Trader Danger: Read This Before Touching Binary Options
Forex Binary Options… the latest trend in the financial industry – a completely new way to make money from currency movements.To get more news about
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Binary options are not to be mistaken for normal options contracts, which are a completely different thing. Were specifically talking about binaries only.
As a Forex trader, you probably visit many Forex websites and therefore see a lot of mentions about binary options, especially in the form of advertisements or those annoying ‘get rich quick with binary options’ emails.
They are promoted as being: easy, low risk, and give huge ROI in a small amount of time – as quick as 60 seconds!
Every corner you turn, there is something screaming in your face “BINARY OPTIONS”, almost to the point where youre being brain-washed with subliminal messages just to get you to create an account and start trading ASAP.
When you actually pull back the curtain, you will discover that its mostly clever marketing and a play on words to get you to spend money.
In this article I am going tell you why binary options are not a good opportunity, and in fact this trading method is nearly guaranteed to waste your money.
There are a few different types of formats you can use to setup a binary options contract. They are actually a very clever and a very interesting way to speculate on the market – I even like some of the formats available.
With binary options, time is basically your trade ‘exit’ point. You can have contracts that last as short as 60 seconds, right up to ones that last for a day.
You ‘win’ when your contract expires ‘in the money’, implying the condition on your contact is true when the expiry time ticks over.
The conditions you can ‘opt in’ for are very innovative; you could come up with some cool strategies with these kind of configurations at your disposal.
Put (bearish) & Calls (bullish): Basically if price is above or below a specific price level at the time of contract expiryThese are a very different approach in contrast to the classic SPOT Forex trading that we‘re all used to. This is about as awesome as binary contracts get, it’s all downhill from here.
There are many ‘red flag’ issues with binary options that you might not be aware of. You really have put the system under the microscope and even listen to some of the horror stories of traders who have been put through the binary options meat grinder.
