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Markets And You explains Is Binary Trading Safe?

Is Binary Trading Safe?

With a Starting bank of $1000 and only using 3% of this for trading at any giving time I would say yes!!

Each trade is done using only a small portion of your trading account, normally 1-3%. As your trading account grows so does your trade amounts. Should an unpredictable market fluctuation occur or even a crash, your account will remain safe. Your peace of mind is important to us, with Markets and You.

Results below reflect a starting bank of $1000 using a trading strategy of 3% profit on trading balance throughout. Each trade is done using only a small portion of your trading account always with the attitude to protect the capital. The purpose of this illustration is to showcase how any trader can make huge gains in the binary options. This is not a miracle and so without any delays let’s have a look how possible it is to take $ 1000 up to $ 1 million dollars is doable.
The latent power of making the huge earnings from our $ 1000 in the binary trade is using financial leverage. It is possible to buy a single lot of say $ 5, and then on our behalf, the bank will put the $ 1000 in the trade. Think about it, where can one get such an incredible leverage in the world? Now, how we optimise the latent power of our beginning balance, and the leverage is by trading the maximum numbers of lots in every trade. How many lots we are going to trade will be determined by the risk factor applicable which is 3%, the bank balance and the loss applicable in the trade.
A closer look at this reveals that first, we will not have an amount of more than $ 30 ($ 1000 x 3% = $ 30) at risk in the binary trade. In our case, we are aware that what is at risk in the binary trade is $30. In this illustration, we are going to assume we are only ever to give 3% of our trading account therefore placing a trade that offers 80 – 95% profit from is a decent opportunity whether you are trading with $30 or $3000 the returns cannot be mistaken. This will allow the trader great opportunities to make some really good returns while only risking the 3% they have out on the market with

Thus, the maximum number of lots that can be traded is determined by how much is in your trade account.
[Starting Bank Balance x Risk Factor] / Value Loss per Trade = Maximum Lots in Trade
Therefore, [$1000 x 3%] / $30 x 95% = $28.50. This means the trader has just made 95% return on their trade. If the trade was unsuccessful then the 3% would be lost ie: $30. The trader can trade with confidence knowing they can only lose what they have in the market. Securing there trade account that is left in the account should always be a high priority, we call this “protecting your working capital.”

By always trading the maximum number of lots while remaining within the applicable risk factor, the binary trader can optimise their potential earnings and still achieve this through conservative and calculated risks.

In conclusion, the answer about the safety of binary options depends on its outlook. Traders in binary options should not assume that it is risk-free. Every business is susceptible to some risk and so are binary options. Nonetheless, the risks are measured and known to the traders. Thus, the answer to the safety of the binary options would still be determined by the trader’s understanding of binary trade among other factors as the type of broker.
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Sunday, 18 November 2018

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