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What’s The Risk of Trading Binary Options?

Broker of the Month: 24Option »

Clearly stated, limited risks

Binary options are a limited risk form of online betting.

They are not leveraged products meaning that the risk you undertake is limited to the size of your bet. The outcome of each of your trades is all or nothing which means that you can bet as little as you want or as much as you can afford, but you have to keep in mind you have the potential to lose all you bet per trade.

Each binary options broker clearly states the risk of your trade (how much you are going to lose and how much you potentially can make) before you place your bet so there are no surprises.

Different types of trading instruments and options come with different percentages of returns. You will also find that different brokers offer different ‘In the Money’ and ‘Out of the Money’ returns. Some will give you back a percentage of your bet if you land ‘Out of the Money’ minimising your losses, but they also tend to have lower returns if you end up ‘In the Money’.

So can you limit your risks? Simple answer is Yes. There are ways that you can manage your binary options trading risks. These include analysing the markets your options are in, keep on top of the news and an eye out for any environmental disasters, mergers or indications that the the markets your options are attached to are going to fluctuate.

At the end of the day it’s up to you to make sure that you are comfortable with your trading decisions.

Read more about managing binary options trading risks.

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