“Binary options” means, in very simple words, a trade where the outcome is a ‘binary’ Yes/No answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost if the binary trade loses. So, in short, they are a form of fixed return financial options. So, you answered What Do Binary Options Mean? But How to Succeed in 2020 with Binary Options Trading!
How Does a Binary Options Trade Work? What Do Binary Options Mean?
Steps to trade assets via binary options:
- Select the stock or equity.
- Identify the desired expiry time (The time the option will end).
- Enter the size of the trade or investment
- Decide if the value will rise or fall and place a put or call
The steps above will be the same for every single binary options broker. More layers of complexity can be added, but when trading equities the simple Up/Down trade type remains the most popular.
Put and Call Options. What Do Binary Options Mean?
Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade. Different trading platforms label their trading buttons differently, some even switch between Buy/Sell and Call/Put. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in.
Are Binary Options a Scam? What Do Binary Options Mean?
As a financial investment tool they in themselves, are not a scam, but there are brokers, trading robots, and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. But How to Succeed in 2020 with Binary Options Trading and Avoid Scam
- Marketing promises huge returns. This is a clear warning sign. Binaries are a high-risk/high-reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy.
- Know the broker. Some operators will ‘funnel’ new customers to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier.
- Cold Calls. Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue.
- Terms and Conditions. When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades has been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading. Some brokers also offer the option of canceling a bonus if it does not fit the needs of the trader.
- Do not let anyone trade for you. Avoid allowing any “account manager” to trade for you. There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits and take greater risks. Traders should not let anyone trade on their behalf.
What Do Binary Options Mean?
If you will choose one from our recommended brokers, you can start trading binary options without a deposit using binary options with no deposit bonuses:
PocketOption Broker – USA, EU, and World Wide Customers Welcome – 50$ Real Money Binary Options No Deposit Bonus
Binary.com – this broker does not accept USA & EU customers – 10.000$ Free Demo Money Binary Options Account
Visit our dedicated website for More Binary Options No Deposit Bonuses
What Do Binary Options Mean? But How to Succeed in 2020 with Binary Options Trading
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