No trader invests money in order to realize a loss. Profit maximization is the stock market always comes first. The market sometimes makes but things that are not to everyone’s taste. Finally applies where there are winners, there are usually losers. Win-win situations on the capital market are rare. This pattern also applies for OTC trading, so of course Binary Options are associated with risk. Binary options trading to ensure a course rash is not possible does.However, as you can mitigate risk, click here.
Interesting facts about the binary options risk:
- Binary options are relatively new financial products
- A broker binary options should be chosen carefully
- Most brokers offer the possibility of limiting losses
- For risk control different tools can be used with brokers
1.) What is binary options all about?
With binary options is relatively new investment vehicles and they are becoming increasingly popular. The principle of binary options is very simple in fact. A binary option is only two states, — «in the money» and «out of the money». When trading these instruments can be set to rising and falling prices. Because for trading relatively low stakes necessary binary options are interesting for beginners. Who is binary options, speculating on the price of an underlying security. If the trader from rising prices of, he opts for a call option and in expectation of falling prices it is a put option that is appropriate. For a call option, the price of the underlying at expiry time must be higher than the opening of the trade — this is the case, the option is in the money. If the trader correct in his prediction, he receives a return that depending on the broker, accounts, up to 90 percent of the insert. If the trader is wrong, the whole bet is lost.
Besides the classical binary options still find a number of other types of options such as:
- One-Touch Options
- Range Options
- Turbo Options
- Ladder Options
- and other variants
Each Optionenart distinguished by specific features, by the terms and by the returns that can be achieved with it.
Conclusion: For binary options s is relatively simple trade instruments that embody the character of financial bets. The dealer always has full control over the maximum losses and requires no high stakes for placing a trade.
2.) How to find the best binary options brokers
Who is looking for a new broker, should not decide the same for just anybody, but first of all a supplier binary options comparedmaking. Only then is it possible to find the best broker and only after careful examination of different product ranges should a binary options account opening can be realized. But how can you decide in the existing variety of brokers and how it is possible, a binary options Top providers to recognize at all? It is not difficult to find out which brokers have to show a good deal and what is not.
There are some general characteristics that guarantee high quality of a tender:
- Underlying selection: A good binary options broker provides its customers with a versatile range of underlyings available responsive as many different traders and they do not limit their individual commercial manner by too small a base value proposition.
- High returns: There is some big differences when you compare the offers of brokers. Some trading providers shall enable their customers yields up to 90 percent and in other turn profits by more than 65 percent can be found.
- Minimum deposit: Who wants to be a good Binary options broker, investor does not exclude by too high a minimum deposit. Inexperienced investors should get the opportunity to learn trading, without having to spend exorbitant sums.
- Minimum bets: Here it behaves like with the minimum deposit — a good broker enables its customers even small bets and not limited by large speculators to small maximum bets.
- Customer: Anyone who wants to treat his customers like kings, offering them an extensive customer support that is not only to be found in English. The support staff are well trained and willing to individually deal with the questions of customers and prospects.
- Educational track: No one is born as a trading expert. A good broker knows this and strives to provide a versatile and comprehensive training and educational opportunities available. These include regular seminars and webinars, video tutorials and technical articles, teach the basics and further specific knowledge.
Conclusion: There are countless binary options broker and who wants the best find of them, should organize the search to some traits. A wide range of underlying assets represents a mark of quality, high returns, low minimum deposit and low minimum bets.
3.) loss limit as standard with most brokers
Most brokers offer you the option of limiting losses. This means that in the event of a negative option course a certain percentage of the capital employed, receive back between five and 15 percent in the control. Some tools, such as the Option Builder also loss protection to 60 percent or 80 percent are possible. This tool is used to make an option itself.
Conclusion: Many binary options broker offers its customers a loss limit that applies when the option is not in the money. The amount of the loss limit will vary depending on the broker and is between 5 and 15 percent. Some brokers also is the so-called Option Builder to find, can be created with the very own binary options. It can be up to 80 percent of the loss protection.However, the higher the loss protection, the lower the achievable returns.
4.) You can get your winnings sent
Some providers allow their customers an option before expiration to sell back. With this tool, profits can be safeguarded in order to anticipate a possible turnaround of the course. In this case, although not the full return is paid, but many investors is «the bird in the hand rather than two in the bush». Other brokers offer as an additional function to the «roll forward» variant. In this case, the option, if it is running the expiry time of the money, be extended until the next expiration date. This option is recommended only if you are unsure as investors nearly 100 percent that there is a turnaround in the course of underlying are. Especially in relation to the target course requires this approach but requires a certain amount of experience with the selected underlying. Critics compare binary options often with gambling. Lotto can neither learn nor increase through market-based strategies his chances of winning. A partial repayment of the now quite hefty stakes in less than three correct there is not even. Binary options are based on market data and offer compared to the free equity or commodity trade protection against the free fall, if you use the appropriate tools.
Conclusion: For some brokers, there is the possibility of closing a binary option before the expiry time and secure in this way already achieved returns. Whoever closes his option before the end of the term, receives a lower return, but can protect themselves in this way before a turnaround and not risking the loss of the entire insert.