Binary options sites sell customers on the idea that with binary options trading, your risk and reward are clearly stated and known. This is theoretically true, but it may depend on the bonuses you accepted and how they impact your trading capital. When you sign up for your account you will almost always be offered a match bonus for making your first deposit.
This is common practice from even the legit brokers. The catch is that these bonuses have terms and conditions attached.
Always check the terms and conditions to see how the bonuses work. What is a leverage style bonus you ask? You agree to accept the bonus, and it is credited to the capital you have to work with—but not the capital you can withdraw. In other words, you can use the bonus money to trade, but only after you have turned over the bonus amount a certain number of times usually can you withdraw the money as cash.
The advantage is that it lets you build up your account more quickly if you win. The drawback is that it will bust your account more quickly if you keep losing. This is the double-edged sword that is leverage. Others may offer cash bonuses. Cash bonuses — When they are credited to your account, they are yours to trade with or withdraw immediately. They are literally your money.
What happens if you blow your account? That depends on the broker. Make sure you ask in advance whether you could end up owing your broker more money than you went in with if you are using one of these bonuses to trade. Find out more about binary options brokers offering bonuses here.
Are You Trading on Leverage? About, Privacy, Terms, Disclaimer BinaryOptionsBlacklist has financial relationships with some of the products and services mentioned on this website, and may be compensated if consumers choose to click on our content and purchase or sign up for the service.
Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.
Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
All content on this website is based on our writers and editors experiences and are not meant to accuse any broker with illegal matters. The words Scam, blacklist, fraud, hoax, sucks, etc are used because all content on this website is written in a fictional, entertainment, satirical and exaggerated format and are therefore sometimes disconnected from reality. All readers must personally judge all content and brokers on their own merits.
Additionally, visitors comments are not moderated other than the obvious link spam. Trading binary options is extremely risky and you can lose your entire investment. Only deposit and trade with money you can afford to lose. Always refer to local laws, jurisdictions and authorities before performing any action on the internet. Your capital is at risk. Trade with caution, these products might not be suitable for everyone so make sure you understand the risks involved!More...