How safe are binary options?
[sc:BDSwissRBanner]As with all forms of Financial investment there is always a risk. There is no risk-free investment in the world. Even when investing in a savings account, there is a small residual risk. A bank could go bankrupt and in the course of legal proceedings Investors have to forego their deposits. This means that investors and traders, regardless of their economic sector, have to take a risk in order to be remunerated accordingly. Taking a financial risk is to be incentivised by the Risk premium be remunerated. The greater the risk, the higher the potential profit, but also the higher the loss.
Therefore, to discuss the question of how safe binary options If you are already familiar with the risks of trading binary options, you should get an overview of the risks involved in trading binary options in order to identify the points that cause the investor to lose money. The question of the safety of binary options cannot be answered with a black and white statement. It is necessary to discuss what kind of Security is meant. Secure in the sense of legal security, a liability for payouts by the provider or through tax processing is a given with binary options in any case. Nevertheless binary options A risky investment that promises very high returns. However, if you know how to handle the risks of binary options, you can minimise them and trade profitably. The only thing that matters is expertise and the correct use of the appropriate tools.
How to act safely
As binary options can quickly result in the complete loss of the capital invested if certain rules are applied incorrectly, it is important to follow a specific plan in order to actually benefit from the high potential returns offered by binary options. There are a number of factors to consider before starting to trade binary options.
- The loss of the capital invested must be bearable.
An important rule for successful Stock exchange trading is that you should never invest capital that you cannot afford to lose completely. This is not just to do with the fact that you are likely to lose your entire account at the start, but also that retailers act differently when they are not dependent on the money. Anyone who puts themselves in a situation of financial constraint just to be able to trade is considered unstable and will not be successful on the stock market in the long term. The capital invested must not be lost under any circumstances, otherwise there is an existential threat, the retailer is more likely to make poor decisions. If the Pressure of successthe trader will be more inclined to make a trade because he subconsciously wants to bring about success. In such situations, traders often tend to make a Trading opportunity although none exists. Even more so than when trading in other financial instruments, When trading binary options, it is particularly important to wait for the right opportunity.
2. all strategies can be tested on a demo account
Most providers of binary options provide their customers with the option of a demo account. Strategies can be tested, improved and evaluated on this account. Anyone planning to invest a large sum of money in the trading of binary options, should practise their skills weeks, if not months, in advance on a demo account. The use of demo accounts offers the opportunity to test one's skills on real terrain. The psychological pressure however, will be significantly higher when it comes to real money. Before a strategy is applied to a Real money account is transferred, should have been successfully traded for at least one to two months.
3. the development of a risk management system
Risks are calculable. It is therefore important when trading with binary options to have an overview of the calculable risks and to minimise these with a Risk management to minimise risks. There are certain rules for suitable risk management that can be applied to all financial instruments when trading on the stock exchange. The first rule is never to place more than 2 -4 % of total capital to use. For example, if a beginner deposits 200 euros into an account, he should not risk more than 4 or 8 euros on a single trade. 
Even with a losing streak of 20 unsuccessful trades, the loss on 2 % will not exceed €40. As a rule, the success rates for trading with binary options at 50%, so that a winning streak of this magnitude is unlikely. Depending on the type of trade, a potential return of 80 to 200 per cent is available. This figure therefore relates to the profit invested, so that with 4, a profit of €4 to €8 is possible. This contrasts with losses of 100 per cent on the capital invested. In the long term, the trader's goal is therefore to achieve a success rate of more than 50.1 per cent, so thats that a profit is possible in the long term. On the basis of certain instruments, such as the use statistical indicators technical analysis, the success rates can be drastically improved.
4. learning the right instruments
[sc:bo_vg_banner]The Stock exchange trading is a trade. Even though binary options are new types of financial instruments, trading them also follows the same principles. certain rules. In principle, it is about determining the price direction of the underlying asset, i.e. the asset that is derived from the binary option. Although there is no scientific proof of this, the Technical analysis in practice in determining the price direction. As stock market trading is always geared towards the long term, this is not important, to determine the absolute direction at every opportunity. It is much more important to minimise the probability of the Occurrence of an event to be able to perceive it more clearly. To put it plainly: it's all about being able to do a little more than just blindly tap on a course direction. 
With the technical analysis price probabilities can be determined. Three or four technical indicators must be used. If three out of four indicators point to a certain price direction, theo it can be assumed that the price will move in this direction, at least with increased probability.
Whether trade with binary options is safe or not, everyone has to decide for themselves. What is certain is that a certain risk exists and that the Total loss is possible in the shortest possible time. As always, the stock market wisdom also applies here: Investing itself is not unsafe, it is the investor's ignorance that leads to the loss of capital [sc:bo_testsieger_promobox].
Simone Aescher is the founder and operator of the successful crypto blog aescher-ai.ch.
After studying business administration at the Frankfurt School of Finance, she gained over 5 years of professional experience in the financial sector. However, her passion has always been the financial markets and investments.
In 2019, Simone Aescher finally turned her hobby into a career and founded her blog. She shares her in-depth knowledge of shares, ETFs, cryptocurrencies and much more.
As an active trader, Simone is constantly testing new brokers, robo advisors and trading apps. With her honest product reviews, she helps her readers to separate the wheat from the chaff.
With her academic background, many years of experience and practical expertise as an investor, Simone Aescher combines the ideal prerequisites for competently analysing and evaluating the financial markets.