In this article, you will be able to find information that no one would dare to tell you about the Binary Options market.
The 3 secrets of binary options
Now, you will be able to visualize the 3 secrets that nobody tell you about binary options in a detailed way.
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How do brokers make money?
The way that brokers make money is through the losing transactions that you can generate during your trading. That is, when you win a trade in the binary options market, you can get 70 to 80% profit on that successful trade, but the 30 or 20% that you do not receive goes directly to the broker, it is a type of reward for the use that you give to their platform. Another way that the broker can generate some income in their favor is when you get a lost transaction, all that money will go directly to the broker where you are operating and that is the way they earn money daily.
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Does the broker want you to make a loss?
Now that you understand how a broker makes money, you must be wondering if the broker really wants you to lose all your trades to get some reward or if the broker is in charge of making you lose your trades no matter how effective your strategy is. This is a complete lie, the real reason why brokers get some kind of extra profit for the losses you generate, is due to the lack of education that most traders have. Instead of looking for tools that help them to have a good education about the world of trading and to help them understand in a deeper way how the binary options market works, they look for an easy-to-understand strategy and enter the broker without first having practiced on a demo account the strategy they chose and lose all their money because they don’t know anything about the details of the strategy or how the market works.
What we are really doing when we trade is competing against other traders no matter how knowledgeable they are even with the same broker. For this reason, we must learn correctly how the market works because if you don’t educate yourself, the only thing you will achieve is losing all your money and your emotions will be affected throughout the day or when you are trading. Remember, that the only way to learn to trade is by practicing and looking for tools that help you generate profits, but if you do not do this, you will never be an experienced trader.
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Are binary options owned by big banks?
The Forex market is an exchange operated on your own, that is, this market is driven by the decisions that the bank wants you to do. On the other hand, forex trading is specifically managed by corporate banks in all parts of the world no matter what country you are in. Binary options are not owned by a specific bank and the brokers that manage this type of market are managed by independent companies that provide you with the necessary services so that you can exchange your operations.
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Is this good or bad?
This can have its bad and good side, then you can find in a deeper way its disadvantage or advantage.
Advantage: The stock market and Forex, combined have a high probability of being manipulated by large corporations and banks around the world. A clear example could be, the shares of GameStop were manipulated with the purpose that many people can earn large amounts of money and over time it would return to the real price of the shares, which was really low, the people who manipulated this information were the ones who benefited by receive a lot of money. That is to say, that binary options for no reason can be manipulated in that way and in no other way.
Disadvantage: In the years 2012 and 2015 there were several brokers that were really good and provided high payouts to people who traded in the binary options market because many people did not have the necessary knowledge to carry out such trading. After that year, many people began to learn more about the subject and many brokers had to close and this is because independent companies have a money limit and on the other hand, the Forex markets can never close.
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Is it faster to make money with binary options?
Yes, you can generate profits in a short period of time, this is due to the speed of the candles that this market has but it is too risky. In the Forex market, it works slower than binary options, it could be said that in a month you could only get 10% of profits and this is because you can manage your risk, that is, you can choose how much percentage you are willing to lose.
Conclusion
My experience as an experienced trader in the binary options market can tell you that this type of information can help you understand more deeply how this type of trading works. Now, you can find a video that can help you better understand this topic: