We hear more and more about binary options. And more and more people are trading these binary options. Since the crisis it has become a very popular stock market investment derivative. Binary options are considered a derivative. It is an exotic product with a leverage effect. This leverage allows you to win big by doubling or tripling your stake. Of course, that says high potential for gain, also says maximum risk. This is why the rule that one should bet only what one is willing to lose prevails. Because if you win, the risk is that the institution in question does not allow you to withdraw your capital.
Obviously the binary option has become a mass financial product because it is simple and allows to start with very small sums. The purpose of this product is for a bet and a given scenario, to give you in advance your potential gain.
The casino purse
Binary options are like playing roulette at the casino. Of course, technical analysis and timing can make the difference between luck and skill. But mostly this product is meant for beginners on the stock market who are looking for ease and the marketing shot of making a lot of money works perfectly. Of course, the stock market with the binary options becomes a casino. You can read at https://fraudbroker.com/30-minutes-strategy-binary-options/ more about this.
Binary options are all or nothing
That’s what makes it a product absolutely not for beginners. In addition to knowing how to make good analyzes, you must always have a perfect timing. Binary options become a risk for beginners.
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- A binary option is thus first linked to an underlying. This underlying can be an action, a raw material or a stock index like the cac. Then you will bet on the price direction (up or down) and the time with a date and time of expiration of the scenario.
The binary option is therefore a financial product with leverage that is simple in appearance. The difficulty to win in a sustainable way is strong. While the major target of this kind of product is perfect beginners. Everything is set up, so that the binary option is wreaking havoc on small, beginning investors who represent a mass, while few investors will know how to professionalize to take advantage of it.