The financial market is a systematic complicated mechanism, thanks to which it becomes possible to borrow, buy and sell securities. Each element is important on the financial market and if you lose any of its slightest fragments, you can lose all the finances market. One of such elements is the brokered binaries.
In order to understand what the binary options are, it is necessary to understand what the options mean.
The options is the agreement (contract) in which the buyer acquires the right, but not the obligation, to purchase or sell an asset at a strictly specified price on a certain date.
Any of the securities can be the asset: shares, share indices, exchange rates etc.
In other words, the binaries are all or nothing. To be specific, it is a contract that either provides an income or yield poor returns.
What are the binaries in reality? Example:
You have 100 USD and you assume that the dollar rate to the pound will increase in 5 minutes. You place your bets of 100 USD on a dollar increase and if you guess right then you earn 70-85% of the bet, namely 70-85 USD (it depends on the broker you are working with). After the transaction 100 USD increase up to 170-185 USD, but, if the bet did not play, then you lose your money.
In the example you have noticed that you have to work with a broker, but who is he and why do you need?
Broker is an intermediary, a member of the financial market, a legal entity, who has the right for making the transactions of sale or purchase of securities on behalf of another person at the expense of the client. Or he can do it on his own behalf, but also at the expense of the client.
There are also introducing brokers. Both individual and legal person can be introducing broker. These people or companies have the only one right to take applications for the transaction, but they can neither operate the customer’s accounts nor manage his funds.
It is very difficult to find the broker who will not play games with you, that is why the caution should be addressed to this. There is a black list of brokers for these cases. You should look into it fairly often, because the list is updating.
On whom the brokers cash in? It’s quite simple! Someone lost his bet and his money goes to the winner, and brokers take the difference.
From all has been said it follows question of “Why the binaries trade, if it is almost the casino?” It is not very difficult to answer this question, because in this kind of activity one must rely not only on the luck, but on his knowledge of the financial market, the latest news from the famous financiers and analytical specialists.
What are the binaries in reality? The reviews of people are different. Of course, those people who lost very often and have found non-professional broker will say that it is a scam for sure. But those who earned the good money will only praise them. But there is no sense to talk about anything you never tried. But if you want to be engaged in binaries, you need to study the financial market, find a good broker rather than fraud and all the time develop the strategies. That is why this type of activity is not exactly the fast buck. You decide whether to risk or not!
And if you decide to be engaged in it, you will collide with the new terms for you, some of which you can read here:
Strategy. Using trading strategies for binaries, you minimize the risks and can predict the potential profits in the future.
Traders. It is actually you, the trader, acting on your own initiative and seeks to derive profits from the trading process.