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What are binary options in the global financial market


In the global financial market, as in many other areas of commercial activity, there are often categories that seem to the uninitiated person very difficult to understand and use. For example, “binary options” sound like complex definitions of some processes that only professionals understand. But in fact, among financial assets and instruments, they are among the simplest of contracts. The task of a binary options trader is to determine the value of an asset over a specific period of time. Of course, this is the simplest definition of the category we are interested in, but it most accurately shows what binary options are in the modern financial market.

The truth is, there is one very important nuance that is preferred by the silent, both experienced brokers and traders, who often attract wealthy investors to finance their activities. But we will analyze this moment a bit later to create a complete picture of modern financial instruments – binary options.

The main types of binary options


The category in question appeared relatively recently, but due to the simplicity and high speed of the executed deals, binary options very quickly became popular. At the same time, the number of binary options trading platforms offering this service to traders increased at an unprecedented pace. What should a potential user know about binary options in order to earn money on this financial instrument?

Despite the general, rather simple structure of this tool, there are a lot of nuances connected with it that the future trader should know about. For example, fx options combine the ability to trade currency pairs with the concept of the options themselves. A trader chooses a currency pair, a tendency to change the course and after five minutes makes a profit!


Continuing this topic, it is necessary to distinguish the following types of options:


In other sources, brokers use the following types of options:

What should a trader remember when trading binary options


Cooperating with brokers who offer binary options deals, you need to keep in mind the following things (Martingale system):

When working with binary options brokers on your own betting system or on some new, unexplored strategy, never take risks, try (as far as possible) to mathematically calculate your every step.

Binary options – big cheat?


Most of the subjects of financial markets never even wonder what they are selling / buying, who benefits from it, where does the money come from to pay for this whole complex process?

And if, for example, with a currency (including cryptocurrency) is more or less clear, then with binary options everything is much more complicated. And this topic is not much discussed. Why? Unprofitable. Most binary options are classic bookmakers.

According to some data, only 10-15% of brokers work with 4 exchanges that provide access to the real market of this financial instrument.

And it is not a secret that at the end of 2018 most brokers and traders are aware of this. And readers, who did not know, can conclude that binary options are a divorce, a deception, a trick of money from honest traders! And here already "smells" of deception. Any schoolchild who knows mathematics well and has never heard of the above system will quite quickly guess how these binary options work. And in this matter do not blame anyone. You were satisfied with such a mechanism, you paid money, made deals, etc. And who did not arrange it, he would do crossword puzzles or play chess with friends for free.

#source


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