Binary trading involves buying or selling of financial assets on an online broker platform. Two outcomes are expected in this kind of trade. One of the outcomes is being in the money while the other is being out the money. These outcomes are realized when the trader correctly puts or calls the asset in question. As a trader, you need to be aware of the risks and the rewards which are often misunderstood. Binary options depending on the broker have different payouts, risks, liquidity structure and fees.
With binary option, the trader is in a position to make profit from a fixed payoff or lose the investment. In this kind of trade, the profit you make is a lot and in a short time. Even though you will make good amounts of money in profits, you need to be aware of the risk you’re subjecting your investment. While at it, you should not put all your investment on the table for a single asset.
When you get into binary trading, you need to be keen on the trading as it is not an easy venture to get into blindly. You will find that most brokers have a disclaimer warning that you are getting into a risky venture. This trade is simply an all or nothing kind of venture. If your put or call move is wrong, you might end up losing the initial investment amount to the trade if the broker does not offer a rebate option.