Can we be addicted to trading?

This is a very difficult question to answer; can we be addicted to trading? But what is really the limit between passion and addiction? And it’s even more difficult to identify when you’re concerned yourself

For everyone, addiction is bad and passion is good.
As a result, we all say that we are passionate but certainly not addicted. And even when we are really addicted, are we really able to realize this on our own?

I admit it, I was an addict and my wife helped me out by making me understand why I was an addict, showing me the signs and telling me how I could evolve without stopping everything. Anyway, it was her or my addiction. I had to make the choice between my life as a couple and my trading life. I am now passionate and more addicted, it took me time and it is an everyday struggle not to fall back into addiction, to become dependent on this daily activity again.

Anyway, addiction makes you unhappy. Of course, sometimes you have feelings of extreme joy when you win. This somewhat compensates for the long moments of distress and loneliness when we see our actions fall. But this does not compensate for the distance from our family. We don’t realize it at first, but when we go out with our friends, when we are with our wives (or husbands but it’s much rarer the female addiction to trading although it also happens) and our children, we think of actions. Did we make the right choice? Should I sell or buy more?

Then, the better it goes, the more conversations with others annoy us. We are not interested in hearing what happened at school for the children, what we have to cook for tonight, etc. The only thing that interests us is to quickly get rid of all these social tasks and eat quickly to go “to work”.
The night also seems too long to us. We are exhausted but it is very difficult to turn off our screens because we know that once we go to bed, we will not be able to fall asleep easily anyway. You might as well wait until you’re really on the verge of fainting before you go to bed.

In fact, for those around us, it is not easy because they see an evolution in our rather slow but lasting behaviour. My wife used to complain about me spending more time with her and then she would negotiate. It irritated me. I didn’t feel understood and I found her too dependent on me. It took me a long time to understand that I was the problem and especially that there was a problem.

Addiction leads to social isolation and inevitably to depression (sometimes depression). You don’t feel fulfilled spending all your free time trading since you have to face a lot of losses that destroy you morally and if you have to work next door, it doesn’t fill you with joy and all you can think about is going back to trading.

So what are the situations that should tell you that you do have a real gambling addiction?

  • You have had problems with your family and friends and you prefer to isolate yourself: you do not think you are part of this rather uninteresting world
  • In the evening, you have trouble stopping trading because you know that you will think about it in your bed and that you will have trouble falling asleep anyway
  • Even if you have lost money in trading, you think it’s just a bad time. You will recover and get back on track without making the same mistakes
  • You think from time to time that it takes up too much of your life and that for your own good, you should reduce the time spent trading
  • You make beginner trading mistakes: you take big risks on your capital, you try to erase your losses by increasing the size of your positions
  • If you don’t trade, you get bored
  • When you lose, the feeling is much more intense and long-lasting than when you win. And when you lose, you ruminate much more than when you win. In fact, when you win, you play again immediately.

If you recognize yourself in these points, you are like me addicted to trading. Don’t worry, it’s not a big deal in itself. We tend to dramatize addiction, but we are not murderers. For me, this is a moment of error when we found more interest in trading than in life, which I would call “real”.

How to stop addiction?

This is a little more complex. My grandfather who had an alcohol addiction had to find a substitute and became addicted to soft drinks… But in our case, coca won’t solve our problem.

