Binary Options Terminologies For The Investor In You

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Binary Options Scams

For about ten years, online binary options scams were ubiquitous.

Don’t Let Them Mislead You – It’s All Smoke and Mirrors

Challenging binary options scams can be very complex and mistakes can cost you. MyChargeBack analyzes your case and assists you throughout the entire recovery process.

In the first two decades of the 21st century the internet became Ground Zero for binary options scams and binary options fraud.

Perhaps what first drew you to their website was a pop-up ad. Or a social media post. You clicked and found an attractive, professional -looking presentation promising you:

  • A quick, profitable return
  • A huge immediate bonus just for joining
  • An easy-to-manage online binary options platform

You signed up and soon their representatives contacted you. They introduced themselves as your “brokers.” And then you transferred funds, most likely using your Visa® or Mastercard.® Soon, you found yourself trading stocks or foreign currencies, indices and commodities. To help you out, your “broker” courteously provided personal coaching. And timely recommendations. (Real brokers cannot do that because it’s patently illegal).

While legitimate, government-regulated online brokerages do exist, their many more unregulated firms – especially those offering binary options – whose operators based their business models on swindling unsuspecting and inexperienced investors over the internet.

It’s a Video Game

You assumed the unregulated firm’s state-of-the-art internet site would allow you to trade. Actually, however, it’s nothing more than a video game. The binary options platform it features does not follow obligatory trading rules and procedures. In fact, it’s not even plugged into a true market exchange. The gains you supposedly made and the losses you supposedly suffered, are all imaginary. Nothing more than smoke and mirrors intended to convince you it’s for real. Oh, and that bonus you supposedly received? It was just as imaginary as everything else.

What Happens with Your Money?

Unregulated brokers promise you that they deposit your money in a segregated bank account. They like to think that they will prove their integrity and convince you that they guarantee your access to your funds. However, no such personal account exists. That also is a fiction. Your money went straight into their own bank account instead.

Sure, they promised that you could withdraw your money whenever you want. But you will soon find out that’s easier said than done. Some firms will ignore your requests to access your funds outright. Others will bounce you back and forth between different departments in order to exasperate you. To the point when you’ll just give up. And then there are those that will point to the small print on the Terms & Conditions page. Squint your eyes and you will see that you agreed to first reach an unattainable amount of trades. Or repay that huge bonus they gave you before you even apply to withdraw your money. Or both.

A Binary Options Scam by Any Other Name Is Still a Scam

For about ten years, online binary options scams were ubiquitous. The damage they inflicted on consumers was enormous. In response, a growing number of countries banned binary options trading by retail investors. In 2020 the European Union (EU) enacted a temporary ban as well. It renewed that ban on an ongoing basis until July 1, 2020. By then the last online binary options site registered in the EU finally shut itself down. In addition, Google and Facebook ceased accepting ads linked to binary options sites. These actions, as welcome as they were, however, merely encouraged many operators of phony binary options sites to re-brand themselves. They now claim to be online forex brokerages and even private banking firms.

Beware. The terminology changed but the scam remains the same.

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Terminology

You will learn about the following concepts

  • Basic binary options terms
  • What is asset and current rate
  • Call and put options
  • In and out of the money

In this article you will find some of the most frequently used terms and we will provide you with their explanation. Understanding them is necessary because you will be using them on a daily basis during your trading career.

Naturally, if you start trading without having the necessary core knowledge, you are very likely to fail and wipe your initial capital. The main terms that we are about to mention below are: asset, binary option, broker, current rate, expiration rate, range option, in the money, high or call option, low or put option, subjacent asset, out of the money, rate of profit.

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Asset – this is the underlying stock, commodity, currency pair or index, on which the binary option is based.

Binary option –this term contains excessive information that cant be explained in just a few words. Basically, the binary option can be explained as way of online investment for a fixed return with an expiration period, which is also fixed. It has gained huge popularity in the last couple of years mainly because its simplicity and appeal toward the general public.

Broker – brokerage companies allow users to trade binary options on the markets. It would be impossible to make a deal, if there werent any brokers.

Current rate – it represents the current price of the asset.

Range option – the term is also referred to as ‘’zone option’’ and it is the limit that companies usually specify for different zones, for example.

Expiration time – the date and time when the option is about to expire.

High or Call Option – this is the most used type of binary option. It speculates that the assets price will rise.

Low or Put Option – the opposite of a High of Call option. It is purchased when the trader thinks that the assets price will decrease.

In-the-money – this term is used in order to describe the situation when you have predicted the movement of the asset price correctly and the binary option is profitable.

Out-of-the-money – this term describes the situation when you have wrongfully predicted the assets price movement, rendering the binary option a loser.

Rate of profit – this term represents the percentage of money that the trader gets as return after a trade expires in the money.

Fundamental analysis – this is one of the topics that will be extensively covered in the next parts of the tutorial, but for now all you need to know is that the fundamental analysis represents a way to evaluate a stock, currency or commoditys fluctuations based on such political, geopolitical, demographic, macroeconomic factors and others.

