Opportunities and risks of binary options

For private investors, trading with binary options is a welcome change and an alternative to secure financial products. For this reason the option trading is currently very popular. Security-conscious investors should, however, how you can help give leave their finger on this, as there is also a high risk involved in dealing with binary options. But there are also widespread returns within a very short time.

If you’re not sure if you want to start site web use trading, you should have a chance to face the odds and risks.

Table of Contents:

  • Good opportunities – high returns
  • For binary options, we recommend the following broker:
  • What kinds of risks are there?>

    Good opportunities – high returns

    The binary options trading is easy to use. Traders make only one directional decision here, namely whether the price of an underlying has risen (call) or fallen (put) at the time of expiration. If the trader is right with his forecast, he has a predefined profit. The chances of click to read are 50 to 50.

    Depending on the broker, the yields range between 80 and 100 percent. Depending on the type of trading, returns of more than 500 percent are possible. In this case, however, the higher the yield, the higher the risk.

    What kinds of risks are there?

    In the world of finance, the risk is defined by the terms „expected value“ and „fluctuations“. For example, if you are investing in a stock that achieves a return of ten percent each year and now only 9 percent a year later and eleven percent in the following year, you are talking about a very manageable risk. On the other hand, a high risk is assumed, for example, in a or view it share of only two percent and 25 percent in the next year. For binary options, returns are between him continue reading this 85 and 100 percent, which means that the risk is enormous, as measured by the above example, so binary options are also highly speculative.

    The fact that binary options are risky can not be prevented. A fundamental risk will always exist. However, traders should be aware of the different types of risks and be aware of them.

    High market risk

    Binary options have a very high market risk. This means that the prices of the underlying assets can move in all directions, without these fluctuations being predictable. While the course development can be better assessed using different tools, there is no guarantee. Despite a precise and supposedly safe forecast, a course can suddenly take a completely different direction.

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    Return on investment Total loss

    For binary options, the smallest movements are important because the courses are determined very precisely. Most brokers rely on 0.0001 points. Thus, these points can make the difference between yield and total loss.

    Once you that guy purchased – no back

    Anyone who has purchased an option can not resign from this purchase and must wait until the expiration date. Some brokers now offer an early closure function to stop the option before expiration, but a fee is usually required.

    Rating

    Trading in binary options offers good opportunities, but also a high risk. However, it make the is advantageous that traders know the risks. So they know exactly what they expect and also with what profit they have to reckon. Before it starts with the action, the chances and risks should always be weighed