  1. It is essential that you be aware of your addiction. As I said, our first concern is to think that it is others who misunderstand the situation. We do not believe in our addiction. To do this, I advise you to keep a log of your trades with the time spent each day on the trade. Share the start time, end time, your feelings and also your mistakes and why you think you made a mistake. This will allow you to evolve in the trade. You think I’m crazy? I give you yet another reason to spend more time on trade? It’s the only way I’ve found to get interested in this journal. If it doesn’t help you, you won’t do it. At the end of the week, look at the number of hours you spent there. That’s quite telling. We are not far from a job in itself, but unfortunately, most of the time, we do not even earn the equivalent of a salary. Tell yourself that it’s not normal to spend so much time on this activity!
  2. Find a way to gradually detach yourself from this activity by finding another social activity. I think it’s the hardest step. There is very little interest in other activities, there is no adrenaline in trading and it gets boring very quickly. You have to hold on and insist. For me, the revelation was to do sophrology with my wife. It relaxed me, it allowed me to think about something else and it did me a lot of good. I found myself a little bit because I had really lost myself.
  3. Cut yourself off from the world of trading for a few days. Go to the countryside and recharge your batteries with your family or friends. Show them that you’re not the lonely, somewhat aggressive guy they thought you were. Cook, play tarot cards or a board game. Make sure you have fun. Your mind is very powerful and we are able to be “self-hypnotized”. When I get angry, I close my eyes, take a deep breath and calm down and tell myself that it’s nothing and that it will pass. The same goes for boredom. When a situation bothers me and I want to go back to trading, I close my eyes, take a deep breath and try to find the nice points in the current situation.
  4. It is not necessary to stop trading completely. You can continue, but you must set limits on yourself. These limits, you know them deep inside yourself, either they are time limits or they are loss limits. It’s up to you.

In any case, know that there is a life after addiction and that this life is worth living. Do not isolate yourself to the very depths of your entrenchment by telling yourself that others do not understand anything and exaggerate. Be self-critical and trust those around you. To get out of this, you will have to find a solution with them. You can’t do it alone.

Top 5 financial applications

The top five finance applications for your iPhone, iPad and iPod touch cover all aspects of business and personal finance. You can manage all your invoices in one place, check the latest commodity prices, or monitor your equity portfolio accurately and instantly.

The Top 5 finance applications:

1. BlackGold

Look at the prices of crude oil, gold, gas, natural gas, and oil. This application allows you to be immediately informed of all fluctuations in raw materials, whether they are rising or falling.

System requirements: Compatible with iPhone, iPod touch and iPad. Requires iOS 3.1.3 or higher.

2. Mortgage Calculator

This tool allows you to calculate a mortgage. It is described by iTunes as the “most complete, trusted, and downloadable mortgage calculator tool in the App Store.”

Useful for real estate agents but also for investors or future owners.

System requirements: Compatible with iPhone, iPod touch and iPad. Requires iOS 4.2 or later.

3. Money & Bills page

Pageonce Money & Bills allows you to track your finances in one place. Receive reminders for due dates, monitor your credit card transactions, and even track your loyalty points. You can also add an unlimited number of accounts and track your mobile phone usage times, sent sms and mms. In short, this tool presents a phenomenal amount of information, at no extra cost.

System requirements: Compatible with iPhone, iPod touch and iPad. Requires iOS 3.0 or later.

4. Venmo

One could say that Venmo is the application of finance. Link your credit card to your device and do all your transactions with this tool. By adding all your contacts to the address book, you will be able to make direct transfers to their bank accounts via text message. And it’s a free application.

System requirements: Compatible with iPhone, iPod touch and iPad. Requires iOS 3.1.3 or later.

5. Wikinvest, Portfolio Manager

Follow your entire wallet in the palm of your hand. Automatically import your assets and stay on top of the market with an application that will really simplify your investments.

System requirements: Compatible with iPhone, iPod touch and iPad. Requires iOS 3.0 or later.

5 financial news sites to add to your RSS feed or follow on twitter

Many sites offer their own financial information and analyses of personal investments.

It is difficult to find your way around and make a quality selection by yourself. Here is the list of the 5 financial news sites that I use professionally either daily for the first ones or weekly for the others. You can follow them for the most part thanks to the RSS feeds that you can set up as the home page of your web browser. Others also propose to follow them on twitter for those who prefer to use this tool.

  1. The Financial Times is an English-language site, but it is essential to consult it for financial information.
  2. Les Echos would be the French equivalent of the FT for those who do not like or do not speak Shakespeare’s language.
  3. Google finance allows you to follow all the financial news that Google’s finance team (or Google’s search robot to be more precise) has gathered on the web. The information is of very good quality and especially in real time.
  4. Yahoo also has its financial counterpart, Yahoo finance, which is older. But the information is of high quality.
  5. I hesitated for 5th place between Alternatives Economiques and La Tribune. So I put them in a tie.

