Binary Options: Scam or Opportunity?

Binary Options Scams introduce their platform to be a binary option online earning site that is claimed to be one of the fastest earning sources available online.

This rule is prevailed both in online as well as offline activities. Brokers count on you doing exactly this because they know that this way, you will be paying the price of becoming a losing trader meaning brokers will be making money off of you. 

After verification, it will come to notice that no person with such profile exists in real.

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Jul 27,  · I've looked into online binary options trading a bit and it seems to me that the consensus is that very few people outside of professional traders can beat the trading sites consistently for good.

However, this happens extremely rarely. Not knowing this, a lot of people sign up with binary options brokers that offer unrealistic winning promises. In the end, lots of people end up losing all of the money they put into the system.

But can you really win? The biggest factor in winning at binary options is LUCK. But yes, you can really win. The thing brokers will not tell you is that you will have to put in a lot of effort and research if you want to win consistently. And even then, luck is the most powerful variable. Like in sports betting, if you want to win you will have to have a great knowledge about the sport in question and about the teams that are playing.

You will have to understand the game, the strengths and weaknesses of the teams, and the skills of the players. You will have to know about historical performance, fitness levels, injuries, and dozens of other variables.

Even then, things might not go your way. If you factor in all these variables then you probably will win in the long run. There are countless variables and risks that you will have to consider in order to accurately predict the future development of an asset.

Issues like time of the year, state of the economy, political developments, economic performance of key market makers, recent business news and events are constantly influencing the movement of stock prices and commodities.

In order to be able to accurately predict the movement of an asset, you will have to be up to date with all of this info. Also, in order to be successful you will have to understand a variety of technical data as well, such as being able to read charts, use technical indicators , understand statistic calculations, and much more. But that sounds hard! In order to really make money you will have to invest significant amounts of time in market research and learning about the technical aspects of this business.

No matter what anyone promises, you will never be able to make easy money by placing random bets here and there. Brokers count on you doing exactly this because they know that this way, you will be paying the price of becoming a losing trader meaning brokers will be making money off of you.

So, this is the truth behind the binary option business. So one more time, is Binary Options Trading a Scam? Binary Options Industry Changes If you read our thoughts from , you know that binary options is legit, but extremely risky and difficult to take part in profitably.

But that was back in Things have changed quite a bit since then. As mentioned above, there is still no easy shortcut to binary options trading success — you will still need to learn the basics of this trading form and do lots of market research to make real money. That said, some new developments have appeared in the industry which might make it easier for you to make a living through binary options trading.

More Welcoming To New Traders For one, social trading has finally become a major aspect of binary options trading. Newbies who would like to start making money without having to fight against a gnarly learning curve can look to the practices of seasoned veterans.

Some brokers even offer in-house social trading platforms that let you profit from the trading experience of highly successful binary option traders within the company. Of course, there is the risk that the trader is going to fail, in which case you risk losing money just the same.

So it seems that even if you had a winning system, the broker would just reduce the payout for making sure that you lose in the long run.

However this conclusion is a fallacy. It can in fact be of advantage for the broker to offer a payout that allows you to win, as long as most other traders still lose. A broker has not the freedom of arbitrarily reducing the payout. But why would you want to trade binary options anyway, when you also can trade serious instruments instead? But aside from tax advantages in some countries, there is one single compelling reason that might make a binary options trading experiment worthwhile. Profit and trading cost of a binary option are independent of the time frame.

So you can trade on very short time frames, which would be difficult, if not impossible with real options or other financial instruments. You can find a discussion of this problem in the Scalping article. Required win rate in percent vs. So, smaller trading costs on low time frames are the obvious benefit of trading binary options. With all the side benefits of low time frames, such as more data for backtests, and shorter drawdown periods in live trading.

But how can we take advantage of that? There are three problems to solve. Three steps to potential binary profit Find a strategy with a win rate that is better than the W determined with the above payout formula. But be aware that prices on small time frames are strongly feed dependent. For being on the safe side, test with different historical price data from different serious brokers f.

Find a way to trade automated. Binary brokers often do not want you to do that. Consequently most do not offer a platform or API for automated trading. But they all have a web interface. So you need either a software tool such as Zorro that can send key strokes and mouse clicks to a website, or some other means to get your trades to the broker. At least one that allows you to really collect your gains. All binary brokers make it easy to deposit, but some follow the philosophy: Keep the account balance small.

Retrieve as many information as possible about your broker: Where are they really located? For some reason, fraudsters seem to be concentrated in Tel Aviv. Check what customers say about that broker — but be aware: The system A price curve is no random walk. At least not all of the time. Long time frames are often dominated by trend , short time frames by mean reversion.

It measures the system performance as the number of winning trades divided by the number of losing trades.

 

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Binary Trading Scams. Choosing a binary options broker is not like choosing a Forex broker. Right now, binary trading is largely unregulated, which means that there is no simple registry where you can look up brokers and come up with a reputable list based off of the governing bodies regulations, inspections and audits.

You can’t read an investment blog without coming across posts about binary options. There’s a lot of money in binary options – for users, brokers, and advertisers – so this won’t change overnight. Binary options trading is legitimate, but incredibly risky. You’ve got to understand the. The scam starts before the investor even opens their brokerage account! Many new binary option traders get hooked by a video about binary trading signals, or a binary . 

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Jul 27,  · I've looked into online binary options trading a bit and it seems to me that the consensus is that very few people outside of professional traders can beat the trading sites consistently for good. Binary Options Trading Scam: How It Works (with video below) More and more people are sending us emails asking if the binary options trading sector is a scam in itself, as many horror stories have been shared lately on the Internet.

Binary Options: Scam or Opportunity? In binary trading, slippage largely depends on the honesty of the broker. Since they are usually market makers, it is no problem for them to generate artificial slippage for reducing the win rate. So it may be worth the effort to test the slippage and compare it with different brokers. Binary Options Trading Scam Forex and Cryptocurrency Scam Reports, News and Alert Now a days it is a kind of situation where one have to keep a hand in his pocket while moving via the market.

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