Binary Options: Scams to Avoid

Let's start by explaining what binary options are (those who already know what they are can skip this part) and then what is a scam and why binary options and scam have ended up being two frequently associated terms. We will name the major scams that unscrupulous brokers (fortunately less frequent), as well as a list of honest and regulated brokers that guarantee that their traders do not have any bad surprises.

Binary Options and Scams: Easy Money Bait

Binary options are a simple and accessible financial instrument that allow you to lose or win very quickly. The idea of ​​making money fast on the Internet attracts many netizens, and therefore also malicious brokers ... Let's define these terms to see it more clearly.

What is a binary option? 

Options are types of financial contracts. Investors, or "traders" who practice them, call it "trading options." The number and complexity of the options available in the market is very important and varies completely from one contract to another. Think of the options called "binary", which for some years have been accessible to any particular on the Internet: we speak of " binary online option ".

Binary options are probably the simplest and most accessible form of investment for Internet users. As the name implies, it is a "binary" option, that is, it can have two possible outcomes at the end of the contract. It automatically closes when the expiration time is reached: it is then spoken of expired contract. At this time, either the contract objective is reached and the bearer takes a profit whose amount has been predefined at the time of opening (it is also spoken of rate of return), or the target is not reached and the owner of the option suffers a loss of which a percentage of the amount of the initial investment is returned (it is then spoken of loss ratio).

The web pages that propose online binary option trading are often called "brokers" or "brokers". These binary option brokers are numerous and offer offers, promotions, financial instrument panel, quality of execution and quality of customer service that may differ greatly from one broker to another. Some brokers, when the binary option came out to the general public a few years ago, were even accused of "fraud", "scam" or "scam".

What is a binary option scam? 

A scam is a hoax, a scam that leads the investor to error with the aid of fraudulent means. It results from an organized and surely deliberate will to deceive. 

As you have easily realized, the Internet is literally THE rotary platform of the scam: a place conducive to the development of scams and all kinds of frauds (traps, spam, deceptive methods of easy money, moneylending ...).  

The scam takes place particularly in the finance sector, where the majority are looking for "great opportunity". The greedy objectives of perfect investment (guaranteed profit, simple investment, reliable and secure ...) are very numerous: we are all part of them. 

In our case in particular, in the matter of binary options, the scam is generally to deceive you as to the profitability of the investment, to promise guaranteed profits or to ensure the professionalism of the financial advisers and brokers. 

In fact, and as we have seen previously, to invest in the market of binary options is necessary to go through the brokerage brokerage. 

We then wondered whether this speculative product was created for the sole purpose of deceiving the investor or whether it had simply been the prey of unscrupulous brokers. 

Is the binary option a real scam?

You have been able to read in the forums or in numerous articles that some even question the reliability of the binary option product.  

The binary option is a product speculative par excellence, and the term "option" does not hide that the results can be random. Anyone wishing to invest in financial markets should be aware that it is possible to make significant profits but that loss is also possible. And here is where the scam came: make believe in a guaranteed profit, a very attractive and habitual profit, such as "how to earn 7000 euros per day with our infallible method to win on the stock market."

Numerous brokers got involved in this matter, which presented the novelty of this product recently opened to individuals. But we did not want to stay here, since the attractiveness of binary options is much more important. Let's dig deeper than these unscrupulous brokers and find out how to make money without risk with binary options . 

Our best method to make money easily: the binary option, no scam

Binary options are financial investments like so many others and do not present more or less risks than other products of the markets. In fact, the markets are based on speculation and this is how thanks to this risk they report so much. 

To say that this investment is a scam would be to conclude quickly that the financial markets are themselves a great scam. Although some still think it, these markets report money and we have decided to take advantage of it. 

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Types of Binary Options

Binary options can be classified taking into account different variables.

1- According to the moment in which the liquidation can be carried out

A- European or With Maturity

This type of option exists when the default condition is met or not, only at the expiration of the chosen term and not at any time prior to it.

Example: You buy an option based on the fact that Apple's stock is going to rise at the close of the day. If at the end of the day this condition is met you will be entitled to the total of the predetermined sum. Of the opposite option will be worth zero.

B- American or Pre-Maturity Settlement

This kind of binary option is the one that allows its settlement at any time before the expiration date, once the predetermined condition has been met.

Example: You buy an option based on the criterion that Apple will drop 10 points before 16:00 CET.

If this option goes down to that level at any time of the day before the expiration date, the option will be settled immediately and you will win no matter what happens after the condition has been met.

2- According to the behavior that the asset must have for the option to generate utilities

A- With Single Barrier or One Touch range

In this type of binary option, it is sufficient that the asset arrives once, at any time before maturity, at the price predicted by the investor. If this happens the investor will be credited to the value agreed in advance, otherwise the option will be worth zero.

B- With Double Barrier Reach or Double One Touch Reach

The investor may set two limits to which he considers that the asset can reach. If the asset touches any of them, the investor will be credited to the default value, otherwise the option will be worth zero. This type of option is quite popular in the currency market and is used by investors who predict sudden changes but do not know exactly in which direction.

C- No Single Barrier Scope or No Touch

The investor will establish a limit value, to which the asset can not reach; If you do the option will be worth zero, otherwise the investor will be credited to the predetermined amount.

