Binary option trading ,Is it worth investing on it ? - My observations

Hello Friend,

Today I am going to share my thoughts and my analysis on Binary option trading.

You must have been seeing advertisement on youtube about it and if you are from Asia ,you may have found it on print media as well but if you never heard of this term" binary trading" then you are lucky and you should never involve in it.

Before going further into details let's understand what is binary?

Literal meaning of binary is " something related to two things" . Its like when you toss coin then there are only two possibility which is either head or tell . Another example would be, what would be the result of a cricket /basketball match for a team A in a normal match with perfect playing conditions , it would be either win or loss ( excluding factors like weather ,draw ,tie...)

In computer terminology binary is a language which just contains two number 0(zero) and 1( one) . Now you must have understood now what is binary , its all about only two possibility/things.

Now let's move one step forward and understand what is Binary trading ??

"binary trading" - In simple words its a trading where either you will loss entire money or you will won 80-90% of money mostly very instant and you can trade on either up or down. You can win/earn money in either case, you just need to trade on right direction.

Still not clear ?? don't worry keep reading

Let's understand how it works and what all things you need to know of binary trading eco-system.

1. Up/down -

If we compare it with stock market , we always put our money on the stocks/shares where we think of growth. for example if I buy apple shares , I am buying with the hope that apple shares will go high . Now with binary trading I can trade on apple share down possibility as well. I just need to guess if apple share will go up or it will go down , in other words you can trade either way.You can trade on stocks ,currencies, commodities and indices.

2. Time -

In general when we invest in stock market we get that investment alive for entire life, if we invest in futures/fiat we get somewhere around 6/4 months depending on what scheme we invested where as with binary trading ,you will get either 60 secs, 1 hour or max 5 hours for you investment depending on your broker and option you choose.

3. Script -

its same as the way our stock market works ,our stock market also works in script . let's leave it here only as we don't want to really go deep into it.

4. Investment -

its the money you want to invest on binary trading.

5. Return -

Lets understand it by example . Apple stock is right now $185 so all you need to guess if price of an apple share in next 60 secs/5 minutes/5 hours will go up or down. if you trade for up you will get 60-90% of your investment as your return if share of apple go up. if it will go down you will lose all your money.

Most important thing to understand

Here in binary trading you are not facing real market , your broker is your opponent and for sure broker don't want to end up in loss . if you still confused then let me tell you that the online or offline software which you will be using for binary trading will be coded and supported by broker only which means the price of share/stock on that software are not based on market , its just broker game like a owner of casino who always wins.

Now you may think if all this is fully controlled by brokers then how come such scam brokers or company running in real word then let me tell you the answer, all these binary trading companies don't trade from big countries like United states , United kingdom or India , they choose location very carefully where by law no one can catch them , even if you will find any binary trading company having address from United states or United kingdom or even India , they must be one room offices just to do paper work and collecting/circulating/operating money . India has already taken call against them and Reserve bank of india already blacklisted most of the binary trading company and has blocked almost all debit card and credit card transections with them but still people are doing trading using third party money transfer services like paypal.

Conclusion-

So to conclude if you see any advertisement about Binary trading , you should avoid it and if anyone praise about binary trading and push you for investment on some binary trading company then believe me he/she getting 20-30% of your investment as commission regardless of how close that person to you.

Thank you for reading me far, if you like give it a up-vote, it helps me a lot, if you don't like it, leave a comment telling why, maybe we can start a discussion about it.