In ForexSQ we want to help you to understand how binary options trading works as it has been in the focal point of a lot of criticism. With its popularity increasing during the second half of the first decade of 2000 experts started look into binary options in more detail. The main concern with this kind of trading is the fact that it does not require any type of market knowledge to get involved in it. Anyone who knows how to use a smartphone can simply download an application and start trading using the funds from a credit card. When we look at it this way it’s easy to see how it resembles gambling and can create a type of addiction like any other form of gambling.
Brokerage firms who offer binary options, for a long time have been seen as casinos that rig the machines to maximize their profitability since they can bet against their customers and control the prices. This situation forced regulation agencies to act and after Options Clearing Corporations offer to change the rules of binary trading in 2007, Securities and Exchange Commission approved a listing of binary options in 2008.
While choosing a broker for binary trading, it is important to minimize the outside factors that might impact one’s experience in a negative way even though the right trading decisions have been made. Accessibility and good customer service is a must. Making sure the software offered is easy to use, fast and reliable and injecting or withdrawing funds are left up to the trader is essential.
It might also be a good idea to find a broker who can offer flexible trading options. That might include different instruments such as currencies, commodities, indices, and stocks as well as different expirations periods such as daily, weekly or monthly. This allows the trader to be more diverse when creating an investment portfolio and lets him/her minimize the risk exposure by hedging binary positions.
Although price manipulation is already a thing of the past when it comes to binary options it’s still very delicate and there are still companies that may try to take advantage of that. Before making a final decision it might be a good idea to use a demo trading platform to check the prices and ease of use. Working with an honest broker means “what you see (real market price) is what you get”. Choosing the right broker in a high risk/return investment decision is the first step on the way to become successful.
Risk Disclosure Analyzing your financial situation, you should decide whether you should start Forex trading or not. Rates of currencies can go down or rise higher any day, any hour, any minute so you should risk only that much which you can afford to loose.
Editors’ Picks
EUR/USD hovers around nine-day EMA above 1.1800
EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.
GBP/USD softens to near 1.3600 as BoE hints further rate cuts
The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.
USD/JPY drops back below 157.00 on Japan's verbal intervention
USD/JPY has come under moderate selling pressure below 157.00 in the Asian session on Monday. The Japanese Yen lost ground to near 157.70 following Japan’s ruling Liberal Democratic Party's outright majority win in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi. However, JPY buyers jumped back and dragged the pair southward on FX verbal intervention by Japan’s Finance Minister Katayama.
Editors’ Picks
USD/JPY drops back below 157.00 on Japan's verbal intervention
USD/JPY has come under moderate selling pressure below 157.00 in the Asian session on Monday. The Japanese Yen lost ground to near 157.70 following Japan’s ruling Liberal Democratic Party's outright majority win in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi. However, JPY buyers jumped back and dragged the pair southward on FX verbal intervention by Japan’s Finance Minister Katayama.
Gold eyes acceptance above $5,000, kicking off a big week
Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.
AUD/USD: Buyers eyes 0.7050 amid upbeat mood
AUD/USD builds on Friday's goodish rebound from sub-0.6900 levels and kicks off the new week on a positive note, with bulls awaiting a sustained move and acceptance above mid-0.7000s before placing fresh bets. The widening RBA-Fed divergence, along with the upbeat market mood, acts as a tailwind for the risk-sensitive Aussie amid some follow-through US Dollar selling for the second straight day.
Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes
Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.
Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle
Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.
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