Binary Options - Learn 3 Ways To Reduce Risk
Make sure to do everything you can to reduce the risk when you are trading binary options by following the basics. Knowledge is power and understanding the numbers is very important when it comes to Binary Options.
Choose a platform with a better payout!
Binary Option platforms will offer you different payouts when you are in/out of the money on your predictions. Let's discuss two examples: Anyoption will give you %70/%15 when you're in/out of the money while Banc De Binary will give you %80/%0 when you're in/out of the money, therefore you are already getting %5-%10 more profit over time going with the Any Option platform, just by understanding the math behind the payout terms.
Small Trades relative to your budget!
Many people get tempted to go in a trade with "all or nothing" type attitude, of course it's tempting to trade $1000 and get $700 in less than an hour, however it's a big risk and I always recommend trading small until you build up confidence and increase your overall success rate and get the time you need to test out your strategies. It's definitely not useful to lose all your money on the first trade, however even if you make it, you haven't learned how to trade and bound to eventually lose it all, as you failed to develop a successful strategy. Never trust intuition alone, learn the asset you are trading.
Use the Option+ feature!
As you might already now, with binary options you keep the option until the expiry time and you cannot sell it back before it expires. AnyOption came out with the Option+ feature which lets you sell back the option before the expiry for up to %60 of your investment even if you're out of the money when you sell it back, therefore the Option+ is a great way to reduce risk. It will cost you 50 cents each time you purchase an Option+, but 50 cents is definitely not a heavy price for the confidence you get knowing that the worst case you won't lose so much on your trade and even if you purchase an option for $500 the Option+ will still only cost you 50 cents so I definitely recommend this feature as great way to reduce risk!
Michael Freeman on YouTube
Choose a platform with a better payout!
Binary Option platforms will offer you different payouts when you are in/out of the money on your predictions. Let's discuss two examples: Anyoption will give you %70/%15 when you're in/out of the money while Banc De Binary will give you %80/%0 when you're in/out of the money, therefore you are already getting %5-%10 more profit over time going with the Any Option platform, just by understanding the math behind the payout terms.
Small Trades relative to your budget!
Many people get tempted to go in a trade with "all or nothing" type attitude, of course it's tempting to trade $1000 and get $700 in less than an hour, however it's a big risk and I always recommend trading small until you build up confidence and increase your overall success rate and get the time you need to test out your strategies. It's definitely not useful to lose all your money on the first trade, however even if you make it, you haven't learned how to trade and bound to eventually lose it all, as you failed to develop a successful strategy. Never trust intuition alone, learn the asset you are trading.
Use the Option+ feature!
As you might already now, with binary options you keep the option until the expiry time and you cannot sell it back before it expires. AnyOption came out with the Option+ feature which lets you sell back the option before the expiry for up to %60 of your investment even if you're out of the money when you sell it back, therefore the Option+ is a great way to reduce risk. It will cost you 50 cents each time you purchase an Option+, but 50 cents is definitely not a heavy price for the confidence you get knowing that the worst case you won't lose so much on your trade and even if you purchase an option for $500 the Option+ will still only cost you 50 cents so I definitely recommend this feature as great way to reduce risk!
Michael Freeman on YouTube