There was no activity so the computer finally found something to do. This is called a thin market and should be avoided as much as possible as a trader. This was why I placed my order when I did. I had placed my order 4 hours before market open and there were no other idiots trying to be clever with the DOW at the same time. Next day when I checked the charts there was no evidence of the 30 point drop that took my money on any CMC chart. One of the problems with market makers is their trading world consists of only the traders on their system.

During market closed conditions there is no fixed reference for the computers to latch onto. Market Makers use ASX feeds more for correction than direction. I have no problem with the company or the system. If you are a careful trader you will make money. If you are not careful, or you trade outside of market open, you will lose.

If you trade the popular securities during market open you should have no problems. The biggest serious personal headache I had with CMC was choosing what to trade next. It is a traders heaven. Just about every legal tradeable security available as a CFD immediately.

Currencies, Indexes, commodities, domestic and international shares. I could trade pig bellies and orange juice, November wheat and gold if I wanted to.

Where I am now offers only ASX shares on a free but very basic and deliberately not user too friendly platform. If I make a profit I can upgrade but this platform gives me everything I need for daily trading without the information overload that comes with the professional level platforms. There are plenty of moving fish in this sea and they are all alike in how they operate.

They only differ in price. I used to think I was cool because I had a pager and was trading the SPI or XJO. No stops. Shares will do. Lets get technical. Inside day The only decent move was at close when the price went up! Very little volume today so no real pressure to go in any definite direction.

Feb 29th. Investing brokers have no money till 1st March. Tomorrow will be interesting. I must apologise, I made a boo boo about the timing of the major short retracement yesterday. I think I said April. I thought it was a bit too far away so I rechecked the formula and it was wrong. March 4 actually works out to half the time. Pretty convenient hey. Anyway, traditionally the price goes up until the dividend is paid then drops away. This upward pressure is inevitable over the next few days but as to how high?

I would be very surprised if the price went down this week. Short positions receive interest on their overnight holdings and long positions pay that interest. Major double top. Low September Range Wow, I will let you do the math. This is the first time I have ever seen a fatal formation.

There are too many jobs on the line here, I so sincerely hope and pray I am very very wrong. But you watch, Twiggy will go down and his mates the Chinese will buy him out dirt cheap and own yet another useful part of Australia. Anyway, where was I? Why was FMG doing nothing today? Traders day off or something, apogee of the moon paralysed traders, Feb 29 upset the computer programs, who really knows?

I have no idea what is happening in the rest of the market at present. I will read useful information about FMG but otherwise I am ignorant of any external developments.

I only found out today about FMG paying a dividend. If you keep looking around once in a trade, you will always find something better. Now confusion sets in, stay or go? Pick shares, try to find different ones, not a group that travel together, and trade the bejesus out of them. Do the math. What is my return on risk? If it goes to plan. I only need one trade from five to be moderately successful and I am staying in. Tell no one, advise no one and listen to no one.

When you are in your first couple of trades keep it to yourself. EVERYONE will play with your head and they will be justifying their lack of achievement, not your amazing trading skills. You have stops if you are wrong yes? While individual binary options brokers offer no-risk accounts for practice, the majority of online brokers have yet to provide this convenience.

This makes it more difficult and riskier for those wanting to try trading binary options for the first time. Note that in the future, more brokers are likely to offer this, so keep an eye out for updates. Generally, you can control the amount of money that you trade, but bigger payouts will tend to come from bigger risks. It can be challenging to determine when to take action because market movements are inconsistent, and you sometimes only have a brief window of time to decide on a trade.

This may lead to riskier choices. They also generally offer a lower payout than the forex market. However, despite the lower price, the level of risk in comparison to forex positions is lower. In the United States, binary options tend to trade on platforms that are fully regulated by the Securities and Exchange Commission as well as other prominent regulatory agencies. Alongside the rules, you should also be aware of the broker fees, tax, licensing, etc.

There is a history of online brokers scamming people out of the money that they invested. before trading through them.

Those are the top pros and cons that you should be aware of when it comes to trading binary options. Although many traders might find that the process is straightforward, others might find it a little more complicated. I want to Introduce you to an online business platform that enables you to make money and be financially free, I believe you have heard about Bitcoin Investment which is currently changing the lives of people around the world. Thanks, interesting article! As the cryptocurrency market develops, there are more and more platforms that allow the use of trading bots.

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But we highly recommend you read our breakdown of why binary options are actually a bad idea. In the world of financial markets and derivatives, there are many different ways of investing and trading to hopefully make a profit. Binary options, unfortunately, have proven to be a rather persistent trap for would-be traders and a snare for many beginners looking for a simple, seemingly straightforward introduction to the financial world. Binary options allow traders to win or lose a fixed amount based on the movement of any financial instrument, underlying asset or market for a certain period of time.

