Online binary option trading is a rather easy mode of speculation that is gaining more and more popularity. To be successful in this type of activity, it is necessary to take into account several parameters and master certain techniques in order to make a profit
The choice of maturity is, among other things, a decisive factor in the trading of binary options. Most of the time, hurried traders bite their fingers. Find out why it is better to favour the long term as a binary option.
A wide range of maturities
Since individuals can start trading binary options, more and more online brokers are offering this service. And, in order to satisfy the needs of their clients, these brokers diversify their offers. Most of them provide a wide range of expiry dates. Thanks to a speed trading platform, it is now possible to choose a maturity of only 30, 60 or 120 seconds and thus quickly earn profits as with 24option. And it is also possible to focus on a longer term and choose a term up to several months. Beginners have every interest in adopting this option.
Significant risk of loss
Traders, especially beginners, are most often attracted by fast profits. Indeed, there is nothing like making money in just a few seconds? However, it should not be forgotten that in the case of a false estimate, it will, on the contrary, be a loss of money in only a few seconds. And moreover, returns on losses are generally lower. Generally, brokers only allow 10 or 15% return in case of loss, compared to 60 to 95% in case of gain as proposed by BDSwiss. Thus, to cover a single loss, it is sometimes necessary to win at least twice.
Opting for the long term
Also, in order to avoid rapid losses, the best attitude to adopt is not to rush. When decisions are made in a hurry, the risk of loss is increased tenfold and it is difficult to recover the money lost. And remember that the binary option is not like a game of chance. Although binary option trading works like a bet, it requires market analysis and strategy development to generate profits. It is therefore advisable to choose a longer term, such as a week or a month, and to take a position at the right time, when market conditions are favourable