Binary option trading
Binary options is a trading contract between buyer and seller which gives buyer a right to buy an asset at a fixed price on a expiry date decided at the time of contract. Binary options trading system are popular these days as it offers high rewards against low risk. Binary options trading include forex options trading, stock trading options, stock indices trading, and trading commodities futures. The expiry time could be the end of hour, day, week or month. Binary options are unique and they have many advantages. Their trade is easier as compared to other instruments; they are more profitable and have less exposure to risk.
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There are different binary option trading strategies like the pairing strategy, hedge and double position strategy, stop-loss strategy and betting strategy. Following these strategies can lead to high rate of return, if pursued properly. Binary Options trading is classified into two categories “cash or nothing” and “asset or nothing”. This means that the investor will get cash (the amount of which is decided at the time of contract) or amount equivalent to price of asset (the amount calculated at the maturity date) else he will get nothing at all.
No investment is completely risk free; same is the case with binary options trading. The scams related to binary options trading increases the level of risk and can rip off your investment. If you are aware of all the related binary option scams you can manage to minimize the amount of losses. Binary options scams are difficult to predict so extra knowledge about them will come in handy in the near future.
Binary option trading scams:
The major problem with binary options trading is the decision of binary options platform. With the popularity of binary options trading in financial markets, some negatives related to this trade are being highlighted. Many platforms are unauthenticated and are working to hoodwink the new innocent traders in this field. If you are a new investor and you want to trade binary options online, you must go for an authentic and reliable platform to avoid scam.
Brokerage firm:
You should do a preliminary research about the brokerage firm before investment to avoid the binary option scam. Extensive and wide spread research which includes investigating about the firm from past customers, asking about the comments and reviews and checking the rating of the firm should be done to avoid binary options scams.
High rates offered:
If any firm is offering high rates against “in the money” binary options take it as an alarm as such firms are intended to attract you for your initial payments. Once the initial amount is submitted, these firms disappear and later there is no one to answer your questions. It is necessary to compare the rates offered in the market and the rates offered by the binary option platform.
Recommendations:
If you find a binary option platform which seems to be faultless in all the aspects then you should ask for recommendations from the past customers that are using the facilities of this platform from the past one year. You should take information about the pricing, payment and removal policies of the online platform to make a transaction free from binary option scam.
Customer support:
One of the issues regarding binary options scam is poor customer support as in many firms there is no one to help and guide the new customers. To avoid such condition, you must invest in a firm which continuously gives support to its customer. You should do a reasonable research to find a good firm for investing your money.
Security concerns:
For online transactions make sure that this process is secured through codes and pins etc so that your invested amount could be safe and the transactions could be secured. You should investigate about the online transaction process of the platform so that you may not be trapped in a binary option scum.
Conclusion
If you are a new investor in this field, you must consult an advisor to understand the related strategies about binary options. You must choose a platform that is realistic and offers good rates as the things that might seem good might not be as good as they appear. Therefore you should be cautious about the trade and related terms and conditions to avoid any binary options scam.