Technical analysis – another topic that will be thoroughly covered later. It is an analysis methodology that uses primarily chart patterns to help you predict the direction an asset might move. Generally it ignores fundamental factors and is based mainly on historical price data and volume.

Binary Options Terminology

A new binary trader and any person with an eye for binary trading should understand that terminology is a key and essential element of binary options. Newcomers need to have basic knowledge before they start trading, and the information they obtain has to be well-organized and clear.

The optimal way to study binary options basics is to get a manual with distinct and intelligible content. It is not too hard to find relevant learning resources in the web in multiple languages. What you can discover online regarding studying binary options basics of course is not restricted to just issue-related text books; you can as well obtaing other types of relevant information, e.g. video courses, articles with analysis and recommendations on binary trading, comments, binary options ratings, and more.

Binary options trading is not as difficult as it may appear at first sight, especially if the new trader already has some theoretical and practical knowledge about it. Once you already know the binary options terminology, this means you already know the basics of this business. Besides, you have to be able to make sober estimates of far reaching promo videos which offer prospects of earning over $1,000 per hour; any trader’s success begins with mastering the binary trading basic terms and principles.

Binary Options Key Terminology

1. Deposit. This is the sum of money the client deposits on the account opened with a brokerage company to start trading. Minimum deposit amount depends on a particular broker; there are companies that allow entering the market with as little as $1, whereas well-established and reputable brokers usually request to start with at least $100-$200.

2. Investment. The money to buy options with.

3. Binary option. The investor forecasts the trade direction: whether the value of a chosen asset will go up or down before the fixed expiration time of the option.

4. Call (Up) option. The trader buys expecting the option’s value to go up after purchase.

5. Put (Down) option. The trader buys expecting the option’s value to go down after purchase.

6. Strike price (Exercise price).This is a fixed price of an option at the moment of purchase (“Call) or sale (“Put”).

7. Basic asset. Any financial instrument can be the basic asset, e.g. currency pairs, shares, securities, indexes or commodities.

8. In the money. This means the trader gets profit after the option expires.

9. Out of the money. This is the opposite term meaning the result of an unsuccessful trade.

10. Expiration. In binary options a trader is free to choose expiration time of an option. This can be end of the month, end of the day, or end of this hour. The term means exactly this time.

11. Option execution rate. It is estimated after the option is closed. It is set against the rate of the purchase price, and so it becomes clear whether the trader is in the money or out of pocket.

These are the basic terms that novice traders need to learn by heart: before starting trading for real, one has to be certain about the products’ peculiarities, their main features and business vocabulary.

Once the trader has gotten through the basics, the time is ripe for real binary trading, which can well be successful.

How to choose a binary options broker without mistakes, such as bumping up against dishonest fraudsters?

Binary options, such as Anyoption or TopOption, have good reputation, and lots of information about them and other companies can be found in the web. Moreover, it is possible to read binaries clients’ reviews and to get acknowledged with brokers’ ratings, thus getting the general idea. Of course, every trader has personal preferences, so it is recommended to try the broker of choice first and only then to make the final decision.

In any case, decide in favor of reliable and trustworthy brokers known to your friends or contacts from practical trading experience. Such brokers normally receive mostly positive reviews and notices (however, they never are 100%, because it is impossible to satisfy each and every client).

Check out the information about OptionFair and other companies featured on our site.

The coronavirus pandemic has triggered a dramatic chain of events that are plunging the world into crisis. What does it mean for traders and investors.

The behavior of traders and their trading results are influenced by the current situation and environment. Today, during.

Maybe you’ve been in the middle of watching a movie trailer on YouTube, and out of nowhere this ad appears with a guy who tells you how to make.

If you have made a decision to start trading in the Forex market, you should remember that doing this without prior training.

The Forex market rarely sleeps, and members of the currency trading community are active both day and night. Of course, the volume of transactions decreases.

Let’s suppose you’ve made a decision to trade in financial markets. It seems to you that your spare funds allow you to start making profit in such an.

In order to become a professional in a certain business, it is necessary to spend a lot of time gaining experience and honing the working technique.

Trading CFD does not only mean trading currencies, stocks and indices, but also means trading Precious Metals. The most popular metals on the market.

A trading terminal or a trading platform is a tool, without which it would be extremely difficult for a trader to earn money and even work in the financial markets at all.

Top 10 Forex Brokers 2020

1 Libertex
2 FXTM
3 FxPro
4 FXCM
5 FIBO Group
6 HotForex
7 OctaFX
8 Alpari
9 USG
10 FXOpen

A variety of web terminals and specialized software makes a choice of a trading platform a difficult one for a novice trader. What should be this vital decision based on? To begin with, it is necessary to highlight the main criteria that high-quality software must meet for making money on financial markets.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
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  • BINOMO
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    Only For Experienced Traders!

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