DISADVANTAGE OF BINARY OPTIONS

Image result for loss binary option

If you are bent on losing money, tell me which sounds better to you…

Regulation – First and foremost, regulation is a huge one. The truth is that binary options trading is a very new concept. As a result, regulatory agencies haven’t really caught on. So, most binary options brokers out there are unregulated, which can lead to a risk of being taken advantage of. However, there are some regulated brokers out there, and those are the brokers you should work with if you decide to trade

Losses Are Big – One thing that can be a big drag for binary options traders is how losses work. When a trade ends out of the money, the investor loses 100% of the principal amount invested. This can hurt if you’re making big trades. So, if you decide to trade, make sure to make smaller trades and watch your loss exposure.

Added Risk – Finally, because binary options trades are by nature short-term trades, there’s added risk. After all, a prediction that has more time to come to fruition will likely be more accurate. So, keep in mind that this isn’t a great vehicle for the risk-wary trader.

You are almost guaranteed to lose more money than you win, just like at the casino.

Unlike the casino, you will not have any fun losing your money.

Losing money while having tons of fun, being served drinks by beautiful women in skimpy clothing, and live music playing in the background?

Losing money while sitting alone at your computer, watching half your “trades” close 1 pip against you at the last second, and your account balance dwindling down to nothing?

 

Advertising that appears on the web pages where they see the binary options business as a source of income miraculous, in order to deceive people to swindle, this is another disadvantage of malicious people who paid for some brokers are devoted to this misleading propaganda.

Another point that should be included in our list of disadvantages of binary options is that demos beware of brokers, some of these are dedicated to defrauding investors, this is the importance of choosing a regulated broker. But even with a regulated broker must be careful because there are some who cheat the authorities to obtain the license and give an appearance of legality, trust, and transparency, unfortunately not all turn out to be well-regulated brokers.

The usual binary options website will go to town about the huge returns that you stand to make by trading binary options with them. Well, high returns are certainly possible, but the catch is that you must have a high number of winning trades, i.e. a solid win ratio to counterbalance the inevitable losing trades that you will incur.
The win ratio will depend on the terms your binary broker offers on winning and losing trades. What kind of profit return do you make on a win, and do you lose all of your upfront payment when your trade turns up a lemon? Some brokers ease the pain of a losing trade by giving small cash back percentage.
But, for instance, if the broker paid you 70% on a winning trade and nothing at all on a losing one, it can be easily calculated that you would need to win 58.82% of all your trades…just to break even.
CONCLUSION

There is no investment. There is only paid to an organization that will not compensate you if they close. There is no transferable equity to any other organization. There is no obligation to pay you in accordance with any market performance because they are not a financial services company. They can change their terms at any time, ie the rules of the game you play without recourse.

They are not governed by any ethical policy or public protecting guide. Thier identity may be heavily obscured, thus you are paying in money to an unidentified foreign business about which you know nothing but for a website, you falsely entrust with your money.

There is no such thing as “Trading” in binary options unless you are trading through an Exchange for say VIX binaries… But I am sure this question is not what this question is about if it was such a question would not be asked and you’d be a sophisticated investor.

I could go on, but surely you don’t need any more detail. Binary Options represent nothing more than a gambling product masquerading as a financial services offering to the naive.