Small stake – high profits! – This could be the advertising of an online casinos, but in fact, numerous brokers, which allow the trading of binary options, attract especially private traders. The trade with binary options is no longer reserved for professionals. Since the functioning of the trading systems is relatively simple and the market methods are transparent and easy to understand, there is currently a hype about the trading of binary options. The view website about main reason for this is above all the promised high returns.
Review: What are binary options and how check over here into are they traded?
Binary options (digital options) are simple financial derivatives that are traded on international markets. These may be different underlyings, including for example currency pairs, raw materials or. In trading itself, only two scenarios are possible: Either a predicted event occurs or not. Profit or loss. Therefore, the purchase of an option is set to a rising (put option) or falling price (call option) up to a certain expiration time.
Even though it is here again, as if it were a bet in an online casino, is absolutely not so. The successful action with binary options does not consist of a tip, which is sometimes given according to the abdominal feeling principle. The decision for a put or call option is made for article on the basis of different information, indicators and analyzes. Traders need a lot of knowledge:
- Basic knowledge about the stock exchange and securities trading
- Basic understanding of how the binary options work
- Basic understanding of how the broker platform works
- Knowledge site see about the different trading strategies
- Knowledge about the current economic situation
Only the person who has this knowledge and applies it correctly will gain profits in the long term with action. For all the others it is to try their luck in onlinecasino.
The risk / reward ratio (CRV) is an important indicator for securities transactions. The calculation of this key figure always assumes a possible profit and a possible loss: thus profit divided by loss. For example, in the case of stock trading, the CRV is influenced over the target price using the fundamental or technical analysis, the stop loss and the correct choice of the stop loss. recommended you read which However, the binary options are slightly different.
For example, the gain on a 60-second option is between 65 and 75 percent, and the maximum loss is 100 percent, that is, the total stake. This results in a CRV of 0.65 to 0.75. But what did this value say now? Quite simply, the CRV in this example says that 70 cents per risky euro can be won on a trade. would such a good point What is needed is a strategy that generates profits of around 59 percent to avoid loss.
Although the risk / reward ratio in dealing with binary options before a trade is fixed, binary options are high-risk investment forms. Traders should never forget this. However, it is advantageous that there are means (for example, risk and management of the money) to use the opportunities more he visit website securely and to better deal with risk.
High Yield, Gains & amp; Losses
The brokers who are currently bouncing on the market, which offer the trading of binary options, differ primarily in terms of their terms and the amount of the maximum yield. A comparison of the broker is therefore in any case sensible.
For the simple options (call / put options), the yield varies between 70 and 91 percent depending on the broker. If you want to invest 500 euros, depending on the broker, you will have an additional or lower yield of up to 100 euros.
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In fact, there are also yields of up to 650%, but this is only possible in the so-called high-yield sector. It is true that returns are much higher than those of the