D- No Range of Double Barrier, or Range

In this type of binary option, the investor will establish two limit values ​​within which the asset will move without touching them. If it is accurate and the asset does not reach either of the two limits, the investor will receive the value of the option determined in advance; Otherwise the option will be zero.

3- According to the condition that must be given for the option to generate utilities

A- All or Nothing, Cash or Nothing

This is the basic type of binary options, in which the option will generate profits to the investor if the predicted rise or fall condition is met at the time of purchase. If this condition is not met, the inverter will receive nothing.

B- Asset Allocation o Nothing o Asset or Nothing

This classification is very similar to the All or Nothing type and is valid only for Binary call purchase options. In these, the option seller will not pay anything if the underlying value is below the strike price and will pay the price of the asset agreed upon at its price is higher than the exercise price.

C- At the Money

In this type of options, the holder of the same, will receive the default if at the expiration the value of the asset, is equal to the strike price, ie if it is in "at the money". If this condition is not given the investor will not receive anything.

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¿Que es el Trading?

El trader es aquella persona que ejerce la profesión de trading, es decir participar en la compra o venta de instrumentos financieros en los mercados bursátiles, tales como acciones, bonos, materias primas, derivados financieros, entre otros, ya sea como agente intermediario, especulador, arbitrajista u operador de cobertura. Puede trabajar por propia cuenta, con un fondo de inversión, en un banco o en otra entidad financiera.

El trader opera en los mercados en el corto plazo y aspira a tener una rentabilidad rápida pero la búsqueda de dinero por medio de las actividades a corto plazo en los mercados financieros es contraria a la moral religiosa. Se clasifican en scalpers, daytraders y swingtraders dependiendo de la duración de sus operativas, ya sean intradiarios, intrasemanales o intramensuales. 

Hoy en día existen muchos profesionales que dictan cursos dirigidos a aquellas personas que no desconocen de este mundo; con el trading puedes ganar o puedes perderlo todo, en este mundo es casi imposible el no perder dinero, hasta los mas grandes profesionales e inversores pierden, pero lo importante siempre esta en ganar un poco mas de lo que estas dispuesto a perder.

Cuando se trata del trading en el mercado de divisas (o en cualquier otro mercado), ganar es una función del dominio de la mente sobre la materia. Cualquier trader que haya estado en el juego por un tiempo sabrá que la psicología tiene mucho que ver tanto con tu propio desempeño en el comercio de divisas como con el comportamiento del propio mercado. Jugar una carta ganadora depende de que tan bien conozcas tu propia mente, y de cuan bien entiendas la forma en que la psicología mueve al mercado.

El estudio de la psicología del mercado no es algo nuevo. No hace falta ser un genio para comprender que cualquier forma de medida que suba o baje con base en las decisiones de las personas, va a estar fuertemente influenciada por las mentes de esas personas. Sin embargo, pocos llegan a tomar en cuenta los distintos niveles en que los juegos mentales pueden motivar al mercado.

Si mantienes tu atención en la forma en que la psicología influye en los otros, pero desestimas el conocimiento de lo que te mueve a ti mismo, terminarás sufriendo un descalabro en tus finanzas personales. Los expertos en el mercado de divisas te dirán que antes de que te conviertas en un trader exitoso, tienes que conocerte a ti mismo y las motivaciones que te impulsan. Conocer estas motivaciones te ayudará a superarlas o usarlas en tu provecho.

Si todo esto te parece raro, créeme, te comprendo. Yo sentí lo mismo la primera vez que alguien me explicó que los juegos de la mente tienen una influencia decisiva en nuestro trading y en las decisiones que tomamos. El saber cuando detenerte implica tener mucha disciplina y concentración; si vas a hacer trading no lo hagas estando molesto ni estando feliz. Hazlo manteniendo tu mente en estado de tranquilidad, aprovecha los buenos momentos y alejate de los malos, no todos los dias puedes operar en el mercado.

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Is it a good idea to invest in binary options?

The financial is one of the fields where greater innovations are appearing, a consequence of the maturity and perfection of the markets.

Within these, in recent years have emerged new products and mechanisms with which to operate and be able to make money quickly, always the result of high volatility

Binary options are an investment system in which bets on the rise or fall in the price of underlying assets that are listed on a stock market for a certain time. There are two types of system, cash or nothing, in which an amount is earned if at the option expiration it is quoted above in-the-money or otherwise out-the-money, . The other system is active or nothing, in which the value of the underlying asset can be earned.

The main characteristic of these products is that it is about predicting if the price of a good will go up or down during a specific period and there are only two options, win or lose everything, hence the name binary, and where Yields can reach 50%, 70% and 80%.

Of course, this is a high risk mechanism because of its volatility and the amounts involved and where the operations last very little time, sometimes up to a couple of minutes. Emulating a bidding system, and where the speed in the management plays a fundamental role with respect to the other agents.

In the same way, it is also important to choose a good trading platform and operations, which has the quality and legality necessary to perform operations properly:

"Whether or not it is outside the law." In all the countries (Spain also) there are official regulators that accept and homologate the operators. It is a matter of vital importance.

-History of return. It is essential to take into account the profitability and the baggage of the platform when choosing one to manage our money, such as the trading platform anyoption, 24option, Iqoption or the Anglo-Saxon Banc de Binary.

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