How Binary Options Work - Can You Make Money With Binary Options
Technical support is also available in several international languages on the MT4. Traders can seek guidance from detailed support articles on MetaTrader4, and the broker provides live support for your trading queries.
As a stockbroker, we sometimes get called a "casino". We clearly aren’t, because we aren’t counterparty to any trade that happens. All order matching happens on an exchange, and the exchanges match counterparties from the market. When a client of ours loses money in the market, it doesn’t benefit us, but in fact, hurts us as a business. Almost all trading platforms want their clients to earn money when trading, as a winning client will continue trading and generate brokerage revenue. This is unlike a casino where the profit of the casino = losses made by their customers. The reason I said almost all trading platforms is because there is a whole breed of them, illegal in India, but advertised aggressively online to attract traders, where the platforms earn when you lose. These are CFD, Spread betting, or Binary option trading platforms.
The main thing is not to forget about money management and do not risk the amount of money that you cannot afford to lose. Based on this balance, count the number of trades in a series of continuous losses. This will help you a Binary Options Martingale Calculator which is located below. I recommend to withdraw all the profits immediately! Do not reinvest! And then, after the withdrawal of profit equal to the initial deposit, the Martingale strategy ceases to be unprofitable and starts to make a net profit.
As stated earlier, there are many unregulated brokers who just take the customer’s money and never return it. Most of these brokers are operating offshore in countries that have very few or no regulations.
Yield, % (for example: 80) - yield on trading asset in percent (%).Different brokers, this value may be different depending on the asset and its expiration. Of course, the most profitable assets should be chosen for the Martingale strategy. For example, in Binary.com (Deriv), the return on some assets reaches 95.2% (this is a very high yield. You will need a smaller amount of subsequent investments):
The roots of the Martingale strategy take from the time of the birth of the casino (roulette in particular) and bookmaker bets. That is why, opponents of this method in trading compare it with gambling, which does not bode well for the trader. However, if there is a strategy that gives 50% or more of profitable trades, and at the same time a series of continuous losses does not exceed 4-5 transactions, this strategy has the right to life and is capable of generating quick profits.
Minimum investment (for example: 10) - here enter your minimum initial investment (for example 1, 5 or 10, etc.). And remember, the higher the initial investment, the more deposit you will need for a series of consecutive losses.
As you can imagine, this contract between the customer and CFD broker is private and not on the exchange, and hence it is called an OTC (over the counter) contract. CFD platforms first showed up in the UK in the early 1990s when there was a growing demand to trade global securities (especially US). The regulators there allowed these platforms, and they flourished because of the ease at which you could now trade almost anything from around the world without having to worry about local brokerage relationships or movement of money to different countries. What was first offered to only hedge funds, soon found its way to retail traders as well.
For dubious business operators, it is a lucrative business to run as long as they are able to continuously "churn" new customers who sign up and lose money. That said, every business, even the ones rigged against customers, come with their own risks. Once in a while, when there is a black swan event that causes prices to move wildly, a group of customers can make a windfall greater than the other group customers losing by large amounts, pushing these platforms to become insolvent. One such incident was when in 2015 the Swiss Bank removed the peg of 1.20 francs (CHF) to the Euro; Swiss Franc moved up 30%.
So Easy earnings on the Internet a CFD platform, you can go long (buy) or short (sell first to buy back later if the market falls, to profit when prices drop), and typically these platforms will support trading on almost all popular stocks, indices, commodities, and currency from around the world. When you buy a CFD, you don’t actually own the underlying, but you have a contract with the platform that will give you a payout based on the price change of the underlying. And the kicker, your trading costs in terms of taxes and exchange fees is almost 0. These platforms earn by keeping a small spread, the price difference on the CFD platform vs the actual price of the underlying instrument in the markets. CFDs typically don’t have an expiry, which means that you can hold these contracts forever or at least until the CFD platform where you trade continues to exist. The biggest risk of trading CFD is that it is an OTC product and that there is no exchange or clearing corporation involved. If the CFD platform goes bankrupt or rogue – so will all your positions and cash lying with them with little legal recourse.
