Wednesday, March 21, 2012

Losing Money On Binary Options - Be Careful!

Binary Options are the newest form of trading style available to US investors. Binaries are similar to basic options where Calls and Puts are purchased, but the risk is potentially higher because the rules are "All or None". If a binary option is not "in the money" when the binary option expires (sometimes hourly), then the investor loses 90% of their investment. If it is in the money, the profits are 70% and higher. High risk, high return. A perfect investor that can predict the future hourly can profit 70% hourly, but no one can predict the future. A risk of 90% for the possibility of making 70% is not statistically sustainable, but the no-brainer picks can make more with binaries than the underlying stock or option.  www.trilateralcapital.com/binary.html

Trilateral recently completed a binary option test drive with EZtrader where no more than $200 was risked at any given time. Less than 100 trades were made, but the technical analysis model had an eighty five percent accuracy. Binary options require a ninety three percent accuracy to accomplish excellent results, but the $200 made a small profit at eighty five percent accuracy. EZtrader offers a bonus to open new accounts and to increase the deposit balance of existing accounts. It is safe to risk the bonus amount while testing the system, but don't risk more than you are willing and able to lose.

Though some days during the test-trading Trilateral profited as much as 105%, other days evened the playing field with losses of 90%.  Binary options are not for inexperienced investors, but are an excellent option for high-risk investors that can afford to risk loss of 90% of their investment.

Other Trilateral partners offer automatic trading capabilities. AvaFX for international investors outside the US and Options House in the US both offer extensive trading tools through the Trilateral web portal. Trilateral does not invest funds on behalf of others and does not advise on publicly traded securities, but it is willing to sometimes share its experiences with others who have interest in Trilateral's partner resources.  www.trilateralcapital.com/trader.html