Binary options trading – is it risky?

Binary options are an increasingly popular form of trading in the financial market because they offer the opportunity to trade a wide range of financial assets, not to mention that the rewards come really fast. It is not even necessary to have substantial amounts of money, all that you need being a couple of bucks. Basically you stand to lose as little as you can afford, but when you do win the amount of money you make will be enough to secure your future. Unfortunately, there is a growing number of binary options brokers that instead of helping traders take advantage of their innocence. This phenomenon has led to the universal acceptance that binary options brokers are frauds. So are Binäre Optionen trading that risky?

Yes, binary options trading can be risky at times

Generally speaking, trading is risky because you can possibly lose everything and this is true whether you trade the stock market, commodities, etc. The fact is that in the marketplace you have to assume a certain level of risk, but more importantly you have to be aware of your winning ratio. A 90% winning ratio is not mathematically possible and even if it were, only experienced brokers enjoy such a lucky streak. What types of risks are there involved? Trading binary options involves firstly the market risk. What happens is that the market moves in unpredictable directions and even the most thorough evaluations cannot accurately predict its direction. The most significant risk is represented by binary options brokers. Unregulated brokers in particular manipulate the movement of the assets, or may be using a trading platform that does not show the exact expiry time.

How to protect yourself

The first thing that you need to do is research the broker you are interested in, which means looking up for information related to where the brokerage firm operates, if it is regulated and what kind of platform they are using. If this information is not already provided on the website of the firm, then you can find broker reviews. These evaluations include relevant details about types of trading accounts, withdrawal process and, more importantly, they mention user experiences. If clear signs are what you want, then look out for the following things: promise of high profits, lack of educational resources, inflexibility, and of course lack of security measures.

The benefits of trading with a reputable and honest broker

The main characteristic of binary options trading is that it is fairly simple. The reason why this type of trading is so simple is that brokers have made considerable efforts to make binary options as uncomplicated as possible. Al the trader has to do is choose what financial assets he would like to trade, the amount and the direction of the price. Placing a trade is realized with the help of a couple of clicks and you can use a small amount of money. Basically you can trade as little as possible, for example $1, and even though you will not make a fortune, you will learn a great deal.