Is Binary Options trading profitable?
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Indeed, at a superficial glance, the decisions that you have to make in order to execute a binary option could hardly be simpler. You just need to assess whether the price of a selected asset will rise or decline. You then must choose an appropriate expiry time and determine the amount you want to wager. That is it! You do not even have to undertake any meaningful due diligence on the asset you plan to trade.
Can such a lackadaisical approach really produce a constant stream of profits? Many professional traders emphatically stress that, in reality, this is definitely not the case. This is because you must attain a win-to-loss ratio over the long haul of at least 55% in order to just break even. This is because you will collect a payout ratio between 65% and 85% if 'in-the-money' but will lose between 85% and 100% when 'out-of-the-money'. As such, the odds are certainly not in your favor if you adopt a gambling mentality.
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This conclusion is extremely important as it completely dismisses the notion that binary options trading can be viewed as a type of gambling. Instead, you will have to instigate a more professional attitude and strategies in order to attain constant success similar to ones utilized to trade more traditional investments, such as stocks and Forex. If such a viewpoint is really valid, then why are global authorities so relaxed in their desire to regulate this business formerly and properly? The simple answer to this question is that they are very concerned.
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