Off-list, I would still like to point out a very useful American site Dinkytown which offers more than 300 financial calculators. In this batch, there will be at least one that you will need!

5 financial blogs to follow if you are interested in online forex

More than blogs, I advise you to follow enlightened or professional people in the Forex field. You should know that in terms of financial advice, there will always be a blogger who will be right, but it will never be the same over a long period of time. That is why you must follow several of them and draw your own conclusions. The blog or sites are there to provide you with information that will allow you to refine your own analysis. You must therefore be well equipped to deal with Forex in order to understand all the ins and outs and make the best decisions.

That said, here is the list of the 5 French Forex specialists to follow. Not all of them have blogs but they either have twitter accounts or they offer training to improve your Forex analysis:

Daliy FX, Benoît Fernandez-Riou, Philippe Lhermie, André Malpel, Jérôme Révillier and Philippe Verdeil.

  1. It is the reference in terms of Forex. If you only have to choose one, you must follow Daily FX which is the most active. I should say “are the most active” since it is a team of brokers composed of Nicolas Chéron, among others, with almost 5000 subscribers, Adrian Raymond and Vincent Ganne.
  2. André Malpel has worked for more than 30 years on the stock market. He started at the MATIF pit auction in 1987 and today at the trading screens of the trading rooms. And it’s not over yet. His twitter account is monitored by 1140 people. He is regularly invited to conferences to discuss his positions on Forex.
  3. Benoît Fernadez-Riou is a Banking and Finance consultant specialising in financial and currency markets. He is regularly invited to conferences and seminars to inform or discuss his favourite subject, Forex. In addition, it periodically publishes committed currency analyses. In parallel, he provides training at the Waltrade Institute in which he details his approach to trading using the discretionary and directional qualitative method. Finally, he is also the author of the two bestsellers “Introduction to Forex” and “The Private Trader”. His site allows you to know where he can be contacted.
  4. Philippe Lhermie has been a professional Forex trader since 2001 at EDF and has been trading for his own account. It is present on the market almost every day to hedge the exchange risk on the assets of my assets or for speculative transactions. He is one of the French Forex stars.
  5. Jérôme Révillier is a trader, director of Alternative Capital Investments and editor-in-chief of Action Future, founder of Eole Trading. The Eole Trading blog provides regular information on Forex. J. Révillier’s twitter account is followed by 1475 followers.

Finally, do not hesitate to visit the Forexagone blog where you will find regularly updated information on Forex as well as many videos allowing you to learn more about it.

The AMF blacklist of illegal brokers

[MAJ : 24/03/2016]

As I showed you on the article about binary options, not all brokers are allowed to offer these binary options.

The Autorité des marchés financiers (AMF) provides a list of unauthorised websites offering binary option trading for which no authorised investment service provider has been clearly identified. This list is regularly updated as the AMF adds all sites that have recently been identified as offering these products irregularly in France and withdraws all sites that have ceased their activity on French territory since the previous press release.

It also indicates that we must remain vigilant in the face of advertising campaigns considered aggressive on the web, relating to the trading of binary options and announcing very high returns within very short deadlines.

Here is the AMF blacklist of illegal brokers in Forex published in February 2016 and updated in March by the AMF:

