One of the most important products, which have been sold in the form of Options, is oil. In practice, the trader prediction of the price could make a profit or loss. Take, for example, if the oil delivery in August, in 2018, was at a price of $60, and an Options trader could close a right […]
One of the most important products, which have been sold in the form of Options, is oil. In practice, the trader prediction of the price could make a profit or loss. Take, for example, if the oil delivery in August, in 2018, was at a price of $60, and an Options trader could close a right trade at this amount and he would win a large sum of money, otherwise, he would lose!
In options trading, the bet is on the market and Binary Options has expressed this issue easier by introducing “Call” or “put” (i.e. up or down) and “Time” (that ranges from 30 seconds to one month). Previously, one month or year options were of great importance for traders. However, with the emergence of the Binary Options, it has been regarded as gambling.
At first glance, Binary Options trades may look easy for Options traders and with chart analysis and other different methods, they may think that is able to make profits. Generally, it can be said that market analyses available on the market, most of the time (around 80%) are valid and we can predict the market. However, saying firm on the prediction is extremely difficult and almost impossible. This is related to the human nature which cannot accept the loss. For example, if you lose a trade and again another one, you may no longer follow the real logic and only try to compensate the loss and this causes us ignore the logic and also leads to more losses, illogical trades and getting out of logic.
Options Trading Is Suitable For Entertainment
Unfortunately, financial market such as Forex and Binary Options, are more proper for those who have entered for entertainment purposes exclusively. They put money without any stress. However, if someone’s purpose is to make profits in real account, he or she counts on every single dollar or even cent that causes them not to think and act logically and finally, this fear and special feeling toward the money leads to the loss.
In practice, there is no difference between Forex and Binary options demo accounts (i.e. training accounts) and real accounts or it is very slight. Frequently, Binary Options Traders make many profits in demo and contest accounts but when regarding real accounts it is different and this reflects the fact that only the science is not enough for Binary Options trades. Hereabouts, trader’s personality and stability on applying scientific knowledge gain priority and around 95 percent of traders cannot control themselves which leads to loss. In conclusion, we can say that Binary Options is mostly for entertainment than a fixed income.