Though there are many strategies in Forex which are pretty popular among the traders in all over the world, there are also some strategies which are not very popular with the traders. Binary trading is one these strategies. We are going to discuss this strategy in brief. Know that this strategy is very risky and traders can find themselves trading with a fraud brokers if there are interested in trading the market with this strategy.
We all know that the computer only understands two digits. 0 and 1. All of the commands of computers are summed up these two numbers. In binary trading, you have the chance of making a profit or go home with zero money. It is a fixed amount of payoff that you can get from your binary trading, either you get a fixed profit or nothing at all. This is why this strategy has been named the binary options trading in Forex. When you place a trade with this strategy, if your trade expires within the option of your trade, you will get some fixed amount of money. If the option does not expire, kiss your money goodbye. You will get nothing. Like the computer binary options, it is always fixed money or zero money.
Why it’s strictly monitored worldwide?
Though trading options seem to be very profitable, if the option expired within your trades, you get some fixed amount or nothing, it is under the strict observation of the regulatory bodies of Forex. The FBI in the US has been investigating the scams in this binary (spam deleted by moderator). They have found that 10 billion dollars have been stolen by the scammer around the world. So if you want to become a successful trader in the trading industry then make sure that you are trading with the reputed brokers like Saxo. They offer an excellent trading environment to their clients and they are one of the leading leaders in the financial market.
Should you use binary trading in the market?
Trading is an art and it requires an extreme level of discipline. This is a risky trading option which is has been filled by Forex scammers. All the Forex regulatory bodies around the world keep a strict eye on binary options trading’s for the traders to keep the market free from scams. There are many successful strategies in Forex like the price action strategy and you can make a good amount of money by using these other strategies. However, if you have strong knowledge in the financial industry then you can trade the options market in the shorter time frame.
Precise trade execution
Most of the options traders in the financial market loses money since they don’t have the perfect knowledge about this industry. Trading the options market requires pin perfect execution of the trading plan. Before you place any trades in the market make sure that you are doing your technical analysis in the higher time frame. If you prefer trending the short time frame then you need to learn the multiple time frame analysis to filter the false trading signals in the market. Most of the time the novice traders fails to manage their risk properly and thus they lose a huge amount of money. So make sure that you follow proper risk management factors in every single trade even though you might have the best trade setups in the market.
Trading the options market is extremely risky. So if you are looking to become a professional options trader then make sure that you have a clear understanding of the financial market and trading with the reputed broker. Try to use the price action trading strategy and do the multiple time frame analysis to eliminate the false signals in the market.
You must be logged in to reply to this topic.