  • www.4xp.com/fr / Forex Place Limited
  • www.activmarkets.com / Activmarkets
  • www.astonforex.com / Marketrade Ltd
  • www.bancdeoptionsteam.com / Bancde Options
  • www.bancmarkets.com / Marketing Accounting Ltd
  • www.bankinvestcapital.com / Ltd Global Gateway
  • www.bclaysmarkets.com / Bclays Markets
  • www.bforex.com / BFOREX Limited
  • www.brokerandco.com / Sisma Capital Limited
  • www.brokers500.com / Market City Inter. SRL
  • www.cfxmarkets.com / CFB International Ltd
  • www.colbertcap.com / Colbert Capital
  • www.consorfx.com / Trading Technologies Ltd
  • www.cvcgroups.com / CVC Ltd
  • www.elyseescapital.com / Elysees Capital
  • www.equitycapitals.com / Equity Capitals Ltd
  • www.expertdania-investissement.com / Expert Dania Investissement Ltd
  • www.eurobondfx.com / Eurobond Ltd
  • www.euromaxfinance.com / Euromax Finance Limited
  • www.feeltrade.com / JBC-PRO Limited Broker International
  • www.finanzasforex.com / Evolution Market Group Inc
  • www.finchmarkets.com / Finch Markets
  • www.forextrada.com / Forextrada
  • www.forextradition.com / Forex Tradition
  • www.ftradition.com / G.M.E. Ltd
  • www.fxbtrade.com / AXA Assets Ltd
  • www.fxcapitalbank.com/Capital Market Limited
  • www.fxcast.com / Surplus Finance SA
  • www.fxcmanagement.com / Fxcmanagement
  • www.fxglcapital.com / Consomatrade Ltd
  • www.fxntrade.com / Genus Group Ltd
  • www.gainsy.com/fr / Gainsy Forex broker Company
  • www.gcitrading.com / GCI Financial Limited
  • www.gfssecurities.com / GFS Securities Ltd
  • www.globuscapitallimited.com / Globus Capital Associates Limited
  • www.gmtinvesting.com / Agles Limited
  • www.haussman-invest.com / Haussman Invest
  • www.hcifund.com / Axa Assets Limited
  • www.ia-patrimoine.com / IAP Ltd
  • www.ibcfx.com / IBC Capital Ltd
  • www.icmarkets.com / International Capital Markets PTY Ltd
  • www.icmtrading.com / iTrade Captal Markets Ltd
  • www.ifx4u.com / The Oklycapital Limited
  • www.ihforex.com / Investment House International
  • www.ikkotrader.com / IP International service
  • www.imcbroker.com / Nordane Group Ltd
  • www.instaforex.com / InstaForex Companies Group
  • www.integralbroker.com / IB International Ltd
  • www.investcapitalmarkets.com / ICM WORLDWIDE Ltd
  • www.investocopy.com / Investocopy Ltd
  • www.istockcapital.com / Certatus Limited
  • www.itcfx.com / Investment Formula Corporation
  • www.itnfx.com / International Traders Network FX
  • www.ixitrade.com / Ixitrade
  • www.jbc-pro.com / JBC Pro Limited
  • www.justrader.com / MT Capital Partners
  • www.kd-markets.com / Globstate Assets Holdings Ltd
  • www.lambergkapital.com / Original Markets Ltd
  • www.metatrada.com / Meta Trada
  • www.mhoptions.com / Morgan & Hilt
  • www.motionforex.com / Motion Forex Ltd
  • www.mutual-broker.com / Mutual Broker
  • www.nakitrade.com / Nakitrade
  • www.netcfd.com / Centaure Capital Partners Ltd
  • www.netotrade.com / Neto Trade Global Investment
  • www.newtradefx.com / Financial Strategy Holdings
  • www.obroker.com / Landkey Enterprises Inc
  • www.oxfordmarkets.com / Oxford Markets
  • www.primefms.com / B.D.E.E.S. Group LTD
  • www.privilegetrading.com / Bio Stars Advisors Inc
  • www.solutionscapitals.com / Solution Capital Limited
  • www.strategiessolution.com / Strategie Solution Ltd
  • www.sunbirdfx.com / Sunbird Trading limited
  • www.tmarkets.com / T Markets
  • www.tradaxa.com / Sisma Capital Limited
  • www.tradect.com / Investment House Limited
  • www.traderplace.com / Trader Place
  • www.tradmaker.com / Trading Technologies Limited
  • www.trader 369.com / IP International Service – AJ Browder
  • www.triomphecapital.com / Capital Triumph
  • www.ubtforex.com / UBT Forex Ltd
  • www.versaillesfinances.com / Globstate Assets Holdings Limited
  • www.youtradefx.com / Youtrade Capital Market Pty
  • www.zarforex.com / RGV Media Ltd

