Myth and Truths about Binary Options Trading
It is almost impossible to not come across advertisements for binary options trading. These advertisements are incredibly enticing, telling you that you can gain as much as 71% profit in an hour and more. Interestingly, those statements are actually true – with the caveat, of course, that you must pick the right assets at the right time and predict them properly. Full information about how this works is available on Binary.com, a company that has also taken the time to address some of the most common myths and truths in the world of binary options trading.
Myth 1. The Odds Are Against You
This is completely untrue. Even if you have no knowledge at all of markets, assets, and finances, the odds of you making the right prediction are still 50/50. If you do know what you are doing, for instance by looking at past market fluctuations, the odds will be far more in your favor.
Myth 2. You Must Be a Financial Expert to Trade Binary
Again, this is not true. In fact, binary options are particularly popular with beginner traders. This is because these options are easy to access and cheap to buy. Hence, they provide a perfect opportunity to learn more about how the markets work. That said, the more you know, the more likely it is that you are right in your predictions and the closer you will get to that 71% return in an hour.
Myth 3. Binary Options Are Time Consuming
There seems to be an idea that, because these options are fast-paced, people have to spend their entire day behind a computer to trade in them. In reality, however, your contract will have an end date, and this will happen automatically. What you do have to do, however, is check your results.
Semi-Truth 1. You Get Your Money Back if You’re Wrong
This depends on the trading site that you use. Sometimes, you can have up to 15% of your investment protected. The reality is, however, that if your prediction is wrong, you are likely to lose your investment in full.
Semi-Truth 2. You Can Earn 71% in Profits
It is absolutely possible to earn 71% in profits, if you find the right asset, make the right prediction, and take out the right contract. It is more likely, however, that you will earn around 65% on the correct predictions to make.
Semi-Truth 3. You Can Trade in Binaries on Your Own
Unlike with stocks and bonds, you don’t have to have a financial advisor and a broker to trade in binaries. You do, however, have to sign up with a platform. And there are always costs involved with this, although they are substantially lower than the brokers and agents.
Truth. Binary Options Are Exciting
This is 100% true. If you like to feel the adrenaline pumping while you execute trades, then binary options are for you. It is a very thrilling form of trading, because it is so quick and because there is a lot at stake. It is certainly not for the faint of heart.