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What’s the Best Way to Trade Binary Options?

Question: Is there a safe way to day-trade binary options? How do you find a reputable broker?

– Robert DiNunzio, Brockton, Mass.

Answer: Using the word “safe” to describe any kind of day-trading activity is a stretch—especially for an investment vehicle as esoteric and complex as this. Without getting too technical, a binary option is an all-or-nothing bet that a stock price will hit a certain mark. Only a tiny handful of retail outfits in the U.S. currently offer a way to trade binary options, due to their complexity, lack of liquidity and low investor demand, says J.J. Kinahan, chief derivatives strategist for broker TD Ameritrade. You might find more options for trading them abroad, on a foreign broker platform, but experts recommend trading on an exchange rather than over the counter, since the exchanges guarantee the trade.

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    • I have to say that you can not counter act on the risk of binary trading, the risk is always present and the only thing you can do is read a lot, anaylyze a lot and visit more financial sites for more helpful signal and you may also want to read anyoption review http://www.ouranyoptionreview.com so you know exactly what’s going on in different trades in the market, or what kind of assets are goodb to trade so you may land on what you call safe zone.

    • I totally agree that there is little that can considered ‘safe’ whenever the term ‘investment’ is used. With binary options you will face risks which is why such a high return is offered on the contracts. While risks are controlled (You can’t lose more than you invest on a contract) this does not mean they eliminated. You can read more information about the way in which the contracts work here – http://www.binaryoptionsinfo.co.uk.

    • I’m not really sure how anyone could consider binary options to be ‘safe investment’. Any form of financial trading or investment where any form of capital risk is involved cannot be considered safe. However if the original question had been phrased to ask about ‘controlled risk’ then this is a different matter. The fixed nature of the product in terms of return and liability make it clear exactly what the boundaries are before any money is parted with. In that respect it is certainly a transparent way of trading.

      With this is mind you also need to safeguard yourself by trading with reputable online companies. For more information on regulation and what this means in terms of risk visit here – http://www.binaryoptionsprofits.net.

    • Binary options are indeed very safe to trade as long as you trade with a reputable broker. Master Binary Options have gone through all 10 main brokers and reviewed most aspects of them from trading to withdrawal. To get an idea of which brokers are safe and the ones to avoid make sure you check out the Master Binary Options portal.

      http://www.masterbinaryoptionstrading.com

    • I posted a well thought out response to this trend. Please could you tell me why it has not appeared?

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