If you’re worried about your money, you should know that there are ways to offset potential losses in binary options trading.
Spread Your Investment Around
One of the major mistakes you can make when investing in binary options is to put all your money into a single type of trade. This reduces your chances of being successful considerably.
For example, two of the most common types of binary options choices are Put and Call. Call refers to an option that increases in price by the time it closes in the market, while Put refers to a price decline. One way to increase your chances of making a profit is to pick several binary options and choose Put for some of them and Call for others.
Ideally, you should have knowledge of the market so you’re picking the right option for each of the assets you’re buying, but even if you don’t, spreading your money around is more likely to get you a financial reward than focusing on just Call for one or two options or just picking one type of option for all your money.
Find a Beginner-Friendly Platform
Even if you’ve been trading for a while, trading platforms that cater to beginners are more likely to offer bonuses or loss offset options. Simply put, these are small “rewards” that can help traders either recoup or protect part of their investments.
For example, some platforms allow you to put aside a small percentage of your investment (about 15 %) when you buy an option. If your prediction fails (you bought a Call and the option ends up as a Put), you get that 15% back. So, if you invested $100 on an option and your prediction failed, you still get $15 back. It’s not a major amount compared to your loss, but it’s a small way to get something back.
Look at Bonuses
Binary options bonuses often have a bad reputation. This is because some trading platforms offer bonuses that lock you into unfavorable contracts where you might end up losing money despite how good the bonus is.
This is not always the case, however. In fact, some brokers offer bonuses that could help you offset losses in the long run.
For example, some platforms offer deposit bonuses, where you get credit every time you put money into your trading account. Other platforms will assign you a bonus just for opening an account or if you’re a beginner. This is often known as Risk-Free Trading and allows you to learn about the market without risking your own money. You can also get bonuses for referring a friend or for conducting a minimum amount of transactions every week or month.