The black list of illegal brokers in binary option updated in March 2016:

  • www.01binarygroup.com
  • www.01broker.com
  • www.4investcapital.com
  • www.4xp.com
  • www.24hcapital.com
  • www.50option.com
  • www.77options.com
  • www.2251ws.com
  • www.abbeystockbroker.com
  • www.abcbinaire.com
  • www.activebanque.com
  • www.agfmarkets.com
  • www.ajbrowdercapital.com
  • www.alternative-markets.com
  • www.angels-investors.com
  • www.astonmarkets.com
  • www.attractivetrade.com
  • www.bancdemonaco.com
  • www.banco-binario.com
  • www.bankandbinary.com
  • www.bankandcapital.com
  • www.bankandtrader.com
  • www.bankingbinary.com
  • www.bank-invests.com
  • www.bankofbinary.com
  • www.bankofinvest.com
  • www.bankofmarket.com
  • www.bank-partners.com
  • www.banks-capitals.com
  • www.bankxp.com
  • www.banqofbroker.com
  • www.banqueinvest.com
  • www.banqueoption.com
  • www.barclaysbroker.com
  • www.bclbrokers.com
  • www.beipartners.com
  • www.bestepargne.com
  • www.betonspot.com
  • www.bfbmarket.com
  • www.bfm-capitals.com
  • www.bfmmarkets.com
  • www.bfmvip.com
  • www.bforbinary.com
  • www.bforbroker.com
  • www.bforoption.com
  • www.bfxoption.com
  • www.bhmmarket.com
  • www.bigoption.com
  • www.binairedirect.com
  • www.binamax.com
  • www.binareo.com
  • www.binarinvest.com
  • www.binaritrading.com
  • www.binary.com
  • www.binaryfxmarket.com
  • www.binary-limited.com
  • www.binarush.com
  • www.binarylowcost.com
  • www.binarymarkets.com
  • www.binarynvest.com
  • www.binarystockmarket.com
  • www.binarywallstreet.com
  • www.binoa.com
  • www.bitransax.com
  • www.bloombex-options.com
  • www.blue-options.com
  • www.bnrmarkets.com
  • www.bo-bank.com
  • www.bocapital.com
  • www.bo-markets.com
  • www.bossoptions.com
  • www.boursoclick.com
  • www.boursofx.com
  • www.boursoland.com
  • www.boursolev.com
  • www.boursomarket.com
  • www.boursoratrade.com
  • www.bp-direct.com
  • www.brokercapitalinvest.com
  • www.brokerinternationalbank.com
  • www.brokerofgeneve.net
  • www.brokersoptions-markets.com
  • www.brooks-partners.com
  • www.bse-capital.com
  • www.bvamarket.com
  • www.byrix.com
  • www.callwinfx.com
  • www.camfinances.com
  • www.capitalbankltd.com
  • www.capitalcourtage.com
  • www.capital-epargne.com
  • www.carmigestion.com
  • www.ccftrading.com
  • www.cedarfinance.com
  • www.centralebankeurope.com
  • www.cfebourse.com
  • www.cititrader.com
  • www.citmarkets.com
  • www.citrades.com
  • www.cityofbinary.com
  • www.clubepargne.com
  • www.cobtrading.com
  • www.ct-broker.com
  • www.ctoption.com
  • www.daily-option.com
  • www.dealinpro.com
  • www.digitoption.com
  • www.directepargne.com
  • www.easyxp.com
  • www.ebinaires.biz
  • www.eiffelinvest.com
  • www.empireoption.com
  • www.epargnefacile.com
  • www.etrade-securities.com
  • www.excellencebroker.com
  • www.excitingmarkets.com
  • www.fb-one.com
  • www.fboption.com
  • www.finances-capital.com
  • www.financialbinary.com
  • www.financial-broker.com
  • www.firstclassbinary.finance
  • www.fmtrader.com
  • www.fortunebanque.com
  • www.fournisseursopportunitesboursieres.com
  • www.frxbanque.com
  • www.futurmarket.com
  • www.fxbfinances.com
  • www.fxobank.com
  • www.generalbank-invest.com
  • www.general-broker.com
  • www.generaldebank.com
  • www.generaloptions.co
  • www.genevabroker.com
  • www.geoption.com
  • www.gfboptions.com
  • www.gfmtrader.com
  • www.gftrades.com
