Binary options have attracted traders of all experience levels—from beginners to professionals—who are in a quest for diversifying their investments. This type of trading has grown to a respected and credible practice over the years. Despite this, one of the concerns of many, especially when it comes to where they put their money, is the question: is binary options trading safe?
10) Expect Early Losses and Start Small: You have followed the tips above, developed and practiced your trading strategy for hours on end, and now you are ready to make some real money. Whoa, Partner! Putting real money on the line can due weird things to your brain cells and nervous system, one reason that casualty rates are so high in this industry. High risk means just that. Do not commit funds that you cannot do without. Early losses could be high, the reason that most brokers must have aggressive new client solicitation campaigns together with hefty promotional deposit bonuses. Be aware of the trading commitments that are associated with these bonus programs, sometimes as much as 30 times the value before withdrawal restrictions will be removed. Brokers expect 7 out of 10 traders to fail and get both the bonus and initial deposit transferred to their coffers. There is no rush. Be patient. Do not put pressure on yourself to step up your action. Start out with small amounts, and as you begin to accumulate consistent gains, then increase your amount to something more reasonable, in line with money management rules.
More and more binary options traders want the flexibility of being able to place and monitor trades using their mobile phone. You can do this with AnyOption. It works on both iPhone and Android devices, offering real-time information providing your phone has an internet connection. You can check prices, monitor your current trades, look at your trading history, and manage your account.
In March 2013 the Malta Financial Services Authority (MFSA) announced that binary options regulation would be transferred away from Malta's Lottery and Gaming Authority.[54] On 18 June 2013 MFSA confirmed that in their view binary options fell under the scope of the Markets in Financial Instruments Directive (MiFID), which made Malta the second EU jurisdiction to regulate binary options as a financial instrument. This required providers to obtain a category 3 Investment Services license and conform to MiFID's minimum capital requirements; firms could previously operate from the jurisdiction with a valid Lottery and Gaming Authority license.[55]
For some reason, isolation seems to be a major temptation for new traders. Perhaps it is all those hours you spend in front of your computer staring at charts, while friends and family members look on without comprehending a thing you are doing. There are other traders out there, however, and they are accessible to you online. On trading forums, you can get to know traders around the world who use hundreds of different trading methods. Traders who emerge from their isolation and reach out to others are stronger together than they were alone. Getting to know other traders can empower you toward success in more ways than one.

From earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:


Binary option trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade binary options or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
We must admit that there are some irresponsible brokers who use false advertising and promise unrealistic amounts in a short period of time.  These brokers make traders believe that binary options trading is an easy way to make a lot of money. In reality, binary options are a profitable way of trading, but only if the trader is responsible, educated and patient. In order to avoid scam brokers, make sure to trade with a broker who is registered by some of the regulatory bodies like CySEC. Traders must be aware of their own greed and false promises, and realize that binary options are still a type of financial trading where no one becomes rich over night. Also, traders must take their invested amount into consideration, as bigger investments make a bigger profit.
As opposed to this example, you may also decide to bet in the opposite direction, if you believe that the price of the Google stock will drop in the near future. In this case, you will have to place a ‘Put’ trade, but the payout will remain to be the same if your prediction is right. Similarly, the loss will also be the same if your prediction is wrong.
If we denote by S the FOR/DOM exchange rate (i.e., 1 unit of foreign currency is worth S units of domestic currency) we can observe that paying out 1 unit of the domestic currency if the spot at maturity is above or below the strike is exactly like a cash-or nothing call and put respectively. Similarly, paying out 1 unit of the foreign currency if the spot at maturity is above or below the strike is exactly like an asset-or nothing call and put respectively. Hence if we now take {\displaystyle r_{\mathrm {FOR} }} , the foreign interest rate, {\displaystyle r_{DOM}} , the domestic interest rate, and the rest as above, we get the following results.
×