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Why it is impossible to trade on binary options. Choose your subscription

Where Not to Trade Binary Options Where Not to Trade Binary Options Binary options trading may be exciting and have great prospects, but the question must be asked: is it supposed to be traded on any underlying asset?

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Binary options is a trade type that is based on correctly predicting price direction as related to targets and deadlines. If you attempt to trade binary options where it becomes difficult or impossible to predict price directions, then you are in for a money-draining spree.

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Here are the few situations where you should not trade binary options if you do not want to lose money. No one can tell for sure what the market response to a news item will ultimately be.

The Bottom Line Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That's why they're called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.

There have been occasions when the news seemed to point one way, only for traders to come up and send the underlying asset in such a strong reversal. Such is the nature of news trading and it is simply not advised to try purchasing a binary options contract when a news event is playing out in the market.

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There have been rumours floating in the markets on several occasions that the SNB intends to raise the peg from 1. If such a move plays out, the peg will drag the CHF along with it wherever that currency is found.

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Interventions are surprise events and can be very nasty if you are caught on the wrong side. A strong Yen certainly does not give the Bank of Japan much joy, and even though they have been more conservative with interventions, they have wielded the big stick twice in There is nothing ruling out interventions in and so traders are better off looking for some other underlying asset to trade binary options on.

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Trading involves some bit of common sense. There is no wisdom in putting money in trades that pose greater risk and where there is more uncertainty.

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There are many other assets that can be traded comfortably; traders are advised to trade those assets, and under the right conditions. Top Brokers.

The mental aspect of trading is also a part of our tutorial, and what is the most important — to control your emotions. It is up to you to take responsibility for your actions and control your trades. Sometimes it is best to stop trading for a while if you have lost too much money in a short period of time, because most people find it difficult to make the right decisions in such situations due to the fact that they are influenced by the recent loss. Conclusion In conclusion, making money from binary options is not that easy, but it is also not that difficult as well. You should not expect it to be a piece of cake, because there may certainly be some disappointments, but there may also be many moments to enjoy, especially when you made more money than you initially expected.