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Binary Options are deceptively simple to understand, making them a popular choice for low-skilled traders. How to define binary options trading? A binary option is a fast and extremely simple financial instrument which allows investors to speculate whether the price of an asset will upsurge or deflate. Although binary options batting is illegal in India like many other countries, yet you can still trade on virtual account.
Can You Make Money Trading Binary Options?
There are success stories of people who have gained benefits from this batting. For instance, Saloni Ahuja, 26 years old from Mumbai earned a fortune from trading binary option. Her need for money and the inabilities of her parents to earn a good income made her take her this risk.
Apparently she was successful in her journey. In less than six months she earned Rs 80, 00,000 and bought the car of her dreams, Mercedes Benz. The reason for her success is that, she had trust in herself though her path was bit risky. You may wonder whether, is binary options gambling?
Are Binary Options a Form of Gambling?
If there does not exist a system of trading that has a positive expectancy, then you are gambling and what you are trading is not a financial instrument. Apparently binary option are not gambling because there are regularities one can exploit in order to make money. Some investors have reported being ripped off by binary option tradition, however there are ups and downs in all forms of trading. So you can’t expect only the positive or perfect sides of any business. Is trading binary options worth it?
The Truth about Binary Options-
Binary options are legitimate but extremely risky. You need to have strong guts to lose and a well-planned strategy to work out in this trading. However unlike the actual stock or forex market where price gaps and slippage occurs, binary options are capped. They let the traders profit from price fluctuations in multiple global markets but you need to understand the risk. Apparently as a trader you would need ample information before trading in the binary option sector. But what are the binary options risk when trading?
Risk of Trading Binary Options-
A binary option can never go below zero or above hundred, no matter what happens in the underlying market. Nevertheless the biggest risk when trading with binary option, you can completely lose your investment. Although there are fads in making money fast, the situation is similar to playing a roulette game. Depends on your luck, you may end up as a winner. However when you follow binary options strategy that really works, you can make a profitable income.
The principal strategies that works well with binary option are
- Relative Strength index which decides whether the trend is bearish or bullish
- Stochastic Indicator signal for technical analysis capabilities
- Moving average which determines the right movement in the market
There are sites that provide free guides to binary stock options to get you started. So get started with one of the top rated binary option broker.
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