Traders trade based on whether they think that that movement will be upwards or downwards, thus placing their trade according. The significant appeal to understand about binary options is that it has three clear, definite parts to it:.

Binary options seem so appealing because they offer traders a cap in terms of the risk to which they financially expose themselves. Sure, even enthusiasts will admit that they also lock traders tino a capped profit but for many the appeal of having a limited risk exposure seems too good to be true.

And it just might be. The significant feature of the binary option is the fixed return offered. When the option expires, the trader will either receive or lose the fixed return regardless of how much movement there was.

Thus, the quantitative risk and reward is known. The expiration date or time is the point at which the trade ends and the price at that point determines whether the trade is won or lost. While hypothetically the expiration times can vary in lengths in anything from a minute to a full year, the reality is that most people enticed into trading in binary options are grabbed by the supposed promise of quick returns.

Hence, most binary options tend to be very short term gambles. So, what are you supposedly doing when you trade with binary options? If a call is made, the price of the stock, commodity or currency pair in forex trading needs to be above the strike price at the expiration date or time. At this point you might be wondering what makes binary options such a bad idea?

It seems simple enough and not too bad, right? Well, you might be right if you consider binary option trading the same way you consider betting on red at a roulette table in a casino. Extremely short bets on market fluctuations are more likely to be a complete and utter guess than based on any knowledge. It is, for lack of a better word, a gamble. The lack of sufficient regulation and oversight over binary option trading makes the entire endeavour a lot riskier than other forms of trading.

Scams and fraudulent behaviour have become more associated with binary options than other trading and if something does go wrong with your trading, there is no overarching organisation to which you can turn. For example, if there is discrepancy in your trade, there is no external body that regulates binary trading to settle the dispute.

Even brokers, by not relying on external sources for quotes in trading, can be vulnerable to malpractice. For this reason, binary options is a restricted form of trading in the U.

Inside the U. S, the Chicago Board Options Exchange and North America Derivatives Exchange NADEX have both set up exchanges to facilitate those who wish to trade binaries in the U. Financial regulatory authorities in the U. have warned traders to be aware of companies that offer platforms for trading in binary options.

Online scams are also a huge risk factor. First, you need to realise that to make serious money you need to execute a series of successful binary trades. But how much do you need to trade? Most online web traders for binary options set up their platforms in such a way where the house to extend the casino analogy always wins. Now, you make individual trades. See the problem? You need to win over half of all your trades just to come out with the same amount of money as you went in with.

Now, consider the odds on winning enough trades to actually make some money on binary options! Not to mention that over a third of all market-related complaints had to do with binary trading. The team at Global Prime are always here for a friendly, no-obligation chat about all things trading and financial markets and happy to further discuss better alternatives for beginner traders that offer more informed investment strategies than binary options.

Personal Pro. Help English. Why Global Prime? World Class Trading Ethical Dealing Model Radical Transparency Best Trading Platforms. Dealing Model World Class Trading Ethical Dealing Model Best Execution How we make money ECN Advantage Trade Flow Process Trade Receipts.

Trading Tools Autochartist Alerts Market Opportunities Chrome Extension VPS Offers MyFXBook Autotrade PIP Calculator Economic Calendar. Need Help? Discord Community FAQs Live Chat. Binary options: Good or Bad Idea? Understanding binary options Binary options allow traders to win or lose a fixed amount based on the movement of any financial instrument, underlying asset or market for a certain period of time.

The significant appeal to understand about binary options is that it has three clear, definite parts to it: A definite expiration date; A defined time period; and A clear strike price.

Trading on fluctuations and making money So, what are you supposedly doing when you trade with binary options? Foreign currency pairs in the forex market The price of commodities, from gold to crude oil, and from copper to corn. To make money on a binary option one of two things needs to happen: If a call is made, the price of the stock, commodity or currency pair in forex trading needs to be above the strike price at the expiration date or time.

If a put is made, the price needs to be below the strike price at the expiration time. What makes binary options such a bad idea? The gamble Extremely short bets on market fluctuations are more likely to be a complete and utter guess than based on any knowledge. But if the risk is limited and potential losses are capped, why is it so bad? Lack of regulation The lack of sufficient regulation and oversight over binary option trading makes the entire endeavour a lot riskier than other forms of trading.

Despite its all-or-nothing premise the good news is that there are some things you can do to reduce this risk. Just about every legal tradeable security available as a CFD immediately. How To Use Mobile Apps To Trade Binary Options Tips Lilachbullock In Mobile App Trading Binary. Previous Previous. In my case I would like to blame the provider and the platform but realistically I was a victim of my own cleverness how unusual and if I had spoken up at the time, something probably would have been done.

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