5 Amusing Facts about Binary Options
Not every trader is a Pro and whether you are trading for short period or you have come far in the race of Investment, there are few things about Binary Options that you might not know and can focus on to gain more profit or recover losses from it. Go through such five facts mentioned below:
Many Brokers mislead Traders with license numbers that indicate them as “regulated” brokers:
Many brokers have flashed the License Numbers in their terms and conditions section to mislead the traders that they are registered. Well if you do a little bit of research you will recognize but those numbers are the business registration numbers. Thus, they are under no specific obligation as the Regulated Binary Options Brokers are and they can manage the payment and financial process as they feel good. The main thing is the Brokers may have to follow general rules, but they are not bound by the rules that a Regulated Binary Options Broker should be.
USA traders are allowed to trade binary options.
You heard it right, you can trade in Binary Options and if you don’t believe me, just go to the Nadex site from Chicago. They allow their traders to trade in Binary Options but because of their complex gateways and conditions beginners always avoid using them as a broker. Thus, it is for sure that you can trade in Binary Options in the USA despite the fact most of the broker sites disallow the users once they clarify that they are from the United States.
Traders can’t trade in commodity options with offshore binary options brokers:
This is the tricky part, even for the brokers. Traders from the USA can trade in Binary Options but there are certain rules and regulations you have to keep in mind. Like the Traders can also trade with the offshore Binary Brokers that are from the UK or are under Cyprus but the issue is you cannot trade in “Commodity Options” if the Broker is not registered with the CFTC. This thing is really confusing to most of the offshore brokers that are the reason they avoid taking the USA traders as clients.
Not all Binary options brokers have to do scam to make money:
There is a reason this point is kept as all the newbies think the same that all the Brokers will have to do manipulations as they don’t charge fee or commission for each trade and they need you to lose to make money. Well, it is not the correct answer. Binary options generally pay out around 80% when you win in a trade and will return only around 10% when you lose the trade. It aggregates to 90% and the gap is the broker’s payment. Just like casinos, the house never loses and the brokers also never lose as not most of the traders depend on upon gamble and the broker profits from it. So there are some genuine brokers out there, all you need to do is find one.
The trader is not a market expert.
Well, not each and every trader will fall in this category, there is some high-class economist who has passed with flying colors from top class economics schools. But, rest it is essential to accept the fact that you are not a market expert and you need to keep learning from the market and your as well as other’s experiences. There are lots of tips floating in the market but you need to do the research on your own before taking the risk and then end up losing your money.
Thus, above were the five things that every trader might feel amusing and keep these in mind, it might help you gain more profit and also reduce the risk in the Binary Options trade (Especially the fifth one).
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