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Is Binary Trading a Good Choice?

27 February 2018 No Comment

When most people think that they can trade the market with many strategies, there are also people who would like to use the binary strategy. This is the strategy where traders can make money like the digit of computers. If they trade with this strategy, there is only profit and loss. Either they are going to be profitable or they are going to make a loss. Though this is a strategy, this strategy has many criticisms by the Forex professionals. This article will tell you if this binary trading strategy is a good idea or not. You will know if you can use this strategy and if you use it how much profit can you make by using binary trading strategy.

Associated risk binary trading

Before we go more into the details it’s highly imperative that you learn about the associated risk options trading. Unlike currency pair trading when the IB manages accounts is being used, binary options trading is still completely different. When you open your trade in the binary options market you will have an expiry period of that certain trade. So timing is very crucial for making a profit in the binary options trading. A single second miscalculation might cost you a huge amount of money. You might have access to the best IB fx manages accounts but still, there is no assurance that you will be making money on regular basis in this industry. You have to find the perfect balance between your risk reward setups to make a profit on a regular basis.

What is binary trading?

First of all, you need to know what this binary trading strategy is. Binary trading is a type of strategy where traders are given only two choices, they can make a profit or they can make a loss. Where all the strategies give freedom to the traders and they can also wait for the market to change up and make a profit, traders do not get these in binary strategy. This name of the strategy has been taken after the system of the computer which understands only two digits, the 0 and 1. Just like in binary, it is also the same for traders. You will make a profit if you are a binary trader or you will make a loss.

Trading is an art and only a handful number of traders are making a profit in this industry. If you get access to the premium IB manages accounts then you will understand how hard it is to make a profit on a regular basis. You must have a precise trading knowledge about the financial industry to make a profit on a regular basis. Try to trade the higher time frame in the global market since it is one of the easiest ways to avoid the false trading signals.

It is not like a real strategy

All the strategies in Forex have one thing in common, they give the traders the freedom to trade the market independently. If you are trading with positional trading, for example, you will get the chance to keep these open I the market for weeks and even for months. The volatilities if the market is not going to touch your tares and you can also make a profit when you were thinking you would have a loss. When traders are using this binary trading system, they are trading like they are in a casino. They do not have any choices and they can only win or loss. You can say the other strategies also have the win or loss but they are not as like binary trading. This strategy does not really work as a strategy and the Forex authorities have strong monitoring over the binary trading system. Brokers who are offering this strategy and traders who are using this strategy are under their monitoring. There have been many false brokers who took the money of traders by binary trading strategy and it is more as a scheme than a strategy.

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