Binary options prohibited strategy
I hate binary options. I never traded them because I know what I am doing. Even if they are unbanned, or you circumnavigate the ban by trading offshore, I want to explain to you why you should avoid them. Traditional options can be very useful products to hedge risk and make money.
These are not the sophisticated investment products that traditional options are. Binary options are usually a bet on whether price will be above or below a certain level at a specific time.
You may think you have a strategy for this, but the binary brokers have that bit covered. Why were binary options banned?
So what were the reasons for them being banned? What do you think happened if you lost?
Yes, you lost it all. Large amounts of frauds There were a lot of off-shore brokers targeting European clients and basically taking all their money regardless of the outcome of the bet and not allowing them to withdraw any deposit money.
Traders can still use off-shore brokers if they are stupidbut the lack of marketing etc in the EU from legitimate brokers who can no longer offer the products binary options prohibited strategy the awareness and desire to trade them. Large amounts of complaints There were significant issues with mis-selling the products and not adequately explaining the risks to the prospective traders.
This also included the brokers taking on clients they knew, or should have known, were unsuitable for any type of trading.
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Complaints are never a good thing for a product and certainly helped the binary option ban. Joker brokers and clown products Brokers saw the demand for binary options so created ridiculous markets where people could bet on whether price would be higher or lower in 5 minutes in even one minute.
Binary options were aggressively marketed at people who had no idea what they were doing.
By Randall Liss Updated Sep 6, Binary options are contracts where an investor is speculating on one of two outcomes: a payoff or nothing at all. The deciding factor is whether or not the option is in the money at the expiration date. You can trade binaries on events or on investments—such as stocks, futures, foreign currency, and exchange-traded funds ETFs. While the concept is relatively straightforward, there are many misconceptions about binary options, so it is important that traders understand exactly what they are—and are not—in order to use them effectively. A binary is just a simple "yes or no" trade.
Why do you hate them so much? Surely it must be obvious?
People who could, with a proper trading planhave traded things like spreadbets and CFDs binary options prohibited strategy could have actually made them profits. Will they binary ban ever stop? Who knows what the future holds?
What is the Best Binary Options Broker? Binary options trading hinges on a simple question — will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks?
Will the binary option ban cease? But who cares?
You are destined to lose money. Trading is hard enough as it is as we show in our live trade room on a daily basis.
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So what should you trade? Good question. Have a look at some of my trading strategies for an idea of how to trade properly.
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- Regulation and fraud[ edit ] Further information: Securities fraud Many binary option "brokers" have been exposed as fraudulent operations.
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