Binary options is a simple financial instrument virtually. A trader only needs to specify the increase or decrease of the asset price to receive a profit. However, this simplicity is apparent one. In fact, a binary option trading involves risks, including the risk to financial losses. Therefore, an each trader must realize what risks are confronted before trading.
This agreement provides information describing the trading risks that are associated with the traders operation and services (information) provided on Binarymag site.
Trading operations involves high risks.
Trading is not recommended for individuals that are limited in financial and other resources, have enough experience in the trade and have a low risk tolerance.
Trading binary options, Forex and other derivative financial instruments have the risk high level that are not suitable for all investors. As a result you can lose not only an investment in a particular transaction, but also the whole of deposit. Therefore stay out of trade and investments on financial resources you cannot afford. In particular it is not necessary to invest funds from retirement savings, credit and training funds and mortgages loans and so on.
Consider your goals, needs, financial capabilities, estimate own experience and facts before starting trades. We recommend to address to an independent financial adviser, before proprietary trading start.
Recommendations are not provided
Any data presented on the website Binarymag provide general information about the financial markets and the individuals’ private opinion from the site team. These data are not recommendations for investments. Apply information solely for educational and entertainment purposes only. You should not be relied upon Binarymag website as replacement of a market extensive analysis before the opening of trading positions.
Opinions, market data, advices and all other information can be changed at any time without notice. Binarymag shall not be liable for any loss or damage, including but not limited to any loss of profit caused directly or indirectly by using the website information or its credibility.
We do not recommend using a technical analysis and trading signals as the only tools to make trading decisions. Do not make hasty trading decisions. You should conceive that any historical results and reliability of the information are not guarantees of future outcomes.
Binarymag hereby expressly disclaims all warranties with respect to any services to be provided on the website including all implied warranties of merchantability, proprietary rights and copyright infringement in addition to implied warranties. We do not claim about the suitability of the services and information provided on the website for any purpose. We do not guarantee that services and information will be provided on a regular basis, without interruption or error, that defects will be corrected and the site does not contain viruses or other harmful components. We are not liable for any defects, distortions or communication delays when using the site.
The risk of loss of deposit
A binary option trading is one of the financial investment varieties. Trader invests their funds in the purchase of an asset in the hope to multiply their capital. At that essence of investing is forgotten. Investment is equal to risks. All professionals stress the importance of the fact that a person shall be prepared to ensure that the investment may be unprofitable. Moreover it can be not a local loss but global one capable lead to loss of all deposit.
This point is important, including psychological point of view. Most of traders (especially beginners) cannot control your emotions under the pressure of thoughts about risks with their own money. It is a great obstacle on the way towards success. Therefore, you shall accept the idea that you can lose a deposit before you start trading. This will make the transaction with a "cool head", which will greatly increase your chances of success.
News strategy and other strategies based on the receipt of information became very popular lately. I
t is quite profitable on the one hand and quite risky on the other hand. Do you get accurate and up to date information? The answer this question is quite difficult to find. In fact, traders give it at the mercy of the information agencies. Most of them, of course, provide accurate information, but there are a lot of problems with urgency.
The information appears with a certain delay and allows the trader to make a purchase at a time when most of the major players have already opened positions on the basis of these data,
It’s necessary to bear in mind the fact that a piece of information can be unreliable or time-dependant
Broker risks become well below but anyway they are kept from the date of trading computation. Now there is no need to phone the office and inform what shall be purchased. Nowadays the specialized platforms perform overall operation on behalf of you. But it should be remembered that platforms are not perfect. Some failures and delays happen in operation at times. As a result it may cause that contracts’ part will be purchased not at the planned price.
Some traders which use information from brokers’ companies increase the brokers’ risks greatly. Such sort of information may be called variously- analyst, signals, and predictions. Actually you give the investment portfolio control into brokers’ hands which pursue own purposes.
Markets inaccessibility risks
It is quite disseminated problem faced by many traders. It can be observed the situation when a broker does not permit to purchase an option referring to market inaccessibility. It is due to various factors including a strong oscillation resulting in market inaccessibility in specific second in the context of frequent shift of quotes. As a result of market inaccessibility the situation happens quite a lot when an option is purchased with some delay associated with normalizing the situation. It may be related to a broker heavy workload during traders’ activities, which perform a lot of purchase bids for brief timeframe. That’s why you shall realize before trade execution that likelihood exists that you’ll purchase lot not at optimum price or a market will be closed for your contract.
Signals are a very widespread product to be used by binary options traders. Traders apply the signals because they permit to perform systematized trades without own strategy at the disposal. However you will increase the risks of own trading in that case. It is associated with you are unaware of signal strategy operation principles as well as an author which is responsible for given system.
You shall be very careful with signals usage applying them as an additional analytic tool confirming or disproving your own signal for binary options purchase.
This kind of risks is rare of occurrence but it shall be taken into account in operations. The risk is associated with failure of exchange normal operation. For example it may occur at the moment of rumors appearance about some company. Provided these rumors have a great impact for market price per share. In this case the asset of this type and correlatable with it may be removed from trading by close of the business day.