Earnings on binary options today, probably, have not been heard only by those who do not use the Internet at all. It is unlikely that you will be able to work online and never stumble upon a banner with an offer from one of the online brokers or an article from a happy trader who has gained financial independence over a month of work, and from scratch.
But is there even a grain of truth in this? Opinions are divided on this. Some users are confident that this is a scam and you will certainly lose money there, although most of these “experts” have never been engaged in trading. Others say it is just a “gold mine”. Although, here it is worth making an amendment to the promotional reviews, for which they really pay.
So where is the truth? In order to understand the whole essence and possibilities of making money from trading contracts, it is necessary to understand the basic concepts and the process itself. And only after that, it will be possible to draw any conclusions.
What are binary options really?
Let’s start with the concept. In simple terms, binary options are an exchange instrument, the essence of which is that you buy a contract to raise or lower the price of your chosen asset and, in the case of a correct forecast; you receive a fixed profit, which is expressed as a percentage of on which the contract was purchased.
If the forecast turned out to be wrong – you lose all the funds involved in the transaction. This tool appeared in 2008. It is traded on the stock exchange and is a separate segment of the securities market.
It seems to be all very clear, and most importantly transparent. Study the stock market, and you can go to conquer the heights of financial markets, and sitting at home at the computer. However, the fact of the matter is that not everything is so simple here.
In order to “truly” trade in contracts, you must obtain a license from a participant in one of the stock exchanges where you trade options. And most importantly, to have a very large amount (thousands of times more than you can open with a broker in the network) to carry out this activity.
So what’s the deal? It turns out that trade with one of the companies that offer their services on the network, happens as if for fun? Actually, it is. Being engaged in trading on the Internet, using a brokerage firm, as an intermediary, you are not a participant in the financial market, and, of course, your transactions do not affect it in any way.
Everything happens within the company providing these services, and trade is conducted between its customers.
For this reason, in many countries, binary options brokers are not legally regulated. The reason is that there is no consensus about whether it is the financial sector or gaming. After all, in essence, trading in contracts in its current form very much resembles the same rates for sports or online casinos.
But do not make hasty conclusions and argue that the whole industry is a scam, and people just pump out money. Despite the fact that your transactions are not displayed on the real market, “honest” binary options brokers make trading in binary contracts as close to real one as possible.
If you check with the official source of quotes that are broadcast by one of these companies, you will see that they are completely untrue. And this means that no one “adjusts” the result of the transaction, and you really have the opportunity to earn money if you correctly analyzed the asset and bought the necessary contract.
Thus, you can, of course, make money on binary options. But how and how much … On this further.
How to make money on binary options?
What are binary options – sorted out? And in order for binary options trading to actually make a profit, it is necessary to take into account the following nuances:
Binary options – earnings or cheating?
- Remember, online trading is not a bet or a casino. To succeed in this field, you should not rely on luck. Here only knowledge will help you. Therefore, pay special attention to the basics of stock trading and types of market analysis.
- Do not start trading on a real account until you have developed an effective system. For this purpose, use a demo account that will be available to almost every self-respecting broker.
- Use the rules of money management. Do not buy one contract in volume that exceeds 5% of your deposit. So you can keep afloat even when you have a series of unsuccessful transactions.
- Learn the psychology of trading. Learn to control your emotions while trading. Take this lesson with all seriousness and do not give in to the excitement.
- Find a brokerage company where you can start trading with minimum rates. This will help you cope with the fear of loss of funds at the beginning of the trading session.
As for the number of earnings, everything is individual here. Much depends on your skills, knowledge, time, which you devote to trading. And, of course, the size of your deposit.
For example. You have $ 10 in your account and you buy a $ 1 contract. In the case of a successful outcome for you, the broker guarantees a profit of 70%.
That way you earn 70 cents. But if you had $ 100, and the volume in the transaction was $ 10, then you could earn $ 7. The meaning is clear? True, in fairness, it is worth clarifying that with an increase in the size of the rate, not only potential profit but also risks.
Of course, in advertising, everything is greatly exaggerated. You will not be a millionaire in a month. And for the year – is also unlikely. However, you can easily make trading binary options your main source of income.
Conclusions on Binary Options Trading
In general, if you cooperate with a reliable binary options broker and fulfill all the above conditions, then you will be quite able to get a stable profit from trading contracts.
Despite the fact that your transactions will not be displayed on the real market, you will operate on current quotes and use exchange instruments, which undoubtedly will allow you to get the invaluable experience that is so necessary for a professional league. All the maximum income!