Who opens an account on Binary Options
Before opening an account on binary options, each novice trader should clearly define goals and objectives for himself. What motivates you? If you initially set yourself the goal of conducting speculative operations on price fluctuations, you should understand that immediately you are unlikely to begin to profit from such fluctuations, because the market does not tolerate amateurs, and it takes considerable effort and time to acquire the necessary skills and practical experience in trade.
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There are many different reasons for opening an account. A client opening an account on binary options may not initially plan speculative operations on the market. For many, opening an account on binary options is nothing more than just a game. Usually such people just love games for money. They actively bet in various bookmakers, play in the casino. Such people can know in advance that they will not get any profit, their goal is to get a dose of adrenaline. Sometimes they even bet on who will earn more, or spend money. Who does not want to have fun, especially if there is money and confidence in the future.
Opening an account on binary options, such players do not pursue goals such as training, market analysis and hard work. Their only desire is to have a good time. Many of these players spend thousands of dollars, and sometimes tens of thousands, and they do not spare a single spent dollar. For such people to open an account on binary options and trade, it's like once again go to the casino, because the stakes in the casino and on binary options are not much different. Both roulette and binary options have two variants of events - black / white and up / down. Most of all such customers like the so-called "Turbo options", as the outcome of the deal becomes known within 1-5 minutes, it is such an extreme trade that adrenaline lovers like.
Also, accounts on binary options are opened by middle-income people, and who are less dependent on gambling. The purpose of such people - will learn to manage their finances, training and amateur trading, the desire to receive additional profit. Such people are ready to sit for hours at the screen, study price charts, invent and test various trading schemes. Such customers open dozens of accounts on binary options from various brokers, in order to select the most suitable for themselves a trading platform. Initially, on their first deposits such beginning traders are ready to invest about 200-300 dollars, further on the circumstances and the success of their trade. If the market does not give way - someone leaves, someone continues to learn and try new tactics, and someone starts to get it and they gradually increase the size of their deposit.
Another type of customers opening accounts on binary options are businessmen. Such people always have money, as well as specific motives and goals of opening a binary options account. Their goals can be used as speculative goals, usually relying on economic data and hedging objectives. Such "traders" are more conservative in trading and their deals have a longer "life-span". They do not conclude deals for less than 24 hours, and the tactics of trade are of an investment nature, but at the same time, sometimes the investment and the cost of one option can be equated from hundreds to thousands of dollars.
Likewise, such businessmen traders conclude deals with the specific purpose of hedging their real business transactions. That is, a businessman has a business based on that or another product, which you need to insure against sudden price changes to the undesirable side for a certain period. Thus, opening a position in the options market can serve as nothing more than a real business contract insurance. Its goal is not to get speculative profit, but to secure the deal made in real business from undesirable consequences. For more details, see the article "What is hedging?".
Another type of customers coming to binary options open an account, this is a higher level of traders. Such traders have clearly defined goals and objectives. They know in advance what they want and what they will get by opening an account on binary options. Usually their goals are to conduct speculative operations using exhausted tactics and strategies on binary options, or to develop such strategies that are intermarket. That is, the strategy in which, when carrying out a speculative operation, it is assumed simultaneous, or with a certain interval of time, the opening of transactions in two different markets, optional and urgent, or strategies involving "intermarket hedging".
Whatever it was, the motivation for opening an account on binary options is completely different for people. And let many shout and say that the exchange is a game, for many it is true, but there are those for whom binary options and the financial market as a whole is a serious work, and for someone, the financial market is not just trading And work is a way of life.
If you came to the binary options to open an account, but have not yet decided with the broker, I recommend reading the article "Rating of binary options". This article describes why you should not trust such ratings, what they are based on, and how to choose the most suitable broker for you to trade binary options.