The very advantage of spot trading is its very same failure — the expansion of profits exponentially from 1 point in price. There are also regulators operating in Malta and the Isle of Man. Brokers will cater for both iOS and Android devices, and produce versions for each. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout which never occurs in most cases. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration.
So, in short, they are a form of fixed return financial options. Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers. Trade Corrections When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake.
Unlike in forex where traders can get accounts that allow them to trade mini- and micro-lots on small account sizes, many binary option brokers set a trading floor; minimum amounts which a trader can trade in the market. There are also regulators operating in Malta and the Isle of Man. Long term — Any expiry beyond the end of the day would be considered long term.
Spot forex traders might overlook time as a factor in their trading which is a very very big mistake. So, in short, they are a form of fixed return financial options. If the price action does not touch the price target the strike price before expiry, the trade will end up as a loss. Will a price finish higher or lower than the current price a the time of expiry.
Of course in such situations, the trades are more unpredictable. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders. Will a price finish higher or lower than the current price a the time of expiry. Expiry times can be as low as 5 minutes.
This gives a trade that initially started badly the opportunity to end well. Operators making such claims are very likely to be untrustworthy. Of course in such situations, the trades are more unpredictable. Marketing promising huge returns. This is clear warning sign.