  • www.globaltrader365.net
  • www.gmtprivatebroker.com
  • www.golden-bank.com
  • www.goldwinmarket.com
  • www.good-option.com
  • www.goptions.com
  • www.groupebinary.com
  • www.gtimarkets.com
  • www.gtoptions.com
  • www.haussmancapital.com
  • www.highbroker.com
  • www.iam-broker.com
  • www.ibank-capital.com
  • www.icbc-invest.com
  • www.idmarkets.com
  • www.igfmarket.com
  • www.igm-financial.com
  • www.igm-markets.com
  • www.ikkotrader.com**
  • www.infinity-bank.com
  • www.ingbroker.com
  • www.inglobalmarkets.com
  • www.inglobaltrade.com
  • www.insta-trading.com
  • www.intercomarkets.com
  • www.intercontinentalmarkets.com
  • www.invest-binary.com
  • www.investmentswiss.com
  • www.invest-option.com
  • www.ioptioneu.com
  • www.ksftrader.com
  • www.laplateformedubinaire.com
  • www.leadercapitalpartners.com
  • www.leaderoption.com
  • www.legendoptions.net
  • www.libertybinary.com
  • www.livetrader.eu
  • www.livretplus.com
  • www.lo-bank.com
  • www.londonbrokersoptions.com
  • www.luxeinvesting.com
  • www.managementinvest.com
  • www.markets-capital.com
  • www.markets-central-investment.com
  • www.markets-investment.com
  • www.mhoptions.com
  • www.miller-options.com
  • www.monatrade.com
  • www.mondialbank.com
  • www.mutual-broker.com
  • www.mybrokercorp.com
  • www.myselftrade.com
  • www.newton-invest.com
  • www.nextbinary.com
  • www.ng-bank.com
  • www.nowoption.com
  • www.nrgbinary.co
  • www.obinarycorporation.com
  • www.obmarkets.com
  • www.okboptions.com
  • www.onetradeoption.com
  • www.onetwotrade.com
  • www.optimarkets.com
  • www.option-bank.com
  • www.optionbanking.com
  • www.option-capitalmarket.com
  • www.optionderivative.com
  • www.option-direct.com
  • www.optionet.com
  • www.optionprim.com
  • www.option-pros.com
  • www.optionrama.com
  • www.options-forex.com
  • www.optionside.com
  • www.optionsmarter.com
  • www.optionsxo.com
  • www.option-world.com
  • www.phenixoption.com
  • www.planetoption.com
  • www.prestigebanq.com
  • www.privat-epargne.com
  • www.privatbankinvest.com
  • www.priva-trade.com
  • www.privilege-market.com
  • www.pro-binary.com
  • www.profinalys.com
  • www.proinvest.trade
  • www.rbsbourse.com
  • www.redforoption.com
  • www.royaldebank.com
  • www.scottoption.com
  • www.solution-invest.com
  • www.startoptions.com
  • www.sterlingsfx.com
  • www.strongoptions.com
  • www.success-bank.com
  • www.success-broker.com
  • www.superoptions.com
  • www.supremebinary.com
  • www.swiss-banque.com
  • www.technopers.com
  • www.timebinary.com
  • www.titantrade.com
  • www.tmarkets.com
  • www.total-options.com
  • www.tradarea.com
  • www.trade-call.com
  • www.tradecapital.net
  • www.tradeofbinary.com
  • www.tradeofbroker.com
  • www.tradequicker.com
  • www.tradereasy.com
  • www.trader-invest.com
  • www.tradersking.com
  • www.tradersleader.com
  • www.traderush.com
  • www.traderxp.com
  • www.tradignition.com
  • www.trading-markets-capital.com
  • www.triumphoption.com
  • www.tx-markets.com
  • www.ubinary.com
  • www.udbroker.com
  • www.universalbourse.com
  • www.vipbinary.com
  • www.winn-trade.com
  • www.winntrade.net
  • www.winobin.com
  • www.worldbmarkets.com
  • www.world-of-binary.com
  • www.world-tradeinvests.com
  • www.worldtradeoption.com
  • www.xfroptions.com
  • www.xpertmarket.com
  • www.xpmarkets.com
  • www.zebrainvest.com
  • www.zeoption.com
  • www.zoomoption.com

