Common Misconceptions about Binary Options
September 26, 2016
It could be that you want to trade binary options for a while. You may have recently done some research and found out that there are some misconceptions about binary options. You may even feel like holding back a bit until you feel you’ve done more research. There are consequences for jumping into anything without knowing enough about it.
Misconceptions – Gambling and Binary Options Both Offer Thrills
There is that myth that causes people to liken binary options to gambling. The anticipation and excitement involved with both is a common factor, but binary options is a robust trading instrument. Gambling relies on Lady Luck to bestow her favours on you, while somebody who is guessing which way the markets will swing needs to be looking at technical graphs as well as keeping an eye on the financial markets.
- Certainly one of the most common misconceptions about binary options is that they are easy to understand and easy to get going. Not at all. Binary options trading may well be an interesting and exciting style of trading, but it isn’t easy for beginners. Many times the sites designed to explainbinary options for beginners use terms which beginners can’t understand. They advise novice traders to register with a binary options broker. The user opens an account, and this in itself requires research. Do it carefully.
- Another misconception with Binary Trading is that you’re not going to enjoy untold wealth from now on. Yes, binary options trading is becoming more popular, and there is compelling evidence that this type of trading can lead to financial gains. But there is also potential to lose all of your investment.
- Don’t for one minute believe that you can start binary options trading with just $100 like so many people suggest. Not a chance. In most instances, you need at least $100 just to open an account. When you do the research, you’ll find that most brokers won’t let you trade for less that $5 for 60 Second trades and at least $10 for most other types of trades.
- A Demo Account is a waste of time. Not at all. On the contrary because binary options trading is complicated, you want to figure it out before trading with real money. A demo account provides insight into the world of trading but without all the risk. This is because all funds are virtual. Traders can test the different assets and platform tools and only venture out with a real account when they feel confident enough.
- Another myth or misconception is that binary options is illegal. At first there were a number of unregulated Binary Options Brokers, but this has changed. Binary options trading is regulated in a country like the UK, the USA, Australia, Singapore and others. In South Africa it isn’t completely regulated and traders have to choose brokers outside of South Africa.
Conclusion about Binary Trading
When you are about to start your journey into the enthralling world of binary options, you’ll want to do some research. You’ll find there is a mix of truthful- as well as unrealistic information on the topic which contributes to the misconceptions that new traders have on the topic. Informed yourself before you plunge right in, so that binary options is the enthralling experience it is for so many others.
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All info was correct at time of publishing