, they avoided the fate of obtaining a Cerberus license. This FCA regulator controls the UK financial markets and has very strict requirements for all companies that call themselves brokers.

On the one hand, binary firms can be understood, Cerberus has a too high entry limit on the company's working capital. As a rule, its calculation is carried out in millions of pounds sterling. On the other hand, the indicated sums of money would testify to the seriousness of the broker to conduct an honest business without putting a spoke in the wheels of clients.

Colleagues with CySEC have a conservative approach, providing less harsh conditions. Here are binary companies and lining up for a license. This greatly enhances the status of the company in the eyes of potential customers. In the European Union, there is a certain directive referred to as MiFID. The established standards are adhered to by all regulatory bodies that issue licenses, from the FCA to the popular CySEC oversight committee. This directive acts as a reliable link for the Cyprus regulator.

Here is such a simple relationship between brokers and legislation. Naturally, the described financial market regulators do not provide a 100% guarantee that the company will not aggravate clients' trading. However, such knowledge will save you from a dirty trick and help you find a conscientious broker. After all, 15% of the income from transactions is a pretty good cash reward, given the amount of working capital.

Do you want to simplify your task and save time? Then we strongly recommend using our investment portal. Analysts together with a group of professional traders monitored the market. As a result, the best of the best brokers were selected, they passed the regulation and received a license. This is the truth of binary options and the financial world.

Some brokers tell clients that all bets go through the Chicago Board Options Exchange. It was this market that legalized binary contracts for the first time in 2008. However, CIS companies have nothing to do with the global derivatives market. This statement works well for beginners. In their eyes, the illusory status of the firm increases, since the statement made is not true. Another trick to increase conversions to attract new customers.

It has long been no secret how brokerage houses work. Trades are carried out directly within the company. The counterparty of your transaction is the broker. To a greater extent, even a conscientious organization is interested in draining the deposit. However, there is a big gulf between open interest and direct actions that leave no chance for the investor. In fact, what do you care: transactions are displayed on the exchange or not? The main thing is regular payments and fewer manipulations that lower the positive mathematical expectation.

Why do binary brokers act like Forex at home?

As a rule, most Forex brokers prefer not to display traders' positions on the interbank market. They work through so-called agents, who are the connecting link of one large currency system. These are market makers, in their role are banks or larger brokers. By the way, the scheme is quite transparent, without tricks in the direction of clients, if your goal is to master the depths of the foreign exchange market in parallel with binary options.

Now there was a direct tip on how to find a respectable firm. By the way, it is also installed on our financial portal. Be sure to check it out after reading the article. You need to trade with leaders, and not try to snatch profits from the hands of fraudulent structures.

We dare to please you, decent binary options brokers do the same. When using other options, there may be a situation of non-fulfillment of debt obligations to customers. If the company is under the supervision of the regulator, a huge fine is imposed for such manipulations - another reason why even honest companies try to avoid the scrutiny of CySEC.

For clarity, it is enough to recall what penalties were imposed on the well-known broker Alpari UK. I can’t remember the exact numbers now, but the amount was made up of a five-digit number. It is worth noting that the notorious broker Alpari UK even tried to introduce binary options into circulation. Soon, for unknown reasons, the idea was completely rejected. Apparently, fines had a strong effect on working capital, and on the reputation of the company. Do not confuse the presented broker with a Russian company with a similar name -.

What conclusion can be drawn about the truth of binary options? It turns out that not all brokers have predetermined fraudulent intentions. There are a fairly large number of companies with fairly transparent schemes and, most importantly, pure intentions. They are fully regulated and hold special licenses. These firms do not chase client accounts, but strive to earn money together with traders. All success and profitable profit!

Practicing trader, Dmitry Pelin!