Discussing the myths of Binary Options trading-JB88

Discussing the myths of Binary Options trading

For this reason, this article will discuss some of the most popular myths surrounding the world of trading binary options. As a complement, there will also be an explanation of each general perception that is still a mystery to some traders.

1. Binary Options That Scam

"Get 80% profit in less than 1 hour", or "Get back 15% of your losses", are some ads that you might often find from binary options brokers. At first glance, such promos seem impossible, so some parties easily take into account binary options as a scam. In fact, getting large profits in the short term can also occur in ordinary forex trading. So why is binary options easier to label a scam?

First, binary trading is only done by predicting the direction of price movements, not actually buying and selling an instrument. Second, the binary options trading model is still relatively new compared to forex spots. Third, many actual binary options brokers take advantage of the ignorance of others to commit fraud. Abusive brokers often offer extra promos to attract clients, such as fantastic bonuses of up to thousands of percent. Unrealistic conditions like this clearly make traders who can already recognize a scam broker to avoid binary options. Because believe it or not, such misleading, misleading advertisements are more common in binary brokers than forex.

Even so, reliable binary brokers aren't none at all. In determining the preferred broker, consider its credibility both in terms of regulation, platform, payout, and other components. What is clear, the offer of bonuses with exorbitant cash prizes is an indication of a scam and should be avoided immediately. So in order to avoid the trap of this myth, make sure you have armed yourself with the knowledge of choosing the right broker.

2. Demo account is not important

Those who underestimate demo accounts generally do not understand the need to learn with these features because the profit is not real. Even though for beginners, plunging into a real account without practicing on a demo account is tantamount to suicide. If the forex demo account is important because the trading method is more complicated, then is the binary options trading that is said to be simpler, it also needs a demo account?

The answer is of course yes. Although binary trading is simpler, remember if binary is more speculative and is done on a platform completely different from MT4. Therefore, binary options demo accounts remain important as a risk-free training tool that is useful for testing your strategy, while familiarizing yourself with the trading broker platform.

Unfortunately, free demo accounts are still very rarely offered by binary options brokers. To get a list of binary brokers who provide unpaid demo accounts, please visit this page.

3. Binary Options Can Help Rich Quickly

Not only is it often circulating among forex traders, this myth also inflicts binary options. With a variety of short-term expiry time, it is not surprising if there are many misperceptions about potential profits in binary options. Just imagine, you can open options with expiry for only 1 minute, 30 seconds, or even 10 seconds. If you are able to win big, of course rich myths at a glance can become a reality. But such conditions rarely occur especially for newcomers. Even if you can, things like that tend to be considered mere luck.

Achieving profits in short-term trading is not impossible. There are already examples of successful traders who are more suited to the style of scalping trading. But what makes the difference is; they are experienced, while beginners don't. Professionals already know what the risks of short-term trading are and have tested their success rates. Conversely, novice traders are not aware if the short-term trading model is at high risk. If profit is happy because money is fast returning, but on the other hand, loss can also come as fast.

The rich quick myth in binary options is actually twisted from the advantages of binary options in providing super-fast trading (in seconds), which is equipped with large payout potential. In fact, it is only a broker feature that presents opportunities, not certainty that can make you fast rich. To be able to make good use of it, you certainly need to learn first and find a preferred trading strategy, which certainly takes a while. So, don't be easily fooled by fast rich ads in binary options because that is a possibility that is impossible for beginners to reach.

4. Profit Binary is Unreliable

Some say, the opportunity for consistent profit in binary options is very low, aka the least likely compared to other markets. Such thinking is understandable, especially if it comes from those who see a brief explanation of trading binary options. From the outside, binary is indeed very speculative because it only relies on estimated price direction. In addition, many profit and loss systems use the all or nothing principle. If the estimate is correct, it can be capital plus profit, if wrong, then all capital is lost.

Therefore, it is not surprising that many assume that the profit opportunities in binary are only 50/50 or even less. Really like that? The answer can be yes or no. Yes, if you trade like gambling, just play guess where the price will move. No, if you understand what needs to be considered in analyzing price movements, and applying money management to minimize risk while maximizing profit potential.

Again, the choice is yours. Do you want to treat binary options like gambling, or seriously become a binary trader who applies a trading plan with calculation. Profit is reliable or not is a scenario that you set yourself. If trading is not serious, only about no analysis and money management, it is not surprising that profit trading only comes and goes without clear consistency. But if you can apply the strategy and anticipate the risk well, then getting a consistent profit in binary options is no longer a myth for you.

5. Binary Trading Needs Large Capital

Although it tends to be easier, many binary options brokers stipulate a high minimum deposit requirement. In some binary brokers, opening an account can only be done with capital of hundreds of dollars. 24Option for example, determine the minimum deposit size of not less than 100 USD.

The high number of capital is indeed relative, but for beginners, the amount of deposits up to hundreds of dollars can be considered too large. In fact, now there are binary brokers that offer a lower minimum deposit condition. Some of them, like Binary.com and IQ Option have opened opportunities for newcomers to start trading with only 10 USD.

But again, small capital is not the answer to all problems. You need to take into account the rules of capital per trading so that you still have a big opportunity. It's useless to deposit 10 USD but the minimum capital per option turns out to reach 5 USD? That means, you only have 2 times the chance to trade. For that, choose a broker who really facilitates the condition of newcomers or small capital traders.


The myth above does not describe all assumptions about binary options, but is expected to represent the most common perceptions that are widely circulated. If you want to seriously explore trading binary options for success, it is important not to get dragged into misleading myths.