Binary options are a new form of online trading investment that allows participants to make money from price movements in the market. Join us to learn more about the opportunity to invest in binary options right in the following article.
What are binary options?
Binary options (also known as Binary Options) is a financial tool whose investment method is to predict the increase / decrease trend of an asset over a certain period of time.
Unlike other forms of financial investment, trading binary options is very simple and perfectly suitable for even new investors. Only by making a forecast of an asset's uptrend or downtrend, if your prediction is correct, you will get money, if your prediction is wrong you will lose money.
You can opt in to predictions for assets including stocks, indices, commodities and foreign exchange.
Typically, binary options traders make predictions about the price trend of an asset type up or down at the time of purchase. If the price moves in accordance with the prediction, the investor will have a profit according to the rate offered by the exchange. If the price moves against the prediction, the investor will lose all of the investment for that trade.
Because the way to play is completely simple, with high profits, this form of investment is gaining more and more participants.
Are Binary Options scam?
It is safe to say that binary options are not a form of fraudulent investment. Most of the companies that provide binary options trading services are those that are legally licensed, under the control of reputable financial institutions and institutions around the world. When trading at reputable companies or exchanges, you will always be guaranteed financial security, your deposit will not be stolen or lost. However, it is important that you wisely choose to join the reputable exchanges because there are actually many companies set up for fraud. Neither of these companies are able to provide licenses for or be recognized by other financial institutions.
While binary options are not a form of fraudulent investments, investors must clearly identify this as a high-risk financial investment. Although you can read a lot of information promoted by exchanges that players can earn huge amounts of money from trading here, they have “concealed” the fact that most people players are losing money in this market.
A lot of people think that binary options trading is like a betting game with a 50/50 winning / losing ratio. However, at present, the law of Vietnam has not made any regulations binding on this form of investment, so players can safely join the binary options without worrying about legal issues. .
How to make money from binary options trading online?
As mentioned above, to make money from binary options you will need to make a correct prediction about the price trend. And to do this, besides the luck factor, you will need to research hard and come up with a reasonable playing strategy.
The future trend of an asset will depend on a number of factors including political, world economic, asset-related factors, etc. You'll need to keep up to date with the trend. direction and movement of the surrounding market. In addition, you also need to know how to analyze charts, technical indicators and many surrounding calculations to be able to base the analysis to make the most accurate predictions, thereby making money in a stable way. determined from this market instead of just based on luck.
Five ways to avoid mistakes in binary options trading and preserve your money
#1: Start with free training programs
Before engaging in any field, make sure you understand it. Learn and learn about Binary Options before you actually put your money there. Many brokers offer free training programs, videos, or sharing workshops. You can access the Olymp Trade or IQ Option training categories or Binary.com, which are highly useful programs to get started.
#2: Please register and practice with a demo account first
Reputable exchanges such as Olymp Trade, IQ Option, Binomo or Binary.com all have free demo accounts for you to participate in the experience and practice. Our advice is to take advantage of these before making any deposit.
#3: Please diversify the portfolio of exchanges
You've probably heard the phrase “Don't put eggs in a basket”, right? Divide the amount of investment you intend to enter into this market by at least 2-3 different exchanges. This will ensure more safety for your money.
#4: Do not put all your money on a trade order
No one is able to win at all orders and you cannot tell in advance which orders you can win or which orders you lose. So, no matter how big your expectations are, you should hedge your risk by splitting the amount on each trade. The best advice is to only 1-2% of the investment amount for each order, do not let emotions dominate you so you can ensure compliance with investment rules and win the end.
#5: Do not use too short time frames
The fact that transactions 1 minute or 5 minutes are always riskier than 60 minutes. Especially when you are a new player, you should only play on the longest time frame possible. The shorter the duration, the higher the risk because there are insufficient factors and time to analyze and predict asset price trends.
Ways for you to choose the most reputable broker to join
As we mentioned, in order to make money from the binary options market, it is very important to choose a reputable broker or broker. We have covered the options of a binary options broker in a lot of different articles, but in general you need to pay attention to the following factors:
- Size and operating time of the company: Priority is given to companies that have had many years of operation, been licensed by reputable financial institutions, large-scale, many employees …
- Reputation of companies: Priority is given to companies that receive many prestigious awards from organizations, which are well appreciated by the community playing on the forums.
- Quick payment, no precedent for not paying players: You can learn from the reviews of the players by searching on the binary options forums.
- There is support for a wide range of trading assets: You will have more choices of assets to predict.
- Compatible with many different platforms such as website, mobile app: Prioritize exchanges with compatible platforms with different web versions, smooth, easy to use so you can trade anywhere. when.
I have had a review on IQ Option platform here!
Are binary options online strategies effective?
You can refer to it as an additional source of information and knowledge but do not mechanically apply free binary options strategies that you can find online. In fact, these strategies only make you lose money instead of making money from this market.
We have a detailed analysis of the effectiveness of binary options strategies that you can find out here.
Why is it important to choose the right exchange to trade binary options?
In the binary options market today, besides the prestigious exchanges, there are many fraudulent exchanges. Making money from this market requires a lot of effort, one of the first important things is that you need to ensure that you will withdraw money when needed. If you do not learn and choose the right exchange to play, you can lose money even if you win. Or if an exchange does not guarantee quality, you may be in a situation where you are trading, the floor is faulty, needs support but no staff support when you need it … The results are not good for you.
Factors to keep in mind when choosing a reputable exchange?
So you know why trading on a good exchange is so important. The next question, however, is how to know if the exchange is worth joining? Or more specifically, what factors do we need to consider when choosing an exchange? The answer will be shortly.
To determine whether a binary options broker is good or not, the following factors need to be guaranteed:
- Exchange is legally licensed: Operating license is always an important factor when assessing whether an exchange is good or not. Unlicensed exchanges are not always scams, but they are not trusted because no one will protect you if a dispute arises. In the field of binary options trading, reputable exchanges should be licensed and regulated by at least one of the following reputable organizations:
- CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
- FCA – Financial Conduct Authority (UK)
- CFTC – Commodity Futures Trading Commission (US)
- FSB – Financial Services Board (South Africa)
- ASIC – Australia Securities and Investment Commission
These are investor protection organizations, ensuring the money of investors when participating in the exchange they manage is safe in the event of an incident. That is why you need to trade on exchanges with the approval of one of the above organizations.
- Have a demo account
The binary options demo account is the best way to get you familiar with the platform's platform and experience whether you should join this broker before you risk any money. .
So you need to join the trading platform with a demo account first, you can try it out at more than one exchange to compare and choose the broker you feel is right for you. Best.
- Minimum deposit amount
If this is your first time participating in binary options trading, you should only participate in a small amount and so please choose to participate at the broker that allows the minimum deposit as well as the amount. for every minimum transaction. Ideally for starters, exchanges allow a minimum deposit of $ 5- $ 10 and the amount per transaction is only $ 1.
- Quick payment
One of the important factors that many players often put on top when looking for binary options trading platforms in Vietnam in particular and the world in general is the profit rate per transaction and bar time. Payment of the trading platform. Usually the binary trading broker will publish this information on the website or you can also find out based on comments or feedback from other players who have participated in the game.
- Customer support service
During the course of the game, there will certainly be times when you need to ask for help from the customer service team of the trading platform. Especially when you are a new player, you may need this support 2-3 times per week. That is why you should learn and choose the exchange that has a quick, professional and dedicated support team to always be ready when you need it and answer your questions thoroughly. to.
As you can see, finding and choosing brokers or binary options brokers is not something you should take lightly. Be a wise investor and should choose for themselves reputable exchanges to play.