Binary options are on the rise among private traders. You can see that above all from the fact that the number of brokers offering has risen immensely. The reason for this is that binary options are very straightforward and give the customer the opportunity to generate high profits even with a small amount of capital - provided that one is willing to bear the very high risk as well. This aspect also makes it easy to see why binary options are aimed at the target group of less wealthy customers. In most cases, the wealthy client does not act himself, but leaves his capital to the bank or the asset manager.
Unlike the private trader, the asset manager does not necessarily have to be better. If you look at the performance of some professionals, you wonder what they actually collect their administration fee for. Asset managers are often professionals in a field of finance, but they still lack the understanding or the feeling for the right market timing. But of course, asset managers sound more serious than speculators or traders. It's just a shame that asset managers often take as high a risk as speculators, but sometimes get even less return for their clients.
We therefore asked ourselves in this article whether it is possible with products how to build a binary income and what is necessary for the binary options? To answer the question we did not have to think long and came to the following summary:
Now trade binary options with the test winner IQ Option
Golden rules of trading
1.) The Traders should know that professional speculation has nothing in common with gambling, even if people outside the industry like to say so again and again. If the speculator is aware of this, he will avoid making his or her decisions based on gut feeling. Prior planning and analysis is essential. Nothing speaks against the gut feeling in speculation, however, the dealer must first learn to have the right gut feeling, which is only possible through many years of experience. A beginner should therefore strictly avoid feeling gut.
2.) Certainly some of the products offered are designed so that the provider has a slight advantage. The speculator must recognize this advantage and know how to circumvent it. Most of the time it is possible to do this by trading only one type of product e.g. only calls or puts or super short-term trading, if you don't know the situation yet.
3.) The speculator should know that not every trade can end in profit, but it is still possible to post a profit at the end of the month.
4.) The speculator should always keep in mind that this is an additional income, although he should focus his full concentration and willingness to learn on the markets. The statement that you can trade successfully without having enough knowledge of the markets is nice but "nonsense". Sooner or later comes the moment that knocks you out of the market just because you concentrate on a few things. The markets are a combination of many factors. It is important to know most, because only then you know which factors are the most important. If you exclude factors from the outset for the purpose of simplification, you do not understand the market when this moment has come and cannot learn from it.
5.) The speculator should be risk-taking but also know how to manage the risk, The binary options trader should therefore not be tempted to risk his last € 500.00. The psychology behind trading and why it is often dismissed as gambling is because many of the private traders have little capital. And the less they have, the more they feel like they want to make quick money. This is a vicious cycle and the key point why many fail in trading. You don't see the business, but the quick money. The advertising industry often helps.
How can binary options generate additional income?
People who want to generate attractive secondary income from a broker with binary options trading meet a few technical requirements.
You need a computer (PC, laptop) with an Internet connection, whereby a tablet or smartphone would also suffice. The majority of binary options brokers can also be easily reached from mobile devices via the mobile trading app for Android or iOS.
These technical conditions are unlikely to be a problem for those seeking binary income 112>
In addition to technical conditions, a certain material basis is necessary. The trader needs some money to trade binary options. For a trial, a few euros as a minimum trading amount is sufficient for some brokers who do not make a minimum deposit. Otherwise it doesn't have to be huge. On average, minimum deposits are between 100 and 250 euros. H
The minimum trading amount often starts at five euros. Binary options can also be set at EUR 500 or EUR 1,000 and, depending on the broker, far more. The possible returns on regular binary options are 60 to 90 percent. With special types of options (touch options), dealers can achieve several hundred percent. There is a high chance of return, but there is also an equally high risk of loss.
Trade binary options with the test winner IQ Option
This type of additional earnings has a real catch. Instead of a profit, total losses are possible. As a trader, you have to manage your trading risk, for example, to start with small bets. Once the first profit is realized, the stakes can be increased.
Traders who are aiming for a binary options additional income should acquire as much knowledge about the market as possible and always keep up to date. In addition to a certain degree of risk tolerance, she should have discipline and her own money management. Anyone speculating with derivatives must be able to handle money. Gamblers will certainly not build any secondary earnings with binary options.
Achieve in trading every day
How much will the secondary earnings with binary options be?
When entering into binary options trading, one should have expectations of the possible ones Don't overestimate success. The experience with binary options already made by traders can help them.
There are both those who double their use monthly and those who have partially or completely lost their capital.
If you manage to keep your stake or your capital in the profit range, the stakes can increase over time and with increasing experience. Then it is possible that the profit increases by the same amount of time.
Binary options have the advantage that they do not need to be constantly monitored. Depending on the time horizon, the trader can buy some options once a day and let them run. In contrast to trading with other derivatives, there is no stop to watch and follow suit.
Binary options are simple and understandable for beginners. You can easily book them from your smartphone. In spite of all the simplicity and the low expenditure of time: The risk of losing your capital is very high.
Opportunity and risk
The average return opportunities are around 80 percent. Several hundred percent return is possible with touch options with increased risk. 30 or 60 seconds of trading time can be enough for a high profit. However, things are not that simple.
The probability that the dealer is correct is by no means 50 percent, as is often assumed. The broker provides the courses, which means an advantage for him. If he wins, he pays out between 60 and 90 percent. If the option lands out of the money, the broker collects the stake.
Some providers offer their customers a refund of 25 percent in the event of loss. But this option is not in vain. Because in the event of a profit, the potential return is reduced accordingly to up to 55 percent. The broker always wins, not the trader!
Trading binary options with longer expiry times can limit the risk of loss, also because using a trend strategy promises success. Options in seconds trading are pure speculation, because even with a trend there are constant up and down movements.
Taxation of profits from trading binary options
If you take things to heart and then do it has successfully managed to trade binary options, the question remains how the gains and losses from trading in binary options will be taxed. Since binary options are financial market products, in contrast to gambling profits, the profits from them are subject to capital gains tax or flat rate tax.
In Germany, every bank is obliged to pay the flat tax automatically during the year and offset it against the losses. The disadvantage for the trader is that he can no longer use the transferred capital. Since most binary options brokers are independent online brokers without a banking license, this obligation does not apply. The dealer can then pay the tax himself in the following year as part of his income tax return.
Trade binary options with the test winner IQ Option
A good broker is the be-all and end-all
The trader who wants to earn extra income from the trade should take the time to find the broker that is suitable for him. Many are similar in this segment, but differ in subtleties, such as the adjustment of the term or a more or less extensive educational offer.
In addition, the trading platform should be individually appealing and clear, which most binary options brokers pay attention to due to the ease of use.
The Broker IQ Option is an EU regulated online broker and offers its clients trading in several types of binary options. He can speak for himself as a competent online broker for binary options thanks to his educational offer and, above all, different account types. Trading in particular is structured and clear, which is important so that the trader can concentrate on the essentials and make no mistakes due to incorrect operation of the software.