Binary options: the new El Dorado?

Binary options have become popular and we see more and more site to promote it, this is becoming the new investment in fashion. Let's look at what is truly interesting for the trader:

I'll have to explain how it all works. First you decide the amount to risk then you have to choose beyond a period defined in advance if the course will be above or below the current price. This means for example on the USD / CHF with a payout of 72% and a maturity of one hour. Either you choose to bet on the fact that the course will be above the current price or below the current course in 1 hour. If you are right and you risk eg € 100, then you win € 72 (which corresponds to 72% payout). Conversely if you are wrong, you lose your initial risk is € 100 in the example.

The investment does not seem interesting because little field between broker and trader, margins are very important for the broker. It mediates between traders, when two players bet on an opposite scenario, for example on the USD / CHF. One set that the course will close in an hour above the current price and the other that the course will close below the current price. For the broker, he will have to pay € 72 to the trader who has been right and collect the € 100 from that which was wrong. What it leaves a very large margin. A fair exchange should be around 90-95% of payout.

I do not recommend you to trade binary options, especially since this area is new, it is not regulated, allowing the broker to do "what they want."

I hope I have helped in this article to avoid the pitfalls of marketing these new binary options brokers.