You will find that the list of approved brokers is ridiculous next to the brokers to avoid. That is why we offer you reliable and recognised brokers in Europe.

Also to be seen:

  • The AMF blacklist updated on DocteurBinaire.com

Brokers of legal binary options in France

Surprisingly, the AMF does not provide a list of brokers of legal binary options in France. It would be so much easier….

We have to look at the companies one by one to see if the broker is licensed or not.

But who are these brokers of legal binary options in France on June 1, 2014?

They are few in number. There are two reliable and trustworthy ones that have been approved by the AMF. This list is subject to change over time, so I would keep it up to date regularly.

A few months ago, they were 4 legal brokers. They have gone up to 2 today….

  1. www.topoption.com
  2. www.optionweb.com

As of June 18, 2014, I have just noticed that there are two brokers missing who are also legal since they are not part of the AMF’s black list:

  • IG Markets
  • XTB

It is interesting to see the AMF’s black list of illegal brokers to see that it is much longer and to be sure not to go to the wrong broker.

What are binary options?

What is a binary option?

The binary option is a means of trading that is based on the rise (call) or fall (put) of a product’s price such as a stock or currency over a specified period.
It is called binary because only two outcomes are possible:

  • or the option ends favourably “in the money” and you receive the fixed amount that depends on the initial investment,
  • or the option ends unfavourably and you lose your entire investment.

binary option on the dollar

Today, any investor can access binary options. Previously, it was necessary to go through a broker.
However, this is more for experienced investors since beginners could lose a lot of money.

There are different types of options:

  • The binary option high/low or cash or nothing

This is the most common binary option. You choose a maturity date and focus on an increase or decrease in assets. If, at the end of your term, your assumption is correct, you win the gain set when you place the order. Otherwise, you lose your bet.

  • The one-touch binary option

You always set a deadline and you bet that the price of the asset will reach a fixed level. You win the gain if the asset price reaches this level before the end of the term.
Otherwise, you lose the bet.

  • The binary option no touch

Same principle as the one-touch binary option except that you bet that the asset will not reach the set level until the end of the term. You win the gain if the price of the asset does not reach the level. You lose your bet if you do not.

  • The zone or boundary option

For this “zone” or “out of zone”, also called “boundary”, you bet on the fact that the asset will close in a predefined zone.

Binary options are risky and be careful with scams

Binary options are doubly risky because:

  1. you can lose your entire investment in a short time. If you are not familiar with this technique, it is still very difficult to win. This is a poker move where you will lose more often than you win.
  2. brokers are not necessarily and can be scammers. The Autorité des Marchés Financiers tries to control this market by raising investors’ awareness of the need to invest in a broker with offices in France, regulated by a European Union country and authorised to carry on its financial activity by the Autorité des marchés financiers and the Banque de France.

So if you want to invest in the binary option, check that your broker is not on the list of unauthorized sites offering binary options.

In summary, what to do to negotiate a binary option:

  1. Find a trusted broker who is not on the list of sites not authorized by the Autorité des Marchés Financiers
  2. Open an account on his website
  3. Select the asset you wish to bet on
  4. Choose the time frame, your deadline which can range from 20 minutes to one month
  5. Select whether you bet on the call or pull of the asset
  6. Choose the amount you want to invest
  7. Validate to buy your binary option
  8. Check to see if you have a gain or loss at the end of your term.

Good to know – Taxation on your earnings from binary options
In France and for individuals, your earnings are subject to income tax, to which are added 15.5% social security contributions